The global brand management services market is expected to grow at a CAGR of over 6 per cent over the next five years due to the growth in popularity of digital advertising.
The figures are contained in a study into procurement trends by Technavio.
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According to Angad Singh, lead Technavio procurement specialist for category spend intelligence, “Brands are increasingly relying on agencies to enhance customer experiences by using themes such as detailed explanations about products and simplicity of design. There is a need for effective branding services, as brands need to stay relevant in the market by differentiating themselves effectively from competitors.”
“Marketers are adopting regional branding strategies to create effective and targeted campaigns that consider cultural differences and consumer behaviour trends,” Singh said.
The adoption of cost optimisation levers can help buyers of brand management services realise cost savings and achieve category management and value benefits, including a reduction in procurement complexities.
Technavio procurement experts have segmented the cost saving opportunities in the brand management services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimisation of procurement practices
- Bundling of services
Adoption of technology saving aspects
Buyers are using visual recognition technology to analyse visuals of content, objects, and faces to derive more insights. For instance, Shazam partnered with McDonald’s to launch the #SipShareWin campaign that allowed users to click pictures, unlock song lyrics, and upload content to win passes.
VR helps brands use technology creatively and differentiate from similar brands. Using VR can deliver superior customer experiences. For instance, Samsung is using VR to create immersive shopping experiences for its customers.