1. The CMO, the Agency and the challenge of delivering in a digital age
2. 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”
3. Sudhir Chopde For Discussion Purposes only
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
360
0
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!
4. Sudhir Chopde For Discussion Purposes only
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.
5. Sudhir Chopde For Discussion Purposes only
the paradigm gap
Creative
+
Communications
=
CAMPAIGNS
OUTPUTS
Innovation
+
Platforms
=
EXPERIENCES
OUTCOMESModel
Assets/
Deliverables
Drivers IDEAS TECHNOLOGY
Measurability
Opaque,
Fragmented
Transparent,
Unified
Operating
Methodology Project, Custom Process, Systems
Traditional
Marketing
Digital/Integrated
Marketing
I
n
t
e
g
r
a
t
o
r
/
E
n
a
b
l
e
r
6. 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 businessesExpansion
Bring in new skills, capabilities and methodologiesEvolution
The Agency Opportunity*
* The opportunity for a partner to work with the Agency CEO to
help meet these challenges and bridge the paradigm gap
+
+
=
7. Sudhir Chopde For Discussion Purposes only
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
8. Sudhir Chopde For Discussion Purposes only
the digital enabler
Innovation
+
Platforms
=
EXPERIENCES
OUTCOMESModel
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
9. Sudhir Chopde For Discussion Purposes only
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
10. Sudhir Chopde For Discussion Purposes only
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.
11. Sudhir Chopde For Discussion Purposes only
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.
