Page 57 - Adnews Nov-Dec 2022

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transformation, B2B marketing services will provide significant revenue opportunities for both B2C agencies applying their branding, design, creative, and media skill sets to business audiences and B2B agency specialists applying their expertise to a market projected to reach $30 billion.”
Holding companies have signalled their B2B intentions: Horizon Media launched Green Thread, Dentsu consolidated DWA and Gyro into Merkle and Publicis Groupe bought Octopus Group. “Anticipate a 3% to 5% influx of client-side B2B marketing expertise into agencies in 2023. The outflow of B2B marketing talent will represent yet another culture shift inside agencies as the worlds of B2B versus B2C, client side versus agency side, and specialist versus broad practitioner collide in 2023.”
Brands will walk away from in-house expertise
The digital media function will shift back to agencies with brands reluctant to assume liability on consumer privacy in paid media. “As a result, 20% of media management master services agreements will be rewritten during 2023, such that external media agencies will take on more consumer privacy and data risks ... in 2023, we will start to see the digital media strategy pendulum swing back toward agencies as in-house digital media capabilities will exist in less than 20% of corporate in-house agency operations.”
Marketing budgets
A significant proportion of global advertisers plan to cut spend in 2023, accord- ing to a study by Ebiquity and WFA (World Federation of Advertisers) in October. The study assessed 43 multinational companies, including five of the top
10 advertisers by spend.
Aldi Christmas via BMF. And (Top Left) Bundaberg Brewed Drinks founder and master brewer, Cliff Fleming.
Just under a third (29%) plan to cut spend in 2023, with the same proportion saying they will invest. Four in 10 say they will maintain their budgets at 2022 levels.
Three quarters "agree strongly” or “agree” that 2023 budgets are under heavy scru- tiny, with marketers required to justify investment.
The big change will emphasis on short-term, performance. The big winner will be digital, with 42% saying they will increase spend, with offline media such as TV, radio, print, and outdoor likely to suffer. Nearly half of respondents plan to cut offline investment and a quarter are looking to shrink (more than 10%) print.
The other major change is flex- ibility in investment. This means greater use of biddable/auc- tion-based platforms, a long-term change in the way media is bought particularly on digital channels.