GroupM North America CEO Tim Castree on Reigniting Brand Growth for Clients

Michael Farmeramp160amp160Tim youamp8217ve seen marketing communication evolve from many perspectives over the past 20 years in Australia in New York with creative agencies and now with global media agencies amp160What is the state of play in the industry amp160Whatamp8217s most on your mindTim Castreeamp160amp160There are many challenges in the industry of course but to my thinking the highest order problem is that our clients are struggling to reignite brand and business growth amp160This more than anything else shapes their decisions and affects our relationships with them amp160Our clients grew after WWII to the late amp821670s driven principally by the growing spending power of middleclass Americans the famed Baby Boomers amp160Growth continued for other reasons up to 2001 but the dotcom crash and the 2008 financial crisis killed middleclass spending growth amp160On top of this we saw a generational shift with Millennials and Gen Z dominating the population and consuming in very different ways amp160Marketing has yet to find a way to fully engage themFarmeramp160 Isnamp8217t digital and social marketing supposed to solve this problemCastree amp160In theory itamp8217s half the answer how to reach and engage audiences particularly younger ones amp160But there are two problems starting with the absence of strong macroeconomic tailwinds to drive consumer demand amp160Income disparity in the US now surpassing preGreat Depression levels is a foundational problem for brand growth amp160Digital and social marketing have also democratized yet fragmented and complicated the landscape amp160This makes marketing more complex and expensive to drive at scale which is where our traditional clientsamp8217 interests lie amp160And with low barriers to entry directtoconsumer brands are proving formidable competitorsamp160 All this adds up and itamp8217s a heady mix of challenges for top US marketers amp160Weamp8217ve seen declining growth rates and the outright demise of oncevenerable brandsFarmer amp160How does this affect GroupMamp8217s agenciesCastree amp160Obviously itamp8217s a stressor amp160When topline growth is challenged clients find other ways to generate profits amp160They shift into costreduction mode amp160They cut their media spend and reduce agency fees amp160They put agency operations up for review in order to get services from new agencies for less money amp160Of late some have been tempted to take certain operations inhouse like programmatic advertising and this may prove to expand the complexity and fragmentation problem I just mentionedAt the end of the day weamp8217ll always shape ourselves to the needs and preferences of our clientsamp160 If inhousing is a goal weamp8217ll help them do it and weamp8217ll help them ensure that that part of their program is connected to their larger media strategy amp160I believe in the enduring value of working with an agency partner who can offer the most macro view of audiences and media platforms to ensure the entire plan is optimized in any one market and globally amp160The benefits of this seem obvious but warrant stating amp160How else do you really get to that elusive brand growth weamp8217re talking aboutFarmer amp160Your clients must be feeling the pressure of underperformanceCastree amp160Thereamp8217s no question about it amp160CMOs are asked to justify their marketing budgets and thatamp8217s easier to do when you are growing amp160Itamp8217s a wellknown fact that CMOs come and go at twice the rate of their CEO bosses amp160According to the latest report from Spencer Stuart the median CMO tenure is 275 months amp160Theyamp8217re looking for answers thatamp8217s why theyamp8217re experimenting with scopes of work and fragmenting their media mix across so many channels amp160This experimentation leads to complexity and ironically complexity adds hidden costs for advertisers and agencies alike amp160So while clients are reducing visible costs on the one hand theyamp8217re adding hidden costs through fragmentation and complexity on the other hand amp160The outcome is less than idealFarmer amp160Whatamp8217s the solution for all of thisCastree amp160For our clients the CMOs need to take back control of the agency relationship from procurement amp160Procurement has an important role to play but it must support not lead amp160From our side weamp8217re elevating our game and refocusing our teams to help our clients reignite brand growth This requires many GroupM initiatives in many dimensions in people and talent in technology and data in our processes process and in the way we plan and think about our client relationships It certainly requires a cultural shift within our organization amp160Itamp8217s not about doing a better job in media planning and buying amp160Itamp8217s about helping clients identify the things required to effect brand performance improvements amp160It requires a change in mindset in capabilities and in measurements and standardsFarmer amp160Will your clients go along with thisCastreeamp160 We cannot do this alone of course amp160Weamp8217ll work with our clients to refocus our relationships amp160Weamp8217ll simplify rather than complicate our efforts and find the right combination of spend media mix Scopes of Work and content to drive brand growth in todayamp8217s environmentItamp8217s an energizing challenge and itamp8217s giving us renewed optimism about the futureClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writersamp160amp160

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GroupM North America CEO Tim Castree on Reigniting Brand Growth for Clients

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GroupM North America CEO Tim Castree on Reigniting Brand Growth for Clients

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