4A's Agency2020 Report

Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 1Unleashing Global Marketing Potential™
V5 Revised 03/03/14
Quantitative Results Discussion
March 6th 2014

Agency2020 Initial Quant Debrief• Page 2
Today’s Purpose
• Review of Quant results
– Trends
– Opportunities & Challenges
– Characteristics of Over-Performers
– Client - Agency differences
– Media - Creative Agency differences
– Different cuts (Size, Age, Affiliation)
• Identifying key insights
• Aligning on implications
• Next Steps
Aligning on Key insights

Research Sources

Research Input
Creative
Client
Media
Other*
Qualitative Quantitative
*E.g., educational institutions, .com’s (Facebook,
Twitter, Google, etc.)
Desktop Research
Creative
Client
Media
Other
US Respondent Distribution
• Audit of industry-relevant
news coverage
• Sources incl. Adage,
Adweek, WARC, HBR, etc.
• Deep dive into M2020
Research on client
organizations
• 75 Vision Interviews with
thought-leaders
• 34 Creative
• 24 Media
• 12 Client
• 5 Other
• Incl. important sub-segments
e.g., Millennial, Procurement
• 110 M2020 interviews with
CMOs, CEOs, opinion Leaders
• 725 total completed survey
• 409 agency
• 247 client
• 69 Other
• US data was used for analysis

In Vision Interviews, we spoke to Agency,
Client, and Media Thought-Leaders…

Over 250 Marketing2020 CMO interviews

…from leading marketing organizations

Client Respondent Profile
Who did we talk to?
6%
19%
38%
38%
Years of professional work experience
<5 year
5-15 years
16-25 years
>25 years
3%
21%
3%
9%
4%
4%
13%
3%
11%
5%
1%
5%
20%
Type of industry
Media/Communications
Consumer Packaged Goods
Telecom/TV/Internet
Manufacturing
Transportation/Logistics
Retail
Healthcare
Nonprofit/Association
18%
45%
25%
13%
Current position
Board/EVP/SVP/ C-
suite
VP/Director/ Head
Manager
Other

Overall Agency Respondent Profile
Who did we talk to?
5%
14%
34%
48%
Years of professional work experience
<5 year
5-15 years
16-25 years
>25 years
21%
42%
36%
2%
Type of agency
Independent/ privately
owned - single shareholder
Independent/ privately
owned - multiple
shareholder
Part of a holding company
Other
58%28%
8%
6%
Current position
Board/EVP/SVP/ C-
suite
VP/Director/ Head
Manager
Other

US Creative Agencies
Who participated?

Creative Agency Respondent Profile
68%
30%
2%
Type of Agency
Independent/privately
owned
Part of holding
other 58%
28%
7%
7%
Current position
Board/EVP/SVP/ C-suite
VP/Director/ Head
Manager
Other
2% 2%
7%
37%
24%
9%
19%
Average rate of Revenue
Decline more than 20%
per year
Decline between 20% and
10% per year
flat per year
Growth between Flat and
10% per year
Growth between 10% and
20% per year
28%
26%
27%
18%
Size of Agency
0-49 FTE
50-130 FTE
131-490 FTE
491 FTE and more
6. 10.
27. 8.
Who did we talk to?

US Media Agencies
Who Participated?

Media Agency Respondent Profile
24%
76%
Type of Agency
owned
Part of holding
62%
24%
10%
4%
Current position
Board/EVP/SVP/ C-suite
VP/Director/ Head
Manager
Other
2%
4%
34%
36%
4%
20%
Average rate of Revenue
10% per year
flat per year
Growth between Flat and
10% per year
Growth between 10% and
20% per year
Growth over 20% per year
4%
18%
10%
68%
Size of Agency
0-49 FTE
50-130 FTE
131-490 FTE
491 FTE and more
6. 10.
27. 8.
Who did we talk to?

We analyzed the Quant results from multiple
perspectives
Data cuts performed
Performance
• “Over-performers”
(revenue growth >10%
last 3 years) vs “The Rest”
(revenue growth <10%)
• “Over-performers” vs
“Bottom 3” (revenue
decline)
Type
• Agency vs Client
• Creative vs Media
Size
• Large Creative Agency
(>191 FTE) vs Small
Creative Agency (<55 FTE)
• FTE (0-49, 50-130, 131-
490, >491)
Respondent
Experience
• >15 years experience vs
<15
Note: Other cuts (e.g., by region/location) have been explored, but have not been as discriminating

Young People
• Rising Stars in-depth interviews
• Extra online research
• Millennial in the Agency World
Who did we not talk to enough?
And what did we do to compensate?
Global Agencies
• Online research

Under-
performers
Over-
Performers
17
Validation

Industry Change Drivers
Trends

Change Drivers
1. Mega Trends
2. Client Trends (Marketing2020)
3. Agency Trends

Megatrends
that challenge us all

Social marketing
Purposeful Marketing
Collaborating with Consumers
Globalization

Opportunity to influence business

Privacy risks
Organizational silos
Doing more with less
Touch point consistency

Many industry change drivers emerged from
the Vision Interviews
Proliferation
of Media
Rise of
Procurement
Budgets
Super-Group
Mergers
New
Technology
In House
Agencies
CMO
Turnover
Crowd-
sourcing
Big Data
Open
Innovation
Social Media
Programmatic
Media
Proliferation
of idea
providers
New Platforms
Connected
Consumers
Transparency
Millennials
Talent
Hispanics
Cultural
Evolution

The top three trends Agreement
Agency Client
1
2
3
0 10 20 30 40 50 60
New providers of ideas (e.g., idea
boutiques, Facebook, Twitter)
Big data (e.g., media buying based
on big data)
Increased focus on measurement,
ROI, and demonstrating the value
of Ideas
50%
38%
31%
0 10 20 30 40 50 60
Big data (e.g., media buying based
on big data)
New providers of ideas (e.g., idea
boutiques, Facebook, Twitter)
Increased focus on measurement,
ROI, and demonstrating the value
of ideas
54%
44%
43%
Note: low base “Client” – conclusions are indicative

But Important differences too …
50%
38%
31%
28%
27%
25%
25%
17%
17%
15%
11%
10%
6%
54%
43%
44%
3%
19%
23%
30%
11%
28%
14%
18%
10%
6%
Increased focus on measurement, ROI and demonstrating the value of ideas
Big Data (e.g. media buying based on big data)
New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter)
New agency revenue streams (e.g., New Products, Experiences, Cultures)
Convergence of idea providers - 'everybody doing everything'
Collaboration - within and across the agency, and inter-agency
Insights that drive creation of messaging and ideas
Generation Y - Millennials as employees, recruiters and idea generators
Budget restrictions, cost-cutting
The commoditization of creativity
The rise or changing role of In-house agencies
The power of procurement
Agency and network mergers
Agency Client
Increased focus on measurement, ROI and demonstrating the values of Ideas
New providers of ideas (e.g. Idea Boutiques, Facebook, Twitter)
Q1. What are the top 3 trends that you believe will impact the future role of agencies

How are Agencies reacting?

Clients do not see agencies evolving as radically
as agencies claim to be
3,4
2,8
49%
19%
20%
26%
Strategy
Mean% More Iterative/Iterative % More Radical/Radical
Agency
Client
3,1
2,7
35%
14%
27%
26%
Structure
Agency
Client
3,5
2,9
51%
26%
19%
23%
Capabilities
Agency
Client
In reaction to this trend, please describe your agency’s response
2%
21%
3%
30%
2%
23%
NA
Q3
Q5
Q4

But clients do not see agencies evolving as
radically as agencies claim to be
3,0
2,6
34%
17%
29%
31%
Strategy
Agency
Client
2,9
2,3
26%
6%
33%
34%
Structure
Agency
Client
3,2
2,7
40%
20%
24%
26%
Capabilities
Agency
Client
New providers of ideas (e.g. Idea Boutiques, Facebook, Twitter)
7%
29%
9%
34%
7%
31%
NA
Q3
Q5
Q4

But clients do not see agencies evolving as
radically as agencies claim to be
3,1
3,2
40%
35%
29%
24%
Strategy
Agency
Client
3,0
2,8
36%
21%
31%
27%
Structure
Agency
Client
3,2
3,1
45%
35%
23%
27%
Capabilities
Agency
Client
5%
24%
6%
38%
5%
24%
NA
Q3
Q5
Q4

Trends – Independent vs Holding
3,5
3,4
51%
46%
20%
19%
Strategy
Independent
Part of
holding
3,1
3,4
34%
39%
29%
20%
Structure
Independent
Part of
holding
3,5
3,5
52%
50%
17%
20%
Capabilities
Independent
Part of
holding
2%
1%
4%
6%
2%
1%
NA
Q3
Q5
Q4

There were no “wow” differences when
comparing trends from small vs. big creative agency
51%
33%
25%
28%
29%
27%
27%
19%
17%
17%
6%
5%
18%
49%
33%
31%
31%
28%
24%
23%
17%
16%
16%
13%
12%
7%
Small Creative Agency Large Creative Agency
* Only US data
Based on the scores of the Creative agencies
No significance testing completed
– advise if you need

Cut Small vs Big Creative agency
3,4
3,2
49%
38%
18%
21%
3
3,1
25%
35%
35%
29%
3,5
3,4
51%
50%
15%
23%
0%
10%
0%
6%
0%
2%
NA
Q3
Q5
Q4
StrategyStructureCapabilities
Small Creative
Agency
Large Creative
Agency
Small Creative
Agency
Large Creative
Agency
Small Creative
Agency
Large Creative
Agency
Note: very low base “Small” & “Large” – do not make hard conclusions
No big differences
No big differences

More than any other, Media agencies fully
recognize the importance and impact of Big Data
and new revenue streams
49%
33%
33%
27%
27%
26%
26%
17%
17%
17%
12%
9%
6%
60%
12%
68%
28%
38%
16%
16%
18%
20%
2%
0%
18%
4%
Creative agency Media agency
Note: very low base ‘Media agency’ do not make hard conclusions

Media agencies are more focused on new
revenue streams than creative agencies…
Zooming in on top 3 trends
Creative
0 20 40 60
Big Data (e.g., media
buying based on big
data)
New providers of ideas
(e.g., idea boutiques,
crowdsourcing,
Facebook, Twitter)
Increased focus on
measurement, ROI, and
demonstrating the value
of ideas
49%
33%
33%
1
2
3
Media
0 20 40 60 80
New agency revenue
streams (e.g., new
products, experiences,
cultures)
Increased focus on
of ideas
buying based on big
data)
68%
38%
60%

Media agencies are more aligned with over-performers…
Focus on new revenue streams is the difference
1
2
3
Media
0 20 40 60 80
New agency revenue
streams (e.g., new
products, experiences,
cultures)
Increased focus on
of ideas
buying based on big data) 68%
38%
60%
Over-performers
0 20 40 60
New agency revenue
streams (e.g., new
productes,
experiences,
cultures)
Big data (e.g., media
buying based on big
data)
Increased focus on
measurement, ROI,
and demonstrating
the value of Ideas
45%
35%
36%

0 20 40 60
(e.g., Idea Boutiques,
Crowdsourcing, Facebook,
Twitter)
Big data (e.g., media
buying based on big data)
Increased focus on
of Ideas
54%
31%
38%
…whereas creative agencies are more aligned
with the “rest”
More focused on the competition, not developing their
own capability
Creative
0 20 40 60
buying based on big
data)
(e.g., idea boutiques,
crowdsourcing,
Facebook, Twitter)
Increased focus on
of ideas
49%
33%
33%
1
2
3
45%
35%
36%
Rest

footer text to be changed in Slide Master • Page 40Unleashing Global Marketing Potential™
A2020 Over-Performers
What makes them winners?

Who are the Over-performers?
Over-performers self-reported revenue growth >10% in last 3 years
25%
27%
26%
22%
Size of the Agency
0-49 FTE
50-130 FTE
131-490 FTE
491 FTE and more
84%
16%
Agency offering
Creative Agency
Media Agency
70%
29%
2%
Type of Agency
owned
Part of holding
other
0-49 FTE n=31
50-130 FTE n=34
131-490 FTE n=33
491 FTE and more n=27
Creative Agency n=105
Media Agency n=20
Independent/privately owned n= 87
Part of holding n=36
Other n=2
Only US data
n=125
7. 6.
8.

Over-performers are more focused on new
revenue streams than new providers of ideas
Less looking at the competition, more evolving the company
45%
36%
35%
30%
28%
26%
22%
18%
14%
14%
14%
11%
6%
54%
38%
24%
31%
20%
28%
23%
19%
18%
20%
11%
10%
5%
Over-performers Rest
Big Data (e.g. media buying based on big data
What are the top 3 trends that you believe will impact the future role of agencies
**
**represents a difference that is significant (95% of confidence)
*represents a difference that is indicative (90% of confidence)

Across the board, over-performers are evolving
more radically in response to trends
3,7
3,2
66%
41%
14%
24%
Strategy
Over-perform
Rest
3,4
2,9
52%
26%
21%
35%
Structure
Over-perform
Rest
3,7
3,3
64%
47%
14%
24%
Capabilities
Over-perform
Rest
0%
1%
0%
1%
0%
0%
NA
Note: low base both groups – results are indicative
Q3
Q5
Q4

Across the board, over-performers are
evolving more radically in response to trends
3,5
2,9
51%
32%
18%
38%
Strategy
% More Iterative/Iterative % More Radical/Radical
Over-perform
Rest
3,2
2,8
42%
32%
24%
40%
Structure
Over-perform
Rest
3,5
3,0
56%
37%
18%
29%
Capabilities
Over-perform
Rest
4%
4%
4%
4%
4%
4%
Mean
NA
Q3
Q5
Q4

Across the board, over-performers are
evolving more radically in response to trends
3,7
3,5
61%
54%
11%
21%
Strategy
% More Iterative/Iterative % More Radical/Radical
Over-perform
Rest
3,3
3,1
48%
33%
25%
30%
Structure
Over-perform
Rest
3,7
3,4
64%
44%
16%
16%
Capabilities
Over-perform
Rest
0%
2%
0%
2%
0%
2%
Mean
NA
Large gaps
across all
three
measures
Q3
Q5
Q4

Big Insights
Purposeful Positioning
Total Experience
Harvesting learning and
leveraging skills
Building understanding and
interdependent mindset
Energizing passion
around the brand vision
Aligning strategy,
targets and rewards
Creating structure and roles and
responsibilities and aligning behavior
Drivers of Global Marketing Effectiveness

Big Insights
Big Insights
Total Experience

Clients doubt that agencies have the right data and
analytics available
48% 49%
45%
35%
60%
54%
0%
20%
40%
60%
80%
100%
Our agency has the right data and analytics
available to measure effectiveness
Big data will help demonstrate the value of
creative ideas
We have a structural approach in place to
track brand equity
Agency Client
% Strongly agree & Agree
Q7. Q8. Q9. Q10.
Note: low base “Client” – results are indicative
**
*
* Represents a difference that is indicative (90% confidence)
** represents a difference that is significant (95% of confidence)

Media agencies are more confident in their
ability to lead the way when it comes to data
45% 46%
68% 68%
0%
20%
40%
60%
80%
100%
Our agency has the right data and analytics available to measure
effectiveness
Big data will help demonstrate the value of creative ideas
Creative Media agency
Q7 Q8
**
**
1 2 3

Smaller creative agencies feel less equipped
than larger creative agencies
Q7.
Small creative
agencies feel
even less
equipped
37%
50%
0%
20%
40%
60%
80%
100%
Our agency has the right data and analytics available to measure effectiveness
Small Creative Agency
Large Creative Agency % Strongly agree & Agree
*

On all capability measures the agency rates
itself higher than rated by clients
Agency Egos 
45%
58%
35%
41%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics Our agency’s senior management sufficiently understands social
and digital marketing
Agency Client
Q26. Q25.
Note: low base, conclusions ‘Client’ are indicative
Agency Leadership
**

Bigger agencies have more sufficient capabilities
in data and analytics than smaller agencies
30%
44%
45%
59%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics
0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
Note: low base, conclusions of all ‘FTE groups’ are indicative
Q26.
% Agree
**4
**4 **2, 4
**4
1 2 3 4

Media agencies have the edge over creative when
it comes to data
41%
66%
0%
20%
40%
60%
80%
100%
Note: low base “Media”, do not make hard conclusions
% Agree
Q25 Q26
**

footer text to be changed in Slide Master • Page 54Unleashing Global Marketing Potential™
A2020 Over-Performers
What makes them winners?

Over-performing agencies have more developed
capabilities in Social and Big Data
55%
34%
0%
20%
40%
60%
80%
100%
**

Zooming in:
Over-performers vs Bottom 3
55%
34%
0%
20%
40%
60%
80%
100%
Over-performers Bottom 3
Note: very low base both groups – no hard conclusions
Note: Even though significant, no
hard conclusions due to low base
when over vs bottom 3
**

Over-performers are confident that big data is
well integrated at their agency
60%
49%
10%
54%
40%
45%
15%
47%
0%
20%
40%
60%
80%
100%
Our agency has the right data
and analytics available to
measure effectiveness
We have a structural approach
in place to track brand equity
I personally think that data and
KPI driven thinking is the enemy
of creativity in marketing
Big data will help demonstrate
the value of creative ideas
Overperformers Rest
All embrace big data – not the enemy of creativity
Q7. Q8.
**

Zooming in:
0 10 20 30 40 50 60 70 80 90 100
Overperformers
Bottom 3
54%
41%
Note: very low base both groups –
no hard conclusions
Q7 Our agency has the right data and analytics available to measure effectiveness
0 10 20 30 40 50 60 70 80 90 100
Overperformers
Bottom 3
Q8 Big data will help demonstrate the value of creative ideas
60%
39%
54%
34%
**
**

footer text to be changed in Slide Master • Page 59
Big data is more integrated in the over-
performing agencies
60%
49%
10%
54%
40%
45%
15%
47%
0%
20%
40%
60%
80%
100%
Our agency has the right data
and analytics available to
measure effectiveness
We have a structural approach
in place to track brand equity
I personally think that data and
KPI driven thinking is the enemy
of creativity in marketing
Big data will help demonstrate
the value of creative ideas
Overperformers Rest
% Strongly agree & AgreeOnly US data
Based on the scores of the agencies
The “unknown” category is excluded (n=71)
Overperformers n=125
Rest n=177
Q7 Q9 Q10 Q8
**

Big Insights
Total Experience

Clients feel more purposeful
49%
71%
0%
20%
40%
60%
80%
100%
The positioning of the brand or organization I work with is societally purposeful
Agency Client
% Strongly agree & Agree• Only US data
• Based on the scores of the Agencies & Clients
• The “other” category is excluded (n=38)
Q14
**

Clients do not perceive agencies as having clear
positioning…
75%
46%
0%
20%
40%
60%
80%
100%
Our agency has a clear positioning
Agency Client
Q12
**

Or having a societal purpose…
51%
38%
0%
20%
40%
60%
80%
100%
The positioning of our agency is societally purposeful
Agency Client
Q13
**

footer text to be changed in Slide Master • Page 64
On all positioning measures, “winners” over-
perform the less performing companies
79%
57%
53%
71%72%
48% 46%
52%
0%
20%
40%
60%
80%
100%
Our agency has a clear
positioning
The positioning of our agency is
societally purposeful
The positioning of the brand or
organization I work with is
societally purposeful
We ensure that all employees
are fully engaged with our
purpose
Overperformers Rest
Q12 Q13 Q14 Q15
**

Zooming in:
79%
61%
0%
20%
40%
60%
80%
100%
Our agency has a clear positioning
no hard conclusions
Q12
**

Zooming in:
57%
39%
0%
20%
40%
60%
80%
100%
The positioning of our agency is societally purposeful
no hard conclusions
Q13
*

Zooming in:
71.00%
32.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
We ensure that all employees are fully engaged with our purpose
no hard conclusions
Q15
**

Total Experience
Big Insights
Total Experience

Bigger agencies sense the agency’s role
generalizing more than smaller agencies
30%
44%
62%
65%
0%
20%
40%
60%
80%
100%
Agency roles will generalize towards everybody doing everything
0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
Note: low base – all ‘FTE groups’ – results are indicative
Q16 Q17
1 2 3 4
**2, 4
**3

HOW:
Organizing
for Growth
Big Insights
Total Experience

This necessitates moving from a “bowtie” to
“diamond” model
• Traditional, transactional approach
• One point of contact between
company and stakeholder
• Functional silos
• Collaborative, team approach
• Many points of contact between
company and stakeholder
• Networked – cross-functional

For example, as in…
Account
Manager
Client
Contact
Account team
Planning team
Creative
Finance
Production
Digital
Marketing
R&D
Executives
Finance
Account
Manager
Client
Contact
Account team
Planning team
Creative
Finance
Production
Digital
Marketing
R&D
Executives
Finance
From…
To…
Silo’d
Transactional
Collaborative
Networked

Inspire

Clients and Agencies equally engage with employees
60% 61%
0%
20%
40%
60%
80%
100%
We ensure that all employees are fully engaged with our purpose
Agency Client
Q15

So let’s back up: how inspiring is the industry?
• McCann presented “The Truth About
Advertising” at last years 4A’s Transformation
• Widespread quant/qual survey that included
industry and consumers
• High-level compare/contrast on how “inspiring”
the industry – killer findings include:
– 70% of people in industry think “the best is
behind us”
– 56% of people in advertising think that
industry people wish they were doing
something more creative
– 80% of people in advertising think
advertising is a “sink or swim” environment
– 57% of industry folks think the industry has
a problem attracting/retaining talent
– 69% of consumers think advertising has the
power to change the world (!)
Killer findings from McCann’s presentation at last year’s Transformation
See complete findings inside Desk Research Reader under “Inspire”

Agencies’ missions celebrate “what we do” –
rather than celebrating “what the world can do”
To help the next generation of
women develop a positive
relationship with the way they
look – helping them raise their
self-esteem and realize their full
potential
To give people the power to
share and make the world more
open and connected
To create the world’s most
compelling content – through a
relentless focus on the work, the
work, the work
To bring inspiration and
innovation to every athlete in
the world* (*if you have a body,
you have an athlete)
To organize the world’s
information and make it
universally accessible and useful
To redefine how stories can be told
across brand, digital, and
commerce
To refresh the world, to inspire
moments of optimism and
happiness, to create value and
make a difference
To give everyone the power to
create and share ideas and
information instantly, without
barrier
To be the best creator of ideas
that truly move people – bar none
To create a better everyday life
for the many people
To be Earth’s most customer-
centric company, where
customers can find and discover
anything they might want to buy
online
To create the most meaningful
brand connections with the lives of
people everywhere

Focus

Agencies and clients are generally well aligned
when it comes to the best measures
0 10 20 30 40 50
Client Brand Awareness
Client sales or profit levels
Consumer Engagment
0 10 20 30 40 50 60
Client Market Share
Brand Equity / Health
Consumer Engagement
Agency
Client
1
2
3
1
2
3
47%
36%
33%
48%
36%
29%
29%
29%

For over-performers, consumer engagement
and sales best capture the value of the agency
54%
37%
34%
27%
26%
24%
12%
10%
9%
9%
8%
6%
5%
5%
1%
0%
34%
42%
39%
29%
32%
37%
28%
16%
8%
9%
5%
7%
4%
5%
5%
1%
2%
33%
Consumer engagement
Client Revenue Growth
Client Market Share
Buzz/ Advocacy
Media planning & buying efficiencies and effectiveness
Brand Love
Share of Voice/ Experience
MROI
Creation of new products and services
Net Promoter Score (NPS)
Agency growth in terms of share, revenues and/or profit
Other
Creative Awards
It depends on the client/ brand's objectives
Overperformers Rest
Consumer engagement
Q6. Which 3 measures or metrics best capture the value of the ideas that agencies create for brands?
* Only US data
The “unknown” category is excluded (n=71) Over-performers n=125
Rest n=177
Total experience
Over- are more
focused on client
revenue growth
**
**

Over-performers are using “new” metrics
Zooming in on capabilities
54%
34%
27%
26%
12%
42%
29%
32%
37%
16%
Consumer engagement
Buzz/ Advocacy
Overperformers Rest
* Only US data
The “unknown” category is excluded (n=71) Over-performers n=125
Rest n=177
Engagement, revenue
growth, and innovation are
more “new” metrics
Brand equity, awareness,
and buzz, are more
traditional

46%
35%
34%
33%
28%
28%
14%
10%
7%
6%
6%
5%
5%
5%
2%
1%
37%
50%
22%
52%
32%
12%
30%
8%
8%
22%
8%
12%
0%
4%
6%
0%
2%
32%
Consumer engagement
Client Market Share
Buzz/ Advocacy
Brand Love
Media planning & buying efficiencies and effectiveness
Share of Voice/ Experience
MROI
Net Promoter Score (NPS)
Creation of new products and services
Agency growth in terms of share, revenues and/or profit
Creative Awards
Other
It depends on the client/ brand's objectives
Measurement – creative versus media

Organize

Lack of clarity around roles and responsibilities is
a major issue
34%
45%
32%
41%
38% 38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
It is fully clear to everybody where
individual responsibilities start and end
within the agency
between the agency and the client
between our agency and other agencies
working on the same brief/ client
Agency Client
Agency thinks roles
between agency-client are
more clear than the client
Client thinks roles between
multiple agencies are more
clear than the agency

Even for over-performers, huge opportunity to
create clarity around roles and responsibilities
36%
50%
39%
34%
43%
27%
0%
20%
40%
60%
80%
100%
within the agency
between the agency and the client
between our agency and other agencies
working on the same brief/ client
Overperformers Rest
% Agree* Only US data (& only M2020 US data)
The “unknown” category is excluded (n=71)
Structure is more clear for
over-, but even the
winners haven’t cracked it
Importance of clarity in
partnerships – role of client to
define roles/responsibilities
Q20 Q21 Q22
**

Where do agencies stand when it comes to
Millennials?
Significant differences across three dimensions
Q24 Our Agency is successfully attracting, developing, and retaining Millennials
0
10
20
30
40
50
60
70
80
90
100
% Agree/Strongly Agree
Large Creative
Agency
Small Creative
Agency
0
10
20
30
40
50
60
70
80
90
100
Creative
Media
0
10
20
30
40
50
60
70
80
90
100
Agency
Client
56%
28%
55%
62% 60%
44%
Large more appealing
Media has
edge
** ** **

Over-performing agencies more successfully
attract, develop, and retain Millennials
70%
49%
0%
20%
40%
60%
80%
100%
Our agency is successfully attracting, developing and retaining Millennials
Overperformers Rest
Q24
**

Q27 There is a clear career path for me
Employees at over-performing agencies see a
more clear career path…
Fully agree /
Agree
Neutral
Disagree/ fully
Disagree
Over-performers
11%
15%
75%
Fully agree /
Agree
Netural
Disagree /
Strongly
disagree
Rest
64%
21%
15%
** (Fully agree)

Build

What are the capabilities for the future?
77%
54%
52%
47%
42%
40%
34%
31%
28%
24%
18%
15%
14%
13%
9%
1%
1%
48%
51%
61%
44%
40%
60%
35%
30%
33%
14%
14%
24%
15%
16%
10%
6%
0%
Data analysis and analytics
Branded content creation
Mobile
Digital and Social Media advertising
Consumer understanding & insights
Consumer/customer engagement
Big creative idea development
Brand strategy
Consumer/customer touch point planning
New business model development
Product or service innovation
Brand positioning
Shopper marketing/Retail experience
Apps creation (e.g. native advertising)
Public relations/Crisis Management
Advergaming
Other
Agency Client
Mobile
Q28. Which of the following capabilities will become more important for your agency in the next 5 years?
Agencies more
focused on big data
– maybe clients
aren’t sure yet if
agencies will play a
role
**

The top three capabilities differ from the
client and agency perspective
Both are focused on data as a trend – so could it be that
Clients are not yet convinced that agencies will play a role?
0 20 40 60 80 100
Mobile
Branded Content Creation
0 20 40 60 80 100
Branded Content Creation
Consumer/Customer Engagement
Mobile 61%
60%
51%
77%
54%
52%
Agency Client

Over-performers are combining data analytics with
consumer understanding to get to Big Insights
80%
53%
50%
48%
44%
43%
38%
30%
28%
22%
22%
16%
10%
9%
6%
1%
0%
76%
40%
56%
51%
41%
47%
33%
31%
29%
15%
23%
17%
16%
12%
11%
1%
1%
Mobile
Brand strategy
Brand positioning
Advergaming
Other
Overperformers Rest
Q28 Which of the following capabilities will become more important for your agency in the next 5 years?
All understand
importance of
big data, but
over- are
focused on big
insights
Innovation
more important
for over-
Over- have moved beyond focusing
on mobile and digital/social – it’s
just the way things are
**

Results indicate that Media agencies may be
focusing on different capabilites than Creative agencies
75%
52%
49%
47%
42%
40%
37%
34%
27%
24%
17%
17%
14%
13%
10%
1%
1%
90%
62%
74%
44%
24%
58%
16%
12%
38%
26%
2%
24%
6%
20%
2%
0%
2%
Mobile
Brand strategy
Brand positioning
Advergaming
Other
Old school
capabilities
New school
capabilities Data 
Insights
Awaiting
significance
testing

Media leadership is leading by example when it
comes to social
55%
80%
0%
20%
40%
60%
80%
100%
Our agency's senior management sufficiently understands social & digital marketing
Note: low base “Media”, do not make hard conclusions
% Agree
Q25
Agency
leadership
**

Senior mgmt. at winning agencies better
understand digital and social – leadership?
71%
49%
0%
20%
40%
60%
80%
100%
Our agency’s senior management sufficiently understands social and digital marketing
**

Q24. Please score your agency’s capabilities versus the job requirements 5 years from now
42%
23%
%
20%
40%
60%
80%
100%
%Very Good & World Class
Agency Client
Clients are not entirely convinced of how
equipped their agency is
**

Q24. Please score your agency’s capabilities versus the job requirements 5 years from now
54%
34%
%
20%
40%
60%
80%
100%
%Very Good & World Class
Overperformers Rest
Over-performing agencies feel better
equipped for the future
**

And employees get more training …
Q30 How many days of training do you receive on a regular basis?
More than 3
days per year
Between 2-3
days per year
Less than 2 days
per year
No formal
training
Over-performers
23%
13%
46%
18%
More than 3
days per year
Between 2-3
days per year
Less than 2 days
per year
No formal
training
Rest
29%
17%
29%
25%
** (>3 days)

…which they feel is of a higher quality
Q29 How would you rate the quality of your agency’s training program (1-10)?
6 and higher
5 and lower
Over-performers
40% 60%
Rest
29%
17%
29%
25%
6 and higher
5 and lower
52% 48%
** ( >6)

Thank you
LONDON
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London WC1A 2HN
United Kingdom
T: +44 207 831 8444
NEW YORK
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New York, NY 10012
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T: +1 212 358 9638
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Singapore
T: +65 6221 3693
AMSTERDAM
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The Netherlands
T: +31 20 330 2636
info@effectivebrands.com
TOKYO
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Japan
T +81 3 6855 7845

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