Back To The Future

If previous recessions are guidance, the end of the current recession, now in full bloom, will have implications for CMOs and agencies.

During the recession, the average tenure of CMOs, the now infamous "23-months", started inching up. The rush to change marketing leadership came to s standstill. The likely reason: CEOs were reluctant to change leadership during the recession, concerned that if such a visible figure as the CMO left, investors might think that the company is coming unglued. With the economy recovering, CEOs may be a lot less hesitant about CMO turnover, especially if marketing does not yield quick results.

I predict that we are also going into a 24-month cycle of agency volatility. A new CMO often means an agency search and a new agency, especially if the new CMO comes into a weak business situation that needs "fixing". Since companies are now compared to competitors on proxy statements, there's heat on the board to push for change, any change, to get results. That change often impacts the agency.