By Marina Čulić Fischer
Marina Čulić Fischer, Director of Dialog Komunikacije (Zagreb), writes about the key challenges communication agencies will face in the period ahead.
According to a qualitative study recently conducted by PRWeek, based on interviews with leaders of the ten largest UK communication agencies, the number one need for agencies is structural reform. While the local (Croatian) market differs significantly from the UK, some parallels can be drawn. It has already been shown that developments in more advanced markets tend to reach us quickly.
Big Players Focus on Integration, Small Ones on Partnerships
Reform, of course, can mean different things depending on your starting point. In the early 2000s, we witnessed the rise of communications groups in our region, comprising a range of specialized agencies. For such models, the biggest challenge today is reintegration of services, driven by the limited potential for organic growth.
Global communications networks entered this reintegration process over a decade ago – and they’re not stopping. Since the beginning of this year, Burson UK reduced its number of specialized units from six to four, and Edelman integrated its sister and niche agencies into a broader organization. Similar examples can be seen in our region as well, although there are, of course, exceptions.
On the other hand, independent agencies are increasingly seeking partnerships that would allow them to compete more effectively in delivering integrated communications solutions – especially as the boundaries between various specializations continue to blur.
Tailored Generative Solutions
These boundaries are being erased by the media, by consumers – but most of all, by advertisers. The integration of marketing, communications consulting, and public affairs primarily demands an adaptation of working methods and the development of additional capabilities. At Dialog, we adopted an integrated work model even before the pandemic, but the second challenge – capacity building – remains a constant.
One potential solution lies in the development of tailored GPT tools. Our network partner, Ketchum, recently launched OmniAI, an excellent tool for sophisticated services like strategy development. In this context, artificial intelligence offers an exceptional opportunity to optimize processes – but the key challenge remains: being faster than the competition.
In conclusion, the three biggest challenges facing agencies are:
- the development of additional capacities and new competencies,
- the speed of adaptation to AI tools, and
- resilience amid political and economic turbulence, which greatly impacts the communications sector.
These three areas will determine who maintains a relevant market position in the years to come.
