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Decideware’s “Agency Management Big 7” - May 2017

Below are the May articles of interest from key trade publications. This month's selection includes articles on agencies, hybrid CMO roles, as well as the changes in agency pay.  We hope that you find this month's selections informative and valuable.

1. Too much 'complexity' and 'crap' hinders agency-brand relationships, says P&G CMO

"U.S. agency revenue and digital revenue increased again in 2016, according to the Agency Report 2017, but the pace is slowing amid the rise of consultancies, compression of spending by marketers and added competition from new agency models. Revenue growth for agencies was the slowest since 2013 -- and digital revenue growth slid to 8.0% last year from 13.5% in 2015."

2.The Surge of Consultancies, and Nine Other Agency Facts You Need to Know

3.The Fox in the Henhouse: Agencies Balk When Consultants Come to Audit

"A marketer with a large portfolio of household and health brands recently voiced concerns to an industry executive about whether Accenture could objectively audit its media and determine its agencies' current digital approach. The worry for the marketer: Since the consultancy plays in that space itself, can its recommendations be trusted?"

4. Why Coke, Citi, Mars and J. Crew are placing bets on hybrid CMOs

"A growing number of blue-chip brands are combining CMO roles with other corporate functions. Last week, Citi combined its global consumer marketing and its U.S. advertising, media and global entertainment groups under one CMO. This follows on the heels of Coca-Cola nixing its CMO role entirely in preference of a corporate growth officer, Francisco Crespo, who will now oversee marketing, customer and sales strategies. And last year, following the retirement of longtime CMO Bruce McColl, Mars promoted its chief customer officer, Andrew Clarke, to the CMO position, uniting those two roles into one. In April, J. Crew, faced with shrinking sales amid a shift away from mall-based retail, placed stewardship of the brand, including marketing and design, under Chief Operating Officer Michael Nicholson."

5. The Chief Creative Job Has a Murky Future at Big Brands

"In the last five years, the role of a top creative at companies has been gaining ground as a brand necessity, especially as the scope of CMO responsibilities have widened. Yet the last two months have seen the two high-profile departures in Tom Nowak, CCO at Best Buy since 2015, and Michael Fanuele, CCO at General Mills since 2014. As brands struggle for a balance between science and creativity – and manage costs accordingly — brand innovation jobs are in an uncertain place."

6. The CMO's Role When Choosing Ad, Marketing Tech

"CMOs still make the decisions on what type of technology to use when it comes to technology the company uses for search and other advertising media, according to Andrew Bartels, VP and principal analyst at Forrester Research.

The role or influence that IT supports when it comes to spending on marketing technology is relatively small, Bartels wrote in an email to SearchBlog."

7. Advertisers Seek to Simplify Agency Pay by Reviving Commissions

"Most advertisers still use labor-based fees. But some are ditching the model in favor of a commission-based methodology in which they pay agencies a percentage of their ad-spend.

The commission model was popular in the past, especially for media buying groups, but “near extinction” in 2010, accounting for only 3% of ANA respondents at the time. Now, 12% of respondents are opting for commission models, which are primarily used for media and programmatic ad-buying services."