[by Todd] Look carefully at this headline from AdAge and ask yourself what’s wrong here:
McKinsey Study Predicts Continuing Decline in TV Selling Power
Cites 50% Drop in Viewers, 40% Hike in Prime-Time Ad Spend Over Last Decade
This isn’t some self-serving report from another new media company. This is what McKinsey is telling its Fortune 100 companies.
"You’ve also got pronounced changes in consumer behavior while they’re consuming media," said Tom French, director at McKinsey. "And ad spending is decreasingly reflecting consumer behavior."
The story is even more dramatic when you look specifically at the highly coveted teen target. According to the report, teens spend less than half the time watching television compared to adults, and they spend 600% more time online (that’s no typo).
The study authors highlight how marketing departments must apply a critical eye towards traditional metrics of success. They have to roll up their sleeves and work harder. Which means their agencies will have to work harder.
The McKinsey director was pretty blunt about where responsibility for the change will fall.
"CMOs have to step up to a larger role and question a host of
historical assumptions of how marketing works," Mr. French said. "They
have to continue to build rich, robust and proprietary customer
insights, but they have to do it from a bunch more sources."
Gee, I wonder why the average tenure for a CMO is now less than two years.