CMOs

How CMOs Should Combat The Disintegration Of The Agency-of-Record Model

Like the Don Draper three-martini lunch, the agency-of-record model is becoming a thing of the past. Big brands like General Motors and PepsiCo are building agency teams rather than trusting one agency to handle all their creative needs. Back when marketing consisted of print, broadcast and PR, a generalist agency could easily handle all of a brand’s needs. But now that the marketing world has expanded to areas like mobile, digital, experiential marketing and social media, many of the larger brands believe it’s hard for one agency to be excellent at all those things. For agencies that want to work for the bigger brands, “specialize or die” has become the name of the game, and as brands seek best-in-breed specialists to take on smaller chunks of their marketing, the agency of record is morphing into the team of record. If your brand has decided to play the field instead of settling down with one agency, you need to be aware of the potential pitfalls and how to get your agency army to collaborate effectively. New Model, New Problems A multi-agency approach to marketing is still relatively new, which means brands and their agencies are encountering a host of new challenges. While most brands are still experimenting with the freedom to purchase agency services à la carte, they’re often losing sight of who’s minding the store. That’s the biggest problem with employing multiple agency partners: No AOR means no one is overseeing the overarching brand strategy. This can lead to: Disjointed projects that fail to create a cohesive brand image. Partners duplicating one another’s work, wasting resources. Agencies undermining other agency partners in an effort to capture more client work. CMOs functioning as project managers rather [...]

Hey agency owner – New research reveals that CMOs don’t want just you

Agency Management Institute has partnered with Audience Audit (a firm that does custom attitudinal segmentation research) and Luth Research (Provided the audience research panel) to talk to CMOs and business owners across the US about how they feel about and make decisions about their work with agencies. This research provided great data on new business trends that are prevalent in the agency industry.It's a "look under the hood” of what truly motivates marketing agency partnership decisions and their longevity. It’s quantitative insight at what they are thinking and the results were fascinating.Agencies usually look at marketing decision-makers and their organizations from a demographic perspective but we found that their attitudes are much more relevant than their demographics when it comes to the roles they want their agencies to play, how they find and choose the agencies they work with, and the aspects of agencies they find most valuable (and most frustrating).Our new business trends research opened our eyes to a ton of insights about where CMOs' heads are at.  The results revealed 3 key audience segments:“Looking for Love” (29% of respondents) segment value agencies as a critical partner for business success.For this group, agencies are a key participant in strategic planning efforts, a trusted source of new ideas and insights about marketing trends, and a tactical partner across a wide range of marketing services and expertise.They feel it’s important to develop a long-term relationship with an agency, and expect that if their agency doesn’t have an answer they’ll know where to find it.“Playing the Field” (38% of respondents) segment sees hiring a marketing or advertising agency as a necessary evil to gain specialized expertise.They prefer to work with subject matter experts, and feel it’s important to change agencies periodically even if they’re doing [...]