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SapientNitro Global Marketing Series: Part Three – Five Ways Agencies Are Grappling With Global Marketing

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SapientNitro Global Marketing Series: Part Three – Five Ways Agencies Are Grappling With Global Marketing Powered By Docstoc
					sapienTniTro global markeTing series



Five Ways
agencies are
grappling WiTH
global markeTing
Article   3   of 3 The evolution of global marketing | by Freddie laker and Hilding anderson
     execuTive summary
     CMOs are struggling to adapt to a world that is fundamentally different from when
     they started their careers. Disruptive digital technologies and the new expectations
     of the global consumer are forcing global firms to adjust and innovate.

     At SapientNitro, we have made a significant effort to understand how these changes
     are impacting large global organizations. What we found was surprising: just 15% of
     senior marketers are prepared to deal with the rapidly changing consumer, and just
     8% believe agencies are succeeding in their support of global brands.

     This should be a wake-up call for global marketers.

     To further develop an understanding of the causes and implications of these trends,
     we have conducted a 6-month study of 114 CMO-level marketers, including one-
     on-one interviews with former or current CMOs including The Home Depot and
     Intercontinental Hotels.

     Our research has culminated in three articles. The first is focused on identifying the
     obstacles, and understanding the implications of these new challenges. The second
     posits a new “Global Marketing Mindset” of the future CMO — one more comfortable
     with technology, consumer insight, analytics, and multi-disciplinary strategy teams.
     The final article explores the implications of these trends for agencies — how
     agencies can better support large global brands; it also points out major areas
     where they are currently failing.

     Together, these pieces represent our perspective on the future of global marketing.
     While it is a challenging future, it also is full of opportunities for innovative,



?!
     adaptable, and entrepreneurial leaders and businesses.
inTroDucTion




                                                                                                                                                                               arcHiTecT
                                                                                                         copy WriTer
Global agencies continue to grapple with a digital world requiring




                                                                                                                                                                                                                                                                 Developer
                                                                                                                                                                                                                      sToryTeller
                                                                                                                                                anTHropolisT
                                                                                                                            markeTeer



                                                                                                                                                               engineer



                                                                                                                                                                                                Designer
global consistency, but local articulation. Despite repeated efforts




                                                                                                                                                                                                                                           sTraTegisT
over the past two decades, agencies have been unsuccessful at fully
solving the problems inherent in global account management in the
digital age. Our research revealed the damage it has done to CMOs
— just 8% of CMOs feel that their global agencies are supporting
them successfully. When we looked at marketers who identified
themselves as technology savvy, the number dropped to zero (0%).

SapientNitro’s recent research found five major problem areas,
which agencies must address: increased specialization, a lack of
deep country-specific knowledge, a lack of strategic digital thinking,
a lack of omni-channel global concepts, and a lack of investment
into skills and digital tools.




1. STruGGLES WITH AGENCy SPECIALIzATION

Senior global marketers deal with the daunting challenges of managing multiple
countries every day. Too often, they are not getting multi-channel, global thinking
                                                                                        One solution CMOs are using is to consolidate their agency partners centrally.
                                                                                        Our research found that nearly 50% of marketers are seeking to consolidate their
                                                                                                                                                                                           Brands need to find the right                                 Tight integration is particularly
                                                                                                                                                                                                                                                         important for large, global
from their fragmented agency portfolio. The growth of disruptive technology has         agency partners at a global level.                                                                 strategic partners to get the                                 accounts for four main reasons:
fueled a proliferation of new types of specialized agencies. But it comes at a cost —                                                                                                                                                                    the importance of country-
particularly for complex global brands.                                                 Top agencies recognize the problem of specialization and separate P&Ls, and                        right ideas. I’ve seen brands                                 specific knowledge, the risk

As we mentioned in the introduction, the research shows that just 8% of senior
                                                                                        various solutions have been proposed. One option is to create “mini-agencies”
                                                                                        for big clients. WPP CEO Sir Martin Sorrell’s experiment at Dell — a $4.5B global
                                                                                                                                                                                           with 30 people from different                                 of a cacophony of noise if not
                                                                                                                                                                                                                                                         properly organized, the difficulty
marketers believe their agency partners are succeeding in their support of global       account — is an example of the benefits and pitfalls in this approach. In this case,               agencies.                                                     in identifying team resources
brands. In our study, roughly 60% of senior marketers characterize themselves           they attempted to attract the stars to the account from across WPP. But separate                                                                                 in global accounts, and the
as tech-savvy. Among those who are technology savvy — presumably the group              P&Ls and the loyalty to the agency — not to the holding company — impeded the                      Former Unilever SVP Brand Marketing                           growing emphasis on multi-
best able to understand the opportunities of this new disruptive technology — the       ability to create the best-in-breed team structure. Dell quickly reverted to an “ad                                                                              channel experiences.
number believing their agencies were successfully supporting global brands              hoc” set of agencies, and ultimately moved the account to three smaller agencies
dropped to zero (0%). We believe these data show that even the most sophisticated       — none of which were part of WPP.                                                                  Increased specialization represents a challenge for which agencies — particularly
marketer will struggle with too many specialized agency partners.                                                                                                                          large, global agencies — continue to seek solutions.
                                                                                        Clients are increasingly looking for the integration of teams across multiple
Another aspect of the problem is that many digital agencies don’t offer end-to-end      disciplines — design, architecture, engineering, anthropology, and storytelling can
solutions. According to a 2010 survey, 80% of those surveyed in the uK feel that        all play a role. Some of the best thinking comes when these skills are united under                1
                                                                                                                                                                                               Costa, Marylou. “remodelling the Agency relationship for the 3.0 Age.” August 2010
digital agencies are too fragmented and specialized, and want digital agencies to       a single roof, not spread around the world.
grow their service to provide a fully integrated offering (such as design and build,
development, email, eCrM, search, data, display, and social media).” 1
FIGurE 1:

CMOS rEPOrT THAT AGENCIES ArE NOT SuCCEEDING
IN THEIr SuPPOrT OF GLOBAL BrANDS

                                      % of respondents who agreed or strongly agreed


  Agencies today are succeeding
  in their support of global
  brands.                           8%

                                                                                                               2. LOCAL NEEDS AND TASTES rEMAIN uNDEr-ExPLOrED
  Our current global agency
  partners have the necessary
  global footprint to support our   12%
  brands.                                                                                                      One big surprise from our research is the gap between the promise of local                          And there is substantial budget being spent locally; nearly a quarter (23%)
                                                                                                               customer understanding and the reality. Agencies realize the importance                             of companies spend more than 50% of their marketing and merchandising
                                                                                                               of localization, yet just 11% of their senior-most clients strongly agree that                      budgets at the local level. 3
FIGURE 1 To survive in the new marketing world, marketers must be flexible. yet a minority of marketers
feel prepared to deal with integrating their marketing activities to reach these consumers.                    global agency partners have a deep understanding of local needs and
                                                                                                               requirements.                                                                                       We also know that deep customer insight helps win pitches. According to our
Source: Q2 2012 online survey to 114 senior marketers with global responsibilities
                                                                                                                                                                                                                   survey, deep insight into changing customer behaviors is the number one
                                                                                                               The core problem is that many agencies’ global footprints are insufficient,                         capability for choosing agency partners (see sidebar). And this local insight
                                                                                                               according to clients. Just 12% of CMOs strongly believe their current                               is critical for both tech-savvy marketers and less tech-savvy marketers; both
                                                                                                               agencies possess “the necessary global footprint” to support their brands. 2                        scored “deep insights into changing consumer behavior” in their top three
                                                                                                                                                                                                                   selection criteria for new agencies.
FIGurE 2:
                                                                                                               This local knowledge is growing more important in the digital age; 92% of
CMOS PrIOrITIzE KNOWLEDGE ABOuT LOCAL NEEDS                                                                    respondents responded that the importance of tailoring campaigns to local                           2
                                                                                                                                                                                                                        Costa, Marylou. “remodelling the Agency relationship for the 3.0 Age.” August 2010
AND TASTES IN CHOOSING AGENCIES                                                                                values, customs, and norms is going to be the same or more important in                             3
                                                                                                                                                                                                                        October 2011 CMO Council study titled “Powering Performance on a Field Marketing Level
                                                                                                               three years.                                                                                             Through Localized Content, Advertising, Promotions, Search Contacts, and Cyber Community
                                      % of respondents who agreed or strongly agreed to the question                                                                                                                    Connections”

                                      Q: What are the most important global trends in marketing that
                                      will impact your business in the next 3-5 years?


  Ability to provide deeper
  insight into changing
  consumer behavior
                                            36%                           53%                   89%            HOW DO LArGE MuLTI-NATIONALS CHOOSE AGENCy PArTNErS? TOP 3 SELECTION CrITErIA FOr:
                                                                             #1

  Best-in-class creative                   33%                          54%                   88%
                                                                                                               TecHnology savvy markeTers                                                                          non-TecH savvy markeTers
  Brand stewardship
  (e.g. brand strategy, etc.)                38%                          49%                 87%              95.7%                                         Brand stewardship (e.g. brand strategy, etc.)             Best-in-class creative                                                    88.3%

                                                                                                                                                                                                              VS
                                                                                                                   87%                Ability to drive cost efficiencies by utilizing fewer agencies across
                                                                                                                                                                        multiple geographies /capabilities
                                                                                                                                                                                                                       Significant amount of local expertise in our key markets
                                                                                                                                                                                                                       (e.g. agency having physical offices in key markets)                      88.3%
FIGURE 2 Managing global campaigns in the new global and digital world was identified as a key challenge.
In particular, social media, and blending online / offline experiences were key global marketing challenges.       82.6%               Ability to provide deeper insight into changing consumer behavior               Ability to provide deeper insight into changing consumer behavior         88.2%
Source: Q2 2012 online survey to 114 senior marketers with global responsibilities
                                                                                                                   82.6%                                                           Best-in-class creative              Brand stewardship (e.g. brand strategy, etc.)                             88.2%
                                          FIGurE 3:


Agencies setting up a global campaign     HOW DO TECH-SAVVy MArKETErS THINK ABOuT AGENCIES DIFFErENTLy?
                                                                                                                                                                         FIGURE 3 The new CMO - one who is as

for a global organization must have         How important are each of the following
                                                                                                            TECH-SAVVy1
                                                                                                      % who strongly agreed
                                                                                                                                   NON-TECH SAVVy
                                                                                                                               % who strongly agreed
                                                                                                                                                       DIFFErENCE        comfortable talking CMSs and multi-variate
                                                                                                                                                                         testing as brand tracking studies – has very

a presence and/or experience in the         capabilities when selecting agency partners?

                                            Is online an important revenue channel for
                                                                                                                                                                         different expectation on the role of agencies.
                                                                                                                                                                         What we found was that they are much more
                                                                                                                                                                         likely to expect multi-channel thinking from
                                                                                                            74%                    47%                  +27.1%
markets they are focusing on. An agency     your business (i.e. selling products or services
                                            online)?                                                                                                                     their global partners, much more likely
                                                                                                                                                                         to choose agencies which offer depth and

with one office in NYC cannot serve the     Our current global agency partners push us to
                                            think across all channels, not just one or two.
                                                                                                    24%                       0%                        +23.7%           breadth – and hence be satisfied with that
                                                                                                                                                                         breadth – and also to believe agencies are
                                                                                                                                                                         succeeding. Agencies which can connect to

needs of our organization in Bangalore.     Significant amount of local expertise in our key
                                            markets (e.g. agency having physical offices in
                                            key markets)
                                                                                                     44%                      24%                       +20.6%
                                                                                                                                                                         these types of knowledgeable leaders – and
                                                                                                                                                                         provide the right mix of services – seem to be
                                                                                                                                                                         performing better than those who are not.
Senior Global Marketer from 2012 Survey     Ability to provide deeper insight into changing
                                            consumer behavior
                                                                                                           61%                 41%                      +20.2%           Source: Q2 2012 online survey to 114 senior
                                                                                                                                                                         marketers with global responsibilities

                                            I am satisfied that our current global agency
                                            partner(s) depth (e.g. deep marketing insights) and     17%                       0%                        +17.3%
                                            breadth (a mix of digital and traditional) of skills.


                                            Ability to drive cost efficiencies by utilizing
                                            fewer agencies across multiple geographies/
                                                                                                     39%                      24%                       +15.3%
                                            capabilities

                                            Agencies today are succeeding in their support                14%                 0%                         +14 %
                                            of global brands.


                                            Cross-channel expertise in both digital and
                                            traditional commerce
                                                                                                      46%                     24%                       +22.7%
                                                                                                                                                                     4
                                                                                                                                                                         Tech Savvy is defined as those who agreed or
                                                                                                                                                                         strongly agreed to the statement ‘I consider
                                            Best-in-class creative                                                                                                       myself to be very knowledgeable about
                                                                                                          52%                        71%                 -19.0%
                                                                                                                                                                         technology (e.g. the back-end infrastructure
                                                                                                                                                                         for marketing programs)’




                                          The research also revealed that this local knowledge gap among                           And if you need more validation of the emphasis on local expertise
                                          global agencies appears to be driving the usage of local agencies                        by global CMOs, respondents to our online survey also were clear
                                          — agencies that often lack the technical depth to build game-                            about this need.
                                          changing digital platforms at scale. Two-thirds (67%) of senior
                                          marketers agree that local agencies are an essential part of their
                                                                                                                                        Agencies setting up a global campaign for
                                          global, go-to-market strategy. The result is that game-changing
                                          digital or cross-channel experiences may never get built.                                a global organization must have a presence and/or
                                          Digital pure-plays, which traditional agencies have developed over
                                                                                                                                   experience in the markets they are focusing on.
                                          the years, were also singled out as missing the global footprint.                        An agency with one office in NYC cannot serve the
                                          A former CMO of a global CPG corporation summed it up: “My
                                          experience has been that a number of digital agencies lack a
                                                                                                                                   needs of our organization in Bangalore.
                                          global perspective. They don’t have a strong [global] footprint.”                        senior global marketer from 2012 survey
                                                                                                                                                                   insigHT
      There are very few agencies

                                                                                                     experience
that can truly operate at a global
level and provide equally good
services in different markets.                                                                                                                                 markeT knoWleDge
This is particularly true in the                                               researcH
emerging economies. This trend                                                                                                 culTural aWareness                                                  experTise
is exacerbated once you start
to work across multimedia
channels … relevant marketing
is done on the ground and is
culturally specific.                                                                                                                                            local neeDs
senior global marketer from 2012 survey




The solution that many agencies look for is to operate as a global network;
it should be a network where any region can connect with and bring in the
                                                                               Two-thirds of senior marketers                           a feature phone
                                                                                                                                        (non-smartphone)
                                                                                                                                                               nuances include variation in the support of texting plans, or the rising role of Wi-
                                                                                                                                                               Fi in lieu of voice plans in developing countries from Mexico to Brazil. This level
global perspective and insight. But the reality is that the success of this    (67%) agree that local agencies                          project in Southeast   of local understanding is helped by geographic proximity.
approach depends on the effectiveness and quality of the global management
team. Deep consumer insights on the global level are key to developing great
                                                                               are an essential part of their                           Asia. Only the India
                                                                                                                                        team got it right —    The bottom line is that many global pitches are made — and won — based on
global experiences.                                                            global, go-to-market strategy.                           the London team        the strength of consumer insight in multiple regions. yet a great challenge
                                                                                                                                        didn’t embrace         remains in how to operationalize strategic insight across different P&Ls,
For example, mobile technologies vary by market. One story we heard was        the limited technology of feature phones, while the India team developed a      cultures, and languages. The research shows that too often global agency
of a client who tapped top creatives at agencies in London and India for       groundbreaking campaign using the available features. Other global mobile       partners are not bringing deep local understanding.
FIGurE 4:

DESPITE COST PrESSurES, LACK OF LOCAL KNOWLEDGE
IS DrIVING CMOS TO LOCAL AGENCIES

                                               % of respondents who agreed or strongly agreed
                                                                                                                3. GAPS PErSIST IN THE STrATEGIC MIx

  Our current global agency partners                                                                            In an environment of disruptive technology, CMOs are demanding                       Over the past five years, both groups have continued to invest to try to
  have a deep understanding of local                 35%              11%     46%
  needs and requirements.                                                                                       more from their agencies. Agencies are increasingly being tapped for                 close this gap. For example, agencies are shifting from a “big idea”
                                                                                                                deep strategic insight across both traditional and digital. According                to an organizing idea — one that defines a brand experience across
  Local agencies (i.e. those operating in
  just one country) are an essential part
                                                                                                                to our survey, however, few agencies (just 10%) are fully integrating                channels, countries, and platforms. And it is even more important for
                                                           51%                       16%    67%
  of our global, go-to-market strategy.                                                                         digital and traditional strategies for their clients.                                global accounts than domestic accounts, as it can provide guidance to
                                                                                                                                                                                                     local partners and allow them to extend and improvise on their own.
                                                                                                                In the agency world, both traditional and digital agencies share the                 In our experience, the home office tends to want to be more brand-
                                                                                                                blame. For traditional agencies, our survey found that just 11% of                   oriented, while local markets want tactical, short-term activities with a
COST EFFICIENCIES DrIVE CMOS TO WANT TO                                                                         global CMOs strongly agree that traditional agencies have a good                     defined rOI. An organizing idea allows you connect these two goals.
CONSOLIDATE                                                                                                     understanding of how to leverage digital. While digital agencies are
                                                                                                                hardly exempt: less than half (43%) of CMOs agree or strongly agree                  The bottom line is that while traditional agencies particularly are
                                               % of respondents who agreed or strongly agreed                   that their digital agency partners have a leading strategic role in the              strong at developing ideas, which map to an overarching strategy,
                                                                                                                marketing decision-making process.                                                   both groups need to do a better job of integration and working across
  Ability to drive cost efficiencies
                                                                                                                                                                                                     channels.
  by utilizing fewer agencies across                     46%                          32%         78%
  multiple geographies/ capabilities




FIGURE 4 Less than 11% of CMOs strongly agree their global agencies have a deep understanding of local
needs. The result is that CMOs continue to look elsewhere for this critical capability, often to niche, local
shops which in the long run increase brand, management challenges, and increase ‘silos’ of expertise.

Source: Q2 2012 online survey to 114 senior marketers with global responsibilities

                                                                                                                4. CHALLENGES IN DELIVErING GLOBAL MuLTI-CHANNEL IDEAS

FIGurE 5:

COST EFFICIENCIES DrIVE CMOS TO WANT TO
                                                                                                                Multi-channel consumers spend more — up to 400% more —
                                                                                                                compared with a single-channel consumer 4. yet in our discussions
                                                                                                                                                                                                            Campaigns should be developed to be
CONSOLIDATE                                                                                                     with company and agency marketers, too many described situations                     channel agnostic. [The] going assumption is
                                                                                                                where global silos within organizations and agencies prevented the
                                               % of respondents who agreed or strongly agreed                   development of effective cross-channel experiences.                                  that it has to go anywhere and everywhere.
  Our marketing activities are fully                                                                            The research is clear: in this new multi-channel world, just 16% of
                                                                                                                                                                                                     On the POS physically and digitally. On TV.
                                                                                                                                                                                                     Online. If you start with a channel in mind, it
  integrated and working together
  (e.g. digital activities are in sync with         9%                                                          senior marketers strongly agree that their global agency partners are
  traditional media campaigns).
                                                                                                                pushing them to think across all their channels, not just one or two.
                                                                                                                                                                                                     will be very difficult to have global ideas.
FIGURE 4 Less than 11% of CMOs strongly agree their global agencies have a deep understanding of local
needs. The result is that CMOs continue to look elsewhere for this critical capability, often to niche, local
                                                                                                                4
                                                                                                                    “Multichannel At The Heart: Lessons From M&S On How Multichannel Is A Part
                                                                                                                    Of Everyone’s Job” Laura Wade-Gery, Executive Director, MultiChannel eCommerce
                                                                                                                                                                                                             – SVP Global Media, CPG, Experience: North America,
shops which in the long run increase brand, management challenges, and increase ‘silos’ of expertise.
                                                                                                                    from Marks & Spencer                                                                       South America, W. Europe, S.E. Asia
Source: Q2 2012 online survey to 114 senior marketers with global responsibilities
                                                                                                                                                                 FIGurE 6:

                                                                                                                                                                 MuLTI-CHANNEL CAPABILITIES ArE IMPOrTANT…

                                                                                                                                                                                                     % responding moderately or extremely important



                                                                                                                                                                   Cross-channel expertise in
                                                                                                                                                                   both digital and traditional              39%                          46%            85%
Furthermore, when we studied non-technology-savvy marketers, they                 reach these consumers. Agencies will be doing their partners a disservice        marketing

appeared particularly likely to minimize multi-channel. In our survey,            if they don’t bring these ideas to the table.
none (0%) of the non-tech-savvy marketers strongly believe they are
being pushed to think across channels. This is clearly different from the         And CMOs realize it. As one respondent noted when asked what was the
tech-savvy marketers, who indicate that roughly a quarter (23%) of their          most important characteristic of their best global agency relationship:
                                                                                                                                                                 …BuT TOO FEW AGENCIES ArE HELPING CLIENTS
agencies push them to think multi-channel.                                        “the ability to help with the strategic application of brand to a multi-
                                                                                                                                                                 THINK ACrOSS CHANNELS
                                                                                  channel and multi-country environment.”
In the face of the latest in disruptive technologies, the ability to go outside
                                                                                                                                                                                                     % of respondents who agreed or strongly agree
of traditional channels is critical. For example, many 18- to 25-year old         The implications of this gap are significant. Agencies have a responsibility
men targeted by marketers are very difficult to reach using traditional           to help their clients envision and then deliver global multi-channel ideas,      Our current global agency
                                                                                                                                                                   partners push us to think                47%                    10% 57%
media buys. One senior leader noted that “ultimately, traditional channels        even if it means we must fight to overcome outmoded organizational               across all channels, not just
are not the only or even the best way to reach these segments.” Social            structures, practices, and partnership models.                                   one or two.

media, in-game media purchases, and other tactics should be applied to

                                                                                                                                                                 FIGURE 6 Deep consumer insight emerged as the most important single capability for selecting
                                                                                                                                                                 agencies. yet too many agencies are failing to invest in research and consumer insights. The result
                                                                                                                                                                 is that local knowledge lives in local agencies, while global agencies have the budget and technology
                                                                                                                                                                 capabilities to create the strong experiences which CMOs are demanding.

                                                                                                                                                                 Source: Q2 2012 online survey to 114 senior marketers with global responsibilities




                                                                                                                                                                 FIGurE 7:

                                                                                                                                                                 DIGITAL AGENCIES, IN PArTICuLAr, ArEN’T BrINGING
                                                                                                                                                                 THE rIGHT STrATEGIC MIx

                                                                                                                                                                                                        % of respondents who strongly agreed
                                                                                                                                                                   I’m satisfied that our current
                                                                                                                                                                   global agency partner(s) depth
                                                                                                                                                                   (e.g. deep marketing insights)             10%        CMOs Aren’t Satisfied
                                                                                                                                                                   and breadth (a mix of digital
                                                                                                                                                                   and traditional) of skills.

                                                                                                                                                                   Our digital agency partner(s)
                                                                                                                                                                   has a leading role in our
                                                                                                                                                                   marketing decision-making
                                                                                                                                                                                                           6%            And Digital Isn’t yet Leading
                                                                                                                                                                   process.



                                                                                                                                                                 FIGURE 7 Great global strategy requires a mix of depth and breadth, yet few agencies are excelling.
                                                                                                                                                                 And though they specialize in the major area of growth for agencies, many digital firms aren’t taking
                                                                                                                                                                 a leading role in delivering great strategy.

                                                                                                                                                                 Source: Q2 2012 online survey to 114 senior marketers with global responsibilities
FIGurE 8 :

DIGITAL AGENCy PArTNErS ArE ONLy ADEQuATE IN DIMENSIONS OF
SCALE AND MuLTI-CHANNEL COMMErCE

                                                              % of respondents who strongly agreed


  Our digital agency partner(s) have the ability to
  scale and handle large engagements of any scale.                       47%                10% 57%



  Our digital agency partner(s) have deep
  expertise in commerce (i.e. kiosk, online, mobile                    43%              7% 50%
  and in-store digital commerce experiences).                                                                                                5. rIGHT SKILLS AND ASSOCIATED TOOLS rEMAIN CHALLENGING

FIGURE 8 The ability to scale, and the ability to provide deep commerce expertise are core elements of delivery for digital agencies         Agency leaders know that their clients struggle with a            important. This data is fundamental to executing multi-
in the new world. yet too few are delivering at the level they should.                                                                       lack of skills in digital — especially globally. In our survey,   channel marketing campaigns so critical in reaching the
Source: Q2 2012 online survey to 114 senior marketers with global responsibilities                                                           over three-quarters of senior marketers (77%) noted that          new consumer.
                                                                                                                                             it was moderately or extremely challenging to gain access
                                                                                                                                             to the appropriate skills and people. And nearly a third of       Tools among companies and agencies are another gap:
                                                                                                                                             respondents (32%) believe it will get more challenging in         the lack of a single, cross-channel digital marketing
FIGurE 9:                                                                                                                                    the next three years.                                             platform was identified as the number one obstacle to
DIGITAL SKILLS rEMAIN A CHALLENGE FOr CMOS – AND AGENCIES                                                                                                                                                      the growth of digital marketing among 350 enterprise
ArEN’T PrOVIDING THE SOLuTION                                                                                                                Clients rely on agencies to provide these skills. yet the skill   decision makers. 6
                                                                                                                                             requirements at many global agencies haven’t kept up. In
                                                                                                                                             a recent CMO Council survey, just 9% of senior marketers          The research confirmed this: traditional agencies are likely
                                  Q: How challenging do you consider each of the following for your marketing organization?
                                                                                                                                             believe traditional ad agencies are doing a good job of           to be challenged. In fact, 47% of client marketers plan
                                  Is this less challenging, more challenging, or about the same as it was 5 years ago? In 3-5 years?
                                                                                                                                             evolving and extending their service capabilities in the          to build internal capabilities and use incumbent agency
                                                                                                                                             digital age. 5 New sets of integrated tools — and the proper      services less. Furthermore, 45% are bringing in outside
                                                      TODAy                              ExPECTED CHANGE IN 3-5 yEArS                        training — in analytics, localization, and multi-channel          consultants to help set up and structure digital programs. 7
                                           % responding moderately                                                                           campaign development and delivery all take time to learn.
                                           or extremely challenging
                                                                                             LESS     MOrE
                                                                                                                                             And, it can be quite difficult for an agency to combine
  Gaining access to the                                                                                                                      regional knowledge with these new digital skills.
                                                                                                                                                                                                               5
  appropriate skills and                         51%                  26%                     18%        32%                                                                                                       CMO Council 2012. http://www.cmocouncil.org/press-detail.php?id=2943
  people across the                                                                                                                                                                                            6
  organization                                                                                                                               Skills such as real-time data that measures social media              http://www.dataxu.com/news/press-releases/digital-marketing-study-
                                                                                                                                                                                                                   cmos-believe-big-data-is-a-game-changer/
                                                                                                                                             chatter or digital media performance are incredibly
                                                                                                                                                                                                               7
                                                                                                                                                                                                                   CMO Council 2012. http://www.cmocouncil.org/press-detail.php?id=2943
                                  % of respondents who strongly agreed

  Our traditional agency
  partners have a good
  understanding of how to                   11%
  leverage digital.




FIGURE 9 As we reported in an earlier article on this subject, access to the appropriate skills and people across the organization is
quite difficult for CMOs. But Agencies are not doing their part. In particular, gaps in analytics, localization and multi-channel campaign
development were identified in our research.

Source: Q2 2012 online survey to 114 senior marketers with global responsibilities
                                                                                                                About our reseArch
                                                                                                                Building on our team’s three decades of multi-channel
                                                                                                                marketing experience, SapientNitro conducted a series of 20+
                                                                                                                detailed interviews with senior marketers within and outside of
                                                                                                                SapientNitro, and followed it up with a far-reaching survey to
                                                                                                                114 senior global marketers and global CMOs. We also reviewed


conclusion
                                                                                                                existing literature related to this topic. The majority of the
                                                                                                                research was conducted in Q2 2012.

                                                                                                                We have captured this research in three articles — the first
                                                                                                                focused on new global marketing challenges, and second on key
The rapidly evolving world of marketing poses new and dynamic challenges for agencies. Tasked with              elements of the global marketing mindset, and the third on five
partnering with CMOs and their marketing teams globally, agencies have an opportunity to be a trusted           ways agencies are struggling with global brands today.
partner managing an ever-increasing number of marketing channels, and rapidly changing consumer

                                                                                                                About the Authors
demands.

yet what we found in our research was that many CMOs remain dissatisfied by their partners. Despite
multiple attempts, more hard work remains for agencies to build the right team and assets to deliver                                 FrEDDIE LAKEr – is VP of Global
sophisticated global accounts that balance local articulation with global consistency.                                               Marketing Strategy and has extensive
                                                                                                                                     experience working across a broad range
                                                                                                                                     of global clients. He actively speaks at
For more research on how CMOs and organizations are changing the way they think about global                                         leading conferences around the world
marketing, be sure to see the other articles in SapientNitro’s Global Marketing Series: “CMOs reveal                                 on topics ranging from global marketing
Obstacles to Successful Global Marketing” and “The New Global Marketing Mindset.” The first is focused on                            trends to emerging disruptive technologies.
identifying the obstacles, and understanding the implications of new challenges of globalization and the rise
                                                                                                                                     HILDING ANDErSON is a Sr. Manager
of disruptive technology. The second posits a new “Global Marketing Mindset” of future CMOs — one more                               of research + Insights, and focuses on
comfortable with technology, consumer insight, analytics, and multi-disciplinary strategy teams.                                     digital strategy and the emerging digital
                                                                                                                                     consumer for SapientNitro. He is also the
                                                                                                                                     editor for Insights 2013, Sapient’s annual
While the five areas covered in this paper demonstrate major problems for both marketers and agencies,
                                                                                                                                     digital trends report.
they also represent an opportunity for forward-thinking agencies to set themselves apart from the pack —
for the ultimate benefit of agencies and marketers alike.




 © sapienT corporaTion 2012

				
DOCUMENT INFO
Description: Our CMO Global Marketing Readiness Study, a 6-month research study of 114 CMO-level marketers, has culminated in three separate points of view on the future of global marketing. The final article of The Evolution of Global Marketing series explores the implications of these trends for agencies — how agencies can better support large global brands; it also points out major areas where they are currently struggling. View supporting infographic: http://bit.ly/Q0RnB8
About SapientNitro, part of Sapient®, is a new breed of agency redefining storytelling for an always-on world. We’re changing the way our clients engage today’s connected consumers by uniquely creating integrated, immersive stories across brand communications, digital engagement, and omni-channel commerce. We call it Storyscaping, where art and imagination meet the power and scale of systems thinking. For more information, visit www.sapientnitro.com.