Reduction in the Workforce

• Data from Forrester indicates that close to 35,000 agency jobs were cut during 2020 and expects that 17,000 more will be gone in 2021.
• On average, 11% of marketing and advertising agency staff has been laid off since March 2020.
• "The Forrester report says the gig economy could potentially benefit from a talent exodus. The report’s authors say they anticipate at least a 5% increase in small or midsize startups that offer marketing services."

Shifting the Workforce

• Data from In-House Agency Forum found that "72% of companies have some form of in-house agency capability, a 68% increase over the last decade."
• Analysts state, "there’s really good talent that is being let go when they shouldn’t or normally wouldn’t because of the state of the economy, those people are likely to find other opportunities or find their way back in, because their agency never wanted to let them go to begin with.”

Automating the Workforce

• Forrester data suggests that 11% of the agency workforce will be automated by 2023, further stating "agencies will become smaller yet smarter as machine learning and robotic processing automation help plan and buy media, create and produce content, measure and adjust marketing, develop products and experiences, manage operations, and select talent."
• Jay Pattisall, a principal analyst at Forrester suggests that the industry is on the precipice of a massive shift. "The industry is not fully aware of the level of transformation that’s going to happen, (in) pretty much every department at agencies, ranging from creative to production."
• "Creative is still largely a human exercise, but it’s being assisted by machines, Pattisall said, pointing to companies such as Persado, which uses artificial intelligence to help marketers craft effective copy."
• Ari Lightman, of Carnegie Mellon University, states "even though we have computers and algorithms spinning out content, messaging, targeting different individuals and negotiating contracts, we’re always going to need people to help out in terms of understanding and assessment, engagement, negotiations."
• Bradley Rogers, global COO for MRM, states, "Wave after wave of innovation in automation will continually change the industries’ need for talent over time."
• "Forrester predicts the confluence and collisions of talent and technology will lead to agencies resembling software companies. They’ll offer combinations of creative and media products bundled with the services to manage them. Rapidly evolved market conditions, buyer priorities, tech trends, and new consumer behaviors will drive an overdue restoration of the agency/CMO relationship in 2021 while permanently reshaping how the industry operates."
• Technology will act as a stop-gap of sorts in 2021, as it is predicted that "significant gaps in talent" will be augmented by tech while the "industry weathers another year of reduced marketing spend."

Culture and People Officers

• Forbes predicts that "culture and chief people officers will take center stage." in 2021.
• "Agencies must evolve their organizational culture and assemble a smaller, more adaptive brand/client 'dream team' comprising of creative, media, data, design, and technology. Demands for wholesale business transformation, diversity and inclusion, and emphasis on employee health globally have put the development and well-being of our talent center stage. Whatever the size or specialization of your agency, it’s the chief people officer that will be the most important role in 2021."

Summary