Survey: majority of CMOs believe siloed agency model to be unfit for purpose

Majority of chief marketing officers around the world agree that the silo-ed agency model is no longer fit for purpose while many of them want to see agencies combine capabilities to deliver new and innovative solutions, according to the latest survey of DENTSU CREATIVE.

DENTSU CREATIVE has released the results of its annual survey of CMOs in the UK, US, China, India, and Brazil, providing a stark insight into what today’s clients need and want most from their agencies. The survey found out that while consumer behaviour has changed significantly, the agency model is yet to respond, and their frustration with agency silos. 78% of CMOs feel that the silo-ed agency model is no longer fit for purpose while 82% want to see agencies seamlessly combine capabilities to deliver new and innovative solutions, agreeing “I want to see creative solutions across every aspect of my business- media, commerce and CXM - just as much as in campaigns.”

When asked what is needed to engage the next generation of consumer, 63% of CMOs say that brands need to create rather than borrow from culture. The vast majority, at 84%, believe that to connect with younger generations brands now need to “entertain and engage” to earn attention through entertainment properties or rich virtual experiences, most importantly, they believe that connecting the right diverse talent around their challenges, regardless of silos or geographies is the only way to deliver work that will resonate in culture. 

Most CMOs also agree that in today’s connected world traditional scale is no longer the advantage it once was. 85% of clients agree there should be a more intelligent way to scale for a sustainable world, while 76% simply want their agencies to connect the right talent around the right brief, regardless of where it sits. 

When asked to define the characteristics of a compelling online experience, the data showed that the surveyed CMOs prioritise delightful interactions that are enhanced by technologies (46%), innovative new interfaces such as gaming and gesture (43%), the seamless integration of the brand promise and customer experience (43%) and the coming together of craft and experience (39%). It's clear that technology must enhance ideas, not replace them.

The survey also revealed that 88% of CMOs agree that every touchpoint should tell the brand story, from comms to commerce. 86% agree that their business will adopt immersive online technologies, from AR try on to remote consultations while 84% agree that an online store should feel as distinctive and brand-building as an offline store.

Fred Levron (pictured left), global chief creative officer, dentsu International said: “We introduced DENTSU CREATIVE to the world in the belief that clients want something new and different. That they are tired of artificial silos and complexity and seeking modern, integrated creativity. This survey showed that today’s CMO’s are with us all the way on that. They don’t want creativity to stay in its swim lane, they want to see creativity across every aspect of their business-across media and CXM just as much as campaigns and content. That’s why we designed DENTSU CREATIVE not only to bring together our amazing capabilities in entertainment, experience, storytelling and innovation but to integrate seamlessly with our Media and CXM businesses. Clients are asking agencies to create culture, to invent new possibilities, to help reshape society and we care ready to deliver this.”

Patricia McDonald (pictured right), chief strategy officer, DENTSU CREATIVE added: “Today’s CMOs are asking agencies to stop lagging behind and start leading again.  Our study confirms that today’s CMOs believe in the power of modern creativity to engage a new generation of consumers. They are asking their agency partners to think beyond legacy silos and bring the right talent around the table to deliver ideas big enough to live anywhere, bold enough to chart new executional territory and rich enough to make personal connections with millions of customers around the world. That requires us to connect our core skills in strategy and brand building with the ability to execute anywhere from  gaming to entertainment, culture to commerce.” 

Amit Wadhwa, CEO of DENTSU CREATIVE India commented: “We all know that the business landscape is rapidly changing and so are the expectations from agencies on how and what we deliver. It’s extremely essential for all of us to be in tune with the requirements and expectations in this changing environment. With this very objective, the CMO survey was conducted. What really excites me is that the responses augur extremely well for the direction we took when we launched DENTSU CREATIVE based on the philosophy of Modern Creativity. Excited with the way we are moving ahead.” 

Related articles:

Dentsu Creative hands Cheuk Chiang APAC CEO remit
dentsu unifies creative agencies to form global network Dentsu Creative