“Marketing Matters” CMO Spotlight: Live from AdWeek Part 2

In Part 2 of Marketing Matters’ special CMO Spotlight, broadcast from Advertising Week in New York City, WFoA Executive Director Catharine Hays and Forbes’ CMO Network Editor Jenny Rooney continued their discussion with four thought leaders in advertising:  Andrew Essex (former CEO of Tribeca Enterprises, author of The End of Advertising), Jonathan Craig (CMO of Charles Schwab), Diego Antista (U.S. Multicultural Agency Head at Google), and Brian Wong (CEO of Kiip).  Each offered his unique perspective on advertising’s future and effective leadership strategies in an era of constant change.

Key Takeaways:

  • Diversity and inclusion remain key considerations for brands, and agencies must demonstratively reflect appropriate knowledge and awareness in their practices.
  •          Consumers are tired of being bombarded by mediocre advertising – creativity and captivating storytelling are now more important than ever.
  •          Balancing data and technology in advertising is a crucial challenge that advertisers must figure out in order to remain competitive.
  •          Marketing is no longer simply a platform for messages but for services that create value for consumers.

Author and former Tribeca Enterprises CEO Andrew Essex emphasized the continued importance of authentic storytelling in crafting advertising that audiences truly want to see.  The rise of ad blockers and abundance of clutter in the market make it imperative that advertisers create captivating advertisements.  While Essex recently authored a book titled The End of Advertising, he believes that the continued value of agencies lies in their creativity.  Essex stated that ad agencies are “traditionally the guardians of the brand, they have the people in-house who understand how to tell stories for brands in a creative way, and I think the best ones…are going to thrive like never before, so [it’s] the ones that are in the middle, that are essentially proliferating or promulgating mediocrity, that are doomed.”  Both Jenny and Catharine agreed, with Jenny mentioning that industries with historically bad advertising have lots of room for innovation, and Catharine adding that advertisers should aggressively pursue and develop the next generation of great talent.

Andrew Essex, Former CEO, Tribeca Enterprises

On the topic of what brands must do differently to stay relevant, Essex referenced a discussion from one of his Advertising Week sessions, “Extending the Live Experience.”  In today’s world, brands must integrate themselves into experiences to be noticed.  Real-time events and experiences have unique potential to get consumers out of the house, and brands must take advantage of opportunities.  Advertising can also be helpful without being intrusive, as suggested by Essex’s proposal that brands sponsor utilities or services in public spaces.

Johnathan Craig of Charles Schwab shared his acute observations on Advertising Week attendees, noticing that everyone was struggling with similar issues related to technology and data.  Craig articulated one of the main challenges advertisers face: “At the core of it, marketing is still an art and a science, and how do you balance the science and the art, and how do you leverage the technology that’s out there” without getting “lost in the technology” and remaining focused on the client?

Jonathan Craig, CMO, Charles Schwab

Craig also discussed his Advertising Week session, “Principles for Success in Today’s Noisy, Connected Social Media Driven World” in which he championed the idea that “CMOs and marketers really need to be at the forefront of moving their businesses forward.”  He believes that marketing is a core driver of business, and actions matter more than words.  In his perspective, marketers must build trust with consumers and clients, and infuse the brand’s story in every interaction; data should be used to serve rather than to sell, and to make consumers’ lives easier.   Craig also emphasized the importance of brands disrupting themselves even when times are good, acknowledging that it may hurt in the short run but will pay off in long-term benefits to the brand.

Google’s Diego Antista also discussed the necessity for change in advertising, having participated in the Advertising Week panel “True Diversity: Walking the Walk.” In his opinion, advertising today still has a way to go before it can be considered inclusive, and clients are increasingly demanding that agencies step up their efforts in this regard.

Diego Antista, U.S. Multicultural Agency Head, Google

Multicultural-focused business sectors are booming, with large projected increases in various minority populations in the U.S.  Antista identified a major conundrum that clients and agencies have been experiencing:  Clients who need help in multicultural marketing often go to agencies that don’t have knowledgeable resources to suit their needs.   He feels that advertisers must invest in more diverse talent, and increase the number of people of color leading the conversation.

Finally, Catharine and Jenny welcomed back returning guest Brian Wong, CEO of Kiip, a mobile advertising network.  Wong emphasized the importance of consumer-centric advertising, asserting that “marketers are not just here to communicate a message or to tell you about a product, but rather to service you and to give you value.”  He stated that so-called “annoying” advertising is hurting brands, and advertisers must refine their practices in order to keep up with consumers by leveraging all aspects of mobile.  He shared that TV remains the best place to create awareness and branding.

Brian Wong, Founder and CEO, Kiip

CMO needs are also changing, with increased concerns regarding fraud and viewability.  In this vein, Wong noted a need for customized experiences that are also scalable, something that the industry is still figuring out.  As expected, outcome-based/performance driven marketing, and being able to gather data with more precision remains a top priority.

You can listen to this show and past shows on our radio show page: https://businessradio.wharton.upenn.edu/bestof/marketing-matters/?h=r7z5

Access the recorded Advertising Week sessions at: http://newyork.advertisingweek.com/

 

“Marketing Matters” CMO Spotlight: Live from AdWeek, Part 1

Aired September 27, 2017

On the road again!  For this installment of Marketing Matters’ CMO Spotlight, hosts Catharine Hays and Jenny Rooney broadcast amid the hustle and bustle of Advertising Week in New York City, a week-long gathering of thought leaders, executives, and innovators shaping modern marketing and advertising.  In Part 1 of the show, Catharine and Jenny welcomed three guests: Mari Kim Novak (President of Advertising Week), Esther Garcia (VP of Marketing for Tecate at Heineken, USA) and Nigel Morris (Chief Strategy & Innovation Officer at Denstu Aegis).

These lively conversations focused on themes and takeaways from Advertising Week, as well as perspectives on the changing landscape and current trends in advertising.

Key Takeaways:

  • Diversity of thought is crucial to the advertising industry, along with the growth of talent.
  • Risk-taking in advertising is no longer a luxury, it’s a necessity – but it must be done in a way that is authentic to the brand.
  • The consumer is in control, which means executives cannot ignore the vital role marketers have in the growth of business.

Catharine and Jenny kicked off the interviews by inviting Mari Kim Novak, who was producing Advertising Week for the first time as the organization’s president, to give an overview of the massive event, which featured over 1,000 speakers and anywhere from 80,000 to 100,000 attendees.   This year’s theme,  “Great minds think unalike,” embraced diversity not only in terms of culture but also in terms of thought.  

Mari Kim Novak, President, Advertising Week

Novak emphasized that “the greatest part of being creative is to think differently, to think out of the box,” an essential element of success in the current business climate. 

Novak also acknowledged that Advertising Week’s 14th iteration is a well-run machine, but shared that she had the opportunity to put her own touch on it in various ways, including the creation of TechX.  TechX is an interactive, educational experience that allows attendees to understand and test out how technologies such as AI and VR can be adapted to reach consumers. She implemented TechX to close the knowledge gap between engineers and executives in a time of rapid technological innovation.

Next, Catharine and Jenny spoke with Esther Garcia, who led the Advertising Week session entitled “Building an Authentic, Bold Campaign.”  Garcia discussed the boldness of Tecate’s highly talked about “The Wall” ad, in which Tecate takes Trump’s proposal to build a wall along the US-Mexico border and turns the wall into a place in which Mexicans and Americans can share a Tecate as friendly neighbors.   She also touched on the importance of brands injecting themselves into timely conversations, but also noted, “It’s critical that you are true to yourself as a brand…find something that is very true to you, to your DNA,” and make sure “that you have the tone of voice, and the right to jump into this kind of conversation.” 

Esther Garcia, Vice President, Tecate, Heineken USA

Garcia also addressed the challenges that come with risk-taking in advertising, stating that marketers “need to move the needle in a way, and it’s our responsibility as marketers to protect the brands but also to build the brands, and building the brands means you need to take risks, and you need to challenge yourself, and also have partners that challenge you.” Moving outside of comfort zones is necessary to break through the clutter, and she expressed that it’s critical to bring the brand’s communications and PR team to the table on new strategies from the beginning.  Communication within the company is key, as well as aligning with stakeholders.

Nigel Morris joined Catharine and Jenny as the final guest of the segment and provided insight into his Advertising Week session on the importance of understanding the Chinese consumer market, including the similarities and differences it has with that of the U.S.  Morris believes that the pace of innovation in China is much faster than the U.S.   He also shared how the modern Chinese consumer market grew out of mobile–because that was where the consumer was–whereas U.S. brands started on desktop and then migrated to mobile.   A key lesson from China is to understand the dynamic relationship between the creator and the consumer, and to invest in understanding first-party data to produce personalized content at scale for thousands of individuals.

Nigel Morris, Chief Strategy and Innovation Officer, Dentsu Aegis Network

When asked how CMOs are navigating this new reality, Morris responded, “An existential challenge that we’ve all got is, ‘How does marketing actually become the most important discipline within business?’, because where we’re moving to, doesn’t matter whether it’s China, here, or Africa, it’s a consumer-led market.” Consumers today have more control and a vast selection of alternatives, something that brands and their boards must understand.

Audio from Part 1 of our Advertising Week interviews may be found here:  https://businessradio.wharton.upenn.edu/bestof/marketing-matters/?h=7GebK

Be sure to check our next blog post for a recap of Part 2 of our special Advertising Week broadcast!

Journal of Advertising Research and JGA Retail Focus feature Beyond Advertising excerpts and commentary

WFoA’s book, “Beyond Advertising: JAR cover Creating Value Through All Customer Touchpoints,” was recently featured in both the Journal of Advertising Research (JAR) and JGA Retail Focus.

The June issue of the JAR features an adapted excerpt from the book. In this excerpt, Professor Jerry Wind and WFoA Executive Director Catharine Hays present WFoA’s roadmap for creating value through all media and non-media touchpoints and the implications of this roadmap to advertising research. The article is available to ARF members here.

In the August issue of JGA Retail Focus, Wind and Hays (with Alexa de los Reyes) discuss “Why the Future of Retail Needs to Move Beyond Advertising.” Notably, they present five key questions to help you see to what extent you’re on track to implement the ATVC model:

  1. Is your marketing strategy aligned to meet the needs of your brands, customers and community, and society? Are you focused on long-term value generation and short-term activation?
  2. Are you creating value through all points of possible interaction, including those beyond the purview of advertising and marketing including product design, package design, customer service, call centers, retail/e-tail design, and shopping experience?
  3. Do your advertising and offerings meet the R.A.V.E.S. criteria? Are they Relevant and respectful, Actionable, Valuable and value-generating, and offer an exciting Experience and Shareworthy story?
  4. Does the design through each touchpoint meet the M.A.D.E.S. criteria? Is it multisensory, customized to the audience, device, and environment, and taking into account the power of synergies among touchpoints?
  5. Are you engaged in continual adaptive experimentation to understand what works, what doesn’t, and why?