The advertising industry as we’ve known it for years is changing. The growth of digital and social media and, more recently, the rise of programmatic advertising, has shaken up the traditional way of how creative campaigns are carried out.

At the same time, ad agencies are coming under the microscope as clients are beginning to ask questions about how their money is being spent.

The debate rages even as 2016 draws to a close. Now the big questions are which way to go now and how can agencies be more proactive in fulfilling their clients’ objectives?

GMR spoke with a few agencies to learn their views. Generally, they believe the new year will bring with it its own set of trends, not least of which will be a move back to the basic question of how to prove value as an advertising agency. But one thing is sure: agencies are ready to face these industry challenges head on.

“Advertising today is not just about selling a product, but more about how the brand can create positive change. Advertising is more about creating a meaningful brand role in communication and how it impacts the consumers’ lives. This is what our agency stands for,” asserts the General Manager of FP7 Cairo, Amr El Kalaawy.

“The industry is evolving fast and two key trends I can spot coming out of MENA are brand activations (digital and on-ground), as well as social good campaigns,” he adds.

Global director, digital at Publicis Media, Brayden Ainzuain, notes: “Before, brands sold their products and that was the end of the communication exchange between the consumer and the brand.”

Now, he says, you have to look at brands through a “value” lens, underlining the importance of delivering value. He also emphasises the importance of technology, which can help develop a customer base by adding purposeful, meaningful and honest value for the consumer.

“You ask yourself a question off the data and insights: how can I make the product or experience better for my consumers? By Internet-enabling your products or services, you’ve sped up the passive feedback loop, creating an advantage for your brand when it comes to product development and understanding the needs of your consumers before they even know their own requirements,” he adds.

Technology is good

Agencies say digital technology can help a brand in multiple ways, including delivering a strong long-term competitive advantage through effective communication.

Companies are becoming more comfortable communicating with consumers using technology that the consumer wants to use with the brand.

For example, Snapchat wouldn’t be a technology or platform for customer service for most marketers, but companies like Birchbox are using it to help or answer consumers questions during “Snapchat hours” (office hours). If a company wants to communicate with a younger demographic via ICT, this may a good platform to consider as part of all the customer service and feedback channels they use. Mixed Reality (Virtual and Physical) may be a way to help customers, Ainzuain adds.

“Think of someone trying to build an IKEA table who can’t understand the directions clearly, they can ring up the Virtual Reality IKEA line through their VR headsets, and someone on the other line can see exactly where the customer is and with what product and guide their hands virtually to build the table. This makes IKEA stand out from the competition by leveraging communication technology well,” he illustrates.

Coming together

Agencies acknowledge the trend in regional advertising isn’t much different to what’s happening in the West, and creative campaigns in the region are progressing towards customer engagement and emotional marketing, something that was less conspicuous a few years back.

Associate Creative Director of Y&R Dubai, Kapil Bhimekar, saw four campaigns by the company shortlisted at the Effies in two categories (Retail & Luxury and Seasonal Marketing) for its client Mall of Emirates.

He emphasises the need to understanding a client’s requirement. “It’s very important for any agency to understand their clients’ requirements, understand the brand they are catering to, what the position of the brand is in the market and how they can make it stronger,” he maintains.

“In order to do that, it is crucial to have a great relationship with your client. You have to be their partners. As soon as a client sees you as a partner, trust is built, and that’s the foundation on which great work is created. I feel that clients today appreciate good work more than ever before, and have started trusting agencies more,” he adds.

Talking about his predictions for new year, he says 2017 is going to be a very important year.

“It will be interesting to see how brands accept and adapt to the conditions as per the global economic and political changes. Brands will look out for innovative solutions to keep their audiences engaged. The worlds of TV and Internet are merging more than ever before,” he reasons.

As the world moves towards digital, so is the ad industry. According to PwC’s latest global entertainment and media outlook, Internet advertising will be the fastest-growing segment of advertising through to 2019, overtaking global broadcast TV advertising.

By that year, digital advertising as a whole – including digital out-of-home – will account for 38.7 per cent of total global advertising revenue, up from just 16.6 per cent in 2010. A primary driver of digital advertising throughout the forecast period will be rapid rises in mobile and video Internet advertising.

Mobile Internet advertising will surge at a 23.1 per cent CAGR to 2019, overtaking display Internet advertising globally in 2018, the report says.

This is the fact many agencies themselves are broadly acknowledging in the Middle East. Clients are shifting their media budgets from traditional and investing on digital platforms, and the coming year will continue to see this trend, Bhimekar says.

“I’m not denying the fact that traditional mediums are equally important, but the world today is on the Internet and we have to target them at these places. I see a greater market for branded content in the coming year, I think brands in the region are looking to engage with their consumers by giving them interesting content,” he concludes.