Welcome to the latest issue of R3LATIONSHIPS MONTHLY - our ongoing email update of trends and insights into the marketing industry
The Four Futures for the CMO
Digital Transformation has brought about some new roles in the C-suite of many organizations. Ten years ago, there were no Chief Digital Officers and Chief Experience officers, and as organizations focus on driving growth going forward, the CMO will face four possible futures in this new era of digital transformation, according to Shift Thinking and Accenture.
Up: CMOs will be promoted into new roles with a large focus on end-to-end consumer experience. For example, KFC's former CMO US was recently promoted to the role of President and Chief Concept Officer, responsible for driving overall strategy and business performance.
Over: CMOs keep their job titles, but take over new responsibilities such as customer service or e-commerce. A prime example would be Airbnb's CMO, Jonathan Mildenhall, who is seeking to leverage technology to give a whole new meaning to experiential marketing while transforming Airbnb from a tech company to a full-fledged travel brand.
Down: CMOs lose influence within the organization with the rise of the new C-suite executives. When the Chief Digital Officer first came on the scene, they largely reported to the CMO. Now, for several brands including Nike, Morgan Stanley and Tumi, the role has matured to become equal with marketing, taking on their own departments and increased responsibilities.
Out: CMOs are no longer a part of the organizational structure (a la Coca-Cola).
To read more about each possible future, find the full article here.
Marketing M&A Dominated By Consultancies
The trend of consultancies developing their marketing and advertising capabilities by acquiring agencies reached a new milestone in our latest M&A league report. For the first time in the report's four year history, a consulting firm took over the top spot from one of the big holding companies. With eight acquisitions this year, Accenture beat out WPP to become number one, with WPP and Dentsu trailing behind. While agencies are shivering in their boots, an Accenture executive maintains that the firm isn't trying to compete with the existing market, but rather to build a new market. Whether this trend continues remains to be seen.
In the past year, transparency has become the hottest topic in the media world. The ANA's ground-breaking study in the US revealed widespread non-transparent practices and left many marketers afraid that they didn't know where their money was actually going. In the same vein, the WFA did a study in May of this year showing that 70% of respondents had recently amended their media agency contracts, and 40% are developing resources in-house to address fraud. While this is promising start, there is still much to be done to insure improvement in this area, including marketers getting up to speed on transparency issues and setting KPIs together with agencies for accountability going forward.
R3 is a global marketing consultancy focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world's top twenty global marketers.