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Copyright2018 The Nielsen Company (US), LLC. All Rights Reserved.
THE NIELSEN CMO REPORT| 2018
A LETTER FROM
THE AUTHOR
Welcome to The Nielsen CMO Report 2018!
There has never been a more dynamic and challenging time to be a
marketer. Since the advent of the internet, fueled by available high-speed
broadband and ignited by the proliferation of smartphones, marketers
have more access to consumers than ever before. We are awash in data
and should be living in a nirvana of actionable insights.
The reality, however, seems disconnected from this promise. Over the
last 18 months, some of the largest and most infuential 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 decreasing 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 this 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.
At Nielsen, our job is to provide the science behind what’s next. So we
kicked of the frst in an annual series of CMO reports with a focus on
global brand advertising and a simple goal: to learn from and give voice to
how brand advertisers are navigating today’s marketing environment. And
do to it, we applied a quantitative approach to gathering the voice of the
CMO (e.g. an in-depth survey and one-on-one interviews) to understand
what’s happening now and get a sense of “what’s next.” I’ll leave our
detailed fndings to the report, but overall, we came away with a sense
that we are in the midst of a slow but inevitable change—an evolution, not
a revolution. Marketers are leaning into the data, tools and capabilities
available today. And while they do not always deliver as hoped, their
willingness to invest and experiment—while incorporating the tried and
true—continues.
Enjoy the report!
Sincerely,
ERIC SOLOMON
SVP Marketing
and Strategy
Nielsen WatchCopyright2018 The Nielsen Company (US), LLC. All Rights Reserved.
THE NIELSEN CMO REPORT| 2018
CONTENTS
INTRODUCTION... 4
MEDIA CHANNELS: EVALUATION, MEASUREMENT
AND BUDGETING. 6
Evaluating Digital & Traditional Media.......... 7
Working with the Walled Gardens... 28
Tying Media Owners to Campaign ROI........ 32
Tackling the Omnichannel Dilemma........... 34
Understanding Campaign Objectives.......... 37
AGENCIES: EVALUATION, MEASUREMENT
AND BUDGETING........... 40
Adapting to Change... 41
Investing in Change... 43
Delivering ROI 44
Evolving Creative....... 45
CAPABILITIES: DATA, TECHNOLOGY & ANALYTICS..... 47
Accessing Quality Data.......... 48
Rating Incumbent Marketing Technology... 49
Ranking Tech & Measurement......... 51
Investing in Analytics & Attribution. 53
TRADE SPEND: IN-STORE DISCOUNTS, COUPONS
& SPECIAL OFFERS....... 55
Evaluating ROI Measurement........... 56
Forecasting Future Trade Budgets.. 58
CONCLUSION..... 61
ABOUT THE NIELSEN CMO REPORT..... 63
HOMEMEDIA CHANNELSAGENCIESCAPABILITIESTRADE SPENDCopyright2018 The Nielsen Company (US), LLC. All Rights Reserved.
THE NIELSEN CMO REPORT| 2018
INTRODUCTION
Across nearly all business verticals—consumer packaged goods,
automotive, retail, technology, fnancial services—marketers are shifting
how they evaluate, measure and budget across media channels.
Marketing as a growth-driver for brands has never been more important
and CMOs bear the brunt of this responsibility. They now oversee or
heavily infuence not only media spend, but also investment in the
technology and measurement capabilities they need to achieve and
quantify real business results.
Our research, based on in-depth interviews and extensive survey data1,
sheds light on the strategic and organizational challenges CMOs face
as they adapt to unprecedented change in the marketing landscape.
Respondents made it clear that digital media has had a transformative
efect on their organizations, their marketing and measurement strategies
and those of their agencies.
When asked to rank the perceived importance and efectiveness 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 efectiveness
measures. Radio continues to lead all channels in terms of weekly reach
in the U.S.2 and a full 45% of respondents thought radio to be an efective
channel.
Digital ad spend has eclipsed traditional channels and we expect
that trend to continue. When forecasting 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 refected on a critical piece of the marketing mix, trade spend
(e.g., in-store discounts, coupons, special ofers, etc.). They voiced a desire
for a unifed approach to trade and media strategy in order to correctly
allocate spend ratios. Sixty-six percent of respondents expect either no
change (44%) or a decrease (22%) in trade investment.
In terms of measurement, only one in four marketers reported high levels
of confdence in their ability to measure the ROI of their media spend,
regardless of type, or their trade spend. Not surprisingly, 79% expect to
increase their investment in marketing analytics and attribution in the
next 12 months.
1 CMO interviews and survey responses originate primarily from U.S. headquartered individuals or organizations. It is important to note, however, that many of
these individuals and companies are multinational or run multinational marketing organizations.
2 Source: Nielsen Comparable Metrics Report Q2 2017.
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