This is the first article in a series on “Agencies in the Ad Tech Era,” a look at how the call for automation and efficiency is challenging agencies to rethink their structures.
One of the major fears about programmatic ad buying and selling is that it will replace humans with machines. But media agency Starcom has argued that it doesn’t have to be that way. So it has spent the last 20 months orchestrating a large-scale internal reorganization that would make all of its employees ready for the ad tech future.
The problem was, that its classic “buy media, sell media” structure was made outdated by the realities of programmatic. So it launched a large-scale talent overhaul that included training every single one of its 1,200 employees how to be well-versed at all things programmatic.
“We needed to step away from channel allocation and an investment-by-channel approach,” said Amanda Richman, president, investment and activation.
Starcom was going through what most media agencies are: An internal structure that is based on channels, instead of technology, just doesn’t work for programmatic. On top of that, there is other external pressure forcing agencies to rethink internal structures. The lines are blurring between media and creative.
The solution: Everyone at Starcom went back to school.
The first step, which Richman and Starcom senior leadership took two years ago, was a to create a map that showed the agency of the future. The ideal was a structure that didn’t align with channels like national broadcast, local marketing or search, but one that worked directly with clients, no matter the channel. Every single role in the agency was mapped out: what that person did, where they were better suited, and what had to be done to get them there.
For example, execs realized that in the investment group, where roles centered around “head of print” or “head of national broadcast” were better off embedded in a client team dedicated to Kraft or Kellogg’s. There was also a rethinking of roles like “TV,” so they encompassed all video, including online and mobile.
Certain roles faded away, said Richman, such as local TV buyers, for example.
But the agency is quick to emphasize that programmatic and automation did not mean humans were — or will be — replaced. Instead, Richman said the agency chose to invest in its talent just as it also invested in technology.
The second phase of Starcom’s program was to focus in on programmatic and data. A new program called “Data Next Now,” led by Richman and a five-member team, held about 15 sessions across six weeks across three different offices, getting right down to the basics of what a DMP was, how an ad exchange worked, or how real-time bidding worked.
“The big problem with programmatic is that everyone needs a common understanding of the language,” said Richman. “Everyone does. Even if they’re not making inventory calls, they may still do billing and reconciliation, so they need to know.”
A quiz at the end of each training module checked if the employees were ready. (Sample question: “What software organizes and centralizes all data sources that are used to define audiences online?” A: Ad exchanges; B: DSPs; C: Trading Desks; or D: DMPs.)
Then, the five-person team and its “champion” (as the team lead from each department is called) figured out a reorganization for each different department at the agency. The champion was responsible for making sure deadlines were met and everyone was on the right track.
Starcom isn’t alone in pushing through education for programmatic. The IAB, for its part, has also seen demand increase for its programmatic training programs over the past year, “reflecting the uncertainty and fears that initially stemmed from programmatic,” according to Carl Kalapesi, vp of industry initiatives.
The material was originally developed by IAB Programmatic Council for sellers of digital media, but the IAB found that there is now also interest from both buy side and ad tech. “In response, the IAB expanded the training materials to cover both the buy and sell side, because if sellers understand the buyers’ perspective and vice versa, it improves the outcomes for all.”
One welcome side-effect of an agency-wide training program was that it allowed Starcom employees to feel more empowered — essential especially for the millennial and younger employees, said Richman. “What we’ve learned about young talent in general is that they want to show they can make an impact,” she said. “They could do it here, and they were held accountable. Everyone had skin in the game. There was no opt out.”
More in Marketing
The cases for and against the CMO role
The answer depends on your vantage point. Gap is bringing back the CMO role after a two-year break, while Hyundai is choosing to phase it out.
With the CMO under the spotlight once more, let’s dive into the pros and cons to see why a top marketer can be an invaluable asset for some companies and an outdated figurehead for others.
The case for CMOs
For many CEOs, a CMO is the not-so secret weapon in their arsenal, driving the profit that fuels growth. This isn’t just lip service from a trade publication — recent earnings reports have shown just how crucial these marketing execs are. CEOs from PepsiCo, Gap, Unilever, Procter & Gamble, General Mills, and Nestlé have all given a nod to marketing—and by extension, their CMOs—as the driving force behind their financial triumphs this quarter.
Nike’s CEO extolled “impactful storytelling” and “brand distinction”—a.k.a. cranking up brand ads. General Mills’ chief raved about brand reinforcement, while Levi’s CEO name-dropped Beyoncé and lauded cultural relevance, translating to turbocharged brand development.
Despite the jargon, these CEOs view their brands as crucial capital investments, not just line items on a budget. While this narrative is familiar, it’s also challenging given how bean counters often see marketing spend as a cost ready for cuts. Unlike other expenses, marketing dollars are accounted for in the year they’re spent, making them particularly vulnerable.
However, CMOs at Nike, Levi’s, and similar firms have elevated advertising to a core business function, safeguarding their budgets even during tough times. Over the years, they’ve mastered the art of demonstrating their value in ways that earn them the respect of their top brass.
This is certainly true for some of the CMOs xx collaborates with. These marketing leaders are increasingly laser-focused on cracking the code of how to unlock the value of data within their businesses. Traditionally, they might have started with creative and media, but their shifting priorities signal a new approach to demonstrating marketing’s impact to their higher-ups, noted xx.
Of course, they don’t always nail it. Even in boardrooms that value marketing, CMOs have struggled to consistently prove their worth. But for every CMO position that’s been cut, there are times when the role makes a comeback. General Mills, the company behind brands like Old El Paso and Häagen-Dazs, revived its global CMO role earlier this year. Coca-Cola did the same just this month. In the world of CMOs, it seems absence really does make the heart grow fonder.
The case against CMOs
Unlike a CEO or CFO, the role of a CMO isn’t always essential — especially in the eyes of some Fortune 500 companies. In fact, only about two-thirds (63%) of them have a CMO, according to Forrester. In other words, for many big businesses, CMOs are a luxury they can often do without.
And even when marketing does have a seat at the boardroom table, it’s not always the CMO who’s at it.
The reality is that companies now demand more from their marketers than the traditional CMO role offers. Marketers nowadays are expected to manage retail media ventures, lead internal privacy efforts, and even contribute to M&A strategies. In a world where roles require more versatility than ever, the classic CMO might just be falling short.
Hyundai’s recent move highlights this trend. Execs there ditched the CMO role in favor of a chief creative officer and a vp of marketing performance. The logic is straightforward: as marketing gets more complex, sometimes you need a toolkit, not just a Swiss Army knife.
For these companies, the CMO as a catch-all specialist is officially passé.
Still, this isn’t about dismissing the role entirely; it reflects the reality of modern marketing—a collaborative, cross-functional approach where success relies more on specialized expertise and strategic coordination than on a single, prominent leader.
Because of this, the era of the star CMO—leaders like Marc Pritchard at P&G, Keith Weed at Unilever, and Linda Boff at GE, who gained recognition for their media savvy and thought leadership during the rise of online marketing—is increasingly becoming a thing of the past.
Today, as marketing requires more specialized skills and a wider strategic outlook, companies are supplementing or even replacing the CMO role with positions like chief customer officer, chief growth officer, chief strategy officer, and chief digital officer. Some are even bringing in regional and fractional CMOs, tailored to address specific growth and marketing needs that a one-size-fits-all CMO can no longer fulfill.
And as with any major shift, there will inevitably be some upheaval and adjustment along the way.
“CMOs aren’t a must-have anymore,” said Ian Bruce, vp Principal Analyst at Forrester. “In this world, the scale and scope of a senior marketer’s role can be very different, which is what CEOs are figuring out. They’re not saying ‘marketing is dead and so we don’t need a CMO’. Rather, they’re trying to understand what’s the rational role, function and responsibility of marketing overall and how can we manage that effectively.”
Ultimately, the case against CMOs is really a case for unbundling the role. When companies phase out or transform the CMO position, they’re not discarding it but redefining it for a world that demands more agile and nuanced marketing expertise.
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