Fresh off the heels of The Cannes Lions International Festival of Creativity, there’s no break in sight for agencies. With Q3 officially kicked off, agency news and predictions are all about taking the learnings from France and applying them to RFPs and internal planning. So, what did we learn from the festival? And what with Q3 bring for the agency world?
Web3, a possible recession, diversity, and Ukraine all took center stage along with the usual awards chatter. Here are some of the hottest predictions and takes on the advertising industry we expect to see in Q3…
While we’re not going to be too doom-and-gloom here — and certainly aren’t predicting a worldwide spending freeze — the economy may hurt advertising revenue. Typically, when inflation surges and costs rise, businesses tighten spending to ensure profit margins are maintained. Today, consumers are still spending and brands are chasing them. But, as inflation rises faster than wages, many brands will have to compete with cheaper alternatives.
Instead of ending all of their agency relationships, expect brands to cut their agencies’ spending budgets. Working within tighter margins, and deprioritizing more experimental marketing campaigns, brands will go back to basics through the channels that offered them the best ROI in the past. We’re thinking Facebook advertising, Google Ads and streaming to start. Though the ad industry in the UK doesn’t agree quite yet.
The advertising industry has long been criticized for working with polluters and climate-harming industries. The climate crisis and the talent crisis go hand-in-hand. As Zoomers, a generation hyper-focused on environmentalism, continue to join the workforce, agencies will struggle to find new, young talent.
Additionally, in Cannes, Greenpeace grabbed attention with at least three major stunts protesting against advertising and PR agencies working for fossil fuel clients. One former winner of a Cannes Lion, Gustav Martner, who now works for Greenpeace, handed his award back on stage stating: “No awards on a dead planet. Ban fossil ads.” The agency bosses stress their work is focused on renewables and good cause projects, but Greenpeace asserts that this is nothing more than greenwashing.
Agencies must create campaigns that focuses on diverse consumers. This starts by gathering insights on how to improve the quality of portrayals of diverse communities. Brands should be proactive when it comes to gathering inclusive data and DEI practices, and work to create content that resonates with audiences. Of course, inclusive advertising starts with having diverse people filling the seats at the decision-making table. Then, once you have diversity at the table, give them a voice and listen to them.
