The last quarter is the period in which advertising agencies set goals and define action strategies for the next year.
The year is approaching its end and it is time for companies to plan for 2024. Several variables are taken into account to define continuity and/or changes for the next year. The economic situation and the consequent forecast of how the market will behave are, without a doubt, priorities. But new things always appear and bring with them management challenges. In this field, emphasis is placed on the use of new technologies, such as the use of AI tools and the implementation of ESG policies, with diversity, inclusion and environment issues becoming more strategic every day in the corporate world.
Another factor that weighs in defining goals is politics, both at a local and global level. Brazil, in this regard, is currently experiencing a climate of apparent calm, but when it comes to forecasts, a crystal ball would be welcome, as Brasilia’s mood can change from one day to the next. On the international scene, heavy clouds herald a stormy year ahead: the war in Ukraine shows no signs of an outcome in the short or medium term. And the terrorist attacks on the 6th, in Israel, once again exploded that always unstable region. In today’s globalized world, where production, commercial and financial chains are closely linked, these conflicts have the power to destabilize any planning, even in distant places, such as Brazil.
The advertising market is no exception when it comes time to plan the next year’s steps. Agencies have already put their teams into real brainstorming to define goals and strategies for 2024.
O propmark heard executives from some of the main Brazilian agencies about future plans. They answered the following questions: How does the agency organize discussions about action planning and funding for the next year? Generally, how long does it take to complete this plan? How is this dynamic? Which leaders are involved in planning? What is taken into consideration? How important is the economic situation in decisions? How do the agencies’ market context, clients’ circumstances and social issues influence the plan? What criteria define the people management strategy, considering the budget allocated for hiring? What tools and technologies should be acquired to increase the agency’s quality and operational fluidity? Should artificial intelligence resources drive investments in 2024? Can you anticipate an estimate for attracting new talent in 2024, given that human capital is one of the agencies’ main investments? What are the other investment pillars?
We are adopting an increasingly vertical and personalized approach to meet the unique demands of each client. This allows us to develop flexible annual planning, taking into account the particularities of each account and your needs for the next year. After defining all the individual plans, we began compiling the total initiatives added to the agency’s general planning, incorporating macro objectives for management and development of people, communication and tools, that is, all of the agency’s transversal initiatives. DDB, the group we are part of, plays a crucial role in aligning strategies, even though we have achieved a significant degree of independence. Taking into account current accounting conditions, the macroeconomic context and special events (such as, for example, an Olympic year) influences our strategic decisions. The market context, customer needs and social issues are crucial factors in formulating the agency’s strategies. This demonstrates the agency’s commitment to being attentive to relevant changes and events that may impact its clients’ communication and marketing. Regarding tools, we use the Omni business intelligence platform, which is part of the DDB Group. Carol Boccia, COO from Africa CreativeTo plan, I first have an alignment with the creative team, mainly so that we understand and tie the prizes. Then, alignment with the HR area, as we establish our investments in people with training and courses. Finally, with a corporate team to reconcile our revenue expectations x our costs to maintain an operating margin. All of this involves the CCO, the head of HR, the financial director and me, the COO. We take into account costs, fees, economic projections and expectations of incremental revenue x current year. For us, new hires depend on the establishment of new contracts. There is an expectation of an increase of around 10%. At Cheil, we continue to focus on new business units, such as marketing automation, our own live studio and 3D. Tatiana Pacheco, COO from CheilCommunication agencies are service providers and, therefore, plan their year based on the expectations they have in relation to their client portfolio. This includes not only the brands that are already in-house, but also new business, with the entry of new accounts and possible projects. We started planning for the following year around August, taking into account surgical analyzes from our business team. This is what guides the profile of the operation itself and the investments allocated to different areas. We analyze the macro scenario and our clients’ growth ambitions. At the same time, we plan which investment areas we should focus on to help our clients, including AI, media software and influencer management platforms, as well as talent and marketing. We listen to our entire board, these conversations occur regularly and involve the growth potential of our clients’ businesses and ours. The situation has a preponderant weight, because, if the client’s business scenario is recessive, we have to think about a range of solutions, focused on ROI with less investment, but with great impact, in the case of an expansion scenario, how to grow, supporting strategic way, bringing solutions that ensure the achievement of results” Fernando Taralli, CEO from VMLY&R
(Credit: Kelly Sikkema on Unsplash)
Read the full article in the October 23, 2023 edition
