How agencies can optimize opportunities in 2023 despite economic headwinds
By Oghale Mafuru
As the year winds down, organisations are taking a retrospective evaluation of performance in the outgoing year, benchmarked against certain critical growth indices to measure exactly what moved the needle either upward or downwards.
Despite the fact that the advertising industry experienced the worst phenomenon in centuries with the advent of the coronavirus pandemic in 2022, the economic headwinds that accompanied it did not deter agencies from recording an upsurge in advertising spend compared to the preceding year. This is attributed to the resilience and doggedness of professionals within the Integrated Marketing Communications Industry (IMC) as well as their adaptive disposition to the new trends and realities created by technology.
While the coronavirus pandemic has made setting long-term goals somewhat unrealistic, it is imperative for agencies to prioritize certain growth enablers ahead of 2023.
Evaluating the nation’s economic situation and impact on the economy is expedient as the advertising industry exists within this ecosystem. According to economic analysis by the Fiscal Policy Partners & Africa Tax Leader, PwC, Taiwo Oyedele, Nigeria is facing significant economic headwinds amplified by structural changes although Nigeria remains the largest economy in Nigeria GDP is growing albeit slower than desired with growing population estimated at 95 million and multi-dimensional poverty at 133 million.
He projected that while the global economy will see a slower growth in 2023 such that it will feel like a recession, factors that will shape the Nigerian economy next year are debt and taxes, polities/policies, Geopolitics, insecurities and subsidies. With a projected rise by 18% in advertising spend estimated at $600 million expected to be driven by the beehive of electioneering activities which precedes the 2023 General elections, advertising agencies need to operate in a much safer zone to mitigate the myriad of challenges ahead. One critical area of focus is technological adoption and adaptation. Agencies that are future-fit must continue to increase digital capabilities and invest in infrastructure that will drive rapid adoption and utilization. With the accelerated evolution of technology and the advent of artificial intelligence, blockchain, augmented reality and metaverse, agencies either embrace these trends or be swept away like dinosaurs.
Indeed survival for 2023 is dependent on how fast agencies can predict, innovate and harness the huge opportunities of technological evolution to deliver on clients expectations. As clients look forward to maximizing advertising budget next year, speed in harnessing technology to increase Return on investment, ROI will be a competitive edge for agencies.
According to a call tracking and marketing measurement platform, CallRail’s report, 85% of agency marketers believe that proving ROI to clients will be the key to growth next year, while 80% say keeping their martech updated is essential to their marketing agency’s survival.
According to the report, the top priorities expected to aid the realization of 2023 goals for agencies include Investing In New Tools/Technologies, Business Development, Partnerships, Client Retention, Outsourcing and Hiring. Investment in new tools and technologies was recorded to be the highest priority for agencies in 2023.
Adopting new marketing technology to track campaign ROI as well as other metrics that will clearly show the numbers is fundamental as clients are more drawn to agencies that offer comprehensive martech solutions and competitive marketing analytics tools.
This is expected with digital advertising spend projected to rise in double digits and clients preference shifting there as consumers’ digital consumption deepens. Hence, adapting to recent changes within the digital landscape, as well as what is to come next year cannot be overstated.
To stay ahead of latest trends, in-house digital skillset and necessary tools are imperative for maximum efficiency which will guarantee clients satisfaction and retention.
However, trends expected to be long lasting include; Metaverse Marketing, Personalization, Customer Communities, Voice Search, Visual Search, Gamification, Short-Form Video Content and OTT (Over-The-Top/Streaming) Advertising and agencies need to put these into perspective.
Another growth factor agencies should consider for 2023 is an in depth review of their offerings, juxtapose with the emerging trends and introduce new solutions that aligns with organisations goals.
Agencies cannot afford to be mundane but must continue to rethink business operating models and innovate to stay ahead of the curve.
Agencies should be ready to offer more to clients using available data and insights to predict occurrence and take actions on behalf of clients. Spontaneity is key!
No doubt, as in previous years, 2023 will witness a drastic shift and agencies will find new solutions in response to the expected changes.
Agencies should work hard to improve clients’ experience by taking deliberate steps to improve communication, touch points, innovating new solutions, increasing reporting efforts and flexible payment options.
Demonstrating your agency’s value and effectiveness by keeping track of the success of marketing campaigns and impact on the clients bottom-line is essential to earn their confidence.
As agencies look towards 2023 with optimism, proving ROI to clients will be the key to growth in 2023 and technology will play a huge role in enabling its realization.
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