How does marketing defend against the scourge of short-termism coming from the top?
Short-termism is slowly but surely creeping into every business decision we see today — and nowhere are the knock-on effects felt more acutely than the marketing and advertising industries.
As CEO tenures at public companies fall to below 5 years, quick increases in profitability are needed to impact on management's Long Term Incentive Plans. The easiest way to achieve this is by cutting long term investments, and asking remaining departments to do more with less — squeezing revenue out of the latent brand equity leftover from the previous CEO’s tenure.
The great irony is of course that CMO’s are now unable to create any new brand equity, as they are forced to chase cheaper prices for both ad buying and creation. We praise the great CEOs and CMOs of our time for their long-term vision and bravery, yet have neither ourselves.
So how can marketing be braver? How can we — the people responsible for developing brands — rebrand to be seen as the long-term profit drivers we are, not simply a cost to be cut? In this session, let’s look at marketing as it should be to answer this question; and you never know, we might just have an impact on those tenures as well.