Strategists around the world are seeking opportunities to demonstrate their value, as budget cuts and the evolution of AI disrupt the discipline. These are the main findings of the report*The future of strategy 2024*, published today by WARCthe global authority on marketing effectiveness.
This research is based on a global survey of 1,148 strategists from around the world, the majority of whom work in agencies, carried out between July and August 2024. It also draws on topics explored during the Cannes Lions International Festival of Creativity this year, as well as discussions with leading strategists from around the world.
Top Challenges Agency Strategists Face
1. Lack of global strategic thinking
Specialist roles are important, but fragmentation of strategy can be problematic, especially if teams are not aligned with clients’ broader brand and business goals.
Suzanne Powers, founder of Powers Creativity, says: “Specialization is incredibly important, but perhaps all these little cuts and/or fractions of strategic skills, while intended to provide the necessary expertise, have eroded the power and magic of big-picture strategic thinking, that is, diagnosing, designing and activating the plan for the system as a whole. »
2. Only one in four (24%) strategists believe clients pay enough for the value of their work
A good strategy can have a profoundly positive impact on customers’ businesses, but this impact is often difficult to measure and prove.
Half of strategists (48%) disagree that clients pay enough for the value of their work, and only one in four agree (24%). This observation is consistent across all markets.
According to the survey, the dominant time-based agency business model needs to be rethought: 44% of strategists prefer fixed or project-based fees.
3. Basic skills are under threat
Only 43% of strategists believe their company invests in training to support their professional development. Reduced training budgets, tight deadlines, hybrid working and the departure of senior talent from agencies are leading to the emergence of a skills gap. Strategists must hone their critical thinking skills or risk becoming mere transmitters of information.
Only 43% of strategists believe their company invests in training to support their professional development, while 31% disagree. Regionally, the level of agreement is lowest among strategists in North America (39%).
Three opportunities to revive strategy and bridge the gap between customers and strategists
1. Adopt holistic strategic thinking
Strategy goes beyond an ad or a digital idea. This means knowing the big picture and ensuring that the different “sides” of the strategy work in service of the broader goals of the brand and business.
Leaders must ensure that the entire team knows and understands the “big ambition”. Knowledge of the business side of the client’s business is important.
2. Understand the customer
Marketers have lost sight of the customer, which is reflected in customer briefs. Only 24% of strategists say detailed information about the target audience is included in the majority of briefs, while 13% say this information is not included in any briefs.
3. Burst the “strategic bubble”
Marketers can sometimes operate in a “bubble” removed from the reality of their customers’ lives. Strategists must maintain the connection to “real life” by using various research tools, including in-person research.
Half of strategists (48%) say they are spending less time conducting research in person compared to last year.
The impact of AI on strategy – “gradual and cautious”
More than half of strategists (59%) say they are integrating AI into their strategy development process in a “progressive and prudent” way. A fifth (20%) of strategists are taking an aggressive approach, seeking to use AI wherever they can. Rapid access to research and information (74%) and streamlining repetitive tasks (74%) are the top opportunities strategists see in using AI in the strategy process.
The most important limitations to the use of AI remain the same as in 2023: biased results (71%), lack of creativity and originality (63%), and ethical/legal considerations (48% ).
Proving the value of strategy is even more crucial in the age of AI. Strategists need to identify skills that AI cannot replace, such as building consensus for strategy, and hone them.
Liston Pitman, director of strategy at eatbigfish, says: “AI can come up with an idea, but it can’t get buy-in from a group of people around it. It cannot grasp your culture or truly understand the humans within it. And she can’t go from meeting to meeting, layer by layer, to defend the strategy. »
A lack of progress on diversity and climate
11% of strategists in North America have not had any discussions around DEI (Diversity, Equity and Inclusion). DEI and climate are largely absent from client briefs, highlighting the tension between business priorities and better outcomes for people and planet. Commitment to DEI is declining, particularly in North America, where 11% of strategists have had no discussions around DEI, compared to 5% in 2023. Globally, 68% of strategists agree that it is important for brands to take a stand on environmental issues (down 7 points percentage compared to 2023).
