Dentsu Aegis Network 2019 CMO Survey: Short-Term Pressures Remain But Marketers Are Shifting Focus to Make Digital Transformation Real

    --  Eight out of ten CMOs believe the shift to digital means they must
        transform and marketing must take more responsibility for innovation in
        the future.
    --  Yet today, 'transformation and innovation' are ranked the least
        important roles for the marketing function, according to the same CMOs.
    --  Significant gaps are emerging between perceived levers of future
        marketing success and current capabilities - with the challenge most
        acute in data collection, management and analytics

TORONTO, July 24, 2019 /CNW/ - Dentsu Aegis Network's 2019 global survey of 1,000 CMOs and senior-level marketers highlights a growing challenge for marketing leaders, as they seek to move beyond optimisation and drive business transformation through digital.

Eight out of ten surveyed recognise the imperative to transform the business in the face of digital disruption, as well as taking more responsibility for product and service innovation over the next 2-3 years. However, CMOs are finding it difficult to make this shift with 'Business Transformation' and Disruptive Innovation' at the bottom of the list for the second year running in terms of functional priorities, and current capabilities beginning to lag behind future needs as short-term metrics dominate their focus.

Digital transformation: a performance gap emerges

Across a spectrum of marketing capabilities, CMOs were asked what they believe to be important to future success, versus their current ability to execute. The data shows a significant gap emerging between the two:

    --  85% believe creativity is critical to future business success, 54%
        believe they are delivering well today.
    --  83% identify the importance of seamless customer experience and commerce
        across channels, yet only 60% believe they are developing this
        capability well.
    --  But the divide is most stark in data management and analytics, where 84%
        identify these capabilities as important to future success, where only
        49% are confident in these capabilities today.

Short-termism and softening investment create a barrier to transformation

An inability to secure long-term investment is cited as the most significant barrier to delivering on marketing strategy (rated as a top three concern by 50% of all CMOs) - ahead of both access to talent and competing boardroom agendas. What's more, two-thirds (64%) say they expect to come under further pressure to demonstrate tangible short-term results, while nearly half of those surveyed have a marketing strategy that plans ahead for two years or less, reflecting a business focus on near term goals.

Softening spend may be compounding these pressures. At the global level, the outlook for the next 12 months is mixed with 41% of CMOs reporting budgets as flat or declining, despite growing revenues (64% of respondents reported revenue growth over the same period). CMOs are having to perform the balancing act of optimisation, transformation and long-term brand building as budgets come under pressure.

Will Swayne, Global President Client Solutions at Dentsu Aegis Network said:

"This data, gathered from across ten markets, shows that senior marketers are now grappling with an added dimension to the challenge of balancing short-term goals with strategic vision.

"Much has been written about the optimal mix between performance and longer-term brand investment, but that is no longer enough. The new challenge for CMOs is to balance those pressures with the existential need to put the marketing function at the heart of customer-led, business transformation."

Jeff Greenspoon, President & Chief Product Officer, Dentsu Aegis Network Canada said:

"A long-term view on strategy without foregoing short-term gains breeds integration from the onset in order to create and strengthen brands that are fit for the future.

"The results of this year's survey highlight that customer-centricity is still paramount to position strong brands in new ways to thrive in an exciting digital economy. We believe that true partnership with our clients is built on proven successes, and that gets us further together - faster."

About Dentsu Aegis Network Canada

Dentsu Aegis Network Canada Innovates the Way Brands Are Built for clients through best-in-class capabilities in media, digital, data and creative communications services. The network's focus on the digital economy and the distinctive products and services are delivered through agencies Amnet, Amplifi, Carat, Cardinal Path, DentsuBos, dentsu X, GRIP, ICUC, iProspect, Isobar, John Brown Media, MKTG, The StoryLab and Vizeum. As one of the top ten global Dentsu Aegis markets, the Canadian team is headquartered in Toronto and serves clients through a national network of offices in Vancouver, Calgary, Montreal, Saint John and Halifax with nearly 1,500 dedicated specialists. www.dentsuaegisnetwork.ca

SOURCE Dentsu Aegis Network