“The ad industry establishment can no longer simply tweak its offering around the edges if it is to cope. 2010 must be the year to begin a head on overhaul of the way the (advertising) business is organized” Claire Beale Editor of Campaign Magazine, January 2010

The global marketing landscape has changed more in the last 5 years than in the last 50 but that the leading agencies in terms of the way they are organized, structured and the service they offer, haven’t.

The main driver for this change has been the rise of empowered consumers. They have exposed the traditional advertising agency model as one that is out of date and struggling to help clients deal with the current consumer landscape.

“The fact is: consumers now control brands. They play with them, reshape them and even imbue them with new meaning. In the next decade, we will see a shift away from the traditional branding model of agencies and clients” Owen Lee, Creative Chairman Farm

The big question on everyone’s lips is how should the advertising and planning industry respond? What is the new model of marketing that will ensure as an industry we can help brands to navigate their way through the new consumer landscape? These questions apply as much to the brands as to the agencies that serve them. If we wanted to be sensationalist we would say that “brands and agencies must adapt or die” or putting it in a more positive way that the brand and agency leaders of the future will need to be fleet-of-foot and structure their businesses to function in a highly fluid way.

As research, brand and communications people we always felt we wanted to get closer to consumers, but for practical reasons were not able to no matter how creative we were. But now that’s all changing. Social media allows us to listen to consumers and monitor the conversations they are having around brands in real time. This offers valuable insight and understanding, but more importantly identifies opportunities to establish a completely new way for brands to engage with their audiences. The challenge for the industry is not to view social media as a channel, but to use it to facilitate collaborations between brands and consumers to innovate and co-create communications more effectively. It has heralded:

The Advent of Social Brands
New social media tools will help brands to be on 24/7: this is part of what we call “the socialisation of brands” where campaign and channel marketing gives way to “continuous brand engagement marketing”. The environment the brand lives and breathes in is always on and is always changing so brands need to be listening to and observing their consumers not just in communities but also on the web as well as involving them on a continuous basis in everything they do.

The Need for Big Social Ideas
“Big ideas” need to be a big SOCIAL ideas – one that has the power to live and breathe through what consumers do with it in their interactions with each other and the brand. A big social idea has to be able to evolve, adapt and gain new meaning through those consumer interactions. Ultimately this requires agencies and brands to embrace a more open creative approach based on the philosophy that ideas can come from anywhere: a new model which combines the creativity of experts with the creativity of consumers so that more big social ideas of better quality can be produced. This means experts have an even bigger role to play than ever before. Our recent case study with Nestle’s Skinny Cow where we co-created the advertising with Mindbubble women is a good one – in three months there are already 41,000 fans on Facebook.

The Need to be Fast, Adaptive and Continuous
The process needs to change as well; the annual planning cycle making way for real-time planning which allows brands to remain relevant and interesting to changing consumer needs, overall a more fluid, highly responsive and iterative way of planning, which we call Adaptive Brand Planning. The new imperative will be to maintain a dialogue with your consumers to harness their opinions and ideas to fine-tune your product and communications. One of the main benefits of this approach is the speed with which you can develop concepts and communications as shown by our recent work with Unilever and Axe/Lynx Twist.

Consumer Communities Will Reign
The focus on the 30 second TV spot will give way to the content and conversations that are being generated by consumers and between consumers around the brand. This will in turn produce different segmentation models where brands see consumers not just as potential customers who want to buy something from them but as people who want to have a relationship with them. Engaging and managing brand fan bases will be key: developing creative ways for engaging and managing fan bases will be critical.

A New Planning Mindset
The planner of the future will be more interested in how people interact, and how to stimulate those interactions. The sage-like planners will be replaced by people who are comfortable working in tightly knit teams of agency planners, each with their area of specialism such as social media or building and harnessing the power of communities. The line between planner and researcher will become blurred because there will be a constant dialogue with consumers that will offer insight, understanding and ideas in real time. A key part of the task will be to observe and spot these insights and ideas and use them to inspire creative experts to build upon them.

Conclusion
Consumers will be treated in a fundamentally different way. They will be given more responsibility and will be more involved throughout the brand marketing process. Co-creating with consumers as direct and active equals to deliver a range of marketing outputs will be a major part of the marketing model. Also the new generation of planners will treat consumers in a fundamentally different way. The gaming generation of young planners will be comfortable in this fast changing environment, where remaining in constant contact with your audience is more important than one-off research interventions. These planners will be the architects of a new contract between brand and consumer, founded on listening, understanding, adapting and co-creating.