The state of advertising strategy: three opportunities and three challenges, according to Warc

Jane Anderson
Jane Anderson
The state of advertising strategy: three opportunities and three challenges, according to Warc

The professionals of the advertising strategy They need to demonstrate their value and contributions in a context marked by budgetary pressure and the transformations generated by artificial intelligence.
This is what the report indicates “The Future of Strategy 2024” by Warcwhich includes the trends that are shaping the discipline, as well as the challenges facing the sector and the opportunities they can find to maintain relevance to consumers and the changing market.

The research has collected, between the months of July and August of this year, the vision of 1,148 strategy professionals all over the world, most of whom work in agencies. In addition, it has considered the insights obtained during the last edition of the Cannes Lions International Festival of Creativity.
The report analyzes three challenges and three opportunitiesand offers an overview of the impact of artificial intelligence and diversity and inclusion objectives on the strategy.

The three challenges of advertising strategy

  • Lack of global strategic thinking

According to the consulting firm, specialization, although important, can generate fragmentation in the global vision of the strategy that leads to friction and disconnection with broader brand and business objectives. Working on a general approach to the strategy, which includes multiple aspects related to the brand, will be key to advertising effectiveness.

  • The strategy is undervalued

As the report states, only 24% of strategy professionals agree that clients pay enough for the value of their work, compared to 48% who believe that clients They don’t pay enough for their work.
In part this may be because, although strategy can have a great impact on the positive development of the business and its growth, it is complex to measure and demonstrate.

In addition, the consulting firm points out that the dominant business model of agencies, based on time dedicated, could need a rethink. And 44% of strategy professionals prefer a Fixed fee based on projects.

  • Competencies are under threat

The report draws a current scenario in which a skills gap is emerging mainly due to reduced training budgets, generational change, new work models or tight work deadlines.

The truth is that only 43% of strategy professionals agree that their company invests in training to support your professional development. “Strategists must perfect their critical thinking or they run the risk of becoming mere transmitters of information,” they point out from Warc.

Three opportunities for strategy

  • Adopt a holistic mindset

The consultant remembers that the strategy is more than an advertisement or a publication on social networks. It is knowing the client’s needs and the landscape in which it operates so that each action is at the service of business objectives. And to achieve sustainable growth it is necessary to have a comprehensive approach that takes into consideration all aspects of the brand.

  • Understand the consumer

As the report states, only 24% of strategy professionals say that briefings collect detailed information about the target audienceand 13% claim that it does not appear at all. This means that there is a gap with respect to consumers that can be solved with greater knowledge of audiences and market dynamics.

The consulting firm points out that some professionals work far from the reality of consumers

  • Break the “strategy bubble”

From Warc they point out that marketing professionals can sometimes work in a “bubble” far from the reality of consumers. A situation that must be avoided by seeking connection with the world through research tools, especially those carried out in person.
This is important when considering that 48% of strategy specialists say they are spending less time conducting in-person research compared to the previous year.

The impact of artificial intelligence

Warc’s research has also considered the impact of artificial intelligence in strategy. According to reports, 59% of professionals in this discipline are integrating technology into their strategy development process in a “cautiously progressive” manner. On the other hand, 20% are betting on a more aggressive approach and seeking the contribution of AI whenever they can.

Professionals are finding advantages in this new tool. Specifically, quick access to research and information (74%) and streamlining repetitive tasks (74%) are the opportunities that stand out the most.
However, they also find barriers and frictions: biased results (71%), lack of creativity and originality (63%) and ethical and legal considerations (48%).

The consulting firm points out that strategy professionals must find your value in the gaps of artificial intelligence, such as aligning a group of people around an idea, driving commitment and involvement, and understanding the culture and idiosyncrasies of a company.

DEI principles and sustainability

On the other hand, the research has also focused on the brands’ commitments to sustainability and DEI (diversity, equity and inclusion) objectives and points out that these have been diminished. Warc indicates that these are issues that are increasingly absent from advertisers’ briefings, especially in North American markets.

The situation highlights the tension to balance business priorities with better outcomes for people and the planet. Still, globally, 68% of strategy professionals agree that it is important for brands to take a stance on environmental issues, a figure that has fallen 7 percentage points from last year.