Agencies that have helped their client shape their future must now do it for themselves
While 2018 turned out more challenging than he’d hoped, only two of our CEO’s 12 predictions for the year turned out to be inaccurate. Above and beyond the usual fluctuations and uncertainties we’ve learned to manage, we now have to contend with rising levels of unpredictability. The events at the Ritz-Carlton in Riyadh more than dented the business confidence in the Gulf’s power house that is Saudi Arabia. This means the bounce-back in advertising investments will have to wait another year.
Digital up, TV down
Nonetheless, Elie Khouri’s eagerly awaited predictions for 2019 are far from gloomy. Instead, they objectively depict an industry in rapid mutation. If investments in paid media will decrease overall, there are some rising sectors, digital specifically. After playing equal with TV, they are set to overtake it thanks to the growing dominance of the digital duo (which will become a trio in 2019). Another reason and one of the key predictions for 2019 is that the drop in TV investments will slow down. In his article Elie Khouri explains why advertisers will renew their interest in TV.
More investments in media infrastructure
Marketers are redirecting advertising budgets from media to data, technology and content, turning from mass to individual marketing at scale. Such a trend is leading agencies to transform their service offering, their skill set, their talent and even their structure. They are more and more involved in the lower end of the funnel, focusing on conversions and transactions. Hardly a surprise when e-commerce, m-commerce and s-commerce are set to grow exponentially.
The media market is certainly being shaken up as a reason and different sectors react differently. Leading media brands will strengthen their hold on the market, making it more difficult for the long tail. This doesn’t mean that all major media brands are safe. Some might even face a steep fall from grace, particularly in print. And then, there’s the continued rise of influencers.
The ad industry is experiencing a profound mutation as the tension between art and commerce intensifies. These may be testing times but we know what it takes to adapt to new realities. We’re doing this for our clients. We must now do the same for ourselves.
Want to know more? All you have to do is click here to read the article on the Campaign Middle East website.