Forrester analysts Peter Kim and Mary Beth Kemp have been tracking how marketing is changing. Their new study on the connected agency is out and is available as a free download. Forrester analysts interviewed 16 of the world’s top marketing companies and advertising agencies including HSBC, P&G, Wunderman, OgilvyOne, Target, Coca-Cola, RMG Connect and Publicis Dialogue to find out what consumers are doing and what kinds of solutions marketing are seeking.

Highlights from the study:

Advertising is stretched. And may soon snap. Fewer consumers than ever find that ads entertain, inform, or motivate them to make a purchase. Around the world, just a few consumers believe that companies generally tell the truth in ads.

Consumers Make Advertising Irrelevant. Consumers have replaced trust in advertising with trust in individuals — in particular, friends, family and colleagues, turning to communities and away from mass media.

Media Can’t Deliver A Captive Audience Anymore. Consumers have more reasons to dislike advertising: irrelevance, interruption and clutter. These come from marketers building media plans on a platform of legacy thinking.

Operational Processes Can’t Cope. Chief Marketing Officers (CMOs) understand the need to become customer-centric but face a myriad of operating challenges in getting there.

Agencies must change to keep their place in the value chain. Senior marketers have turned to agencies for help but have found that most don’t have the proper skills or structure to assist.

The Connected Agency. While the market fragments around channels and skills, the connection between the vocal consumer and consumer-centered marketer gets filled with static from multiple agencies fighting for attention. An agency with a deep understanding of consumer communities, helping brands create and nurture connections, deliver targeted, on-demand messages, and network for talent and insights.

The Marketing Ecosystem Responds. By harnessing community insights, the Connected Agency will force the marketing value chain to adapt as well.

Read the full report here.