The CMO, the Agency and the challenge of delivering in a digital age

Sudhir Chopde For Discussion Purposes only

the view from the trenches

The CMO| Keith Weed, Global CMO, Unilever

“ You have to engage with technology…I want to get to the future first, I don’t want to follow my competitors”

The Agency | Martin Sorrell, CEO, WPP

“ We are increasingly embracing the application of technology to our business…which means we are Maths Men as well as Mad Men”

The Digital Agency | Clark Kokich, Chairman, Razorfish

“ Ten years from now, all agencies will be digital agencies”

The IT Services Co. | T. K. Kurien, CEO, Wipro Technologies

“ Our view is that technology is going to be everywhere…CIOs will be no longer sole decision makers on tech spending, this will be divided between CMOs, COOs and, to some extent, CFOs”

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what does a CMO want?

Now that the future’s here, the CMO wants the future delivered!

Integrated Platforms

Not just Web Banners,

microsites apps, tv spots, print buys…

…integrated platforms

weaving together

media, experience management, analytics

and transactions

Innovation

Not just creative ideas,

communication and brand/media planning…

…Technology and Design-driven

innovation powering

new avenues of digital brand experience and

engagement

Solutions

Not just campaigns…

…Solutions that create

real, tangible customer value based on R&D, experimentation and

problem solving

3600

Experience + 365 day engagement

The bottomline: The new constellation of expectations in the CMO’s office is fundamentally

redrawing the Client – Ad Agency relationship. The digital era has made analog verities extinct!

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The traditional agency is good at talent and ideas, suited for broad-level strategy, creative and communication assets. But the traditional paradigm remains linear: be it campaigns, ROI measurement, agency structure, remuneration. In a world of an iterative, elliptical customer decision journey, that marks the new digital world, this linearity can be limiting, and does not cover the entire loop.

where’s the ad agency at?

The new breed of digital agency bring the non-linear savvy and the technical capability to address the digital complexity. However a holistic view of the entire digital consumer landscape is rare, with the channel silo mentality carried over from traditional agencies in many cases.

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the paradigm gap

Creative

+

Communications =

CAMPAIGNS

OUTPUTS

Innovation

+

Platforms =

EXPERIENCES

OUTCOMES Model

Assets/ Deliverables

Drivers IDEAS TECHNOLOGY

Measurability Opaque,

Fragmented Transparent,

Unified

Operating Methodology Project, Custom Process, Systems

Traditional Marketing

Digital/Integrated Marketing

I

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Transform traditional advertising & marcom business into a digital one

Sudhir Chopde For Discussion Purposes only

The traditional agency CEO is grappling with three main existential challenges to the status quo and the way business is done, driven by markets, customers and

more importantly, CMOs…

the challenges facing the ad agency ceo

Transformation

Expand established and acquired digital businesses Expansion

Bring in new skills, capabilities and methodologies Evolution

The Agency Opportunity* * The opportunity for a partner to work with the Agency CEO to help meet these challenges and bridge the paradigm gap

+

+

=

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what the ad agency ceo wants

What the ad agency CEO wants is a new breed of partner – a digital integrator and enabler who complements traditional agency strengths (client relationships, pedigree, traditional communication and creative competences) with strategic digital skills, based upon technology, process and systems strengths. (The current digital agency sometimes seems more like an old agency with HTML5 and javascript skills thrown in!)

In it’s overarching new role, the partner is expected to be a digital enabler, collaboratively

catalysing transformation, action and intelligence across the entire integrated customer engagement cycle. In short, the digital enabler has to come with many – and versatile – calling cards.

The Strategist

Mapping markets, crystallising value propositions, creating

business models

The Technologist

Leveraging cutting-edge technology capability, talent and

infrastructure for targeted results

The Innovator

Product , solution, process and delivery innovation for market leadership and differentiation

The Intelligencer

Market, Customer, Competitor & Operational insights – distilled

into an enterprise nervous system

The Operator

Best-of-breed, agile processes & systems delivering efficiencies,

effectiveness, volume and quality

The Incubator

Enable experimentation by incubating flexible innovation

hubs for long-term value creation

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the digital enabler

Innovation

+

Platforms =

EXPERIENCES

OUTCOMES Model

Assets/ Deliverables

Drivers TECHNOLOGY

Measurability Transparent,

Unified

Operating Methodology

Process, Systems

The Strategist

Mapping markets, crystallising value propositions, creating

business models

The Technologist

Leveraging cutting-edge technology capability, talent and

infrastructure for targeted results

The Innovator

Product , solution, process and delivery innovation for market leadership and differentiation

The Intelligencer

Market, Customer, Competitor & Operational insights – distilled

into an enterprise nervous system

The Operator

Best-of-breed, agile processes & systems delivering efficiencies,

effectiveness, volume and quality

The Incubator

Enable experimentation by incubating in-house innovation

hubs for long-term value creation

The outlook and the competences demanded by the

digital-era CMO and the ad agency CEO map perfectly to a new evolved digital agency that thinks users first and insights-based solutions. (That sneakily resembles a hybrid of technology company and ad agency!)

+ = The New

Digital Agency

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An ad agency conglomerate on the cusp of (or more likely, already in the throes of) transformation to digital solutions space represents a perfect opportunity for a partnership that builds and leverages digital capabilities and skillsets.

An overview of main opportunity areas -

The Digital opportunity

PLATFORMS DIGITAL ECOSYSTEM

INTEGRATOR

BUSINESS TRANSFORMATION

DIGITAL MARKETING OPERATIONS

Creating the foundation Unifying domains

Delivering Brand Results Enabling digital models

• Experience Platforms: Mobile, Web, Social • Transaction Platforms: online commerce • Advertising & Marketing Technology • Analytics & Intelligence • Content Management • Innovation Lab

• Integrated Advertising Management Solutions: Search, DSP, Custom • Multi-channel Intelligence Dashboards • 3rd party application integration

• Digital Marketing: Mobile, Web, Social • Content Marketing & Creative • Media Strategy & Operations • Customer Lifecycle Management • Campaign Management

• Business Transformation Strategy • Build, Operate, Transfer • Talent & Skills Development & Management • Business Insights

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the possibilities: a sampler

New products, solutions, models are emerging at the nexus of inexorable innovation and constant change. Call it marketing as unusual. Marketing is no longer about only communication, but engagement, insights and results – revenue, marketshare, and growth. Digital mindset and methodology is changing the game, and the goalposts, of how customers are being marketed to and their custom garnered. The following case examples are a sneak, but vital, peek into how things are being done fundamentally differently, leveraging digital; they are benchmarks for the shape of things to come (or are already here) -

Nike Fuel Band Nike is more than a brand; it is a cult for its millions of followers. That has made innovative customer engagement the central strategic imperative for Nike. Long know for its cutting-edge marketing, Nike has now moved the needle the most amongst its peers in terms of seamlessly incorporating digital technology in its engagement initiatives. The best instance of this is it’s intelligent use of wearable technology in the form of its Fuel Band that not only delivers relevant, focused value but transports the customer connection with the brand to a whole new level. A great illustration of customer insight and engagement, channel and product innovation, execution.

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the possibilities: a sampler (continued)

Tesco Homeplus Virtual Store In an asset heavy vertical like retail, growth comes with a costly tradeoff :huge, upfront investments in physical assets in the form of stores. Tesco, UK’s largest supermarket chain, had an innovative insight into this problem when it entered the hugely competitive South Korean market. Not only was it competing for the pole position, it was also handicapped by expensive retail locations that constrained it’s expansion. It’s solution – innovate a completely new channel to not only reach out to the customer, but utilise a very unconventional retail space: the subway station! Tesco created virtual stores, plastered on subway wall, where you could could shop using a custom mobile app. Tesco would home deliver your shopping home before you got off the train! A perfect blend of mobility, resource optimization, solution innovation

Inventioni.st

Ad agencies are waking up to the need to go beyond the realm of traditional creat ive, campaigns and media to deliver tangible value to their clients and make measurable market impact. They realize that what’s required is innovation that can be integrated into a client’s brand and spun off into greenfield products or solutions. Often this entails a whole new approach to structure and incentives. Deutsch LA has incubated a separate innovation hub, Invention.ist. This hub is mandated to come up with innovation, insights and even incubate start-ups, which feed into the client work as well as build institutional knowledge and product capability.

Thank You sudhirchopde@hotmail.com | 91-98200 13880