Happy 2018 everyone! Okay, I know it’s January 3rd, but it’s my first DG post of the year so indulge me. To kick things off I’m featuring three prediction-type articles on things to look out for in 2018 . . .
INDUSTY TRENDS TO KEEP AN EYE ON: First up is a set of macro What If’s for marketers, as posed by the WSJ in the attached link. There are some predictable questions about the impact Amazon’s burgeoning ad business will have on the industry and whether or not Snapchat can regain its footing. Nielsen and WPP are under the microscope with questions about how their respective business models will change to keep up with market demands. And then there’s an unusual question posed about the impact Publicis’s new AI platform called Marcel might have on the agency model. You may remember Publicis decided to entirely sit out Cannes in 2018 and use those savings build Marcel. So it will be interesting to see what benefits come from that investment. Needless to say, there’s plenty to watch for in 2018.
DIGITAL AUDIO DEEP DIVE: RAIN is also out with set of 2018 predictions which are more focused on the digital audio marketplace. For the attached article they polled about 20 industry experts for their opinions on a variety of ideas. Hot button topics include Podcasting, Smart Speaker/IoT integration, and the financial benefits of streaming to artists and their labels. On that last point I thought the following quote for audio consultant Paul Goldstein was telling when he said, “In the boardrooms of record companies, FM radio’s audience hasn’t just lost some of its promotional appeal, it’s becoming an impediment to label revenue growth. The collapse of music sales (CDs, MP3s) and rise of streaming revenue means a non-monetized FM radio listener is less valuable to labels.” Bottom line . . . in 2018 expect streaming to be even more of a priority for labels than broadcast radio, because that’s where their bread is getting buttered. I say bring it on!
AGENCY BLUES: One final thing to watch out for in 2018 is the mounting set of challenges facing traditional Agencies and their parent Holding Companies. AdExchanger does a good job of breaking down the pain points in the attached link. The Agencies’ problems include declining budgets (thanks to the lovely phenomenon of zero-based budgeting), automation replacing humans’ billable hours on the buy side, and the trend of clients in-housing more and more of their marketing work. There’s also pressure from business consultancies (aka Accenture, PwC, etc.), who are replacing traditional agencies with some bigger brands, and transparency demands from clients who are scrutinizing every penny their agencies bill them for services provided. Of all the players in the marketing ecosystem, Agencies/HCs may find themselves in the biggest squeeze during 2018.
Hope this post gets you in the right frame of mind to tackle 2018. Time to get after it!
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