CMOs: AOR Is DOA


Once the mainstay of Madison Avenue, the so-called “agency of record” model -- a system in which a marketer named one agency to be its sole, or primary agency to manage all its advertising -- is now the minority of account structures, according to a survey of CMOs conducted by Globality of The CMO Club.

Only 46% of 106 CMOs responding to the survey said they still utilize an AOR model.

The survey also found a relatively low level of satisfaction for AORs: only 14% of respondents said they were “very satisfied,” while nearly a third (30%) said they were “dissatisfied.”

The No. 1 reason cited for dissatisfaction with the AOR model was “that it lacked creativity and innovation,” which was cited by 55% of respondents. Another 35% cited that “AOR capabilities were too narrow for their needs.”

“The market is ripe for disruption with CMOs diversifying their stream of providers,” Globality said of the findings, were are the basis of the CMO Club’s “Developing a Modern Agency Ecosystem” report. A quarter (25%) of CMOs said they supplement their AOR with independent agencies, and 24% said they use multiple independent agencies, “eschewing the AOR altogether.”

Twenty-seven percent said they use a single holding company and select multiple agencies from that company.

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