According to new research strategists globally are looking for ways to prove their worth amid budget cuts and the growing impact of AI. The Future of Strategy 2024 report, published by WARC, underscores the major challenges agency strategists face today and offers insights on revitalizing this critical component of the marketing landscape.
The research is based on a global survey with 1,148 strategists, the majority of which are agency-side, fielded between July-August 2024, as well as topics explored at this year’s Cannes Lions International Festival of Creativity, and discussions with leading strategists from around the world.
“Our annual Future of Strategy report acts as a temperature check for how strategists are feeling about the state of the discipline,” said Lena Roland, Content Director, WARC Strategy.
Top challenges facing agency strategistsWARC provided the following summary of its findings and recommendations:
Lack of ‘whole’ strategy thinkingSpecialists roles are important but the ‘splintering’ of strategy can be problematic, especially if teams are not connected to clients’ broader brand and business goals.
“Specialism is incredibly important, but perhaps all the tiny cuts and/or slivers of the strategic skill set, while well-intentioned to bring in needed expertise, have eroded the power and magic of ‘whole’ strategy thinking, a.k.a. diagnosing, designing, and activating the plan for the total system,” said Suzanne Powers, Founder, Powers Creativity.
Strategy is undervalued: Only one in four strategists (24%) agree that clients pay sufficiently for the value of their workGreat strategy can have a profoundly positive impact on clients’ business, yet the impact of strategy can be hard to measure and prove.
Half of all strategists (48%) disagree that clients pay sufficiently for the value of their work, and only one in four agree (24%). This is consistent across all markets.
“(Strategists) are often essential to winning the client over during the pitch and, longer term, a key holder of the senior client relationship,” said Geraldine Gaillemin, Managing Partner, The Blue Print.
“Yet it’s hard for them to prove their value and their worth during a time when more and more is being asked of them.”
According to the survey, the dominant agency time-based business model needs a rethink: 44% of strategists prefer a fixed/project-based fee.
Core skills are under threat: Only 43% of strategists agree that their company invests in training to support their professional developmentReduced training budgets, tight deadlines, hybrid working, and senior talent leaving agencies mean a skills gap is emerging. Strategists must hone their critical thinking or risk becoming mere transmitters of information.
Only 43% of strategists agree that their company invests in training to support their professional development, with 31% disagreeing. Regionally, agreement is lowest among strategists in North America (39%).
Opportunities to reignite strategy and address the client-strategy disconnect.Adopt ‘whole’ strategy thinkingStrategy is bigger than an ad or digital idea. This means knowing the big picture and ensuring different ‘flavours’ of strategy are working in service of the broader brand and business goals.
Leaders should ensure the whole team knows and understands the ‘big ambition’. Knowledge of the commercial side of a client’s business is important.
Understand the customerMarketers have lost sight of the customer, and this is evident in client briefs. Just 24% of strategists say detailed information about the target audience features in the majority of client briefs, while 13% say this information does not feature in any briefs.
Strategists can close the client disconnect by showing clients they understand their customers and can help clients get to a better understanding of market dynamics, and the diagnosis of their brand.
Burst the ‘strategy bubble’Marketers can operate in a ‘bubble’ far removed from the reality of their customers’ lives. Strategists must retain the link to ‘real life’, and can do so by using a variety of research tools, including in-person research.
Half of all strategists (48%) say they are spending less time conducting in-person research compared to last year.
The impact of AI on strategy – “cautiously progressive”:
More than half of strategists (59%) say they are integrating AI into their strategy development process in a “cautiously progressive” way
A fifth (20%) of strategists are taking an aggressive approach, and looking to adopt AI whenever they can. Speedy access to research and insight (74%) and streamlining repetitive tasks (74%) are the top opportunities strategists see in leveraging AI in the strategy process.
The most significant limitations for the use of AI remain the same as in 2023: skewed outputs (71%), lack of creativity and originality (63%) and ethical / legal considerations (48%).
Proving the value of strategy is even more important in the age of AI. Strategists must identify the skills that AI cannot replace, such as getting buy-in for a strategy and double down on them.
Liston Pitman, Strategy Director, eatbigfish, says: “AI can spit out an idea, but it can’t get a group of people aligned around or invested in it. It can’t see your culture or truly understand the humans who make it up. And it can’t go meeting-to-meeting, layer-by-layer advocating for the strategy.”
A lack of progress in DEI and climate:
11% of strategists in North America have had no discussion around DEI
DEI and climate are largely absent from client briefs, highlighting the tension of balancing commercial priorities with better outcomes for people and planet.
Commitment to DEI is waning, especially in North America, where 11% of strategists have had no discussion around DEI, up from 5% in 2023.
Globally, 68% of strategists agree that it is important for brands to take a stand on environmental issues (7 percentage point drop from 2023).
The Future of Strategy 2024 report, which includes quantitative and qualitative data analysis, expert commentary and advice from leading strategists, is available to WARC subscribers. Two Future of Strategy podcasts will be available to tune into on 01 October and 12 November.
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