London’s advertising industry was in high spirits last week as it gathered for the annual shindig that is Advertising Week Europe (AWE) and it was good to see Soho buzzing with delegates taking part in an eclectic mix of sessions in situ or via AWE’s live streaming platform.
I came away with some great insights into the challenges we face and the future direction of our industry.
Firstly, the Spotify Culture and Commerce session highlighted that the way musicians and advertisers work together has undergone a revolution in the last decade. Brands can no longer get by with a catchy jingle, instead they search for songs that tell stories, conjure memories and forge genuine connections with people.
Jeff Rossi, the global director of business marketing at Spotify, spoke about how as the market for musicians becomes more competitive, artists are looking for new ways to monetise their work. Brand collaborations can propel marketers and musicians to new levels (when done right) and this new wave of advertising has led to branded music videos.
It was revealed that the use of music in marketing can drive up to 30% better performance for brands, yet on a TV spot or piece of video content, music is still the last thing to be considered by the agency and client. It was interesting to hear that landing a track on a television commercial is no longer seen as selling out, but as a desirable method of actually selling something in a world where the traditional music model is dead. This does also feel indicative of the fact that everyone – particularly musicians – are viewing themselves as brands.
But if marketing is increasingly important in driving revenue for musicians, shouldn’t we be looking for ways to bring them upstream in the whole process, as opposed to a bolt on at the end?
Fragmented agency relationships
Of the many sessions at AWE, I was particularly interested by the discussion around fragmented agency relationships – it definitely struck a chord with me.
In partnership with the Marketing Society, top marketers from Sainsbury’s, Unilever and Travelex discussed the complex issues around agency collaboration or lack thereof.
Mark Given, head of brand at Sainsbury’s, explained that at the start of his career his job was straightforward in terms of agency relationships. Brands are now expected to deliver “an omni-channel customer experience” by joining up the dots – something that he argued is becoming increasingly difficult as a result of fragmented agency relationships.
Dominic Grounsell, global marketing director at Travelex reinforced Given’s point. He claimed that marketing’s image problem is the elephant in the room. With the industry becoming increasingly “data-driven and technology-orientated”, brands are hiring “fundamentally different” marketers compared to a decade ago.
The point they are both making is that agencies need to start working together and at the moment they’re not doing it willingly. The truth is companies are becoming threatened by the “lead” agency meaning it’s becoming hard to get the collaboration that clients need. Understandably agencies are protecting their remit – but it’s impacting the desired omni-channel experience.
Agencies need to realise that there isn’t a sole lead any more. As an industry we need to find a way to be truly collaborative and equal when we sit at the same table. The reality is a close group of agencies can deliver the most fantastic results for its client if the rules of engagement are clearly laid down.
Data, data, data
Another hot topic was the industry’s obsession with data and the effect that it may have on the next generation of marketers. This always puts a smile on my face as, for so long the word data outside of the industry, was derided as dull, yet now it has a certain rock’n’roll swagger. Patricia Corsi, vice president foods and beverage UK Ireland at Unilever talked about her own love/hate relationship. She made a pertinent point that although we live in the age of data, we shouldn’t be teaching aspiring marketers to rely solely on data, at the expense of risk-taking and gut instincts. If we do then marketing will lose its art and meaning. I think that’s spot on, data is a tool in the quest to find unique and compelling insight, it is not a replacement for inspiring thinking.
Collaboration is the key word here. In the always-on world stronger and closer working partnerships between all parties involved will drive better results and greater success for our clients. I am optimistic about the future of marketing and advertising. It’s an old cliche – that change is the only constant – but what AWE proved is that consumers and technology are constantly evolving so marketing and advertising can’t afford to stand still.
Jonathan Goodman is the managing director of LIDA
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