Lots of great data emerging from the USC / Holmes Report on global communications, with some particularly important implications on talent - who we hire, the skills needed, and structures for organizing them.
Clients seem to find value from agencies in two streams - strategy/creativity, and implementation. The two are not mutually exclusive, of course, but they're drifting apart in how these services are budgeted.
I wonder if we'll see agency models adapt, maybe something similar to the tax/audit firms in the 90s, with consultancy and support services structured separately?
But while most commnications departments anticipate change, there’s no indication that budgets are changing to accommodate increased complexity and heightened expectations. As mentioned previously, client-side budgets increased by an average of just 2.67% last year and respondents expect budgets to increase even more slowly over the next five year, at around 2.5% per year.