INTERNATIONAL PERSPECTIVE
A LOOK AT THE 21ST CENTURY CMO
There has never been a more dynamic and challenging time to be a marketer. Since the advent of the internet, fueled by available highspeed access and ignited by the proliferation of powerful new devices, marketers have more access to consumers than ever before. We’ re awash in data and should be living in a nirvana of actionable insights. This elaborate report by Nielsen reveals and explores all the relevant questions with suitable answers from industry experts.
The reality, however, seems disconnected from this promise. Over the last 18 months, some of the largest and most influential advertisers in the world have spoken up about their concerns with digital advertising, calling the supply chain“ broken” and pointing to high incidence of fraud and lack of brand safety. Subscription video on demand( SVOD) services are affecting the reach of traditional marketing mediums like TV and radio. The launch of GDPR in the European Union and related privacy challenges have added complexity to the collection and management of consumer data. Combine these with changing consumer preferences and zero-based budgeting and it’ s clear that the job of the CMO has become a more delicate and dangerous catwalk.
The Nielsen CMO Report 2018, the first of an annual series of CMO reports with a focus on global brand advertising, talks about how brand advertisers are navigating today’ s marketing environment. The report makes it clear that we are in the midst of a slow but inevitable change an evolution, not a revolution. Marketers in the U. S. are leaning into the data, tools and capabilities available today. And while they don’ t always deliver as hoped, their willingness to invest and experiment while incorporating the tried and true continues.
When asked to rank the perceived importance and effectiveness of digital media channels, marketers placed search and social channels at the top of the list. Television continues to hold its own as the highest ranked traditional media channel across perceived importance and effectiveness measures. That said, radio continues to lead all channels in terms of weekly reach in the U. S., and a full 45 % of respondents thought radio to be an effective channel.
Digital ad spend has eclipsed traditional channels, and we expect that to continue. When forecasting their spend in the next 12 months, 82 % of respondents expect to increase their digital media spend as a percentage of their total advertising budget. By comparison, only 30 % of respondents plan to invest more in traditional media channels in the near term.
CMOs also reflected on a critical piece of the marketing mix, trade spend( e. g., in-store discounts, coupons,
79 % 37 %
42 %
SOCIAL MEDIA
4 % special offers, etc.). They voiced a desire for a unified approach to trade and media strategy in order to correctly allocate spend ratios. That said, there was no unanimity in planned trade investment going forward: 44 % of respondents expect no change over the next 12 months, while 34 % say they will increase and 22 % say they will decrease their investment in trade promotions.
In terms of outcomes measurement, only one in four marketers reported high levels of confidence in their
THE IMPORTANCE OF DIGITAL MEDIA CHANNELS: HIGHEST RANKINGS
37 %
42 %
73 % 38 %
35 %
SEARCH
63 % 24 %
39 %
ONLINE VIDEO
59 % 28 %
31 %
EMAIL
EXTREMELY IMPORTANT
56 % 20 %
36 %
MOBILE VIDEO
VERY IMPORTANT
55 % 12 % 44 % 42 % 11 %
33 %
ONLINE DISPLAY
MOBILE DISPLAY
THE IMPORTANCE OF DIGITAL MEDIA CHANNELS: ALL RANKINGS
38 %
35 %
EXTREMELY IMPORTANT
24 %
39 %
28 %
31 %
20 % 36 %
16 % |
1 %
3 %
|
19 % |
1 %
6 %
|
23 % |
1 % |
18 %
11 %
|
6 % |
25 %
10 %
|
1 % |
SOCIAL |
|
SEARCH |
|
ONLINE |
|
EMAIL |
|
MOBILE |
|
MEDIA |
|
|
|
VIDEO |
|
|
|
VIDEO |
|
12 % 42 %
26 %
8 % 18 %
OTT-TV / CONNECTED TV
VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT NOT AT ALL IMPORTANT
29 %
12 %
ONLINE DISPLAY
2 %
11 % 33 %
33 %
8 % 18 %
22 %
15 % |
17 % |
3 % |
8 % |
MOBILE |
OTT-TV / |
DISPLAY |
CONNECTED TV |
44 August 2018