I couldn't make it past the headline in this morning's AD Age titled "CMOs annoyed by Ad Agencies, Ad Networks" (http://adage.com/ana08/article?article_id=131857). I did glance down and saw something about a broken agency model. NO SHIT...Really? Why is it that every one knows this except for Ad Agency folks?
The days of traditional advertising are gone. In thier place, CMOs need agencies that have entirely new skillsets. We are living in the time of marketing from the inside out...not the days of old where we would do mediocre creative and the largest possible media buy. GONE GONE GONE are those days. CMOs need agencies who understand the intricate cross-functional demads of changing business from within. You see, marketing has to cozy up with Sales, R&D, HR, IT, Operations, Customers and do it in a way that is retail focused, face to face focused, accountability, event focused and story / experience driven. Forget the old agency models and structures that only support traditional media.
Wake up C-Level Ad Execs. Grrrrrrrrrrrrrrrr
The CMO's biggest problem isn't ad agencies, it's CEOs.
The function of business is to create a customer.
The function of marketing is to create a customer.
"Marketing is the distinguishing, unique function of the business." –Peter Drucker
On top of that, the best CMOs understand that THE BRAND IS THE STRATEGY. Yet how many CEOs understand this? Almost none.
So the CMO, as Seth Godin rightly observes, is really just the CAO (Chief Advertising Officer).
Until marketing is seen as the primary and leading function of a business -- and not another department like accounting and R&D -- CMOs will continue to have microscopic tenures.
The only solution is to make the CMO the new CEO. Anything short of that misunderstands the function of business.
Posted by: Scott | October 21, 2008 at 09:51 PM