Joel Trethowan, Managing Director, Alchemy One
During 2022 there was great sentiment and momentum among agencies and marketers following the rebound from COVID. In reflecting, three core areas stood out to me:
The continued rise of Indies
2022 was a promising year yet again for Indies, with a continued rise in clients moving to indies. Marketers have shifted many accounts that were previously held by holdcos to find agency partners where they have the opportunity for a more agile, passionate, senior and aligned team. The IMAA (Independent Media Agency Australia) has been integral to this success, as the playing field isn’t just level anymore, it’s tipped in the indies' favour, with media partners also seeing the strength and value of the IMAA collective.
Momentum on Governance (Walking the walk)
As an industry, there has been progress made towards enriching sustainability initiatives. It is still just lip service for some agencies as they continue to cause the problem (see the F List to see which agencies have Fossil Fuel contracts). Other agencies have taken an active stance, and the growing consumer and business push against poor sustainability credentials is a positive step. I’m proud of our contribution at Alchemy One to ban fossil fuel advertising in Australia through the Fossil Ad Ban campaign via Comms Declare. Coupled with the recent moves from the AANA to conduct an audit around Greenwashing, there are promising signs that the Australian industry is moving in the right direction.
The Talent Crisis/Opportunity
Although the talent crisis hit home for the industry, it resulted in some positive moves from the industry to solidify culture and flexibility. With so many opportunities for candidates in the market, roles mustn’t be sold as a dream but as a reality. For us, that has been about finding exceptional talent who can align their skills with their values and who are excited about how their contribution will impact our growth. This year we’ve shared more than ever with candidates about our DNA as a company and our 3-5 year plan and defined precisely what the success outcomes of the role are and how these ladder back to our company goals. We’ve rolled out new initiatives, such as an agency-wide profit-sharing model, to ensure the team is not only rewarded across their journey with us but also part of our mission. Our blanket ban on not working with fossil fuel, gambling, tobacco and alcohol clients and B Corp Certification also continues to resonate with candidates.
As we move into 2023, three pillars stand out for me, and I’m excited to see their momentum to progress the industry forward.
Decarbonisation
Over the last 12-18 months, there has been a substantial shift away from carbon offsetting, given offsetting is an interim measure but not a solution. Our industry has a huge carbon footprint, and the north star is for everyone to have a decarbonisation solution. There have been significant steps in the right direction, from Net Zero Media in Australia to the setup of Essence’s sustainable programmatic marketplace in the UK this year. It will be interesting to see how the broader industry responds. We have a strong focus on decarbonisation and Scope 3 emissions at Alchemy One tied to our B Corp initiatives as we move into 2023, which will continue to shape our product offering and, in turn, the solutions we provide our partners.
There was a significant rise in conversation in 2022 around gambling advertising - not only the lack of governance around the category but, of course, its broader societal impact. With Australia sadly ranking as #1 in the world for gambling losses per capita, according to The Economist, I want to see this conversation and governance pick up significantly in 2023. Personally, I want to watch Married at First Sight (guilty pleasure) without a gambling ad every 3rd slot or ‘insert any random celebrity’ spruiking some new betting platform. With 71% of Australians agreeing that gambling ads should be banned on TV, gambling needs to be treated like other addictions and health concerns and have severe restrictions in its ability to advertise.
Data Breaches & Ethics
With the data breaches in the back half of this year with Optus, Medibank and others, this presents a serious concern and challenge for all businesses. Data breaches and mitigation plans will continue to be at the top of companies' action lists, but I’m interested in the conversations around data ethics and the momentum this picks up in 2023. Power and choice need to be given back to the consumer, so they can decide how their data will be used. We have a long way to go, and I’m hyper-aware of the many implications this will present for our industry, but the balance of power needs to change.