The Competitive Threat.
We asked the Tribe: do you think the competitive threat will be greater in the future?
64% replied yes - very likely or likely
22% replied very unlikely or unlikely.
Many viewed Covid-19 as the latest example of an outside force shaping our market.
However, there was strong agreement over the critical role for agencies, with their unique skills and capabilities to support clients.
Particular strengths were seen as;
- Creativity in approaching business and producing creative product;
- Independence from clients and strong external perspective;
- Unique insights from specialist agencies into markets or access to a unique set of skills;
- Agencies with skill-sets and expertise in data, automation and technology were viewed as leaders in the future;
- Talent (agencies have a lot of smart people).
Threats to our businesses were broken into five main categories;
- Clients’ changing needs and my ability to service them, along with decreasing budgets;
- Competition is growing, ranging from a snowball of small companies and freelancers overloading the market with low-cost propositions, to growing in-house agencies that can manage small-budget projects, to Consultancies offering business results.
- Technology is an opportunity but also a threat. Clients are swapping in technology for agency tasks such as metric tracking and audience-insights evaluation.
- There are increasing numbers of do-it-yourself online services providing cheaper alternatives. (Just look at DIY logos).
- The economy. Uncertainty will reign for a long time to come. With it comes a downturn in spend and greater pressure on our margins.
These are some of the challenges we face. What do you think? If you’d like to discuss any of this in greater detail, I’d be delighted to virtually meet up and talk more.
Tel: +44 7968 393 876