![]() ![]() Yet, to drive significant productivity gains, complete goal alignment and a common set of KPIs are essential to moving faster and in concert with internal and external teams like agency partners. Decision-making is simplified to allow organizations to be more agile and opportunistic. Processes are also being streamlined to take less time and effort. We should expect to see increasingly more tasks being automated. The traditional ways of working are now obsolete, and we are now learning new methods to accomplish more. Productivity has become a necessity of this new economic reality. One of the long-term psychological effects on talent will be less company loyalty and a willingness to move jobs more frequently. The WFH phenomenon has whetted our appetite for smaller travel budgets and more remote meetings. ![]() The pressure will extend to the way we manage talent, with fewer face-to-face interactions and in-person meetings, and less business travel. Yet, as talent in the advertising industry seek new opportunities, this will create significant talent gaps in some areas. Agencies are likely to favor the use of freelance resources to reduce the financial burden. Agencies are looking for ways to limit the lasting impact these decisions may have on their resources and, frankly, their viability. ![]() The slowing down and in some instances complete stoppage of the economy will result in sizable layoffs in the advertising industry as it copes with the financial implications summarized above. Advertisers are also likely to bid for large projects and look for efficiency measures with agencies to eliminate waste as they squeeze every dollar from their marketing budgets. Advertisers are also likely to increasingly favor project-based relationships over large committed retainers for part of the work. We should expect advertisers to be increasingly less flexible on payment terms, putting many small agencies at risk from a cash-flow perspective. This financial pressure may lead advertisers to apply more pressure on agency fees, renegotiating contracts and commitments. Naturally, we should expect every expense category to be revisited and evaluated. They must find a fine line between cutting budgets, which may hamper their growth, and ordinary spending, which might prove to be risky. The uncertain economic outlook is requiring advertisers to take a conservative approach to financial management. For the purpose of this discussion, I organized this around four major pressure points (the big dominos, if you will): budget, talent, productivity, and relationship. Let’s take a closer look at what major dominos will fall and what important changes they may trigger. The recent health crisis and COVID-19 pandemic also set in motion several events in our industry that will profoundly change the landscape in years to come. We are all too familiar with the chain reaction produced when one event sets off a chain of other inevitable events. The concept has encouraged many aficionados to break world records using not only dominos, but toppling mattresses, books, coins, and mousetraps, to name a few. ![]() This represented the highest ever documented number of consecutive falling domino stones, setting a new world record. In 2009, at the “The World in Domino - The Show with the Flow” event held in Leeuwarden, Netherlands, 4,491,863 dominos toppled. ![]()
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