Future-Proof Brands: Create tomorrows power-brands, today.

Retail 2030

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Demographics have shifted drastically. The African American population is growing substantially with a projected We have to focus on every individual customer and the relevance we offer in their life. Socioeconomics are fundamentally changing the way we live. Globally, we are seeing the rise of urbanization and suburbanization. In , the average home in America was 1,sqft. Today, the average American home is over 2,sqft.

Smartphones, the bedrock of the integrated technology infrastructure, are increasing in worldwide penetration both in developed and developing nations. As the connection between store and home continues to blur, breakthrough brands like Uber have proven that a technology-equipped consumers, given the right platform, have the power to entirely disrupt a total category. Warby Parker showed us that a new model driven by experience, enabled by technology, could also create disruption.

These models are not only fueled by the technology itself but were made popular by quickly becoming omnipresent in the social scene. As technology exponentially evolves and shoppers become increasingly more connected, retailers must figure out how to influence perceptions at the right moment of the experience. How shoppers expect to shop Retail.

The way we shop is changing. Brands like Amazon, who have built their entire model on the absence of a physical retail presence, have just announced their 4 th retail location to open in Chicago later this year, firmly rooting the idea that physical retail will never go away. We see these impending shifts on the horizon. We feel the changes every day as retail becomes a little more convenient and a lot more personalized. We watch the tried and true brands slowly lose relevance by not adapting to change. But, how do we connect the dots?

How do we know when to act? How do we know what to do?

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However, marketers are typically known to pay better and are sometimes seen as more modern and savvy. Several creatives who jumped ship for the likes of Apple or Google have also said they felt they were selling ideas more than creating things at their agencies. Marketers want that big thinking and they're willing to pay for it," says Nancy Hill, former 4A's president and CEO, who recently created the consultancy Media Sherpas, aimed at helping agencies navigate the changing landscape. At a time when many brands keep reducing fees and cutting back on agency rosters, it doesn't always seem like they're willing to cough up the dough.

Gene Grabowski, a partner at crisis communications firm KGlobal, says that clients don't want to pay for unnecessary overhead anymore or talent they don't need, which gives a leg up to smaller, independent agencies and freelancers. The smaller shops have cut out a lot of the fat that clients don't want to pay for and they can make their own decisions since they're not beholden to a parent company. Majewski believes that niche agencies will eventually fade out and the shops that can do nearly everything under one roof will succeed. One thing seems certain: Midsize shops that lack the advantages of either small or large agencies may suffer the most.

How is VEB different from corporate venture capital groups?

That's where the consultancies, like Deloitte and Accenture, may have an in. They may not have figured out the creative execution part of advertising for clients yet, but they already have established consulting relationships with marketers. With the data and rapport in place, "it's only a matter of time" before they crack the branding and creative aspects, says Majewski. They're here to stay. Essex thinks that agencies will continue to try to creep into the consulting space, but he doesn't think it's wise.

Kassan says that CMOs are zeroing in on consumer data and that data has to be actionable and fuel powerful stories, "or it's just noise. The conversations can't focus on bodies; they need to focus on outcomes. One of the issues with performance-based models is that the outcome can sometimes be out of an agency's or marketer's control. If a factory burns down and the compensation was based on the sale of those products, then the agency won't get paid, says Ryan.

Satisfying your customers today by promising them something new tomorrow

Even though it's still a risk, he says, if an agency agrees to a reduced flat fee with a bonus structure, at least it gets paid something regardless of the results. Ryan also believes that more marketers will use "variable-pricing relationships" in the next few years, where one agency is retained for capabilities like consumer insights and strategy, but then projects are put into review. The retained agency, Ryan says, would also be put in the running for the projects, giving it a chance to make more money and showcase other skill sets.

Some of the "obvious" areas that agencies should concentrate on to make sure they're ready for the future include AI and voice, says Hill. Bitcoin technology and cannabis are two industries that are worth looking into, Hill says. The good news for agencies that jump on the bandwagon is they will gather insights along the way and probably fail a few times too, but it's worth it to "test and spend some money to learn," she says.

Diversity and inclusion, however, won't be an option for agencies of the future, says Hill—it will be "table stakes.

Agency of the future: Survival of the fittest

The bottom line is that there is not one "right" model because marketers' challenges and the technology landscape will keep changing. But if Essex had to bet, he says he'd put his money on creative excellence being the keystone for agencies of the future. He may have been the first, but it certainly feels like there will be some perilous pirouetting in the months and years to come. For an industry that prides itself on creativity and innovation, advertising isn't always great at predicting the future.

What have you learned over the last six years?

We looked into our crystal ball, though, and can tell you this at least: There is no single future model. Just look at today's boldest experiments. The following eight agencies are all at advertising's cutting edge, but none of them look the same. The agency invests in brands like Peloton, Warby Parker and MatchaBar, but also launches new products and does creative work for clients in which it does not have a financial stake, such as Anheuser-Busch and Pepsi. Bullish also has consulting relationships with marketers that sometimes take the form of surveys or business dynamics studies rather than ad creation.

The agency, which is only three years old, often benefits from its small size because it can be nimble and efficient.

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However, Duda says, "the world still needs big agencies to do work in global markets, so our model may not work for everyone. So, what can FMCG at large learn from big tobacco, and how can brands future-proof now? The thrill has gone. The industry has kicked back hard. Legislation was misguided, it said; an assault on freedom of choice.

Agency of the future: Survival of the fittest | Agency News - Ad Age

Tobacco firms mounted PR charm offensives, compliant scientists debunked established facts. Ministers were lobbied, political parties funded, public officials compromised. It was all to little avail. Struggling to find ritual appeal in organ decay, consumers voted with quickening feet.

The focus for many big tobacco brands now is on the unregulated new category of vaping where packaging design is still paramount, and the opportunities plentiful.

A warning for FMCG. Duce argues that similar packaging restrictions are now bearing down on alcohol, confectionery and soft drinks. For smaller businesses, such extremes could prove catastrophic. The Guardian reports how micro-distillery Sipsmiths is steeling itself against plain labelling that could zero the shelf-presence of its craft gin. It will shift the business back to the industrial producers, who will be very happy to move people back to mass-produced drinks. Cigarettes have set a precedent, and noises from campaigners are getting louder. How soon before we see stark warnings on unhealthy products of all kinds?

How can brands future proof?

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