NEWS24 April 2018
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US – Chief marketing officers are moving away from the single agency of record (AOR) model, increasingly partnering with small and mid-sized agencies, according to research from the CMO Club.
Almost half ( 46%) of CMOs surveyed still use an agency of record (AOR) model, according to the survey of 106 chief marketing officers from B2C and B2B companies including Bayer and Diageo.
Of those, 55% said they are moderately satisfied with their current AOR approach, while 30% said they are dissatisfied. Lack of innovation and creativity ( 55%) and narrow capabilities ( 35%) were the most commonly cited reasons for dissatisfaction from marketers.
Around half of marketers said they are diversifying their agency providers, with 24% sourcing their marketing from independent agencies alone, and 25% supplementing their AOR with selected independents.
Small and mid-sized agencies are used by 58% of CMOs in the study, who say they do so because these partners offer personalised service ( 44%) and more specialist knowledge ( 40%).
However, investing in educating new agencies is a challenge for 53% of marketers, along with the time it takes to find/vet them ( 34%), and having the resources to manage multiple partners ( 33%).
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