As we predicted in 2018, there’s no doubt that account-based marketing continued to grow in popularity among both agencies and clients. Similarly, 2018 saw continued interest in the development of technology (although we concede that agencies are not quite ready to challenge the mainstream martech vendors at their own game). The only prediction that didn’t resonate was a trend for agencies to collaborate more closely with each other – although that could simply be a matter of time. With those in mind, here are a further four predictions for the year ahead, each based on our survey feedback.
1. Fewer mergers and more focus on integration
Consolidation is always going to be a feature of the agency marketplace, with disruptors targeted for takeover, yet we expect this to slow over the next 12 months. We predict there to be less M&A activity in the year ahead and instead a greater focus on delivering synergies and efficiencies from the deals already signed.
This is unlikely to shock, considering the flurry of consolidation from 2016 onwards. In 2018 we saw the major agency holding groups – including Ogilvy and its parent WPP, The Mission Group and Publicis Groupe – restructure, simplify and downsize (see the full report for more). We expect these players to make limited strategic acquisitions, whereas we may see more from consultancies, which are clearly intent on taking more of the market.
2. GDPR may have passed, but privacy will still be a big issue
GDPR may not have had the apocalyptic impact many feared, but it would be foolish to believe concerns around customer data and privacy have disappeared altogether.
There’s no doubt that the average person on the street is now more aware of the rights around data, and there are serious sanctions for companies that abuse it. In September, the UK information commissioner handed out its first GDPR enforcement action to Canadian data company, AggregateIQ who could face a €20 million fine.
Brands and agencies will need to be mindful of the new expectations on them, particularly as genuine compliance levels are thought to be very poor, especially in comparison with companies’ estimations of their efforts.
This is before we’ve even mentioned the prospect of the EU’s revised Privacy and Electronic Communications Regulation (PECR) potentially returning. This legislation governs email marketing and was initially supposed to come into force at the same time as GDPR but was postponed indeterminately. There is currently no proposed date but many expect it to return in 2019.
There have also been murmurs around the introduction a US federal privacy law, covering similar areas to GDPR, as legislators attempt to rein in the power of the multinational tech behemoths. While 2019 will be too early for introduction, it demonstrates the issue of data privacy is here to stay.
3. Beyond GDPR, the focus will turn to engagement
As seen in the B2B Marketing Trend Tracker, marketers spent much of 2018 occupied by GDPR. With their main compliance efforts (hopefully) resolved, attention in 2019 will turn to driving emotional connection with prospects and customers.
Thanks to improved data privacy, brands have increased trust with their target audience – now they’ll need to develop their human voice. Agencies will be at the forefront of this, supporting these efforts and passing on insight that builds authentic connections.
There will also be a desire among brands to create ‘movements’. A number –primarily US tech vendors such as Salesforce – have already done this successfully. Audiences want to feel more than just a customer but part of something bigger.
To achieve these goals brands and agencies will need to focus on an often-underrated part of emotional engagement – listening to their customers. The use of analytics around the customer journey to enable this will be increasingly important.
4. AI service to become mainstream
For many marketers, AI is still a bit unreal. It’s not so much unbelievable, but marketers are failing to see a visible impact on their day jobs. The hype and momentum building behind AI suggests that 2019 may be the year this changes.
Research carried out by NewVantage Partners suggests more than 90% of the Fortune 1000 are upping their investment in big data and AI to stay agile and competitive. Primarily, they are scared of being disrupted by data-driven digital competitors.
Agencies can lead the charge here, in part to pick a slice of that pie. Having gotten to grips with AI themselves over the preceding 12 months, many will be looking to supplement existing services with AI-powered services, such as chatbots, predictive analytics or programmatic re-targeting.
Agencies will also want to tackle the AI skills gap – a survey by Microsoft at the end of 2018 said more than half of employees aren’t learning new skills to keep up with AI developments. There’ll be growth in agencies either providing educational services or specifically providing AI experts as part of their capability.
