The evolving creative agency: Why invest in the latest technology for marketing

Technology has always influenced marketing trends, from Gutenberg’s printing press in 1450 bringing the potential for mass communication, to the latest advancements in augmented reality and machine learning. It’s not an option for creative agencies to stay still; if you want to stay competitive, and profitable, you need to be able to evolve with the times.

The traditional and early digital models

Traditional marketing could be defined as anything you don’t need a smartphone for. With the rise of personal computers and the World Wide Web in the late 20th century, by the mid 2000s businesses were using AdWords to generate traffic and talking about the impact of SEO – mainstream marketing had gone digital. In 2017, the Interactive Advertising Bureau reported that digital ad spending totalled $88 billion in the US – a 21% increase on 2016. It’s predicted that in 2018, this figure will rise another 14% to $97 billion. Meanwhile, traditional offline marketing sales are predicted to drop by 5%.

The meaning of digital marketing has continued to evolve with the emergence of new technologies, and their constant growth. While hot once, social media marketing is long past ‘new’. In fact, a 2016 consumer study found that 74% of millennials (defined as age 20 to 39) and Gen Z (age 16 to 19) object to being “shouted at” by brands in their social media feeds.

“The shift away from traditional marketing models leads to significant opportunities for fast-moving agencies rooted in digital,” says Nick Phelps, CEO at digital creative agency RED. “The key for agencies that want to withstand the test of time will be to find ways to deliver at the highest levels for core brand needs – conceptualising, producing and promoting powerful creative – under one roof.”

To stay successful, marketers need to keep up with how consumers want to be marketed to. Creative agencies who began offering traditional services – and even those who evolved to offer web and social – have to move with the times to offer a full suite of rich, interactive services, investing in immersive and engaging technology, such as augmented reality (AR), social stories, programmatic advertising and artificial intelligence (AI) chatbots.

Moving forward – the digital model

Technology and marketing are two closely linked, blink-and-you’ll-miss-it industries. The latest technology today could be old news by tomorrow, with advancements in robotics, wearables, AR, VR and machine learning happening every day. A study by Gartner found that companies are already spending more on marketing technology than on traditional advertising, with 67% of CMOs planning to increase their spending in digital advertising in 2018.

The services offered by creative agencies harnessing the latest technology developments are getting cleverer. UK digital agency Beyond worked with The Warner Bros Studio Tour London: The Making of Harry Potter to create an automated chatbot with a personality and huge lexicon, which adheres to the Warner Bros brand requirements and can think, feel, and respond in a variety of scenarios. By providing an intuitive customer experience that could deliver realtime responses and provide relevant information, the chatbot has reduced customer service inquiries and increased bookings for additional facilities at the tour.

Design consultancy AllofUs worked with independent environmental organisation Greenpeace on a campaign that would bring people closer to the causes they champion. “We all know that much of our planet’s remaining wilderness is under threat,” said John Sauven, executive director at Greenpeace UK. “But these places we never visit, and rarely even see. So we worked with the team at AllofUS to think about the best ways to use technology to bring our audiences much, much closer to the amazing places we’re campaigning to protect.”

The resulting VR mobile app, Virtual Explorer, provides 360 degree films to take viewers to endangered environments across the globe, from the Amazon to the Arctic, with the opportunity to get involved via petitions and donations. For Christmas 2017, Greenpeace also created a VR bundle, including a branded Google Cardboard VR viewer made of recycled materials, that could be purchased via a donation to the charity. The minimum donation was £10, with an average donation of £13 over the 1750 bundles sold. The app itself had been downloaded over 12,000 times by February 2018.

Since the launch of the app, Greenpeace’s sign-up rates have doubled, driving donations for the charity. AllofUs co-founder and executive creative director, Orlando Mathias, said: “We believe that the power of VR is that it creates empathy by bringing users right to the heart of the work Greenpeace is doing in some truly remarkable places.”

Taking on perhaps the biggest piece of traditional advertising around – the blockbuster Christmas advert – MullenLowe Profero worked with Marks and Spencer to “find a fun, original way of connecting the brand with the giving spirit of Christmas.” They created a game of pass the parcel on desktop and mobile, which was shared via Facebook, engaging consumers and awarding prizes, redeemable in M&S stores.

There were 15 million parcels passed during the run of the game, with 355 million newsfeed posts and 250,000 new Facebook followers for M&S. Over 46,000 prizes were redeemed by players, increasing footfall by nearly 15,000 customers in store during the busy festive period. According to analysis by SiteCatalyst, referrals to M&S.com from the app had an impact on conversion, with an overall uplift of nearly 8% during the campaign.

Benefits

According to Vibrant Media, 67% of media planners and buyers want to incorporate more AR and VR advertisements into their digital marketing campaigns due to consumer engagement – Adweek reports that the number of AR users is predicted to hit 200 million in 2018, so this demand for engaging technologies in marketing isn’t surprising. In 2018, AR services are expected to generate $54 billion in revenue, and $68 billion by 2020 – so it’s safe to say, incorporating these services in your offering is worth seriously considering.

With the technology available on devices consumers already own, AR and VR marketing is an attractive option for marketers looking to reach a wide audience and drive revenue. Technology giants such as Apple, Google and Facebook are creating platforms for AR developers, and Adobe have previewed the tools needed to create these engaging, dynamic ads with Project Aero – meaning you can use the tools you’re already familiar with, and likely already own, without needing to invest in new software

Digital marketing campaigns have shown to be more cost effective than traditional methods – even with the initial cost outlay for the latest tech. Without paper, printing and distribution costs, or the expense of a television advert, digital advertising can use a smaller percentage of your budget whilst reaching a much larger audience. You can also see results and get customer feedback immediately with digital marketing. Social listening allows marketers to adapt in realtime, meaning you’re not continuing to put more money into a campaign only to realise when it’s over that no one was responding.

It’s also infinitely easier to track and measure your ROI on a digital campaign – if you place an ad in a magazine, or an advertisement on TV, it’s difficult to track how many people saw it, and who was influenced to buy. However, with digital campaigns, you can track hashtag use, website clicks, social followers and – like with M&S’s game of pass the parcel – see how many people are engaging with the campaign by how many campaign-specific offers are redeemed in store. By closely tracking ROI, brands and agencies can better manage their budgets and direct funds towards areas that will generate the most return.

Is it worth it?

To be blunt – yes. Even if it requires some initial costs for new tech, it’s definitely worth investing in what consumers have shown to be the most engaged with, and what yields the greatest results. According to the Demand Gen Report 2016, 96% of B2B buyers want content with more input from ‘industry thought leaders’ – in other words, brands want to work with those leading the conversation on cutting-edge marketing trends, and using innovative techniques to draw the attention of consumers, anticipating changes within the industry and inspiring others to do the same.

Even with the industry moving so rapidly, that doesn’t need to be an issue for your budget – our leasing options mean that you can always have access to the latest tech, without buying it outright only for it to be obsolete in another few months. Regular, predictable payments mean that you can easily control your budget, not to mention that leasing payments are classed as an operating expense, and are therefore fully tax-deductible. And with a subscription to Adobe’s Creative Cloud, not only will you have access to the industry’s leading tools, but you’ll gain the updates on AR, VR and beyond as and when they become available.

Considering the growing consumer demand for immersive campaigns, the potential ROI for the latest technology, and the success of campaigns already testing the water, it seems clear that you want your agency to be involved in the conversation.

Ready to join the conversation? Give us a call on 03332 409 204 or email DandP@Jigsaw24.com to find out how we can help you take advantage of the latest and greatest marketing technology. For all the latest news and insights, follow @WeAreJigsaw24 on Twitter, or ‘Like’ us on Facebook.