Digital Advertising Procurement: Building Synergies among the Triad CPO, CMO & Advertising Agencies.
Abstract:
A fluid landscape prevails in the digital advertising industry as there is no winning formula for marketers. The digital advertising industry is evolving at a rapid pace with the evolution of new technologies. Holding companies and digital advertising agencies are competing with each other to win clients. On the other hand, marketers are trying out a trial and error approach to align their digital advertising strategy to their brand strategy. Though digital marketing has enhanced customer engagement it has also increased the burden on C-level executives. While CMOs are having a tough time in allocating budgets and measuring effectiveness across emerging channels, the CPOs look to consolidate their agency base and bridge the gap between traditional and digital advertising. The agencies have the challenging task of meeting the clients ever increasing digital needs. This article focuses on the road blocks faced by the triad and the procurement road ahead that would help build synergies among them.
Key Highlights
Key Highlights
Key Highlights
it is a factor that is
Integrated marketing approach: Increasing digital channels & screens to reach the consumers
The impact the customers have on the brand is soaring with the advent of digital channels. CEOs and CMOs understand that customer contact is crucial, but the advent of social media is questioning the traditional mass marketing approach and skill sets. CMOs need to follow an integrated marketing approach with the right mix of traditional and digital activities that leverages cross functional relationships, fosters customer engagements and increases brand value. The innovative segment of the CMOs strategy leverages the digital channels to aggressively track and evaluate their decisions on 4Ps (Promotion, Product, Price, and Place). While a major segment constituting the followers lack the edge to leverage the new dynamics of this marketing approach. Though they understand the market dynamics they have a lot of execution issues in framing an integrated marketing approach. The following digital activities are expected to have a huge demand in the future as these activities have been successful for the innovators. Social Media & Consumer analytics CRM & Content management tools Mobile & tablet applications Search engine optimization
on 4Ps. While a major segment propylene prices. constituting the followers, still lack the edge to leverage the new dynamics of marketing approach Fortune 500 companies are in the process of consolidating their supply base to a lead creative agency and a lead digital agency
Many fortune 500 companies feel holding companies are not effective in bridging their gap between traditional and digital activities. As a result they have engaged with a roster of digital agencies across regions. Some of the challenges faced are: Content duplication : Due to the engagement of different agencies for traditional and digital activities Preferred digital agency model : Consolidation is a challenge as it is difficult to find a digital agency offering all digital activities and having a global presence
Key Highlights
CMOs are in need of tools that would help them track and
geographies, campaigns and channels CMOs are in need of tools that would help them track and Bridging the gap between organize data across brands, traditional and digital procurement geographies, campaigns and in order to frame a effective channels content supply chain is a major challenge for CPOs Bridging the gap between traditional and digital procurement Lack of digital expertise reduces in order to frame a effective the flexibility and adaptability of content supply chain is a major procurement teams; which are the challenge for CPOs major requirements to survive in the fluid digital landscape Lack of digital expertise reduces the flexibility and adaptability of procurement teams; which are the
Beroes Take: Building Synergies between the Triad through Effective Procurement
Service Bundling
The digital activities needs to be bundled based on its demand and the strategic importance Centralisation vs. de-centralisation decisions play a vital role in agency structuring and service bundling
Agency Partners
Marketers need to build strategic relationship with the agencies giving equal weightage for creativity and measurement They need to help agencies to develop ROMI measuring and tracking tools that would fall in line with their brand strategy
Thus building synergies between the triad by understanding the nuances of the supply landscape would help marketers step into a global sourcing approach thereby optimizing the overall marketing supply chain and leverage maximum value benefits Disclaimer: Strictly no photocopying or redistribution is allowed without prior written consent from Beroe Inc. The information contained in this publication was derived from carefully selected sources. Any opinions expressed reflect the current judgment of the author and are subject to change without notice. Beroe Inc accepts no responsibility for any liability arising from use of this document or its contents. For more information, please contact: contactus@beroe-inc.com