Bizcommunity.com carries the full report from the ACA below.
Over the last decade, the ACA did periodically take stock of the state of the industry by re-evaluating its business models and remuneration systems and conducting "image of the industry" research amongst marketers. However, 2004 truly became the year of introspection and reconnecting.
The ACA began the year by implementing, under the leadership of the Future of the Industry Committee, qualitative research amongst marketers and agencies, hitherto unprecedented in size and scope. The purpose of the research was to explore in depth the nature of the agency-client relationship and the hypothesis that mutual client-agency expectations were in danger of becoming polarised. The challenge was also to establish the root causes underlying advertiser satisfaction or dissatisfaction, as well as the reasons for ongoing pressure on agency margins. Globally, the industry was coming under increased pressure due to agency consolidation, decline in especially above the line adspend, technology, media fragmentation, lack of integration, ongoing pitch and copyright problems and the negative impact of search consultants who understand very little about the advertising industry.
The ACA's approach was that passive complacency or "dispiritedness" was not the way to go. Action was required by examining how these trends interacted with the dynamics of the uniquely South African industry, and pro-actively developing a strategy to address the issues, challenges and opportunities that came out of the research.
In a nutshell, the research showed that change is imperative. Whilst the overall results showed that the client-agency experience was still positive and clients showed great appreciation of agencies' creativity as world class, the ACA's response was rather to focus on the areas where the greatest risks and room for improvement were involved.
Clients and agencies alike, must adjust to a changing environment. Agencies in particular are being called to accountability in ways different than ever before. On both sides there is a weaker set of skills in evidence and client-agency expectations are often not on the same page. Greater understanding of client requirements is necessary in order to ensure that agencies provide, and clients receive, value for money. In addition, improvement of agency professional standards, increased effectiveness of advertising as a business tool, and overall improvement of the industry image, were called for.
Coupled with the research results, was the need to revisit the impact of local factors such as government, agency search consultants, the ASA Code and whether it still reflected the changing needs of the market, the status and meaning of creative awards and the need to underscore our transformation progress over the years, by revisiting our charter and finalising the ACA's own transformation scorecard.
With the release of the ACA scorecard today, and the decision to reinvigorate creative awards, as well as the ACA's role in facilitating a process to revisit the ASA Code together with the ASA and the MFSA, the ACA is already addressing its future.
In addition, the ACA Board has taken a decision that the ACA, as the voice of the industry, will be re-launched and "businessized" as a respected and professional service provider, thereby adding value and increasing the perceived relevance and profile of the ACA.
Particular areas of focus will be professional ACA services to clients which will address areas of agency-client mistrust, recurrent pitching and tender problems, increase understanding of how an agency works and possibly research agency service delivery in a scientifically objective way. The ACA is looking here to compete directly with service providers that threaten our industry's future, but will in the process embrace those reputable service providers that can add value to our industry.
The ACA legal advisory service will be restructured, expanded and customised to meet agency and client needs alike in an era of increased legal complexities.
Training will focus on the need to do skills improvement via customised in-house training programmes by the AAA School or brokerage of leadership training programmes jointly with the AAA School and or other reputable educational bodies.
The APEX Awards profile will be increased to highlight advertising's contribution to the economy and to improve agency skills in measuring ROI. Other areas such as an ACA HR placement service and information service will also be explored, subject to feasibility.
A first draft of an ACA business and professional plan has been tabled at the ACA Board meeting on 24 November and the ACA Operations team stand poised to take these to the next phase in 2005.
Where 2004 has been the year of the ACA's self-exploration, 2005 will be the year of the ACA's relaunch and 2006 will be the year of the ACA's re-establishment as a respected and professional service provider.
