As we reflect on the past year as it evolved into one of economic uncertainty, we continued to see signs of strength across the industry with overall advertising growth exceeding 8%.
Leaning in to 2023, we look forward to continuing to support members with ongoing business transformation and talent needs. These include initiatives addressing new business, automation, emerging trends and sustainability as well as evolving future workforce opportunities with talent reflecting diversity, equity, inclusion and belonging.
We will continue to be staunch advocates addressing the ever-shifting regulatory landscape across federal and state governments to ensure the protection of the advertising and marketing communications industry.
While there is volatility in markets across the globe, we’re focused on identifying opportunities in the U.S. for our members.
We remain passionate and firmly committed to supporting our valued members to champion and advocate on your behalf as a supportive business partner to positively move the industry forward and wish you a year of ongoing impact and success.
Marla Kaplowitz
President & Chief Executive Officer, 4A’s
Federal Trade Commission Takes Lead On Privacy
While 2022 saw two states pass new comprehensive privacy laws (Connecticut and Utah), the real focus on privacy shifted back to the federal stage. With Congress finally moving comprehensive federal legislation via the American Data And Privacy Protection Act (ADPPA) and the Federal Trade Commission (FTC) announcing a large-scale privacy rulemaking via the FTC Advanced Notice of Proposed Rulemaking (ANPR) on Commercial Surveillance and Data Privacy, it appeared that the federal government was ready to lead again on privacy.
And while some of these efforts appear to be faltering (i.e. it’s unlikely that the ADPPA will make it to the House floor for a vote), the FTC’s initiation of a proposed rulemaking is moving forward, and will likely unfold over the next year or two.
The FTC rulemaking is significant as it endeavors to cover a broad swath of topics that would greatly impact the data ecosystem: data security, commercial “surveillance” and harm to consumers, collection, use and retention of consumer data, etc. The ANPR poses almost one hundred questions on these topics. In the ongoing absence of comprehensive federal privacy legislation and scattered state privacy legislation, the FTC rulemaking is likely to become the de facto standard for many outstanding questions around privacy practices, questions left unaddressed by current state law.
Going into 2023, the industry should expect to see the FTC move closer to a formal rulemaking, as well as the continued passage of discrete state privacy laws.
Sustainability Issues Ramp Up
The issue of sustainability as applied to the advertising and marketing ecosystem can take multiple forms as there is no agreed-upon definition; however, for agencies and their clients, it increasingly seems to fall into at least two broad buckets. The first bucket centers around broad-based concerns around greenwashing (i.e. ensuring that environmental credentials are not being misrepresented). While guidance on this issue is currently a patchwork of outdated FTC regulations (i.e. Green Guides) and scattered state laws and industry self-regulation via NAD (BBB National Programs’ National Advertising Division), it does appear that more guidance is forthcoming.
The FTC has announced its plans to open-up the Green Guides in January 2023. The Guides are expected to be greatly expanded to provide the industry with far more updated guidance around what does and does not constitute greenwashing.
The second bucket involves governments, both domestic and global, moving towards mandating climate risk and greenhouse gas emissions disclosures. The Securities and Exchange Commission (SEC) is engaged in a rulemaking process that would potentially for the first time mandate carbon emissions reporting for covered companies. In the wake of COP27, the EU issued a new Directive mandating ESG reporting across a variety of metrics for companies headquartered or doing business in the EU.
In 2022, the 4A’s was part of a founding group to bring Ad Net Zero to the U.S. Ad Net Zero is an initiative started by the U.K. Advertising Association which seeks to help the advertising industry move towards decarbonization, and to implement more sustainable behaviors, both in practice and portrayal.
And with a push by the industry towards decarbonization, the issue of agencies working with fossil fuel clients continues to garner attention.
While much of the legislative, regulatory and legal action around sustainability will likely continue to be led by the U.K. and EU countries, it does appear that the issue of sustainability is becoming more prominent for U.S. companies, who are increasingly choosing to follow international standards in the absence of domestic ones. The future of legislative, regulatory and legal action domestically appears to be a bit of a question mark going into 2023, as the issue is still somewhat partisan in the U.S.
Weathering An Uncertain Economy
While economists are still divided over whether another recession is imminent, it’s clear that we are in a period of economic uncertainty. However, agencies should not make moves based on recessionary fears that can put them in a worse position financially. As we regularly communicate with members and also expanded on in our guidance paper, Seven Essential Steps to Recession-Proof Your Agency, agencies need to look across all aspects of their business. Now is the time to conduct an audit to identify and address areas of operational inefficiency and/or vulnerability across your business which can save money, avoid unnecessary costs, and put your agency in a better position for the future.
Whatever the coming year brings, we’ll be consulting with members about staying ahead and doing what agencies do best – innovate, iterate, and evolve. The good news is that recessions don’t last forever, but the actions taken now will have lasting impact long after weathering this unpredictable economic storm.
Driving Business Transformation Through Holistic Agency Operations Management
With the economy sending off mixed signals, the 4A’s is helping members adapt, transform and build resilience in their businesses in key areas.
Agency operations – one of the focal points – is the heart and mind of how an agency defines itself. Operations makes the agency’s purpose real – it’s the epicenter of how an agency delivers value to both internal and external stakeholders. It defines the capabilities, services and products the agency offers to its clients, as well as the benefits, policies and processes that comprise its culture to sustain and grow over time.
With this perspective, we launched the Agency Operations and Business Transformation (AOBT) Roundtable in 2022, a cross-functional approach with executives from finance, program management and technology to create practical intelligence through expert exchange and the publishing of best practices. The Roundtable’s goal is to provide guidance for the industry and agencies of all sizes by defining, formalizing, and leveraging a holistic approach to help agencies navigate the broad scope and rate of change across people, process, and technology.
The group has established five task forces under the leadership of 4A’s member executives for scope of work management, resources management/billability, change management/business transformation, technology strategy/investment, and finance/operations collaboration strategies.
This year, we will continue to build the community, meeting frequently to discuss challenges and opportunities, as the task forces compose an Agency Operations/Business Transformation Standards Playbook.
In this period of perpetual change and disruption in the advertising ecosystem, each shift requires an operational response, investment and implementation. With the ongoing digital transformation of business, pursuing operational excellence also provides strategic foresight for the agency into the same challenges clients face in securing talent, optimizing operations and planning for technology advances.
Our teams are dedicated to helping agencies maintain and increase profitability, while creating innovative value streams with new services, capabilities and delivery offerings.
Evolving Agency Compensation Models
Over the past 10+ years, the industry has undergone a significant transformation, and yet compensation models with agencies have remained relatively unchanged. To meet the needs of an ever-changing industry, modernizing agency models is paramount and will require investment in new capabilities and technology, as well as attracting and retaining top talent – which means compensation also needs to evolve.
2023 will be a continued year of partnership between the 4A’s and the ANA as we look to expand the industry’s understanding and implementation of alternative compensation models that focus on better outcomes for both brands and their agencies. By creating joint guidance and structuring a framework to assess a variety of compensation models and how to implement them, we hope to move the industry forward and create healthier, long-term strategic partnerships.
Guidance for Uncharted Water
For decades, the 4A's has delivered mission-critical information through benchmarking studies, industry standards and best practices, enabling decisions across a wide range of areas of agency business. In 2023, 4A’s surveys and benchmarks will continue to provide vital insight into the industry, allowing agency leaders to make decisions that ensure they are running healthy, competitive businesses. With the evolution of hybrid working, increasing salary requirements, and changes in technology, the 4A’s will be issuing key surveys throughout the year to help our members understand the evolving norms of our industry, such as an updated look at the Analysis of Agency Costs, Media Commission, Agency Tools and Technology, and our most recent Employee Compensation survey looking at the impact of remote workers on local salary costs. As always, we are grateful to the 4A’s member community for their participation and the real-world data they provide.
Supporting Merger, Acquisition, & Succession Planning With New Services
Over the last four years, the 4A’s has seen the number of inquiries from members pertaining to specialized M&A services increase, and in turn, provided general M&A advice guidance as part of the value of membership. The advice was exploratory and topline to serve as an internal discussion starter.
Due to a significant increase in inquiries with expanded requirements and needs, the 4A's started engaging, as requested, with members on value development options such as internal growth, strategic alliance, mergers and acquisitions, and divestitures. We expect member interest in potential M&A, succession planning and divestiture services to continue growing, especially given the economic uncertainty.
The 4A's will launch the Merger, Acquisition, & Succession Planning Services Group in the first quarter of 2023. Beyond general consulting, the 4A’s is prepared to support members through four supplemental targeted services (requires consulting fee): 4A’s ValueFind™, 4A’s ValueMap™, 4A’s ValueBuild™, and 4A’s ValueCheck™.
Business Development: The Real Cost of Pitching
The level of business development activity was robust during much of 2022, with a number of high-profile accounts changing agency partners. The 4A’s and the ANA worked together to address opportunities and shared the Agency Search Simplification Report, which surfaced a number of pain points that occur during the agency review process. Both the agency and client perspectives were included to provide guidance on how the process can be simpler, more efficient, and more productive. This year, the ANA and the 4A’s are developing a Client Relationship Roundtable to continue discussions on opportunities identified in the report to provide a better experience and greater effectiveness overall.
Beyond the challenges of the agency review process, there is a very real cost to pitching for both marketers and agencies that has little visibility. To better understand the true financial impact, the 4A’s is also partnering with the ANA on research that will provide a comprehensive view of The True Cost of Pitching — both to agencies and to clients. The research will be conducted by Advertiser Perceptions to quantify spending on agency reviews and go beyond the headline of media billings.
While outbound prospecting can be an important part of an agency’s business development plan, serious talent and resourcing issues have moved agencies to explore avenues for pipeline development that don’t solely rely on internal resources. While the 4A’s does not recommend or endorse any particular external prospecting partner, the Guidance Considerations for Working With External Prospecting Resources provides agencies with thoughts on how best to assess which provider may be a good fit.
Depending upon what happens with the economy in 2023, there may be a slowdown in new business activity. If this happens — and if history is any guide — there is likely to be a rapid rebound in activity as conditions improve. As you plan ahead, there are several things to keep in mind:
CX is Growing Up
Today CX (Customer Experience) is still an emerging collection of practices, disciplines and professions that confuse the definition and scoping of many CX engagements. The 4A’s CX Council through it’s three action committees — CX + Brand Experience , CX Data & Analytics, IDEAL (inclusion, diversity, equity, accessibility) — are documenting the skills required for a successful CX practice as developed by certification-issuing organizations like the Customer Experience Professional Association, Forrester and Qualtrics. This work now includes a relationship with Michigan State University offering the first master of science degree in CX Management. Examples from the curriculum include courses in “Creating a customer driven organization,” “Human centered design and innovation,” and “Data analytics and experience strategy.”
Agencies looking to build CX capabilities and work with client CX teams will use an understanding of these skills for qualifying potential team managers and talent candidates, and working with their client counterparts on CX related marketing accounts.
In addition, the CX Council is looking forward to collaborating with the Marketing Accountability Standards Board (MASB), on a standard set of CX terms to join their industry leading Marketing Terms database.
In 2023, the 4A’s will continue to surface the value of CX for agencies looking to expand their capabilities and revenue streams.
AI Creates… Opportunity!
From the intriguing saplings of AI’s potential in 2022, we’ve woken up in a forest of solid tools creating astounding work, dramatic images, engaging copy and video. In the next few years, there will be a hurricane of new AI-driven work, use cases and creators as software such as Stable Diffusion, MidJourney, DALL-E and so many more tools become commonplace and in the hands of just about anybody. And that will only be the expressive side of the storm as AI tools play more and more roles in editing and composition, surfacing meaningful audience segments, directing ads to more detectable environmental and program contexts in CTV, out-of-home and more. The human-in-the-loop in these cases — the strategists and creative instigators — will likely work at an agency. The 4A’s, through multiple committees and research, will track and present what you need to know on the ongoing development of these extraordinary new tools and the explosive impact and opportunities they will have for creative enterprises.
Mixed Realities: Agencies and the Metaverse
Facebook’s transformation into Meta created the most memorable event in the burgeoning awareness of the Metaverse. Virtual reality for therapeutic and entertainment applications has been around for some time, but the technology was supercharged by the pandemic, with an explosion of new users in many new demographics. While the computer gaming ecosystem was already massive, we are now seeing whole families watching concerts in Fortnight, the adventurous holding business meetings in Animal Crossing, and large corporations creating globe-spanning VR conference rooms for internal meetings.
In reality, however, a connected and interoperable metaverse that promises to allow a user to bring their avatar, wallet, and accessories from one experience to the next does not exist, and will likely not exist for the foreseeable future. What does exist is disconnected closed environments that weave together aspects of virtual and real; a mass phenomenon still struggling to be born with competing closed platforms and technological complexities.
Despite the challenges, audiences in mature virtual reality environments like gaming are vast, lucrative and continuously claiming more participants. Well-heeled brands in fashion and luxury goods have made creative and noteworthy experiments over the last couple of years and new activation design patterns are emerging.
The 4A’s believes that the vibrant and innovative gaming ecosystem is the pathway into the metaverse and metaverse-like environments. At Decisions 2023, our annual media, technology, and data conference, we’ll explore the increasingly growing intersection between our real and digital worlds across five key industries, including health and wellness care, gaming, and talent. We hope you can join us to engage in this ever-evolving ecosystem to learn more and explore possibilities.
Additionally, the 4A’s will continue working with our members, gaming companies, and technology providers to create market leading thought leadership and product guidelines in this space.
Web3: The Undead
The now eight-month-long crypto winter, along with bad press and well-publicized scams, has led to the precipitous decline of many famous, often celebrity-promoted NFT projects. Yet brands, creators and others are still supporting new projects every month, and new users are coming on board, now at more popular prices, of course.
Though a far cry from last year’s euphoria, there is still energy, excitement, experimentation and foundation building going on in many areas of Web3, the crypto-based distributed extension of the internet. In the marketing industry, this activity centers on Non Fungible Tokens (NFTs) — digital certificates of ownership that can power loyalty points and perks, ticket-holding with special privileges and virtual luxury, fashion and gaming goods. More use cases are emerging but the tech behind the Web3 customer experience is very far from user-friendly.
Many platforms and consultants are emerging to help brands and agencies navigate and design consumer offerings. As many complexities remain, the 4A’s will continue to provide valuable guidance and discussion evolving the initial conversation addressing Legal Issues to Consider Regarding NFTs when producing and maintaining work in this ecosystem. And as the industry matures and expands, we will continue to present insights and practical knowledge on what’s inspiring, worrisome, trivial and/or ready for primetime in Web3.
Perpetual Disruption
2022 saw a significant acceleration of the various media, technology, business and organizational disruptions that started even before the 2020 pandemic. Last year, we continued to see our physical and virtual worlds become more intertwined across several key industries including health and wellness care, education and media, while irreversibly changing how consumers interact with products and services from these industries.
While much has been written about the need for transparency across the entire media supply chain, the requirement for transparency transcends just media buying and now covers all facets of the data, technology, and broader media ecosystems. We will continue to see this evolve further to include content policies and enforcement, managing conflicts of interests within the walled gardens, the impact of artificial intelligence on content and creative, as well as an increased focus on automation. Recognition of biases in AI and technology platforms will also garner a growing amount of attention from advertisers, agencies and consumers alike.
The 4A’s continues to champion diversity, equity and inclusion, particularly with talent and media suppliers. There is an urgency to promote and make diversity endemic to the entire ecosystem and we will continue to support these efforts in a concrete and measurable way.
The discussion and debate with multiple currencies in the media measurement space has disrupted the measurement norms and has forced both the buyers (advertisers/agencies) and sellers (publishers/platforms) to revisit the currency of measuring media effectiveness. The 4A’s, CIMM, and the ANA have undertaken a study focused on exploring industry perspectives on the transition to a multi-currency TV/video market. This study aims to provide a comprehensive overview of the experiences and perspectives of industry participants across the ecosystem. The primary objectives of the study are to understand the state of multi-platform TV/video currency in the U.S., identify the actors and forces driving change, and identify the opportunities and challenges facing different categories of industry participants – ultimately helping to identify priorities for industry collaboration and cooperation. We expect a vibrant discussion to continue, focused on measurement currencies and new metrics such as attention. The sell-side (publishers/platforms) will see new ad entrants like Netflix change the dynamics around content and audience targeting. The buy side (agencies/marketers) will need to be crystal clear about how it values media effectiveness and will continue supporting the need for relevant MRC accreditation.
Additionally, a new form of immersive marketing is growing and all of the talk around the metaverse is accelerating interest in gaming. We explored this in Gaming and the Future of Experience Design, as well as in our webinar around The First Ever Playfronts where the 4A’s Gaming and Esports Committee discussed some of the key topics for consideration when exploring the opportunities in gaming.
There is no doubt we live in a dynamic time of perpetual change as new opportunities for businesses continue to grow.
Evolution Of Transparency
While the discussion of transparency was originally centered around agency commercial models and fees, it has since evolved to multiple topics that illuminate opportunities for evolving transparency within the data, media, and technology ecosystems.
Over a year ago, the ANA launched a transparency study run by PwC, TAG and Kroll. The study was meant to uncover hidden costs in the media supply chain.The 4A's, in partnership with several of our Media, Tech & Data committees, released our perspective in a paper titled “The Rocky Path Agencies Are Forced To Traverse,” and presented our POV and best practices for media supply path optimization. The 4A’s believes that transparency in the context of fees alone results in downward pressure on agency fees as the other players in the supply chain are either unwilling to disclose fees or are not willing to negotiate fees down in a manner that makes it possible for agencies to absorb reducing their fees. This has become especially apparent during a time when talent attraction and retention are requiring agencies to increase compensation. We encourage procurement teams to look elsewhere for pricing reductions to avoid eroding agencies’ ability to attract and retain talent.
Agencies are dedicated to moving towards a more transparent, efficient, and open marketplace and it will take a high degree of cooperation and collaboration between industry parties to smooth out the supply path and deliver the high degree of transparency that both advertisers and agencies desire.
The need for and discussion about transparency will continue to evolve as various social media platforms undergo significant transformations and large TV networks continue to blur the ecosystem by releasing more streaming services. We will continue to work with industry organizations such as WFA, GARM (Global Alliance for Responsible Media) — where the 4A’s is part of the founding Steer Team — and media supply partners to ensure that agencies have visibility and access to protect consumers and advertisers.
Diversity Builds Strength
In 2022, we focused on two key facets of diversity: talent and media suppliers.
There has been an increased impetus from the ad industry to support diverse suppliers. The 4A’s worked with the ANA and AIMM to create a set of definitive guidelines for both agencies and marketers and diverse media suppliers with the goal of helping to improve their ways of working together. We recommend that the guidelines, for Buyers (Agencies and Marketers) and for Diverse Media Suppliers, be reviewed by all participants in the ecosystem as improving supplier diversity will require everyone’s collective and persistent support.
We also engaged with our member agencies, as a continuation of our Five-Point Media Commitment, to discuss ways of breaking down barriers, both technically and procedurally, to accelerate incorporating diverse suppliers into the overall media mix.
As we kick off the year, we will be pushing for increased collaboration between and beyond industry groups to spawn new ways to simplify the process of identifying and promoting diverse suppliers. Some of the key focus points for all agencies to consider are:
While supplier diversity is an important way to reach an audience that is more representative of the U.S. population, it is only one piece of the equation. Agencies that successfully recruit and retain diverse talent will be set up for long-term success as advertisers recognize the benefits of diverse representation within their agency and technology partnerships.
We will work with our Talent, Equity, and Learning Solutions team to provide updated talent retention guidance within media, technology, and data. We will also continue working with the ANA, AIMM, and other industry bodies to promote increased adoption of diverse media suppliers and other initiatives.
As we continue to navigate the uncharted territories and adjustments of a post-COVID world and workplace, the 4A’s Talent, Equity and Learning Solutions team remains steadfast and committed to the evolution and transformation of its guidance and offerings to ensure that we continue to meet the needs of our advertising and marketing community.
The demand for Talent acquisition and alignment remains a primary focus for our industry as the employment landscape continues to shift, and the needs of emerging and existing talent continue to influence our approach to new ways of thinking and working. We’ve learned that the complexities and challenges of the talent space forebear opportunities for our industry to continue pivoting with great intention and meaningful focus. Attracting, retaining, growing and protecting the mental health of our talent workforce are imperative responsibilities to sustain the viability and progression of our industry at large. We are not in a talent crisis but more of a talent emergence which compels us to expand our ideals to explore, uncover, and tap into new responses that encourage awareness, learning and ignite growth. As we begin the new year, we are poised to continue delivering inclusive, responsive recommendations and solutions that advance the talent marketplace in new and uncommon ways.
Diversity, equity, inclusion and belonging are paramount to the success of any organization. Later this month, we will issue our Diversity in Agencies Survey (for members and non-members) to collect 2022 data to publish this spring (data gathered remains confidential; only aggregated data will be shared). This survey provides the ability to accurately measure, define challenges, and assess the rate of change over time to drive accountability. The survey results help determine how agencies can continue building a better culture of belonging.
Talent Strategies
Talent is one topic we consistently hear as a common challenge for all of our agencies. Being able to quickly secure needed talent to flex when new projects come in, or finding people with unique skills and capabilities as client needs evolve, agencies are often looking to freelance talent to help deliver on the shifting needs of their clients.
To help ensure our members have the talent they need, when they need it, the 4A’s launched Your Partner Hub, a talent sourcing and management platform. On Your Partner Hub, members can not only find new resources from our database of over 600 freelancers, they can also manage their own pre-existing partners on the site to build teams that can keep their projects moving at the speed of the new virtual economy.
Championing Diverse Talent
With each initiative, we know that providing intentional support and a community of belonging that is welcoming is key to the growth and development of existing and new talent within the industry, and we remain committed to identifying opportunities of value in support of our mission.
In 2022, The 4A’s Foundation delivered another successful year of MAIP (Multicultural Advertising Intern Program) with a class of 237 fellows hosted by 133 agencies and partners, across 171 locations. While the program was virtual, several interns enjoyed in-person or hybrid roles as many host agencies pivoted back to their physical workplaces. MAIP continues to draw some of the best and brightest emerging talent in our industry and serves as an invaluable introductory experience to advertising and marketing. We value our MAIP alumni community (4,000+) for continuously partnering with us in expanding our reach, and serving as influencers who keep us connected to the pulse of our industry, supporting emerging multicultural talent.
In 2023, we’ll welcome all diverse talent to our annual MAIP Alumni Summit — regardless of whether they’ve come through our current program funnel — which will allow us to further establish a footprint and support talent in the industry. We’re also excited to celebrate a very momentous 50th Anniversary of MAIP with a gala later in the year honoring individuals and organizations in advertising and marketing communications creative roles and adjacent industries, whose values and business practices continue to advance opportunities for historically underrepresented groups, and exhibit a sustained commitment towards action in areas of equity and inclusion. To continue identifying and advancing diverse talent, we will pilot the MAIP Accelerator program extension in the second quarter of 2023 to bolster the talent pipeline and support members in their recruitment and acquisition efforts.
The 365BLACKPRINT initiative has afforded a unique opportunity to elevate the focus on Black talent across the industry, 365 days of the year. Last year, in partnership with VMLY&R, we formally launched Dear Black Talent, a “talent-first” online platform designed to attract Black talent to the industry and support agencies in their commitment to increasing diversity and inclusion. Through this effort, we’ve directly connected Black talent to agencies to gain access and exposure to new career opportunities, and in some instances, provide an introductory experience to advertising and marketing. Dear Black Talent launched with eight agencies and industry partners investing over $200K in media support. We look forward to expanding the reach of this platform as an ongoing source to connect with Black talent.
Following the successful completion of the second year of our VANGUARD program with 64 fellows and 28 participating agencies and partners, this year we are excited to introduce an in-person component to the programming with opportunities for Vanguard Alumni to connect and build community with each other as well as alumni from other 4A’s Foundation programs. The program will continue to provide a platform for exposure, growth, and impact for VANGUARD fellows, mentors, executive sponsors, and organizations who are invested in preparing Black talent within the industry for career advancement and sustainable success in leadership roles. In Spring 2022, we launched our Spotify PULSE Fellowship, a one-year creative development program for Black professionals with 1-3 years of experience interested in shifting culture by showcasing Black creativity, innovation and excellence. This fellowship provides an additional pipeline for Black creatives to bridge their achievements and contributions into real-time advances and offers opportunities for exposure, mentorship and connection with senior leadership. We look forward to continuing to expand this effort when we welcome our second cohort in the Spring.
In alignment with our outward facing initiatives, the 4A’s Foundation Team also hosted a “Listening to Learn, Learning to Grow” session to actively hear from members of our Latinx talent community and understand how to best support them within our industry. We are using the learnings to help inform the launch of a dedicated Latinx programming effort designed to create community, belonging and exposure to opportunities for career visibility and advancement.
We continue to engage our Diversity Steering Committee to help address ongoing DEIB opportunities including the third annual Equity & Inclusion Congress: Committed to Action focused on three areas: Protecting the Work, Accountability, and Our Commitment. Through the learnings of this session, the 4A’s identified three key actions to further advance the investment of the DEIB work that was committed to through our Manifesto when the Congress began in 2020. These actions include:
The consolidated 2022 Equity & Inclusion Congress findings were shared to aid and support agencies with recommendations on how to tactically execute their DEIB efforts.
To further amplify the need for leader advocacy and support of the progress of DEIB, the 4A’s will partner with C-Suite leaders to engage their voices in a C-Suite Series to highlight leaders proactively collaborating with their DEIB teams and holding their organizations and themselves accountable for advancing this work and impact. We're committed to supporting our agency partners and their DEIB goals and look forward to inspiring conscious agency communities.
We will continue to challenge agencies and partners to think bigger and bolder about how to continue advancing the talent roadmap within the industry and providing assurance and outcomes of the commitment to actionable and sustainable change.
Accelerating Learning Solutions
In 2022, the 4A’s Learning Institute established resources to help onboard and support the development of talent within our industry by launching the Agency Accelerator Certificate Series. The first two certificates in this series; Agency Fundamentals (free for 4A’s members) and Media Essentials, were created to help promote introductory understanding of agency and media models with the intent of supporting foundational learning acclimation. We also look forward to offering additional certificate programs due for launch this year that will emphasize Agency Communications and Strategic and Creative Thinking, two essential areas of learning focus. These programs are designed to provide participants with valuable and essential skills necessary to grow and develop sustainable agency careers as our industry continues to evolve.
Understanding that learning solutions differ across talent, we identified an opportunity to focus on an industry-wide need for people leaders who can drive performance, manage inclusively, and retain talent. Through the Learning Institute’s creation of the Team Leadership Certification for managers, over 100 managers earned certificates and committed to learning how to give effective feedback, communicate inclusively, manage mental health, and elevate team performance. In 2023, our Executive Impact Program will support current and rising executive leaders through workshops tailored to the evolving needs of agency stewardship.
The Learning institute also addressed a key emerging need: helping teams work better across in-person, virtual, and hybrid environments, and employed our in-house expertise to curate customized training experiences for agency teams at their annual retreats and training events, supporting them in executive alignment, team dynamics, and individual strengths development. Teams came away with strategic insights, greater trust, and the ability to disagree productively; and in 2023, the Learning Institute plans to help agencies further address their needs through consultation, customization, and collaboration.
The impressions of culture will also continue to drive and inspire our people and our work. The Learning Institute’s industry-leading Workplace Enlightenment and Campaign Enlightenment programs have now helped over 60 agencies transform their workplaces and approaches to campaign development, so that everyone the agency touches — from employees to clients to audience — feels seen, heard, and connected. We look forward to continuing to expand, evolve and assess our Diversity, Equity, Inclusion and Belonging programs and look forward to bringing forth resources dedicated to neurodiversity and accessibility.
The emphasis on mental health and wellbeing will continue to be a significant focus as it relates to overall workforce stability and vitality. We will continue to support agencies in this space by contributing mental health training offerings that focus on leading through times of great change. In 2022, we provided resources to help agencies address mental health at all levels of the organization, from our partnership with Natasha Bowman on the new Mental Health Training for HR Professionals, to our partnership with Made of Millions that brought MADE Academy to agency teams. In the upcoming year, the release of Season 2 of MADE Academy and further partnerships will allow us to empower the platform of mental health and wellbeing to encourage continued purposeful productivity of our talent community.
Research On Demand
Throughout 2022, 4A's Research Services continued to serve as an extension of our members' new business, account management and strategy teams by providing in-depth secondary research in support of new business opportunities, client inquiries, brand reviews, business concepts and preparation of white papers and presentations.
As part of our comprehensive offerings, we will continue to provide custom research services and identify opportunities to enhance the offering. As the new year begins, our Information Specialists are readily available to provide prompt research by tapping into our wide range of resources. This includes industry and company focused databases and reports, consumer research sources covering demographics, psychographics, brand discovery behavior, media habits and more.
Topical Primary Research
4A’s Research conducted numerous primary consumer research surveys in 2022 to provide topical trend reports in a range of industries and topics. We looked at holiday gift giving trends, including motivations behind types of gifts given and preference for types of gifts to receive; changing attitudes toward cannabis, including cannabis and wellness; consumers’ definition of wellness, top wellness activities & products, barriers to wellness; brand actions in response to the Russia-Ukraine War; perceptions of Super Bowl LVI commercials and actions taken in response to viewing; and industry snapshot surveys about banking & financial behavior, grocery shopping, and travel plans. If you have a topic or industry you’re interested in the 4A’s team exploring, please reach out to Stacie Calabrese ([email protected]).
Future Outlook
Over the last few years, we believe that most insurance carriers have demonstrated remarkable flexibility and resilience in overcoming a host of obstacles, especially the impact of the pandemic and the economic fallout from the Russia-Ukraine conflict. Insurance technology companies have assisted in this regard by elevating technology strategies, processes and systems capabilities that were once only imagined to mainstream levels.
Throughout 2022, we proactively focused on building upon the momentum the insurance carriers had achieved, by enhancing and growing our program offerings, while maintaining the customer-centric focal point of our industry’s standard operating model, and what 4A’s member agencies have come to expect from us.
However, looking ahead this year and beyond, the economic road is dotted with multiple hurdles, and we remain acutely tuned in to what agencies and their employees need in the benefits arena. Ensuring our programs remain the best-in-class in their respective categories — in any economic environment — is a key objective.
We will continue to focus our attention on discovering new and emerging solutions, and delivering high quality, cost competitive programs for our 4A’s members.
Historical Dividend for Workers’ Compensation Captive
In 2022, the Workers’ Comp Captive declared the highest dividend percentage in its history, net of surcharges. The dividend equaled 48% of policy cost and an astonishing 74.6% of premium cost.
The workers’ comp captive’s performance along with its sheer size, once again proves the program remains the dominant player in our industry.
Maximizing on the low levels of claims in our industry and harnessing group buying power, claims and costs continue to outperform.
Massive Growth of Production Wrap-Up Insurance
Launched three years ago, the program’s significant growth and adoption has equated to a 78% year-over-year average growth rate from the program’s beginning. We anticipate a projected total production insured amount of $120 million as we enter the fourth year of the program.
Uniquely, we are the only wrap-up program provider for small and mid-sized agencies. The ease of job declaration will continue to be a key element of the program. An average savings of 30% – 40% is achieved by removing the insurance line from the Production Company contract and may be passed along to clients. The broader, more comprehensive insurance protection is a clear benefit to all participating 4A’s member agencies.
Our Production Wrap-Up Insurance solution and supporting desk of insurance professionals remains a premier product offering and an invaluable tool on production advice and insurance coverage.
Core Benefits Offering Yields Savings
Our Delta Dental & Delta Vision Partnership is growing in popularity with our member agencies.
This partnership has resulted in significant Dental & Vision savings for agencies and their employees by guaranteeing savings over current pricing for two years. It also allows for the current dental plan design to be matched.
4A’s member agencies who are not participating may request competitive bids for the 2023 policy year for Group Dental, Vision, Life & Disability Insurance coverages.
Retirement Program Continues to Deliver Robust Performance
In the past 25 years, there have been three recessions recorded in the U.S. When the stock market turns negative, some investors may think of ‘’getting out,’’ but this is the precise time to stay in the market and buy quality funds at lower costs.
This ‘‘dollar cost averaging’’ method can be extremely powerful in bear markets or recessions. Remember, even the most skilled investor, Warren Buffett, cannot predict or time the market.
In 2022, the 4A’s 401(k) retirement plan continued to deliver a strong performance against its market peers. Investing in these times, 4A’s member agencies and their employees can be fully confident that our investment line-up continually ranks in the top performing funds in their categories and are considered best-in-class.
2023 is an excellent time to engage 4A’s Benefits in a conversation about retirement plans as plan sponsors seek to fulfill their fiduciary responsibility through benchmarking. This has always been a free service for 4A’s members and is a necessary exercise to comply with DOL/IRS regulations.
Assessing Group Medical Programs
4A’s Benefits is continually evaluating the Group Medical Insurance environment, and we are always looking for solutions for our member agencies to consider.
As a 4A’s member, your agency can obtain a free analysis of your current plan as well as a potential alternative solution if your current Medical Insurance is not meeting your needs.
Our current Medical Insurance solutions include:
As we focus on opportunities to provide stability and support for members during ongoing economic uncertainty, we will continue to leverage the power of our collective community to further expand the possibilities through the value of creativity to address business challenges.
As your partners in business, you can rely on us to continually assess and expand our capabilities and offerings to support your evolving business needs. We hope that 2023 provides the stability and focus to innovate, iterate and evolve your business with a proactive strategy that increases the odds of not just surviving but thriving.
The 4A’s team is here to champion and advocate on your behalf.
Looking to get more out of your 4A’s membership? Check out the 4A’s Member Engagement Guide – your resource to optimize your understanding of the breadth of offerings and resources available to you and your team.
Join our network of 600+ members and learn how the 4A’s can support your business transformation and evolving talent needs.