CMO's are experiencing greater pressure and are increasingly dissatisfied with their advertising agencies.

A recent report by Jupiter Research, (one of the leading research firms in the US) cites that corporate CMO's are experiencing greater pressure for ROI, and are increasingly dissatisfied with their advertising agencies and overall performance. This is a trend that was already developing, and now it has roared at full speed due to the economic crisis. Of course the pressure is on, and as we experience a continued economic restructuring, this trend will continue and reshape the pre-crisis Advertising/Marketing landscape forever. Most Corporations are seeking answers on survival in the current climate, and beyond this change, what it will take to make it in the “new economy” , what's the shift that will be necessary in order to make it in this uncharted territory known as the “new economy” . Agencies are being held partly responsible for the failure to meet the current challenges. Advertising Agencies as we know them in the pre crisis days, are structure in a way that makes them fundamentally ill-equipped to deal with the current climate.

Bad news always tends to roll downhill, so as CMO's continue to experience pressure from their Boards, the trend of dissatisfaction will no doubt continue. This trend will mean greater opportunities for new "hybrid" agencies, or the boutique agency, where services are offered “a la carte”, and each project is serviced by subject matter experts who are independent contractors and freelancers picked because they are the best suited to work on a project, not because they are on staff with a fat salary. This is by far the most interesting and the smartest model for marketers, and it’s the way that many businesses have evolved, it certainly promotes the “best of breed”. A new business model will be interesting and deeply impact the advertising world as we know it, but this is inevitable – the current traditional Agency business model is outdated. As advertisers and savvy marketers are increasing investments in more digital vehicles, they are turning away from traditional media and creative executions, like the :30 TV ad or the :60 radio ad, to more digital marketing and viral advertising. Another trend we might see is one where Corporations would absorb some of the traditionally outsourced marketing/advertising roles internally. This would be smart, because of recent layoffs there is a deep pool of great talent that has been displaced. By taking these roles in-house and creating mini internal agencies, CMO's would excercise more control, and cut out significant expenses related to hiring a full service agency.

It will be interesting to see where the new opportunities will exist, and there will be many…. However they will not exist in the pre-crisis state, one thing is for certain, the status quo as it existed at the end of 2008 will not survive – it’s extinction is as inevitable as that of the dinosaur.