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Friday, January 05, 2007

Ad Agency Deathwatch: The CMOs Weigh In

According to a recent study of senior marketing executives by Evalueserve for Sapient, just over half of Chief Marketing Officers (CMOs) believe that traditional, large advertising agencies are ill-suited to meet online marketing needs. Similarly, 49% of survey respondents believe that traditional advertising firms have difficulty thinking beyond traditional print and TV media models, which no longer are effective ways of engaging consumers who now get their information and influence one another primarily through digital channels.

As a result, fewer than 10% of those polled seek to partner with large advertising agencies for their online marketing. Instead, the majority of senior marketing executives show a strong preference for blended firms - firms with roots in technology that can also offer creative and traditional print expertise. Even more (68%) prefer to work with multiple agencies, in order to derive the benefits of specialization.

Sapient's research, Electronic Media, Marketing and Advertising Buyer Value Study, surveyed more than 100 CMOs and senior marketers from the US and UK in a range of industries to understand the drivers behind their selection of marketing and advertising agencies.

Gaston Legorburu, Sapient Chief Creative Officer and head of the Experience Marketing practice at Sapient, said "Two of the greatest challenges companies are struggling with are how to measure the effectiveness of the marketing spend and how to operationalize their entire digital strategy. Most agencies and corporate teams are just not equipped to do either yet."

The study revealed that the six most important factors to a CMO when choosing a marketing partner are (in order of importance to aggregate respondents):

1. Quality of Creative Content
2. Innovation and Strategic Value
3. Price/Cost
4. Sophisticated Analytics and Measurement Systems
5. Proficiency in Emerging, Interactive or Digital Media
6. Traditional Print, Offline and Media Buying Services

via MediaPost/Center for Media Research

1 comment:

salina said...

I think your wording is noteworthy: that CMOs are looking for an agency rooted in technology, with a nice ability to perform traditional duties, too. It's not a matter of being equally capable.