Star and Forrester explore how AI and platform technologies are changing agency - client relationships
AI is transforming marketing faster than any technology before it. And while CMOs are excited by the possibilities, many are frustrated that their agencies are still struggling to build AI systems that are transparent and effective.
We wanted to bring real data and clarity to this conversation. We partnered with Forrester on an independent study of more than 300 CMOs and senior marketing leaders from global brands with over $1 billion in revenue, primarily across the US, UK and Germany.
The findings shed light on how CMOs view their agencies’ technology platforms, and what they now expect from their partners in the age of AI.
The Next-Gen Marketing Platform Imperative
How should CMOs and agencies evolve in the age of AI?
Insights from our webinar
Forrester Principal Analyst Manuel Geitz alongside our internal experts on Media & Advertising Scott Tieman and Lolly Mason examined the study’s main takeaways and suggested how marketers and agencies should move forward.
1) AI-enabled growth is key but agencies are falling short
Our research revealed that while revenue growth remains CMOs’ top priority, AI is now a close second, nearly on par with customer experience.
However, only 18% of CMOs strongly agree that agencies deliver the AI capabilities they promise, and 32% view their partners’ systems as interchangeable. Agencies are also underdelivering on the services that support their platform solutions, such as client onboarding, as well as, ongoing training and communication about their AI capabilities.
Forrester also found that brands are also hesitant to share data and IP with their agencies due to privacy, security and data accuracy concerns. They view many agency AI platforms as “black boxes” that lack transparency and fail to show a clear ROI.
2) Changing role of the CMO
Another significant finding was that almost 60% of CMOs have a formal role in martech. Many senior marketers have joint planning sessions with their CTOs, and others collaborate on tech steering committees. “These numbers will continue to rise. I have no doubts about that, but even today, most CMOs have a real strategic role to play when it comes to tech choices,” said Manuel.
Our Head of Media and Advertising, Scott Tieman highlighted the key role that CMOs must take in managing their company’s technology.
3) The hidden cost of marketing technology fragmentation
Nearly 90% of respondents say that they struggle with technology fragmentation, and only 8% believe their tech stack is seamlessly and effectively integrated.
Disconnected systems make it difficult to assess the impact of technology and marketing campaigns, leading to difficulties in collecting ROI data, a key measure for marketers. Fragmentation drives up costs as there are more vendors to manage, more platforms to maintain and more changes to implement.
Interoperability emerged as a major theme during the webinar, raised by both brand-side and agency-side leaders.
Our Head of Strategic Accounts, Lolly Mason, underscored the need for greater transparency:
The most critical factor in the agency-client relationship
79% of senior marketing leaders from our study think agency technology is a critical factor in the selection and retention of agency partners. “It goes beyond what the agencies are bringing today, it's how they're continuing to innovate over time and being differentiated and adding value to the ecosystem,” Scott said.
Transparency and ROI measurement are now baseline expectations. So is platform integration. With AI, brands finally have the opportunity to deliver connected and personalized experiences. But this is only possible with an integrated ecosystem that connects channels, creatives and data with an AI-powered orchestration that adapts messaging and offers based on comprehensive customer profiles.
Our webinar concluded with a shared understanding that AI requires a fundamental rethink of workflows, both on the client and agency sides.
Analysis from Forrester highlights the opportunities of AI for brands – to create modular, transparent, joined-up technology platforms with their agencies that preserve data security and deliver a differentiated offer to consumers. Agencies must step up and help CMOs achieve these goals
