CMO influence, corporate reputation, ad spend: 5 killer stats to start your week

We arm you with all the stats you need to prepare for the coming week and help you understand the big industry trends.

CMOs ‘losing influence’ in corporate hierarchy

The proportion of CMOs among the top five compensated executives in the US S&P 1500 declined by 35% between 1999 and 2017.

The research used 1999 as a baseline, looking at the top five best paid executives. Over time, it found that marketing experienced the biggest decline, while operations’ influence also fell by around 15%.

At the same time, the proportion of officers representing information or technology has increased by around 140 and those in finance is up by around 30%.

Source: Harvard Business Review

The impact of corporate reputation declines

Corporate reputation supported £941bn in shareholder value for UK companies in the FTSE 350, equal to 35% of their gross market capitalisation. However, while reputation continues to make a major contribution to the value of the UK’s largest companies, the impact is markedly down on a high of £1.06 trillion in 2018, or 38% of market capitalisation.

The fall comes as investors show signs of being “bruised” by uncertainty over a post-Brexit Britain, the prospects for global trade, the US election and the emergence of Covid-19.

However, this decline in corporate reputation is not uniformly spread. Companies in the bottom 20% of performers saw their reputational performance decline by an average of 23 percentage points, while for those in the top 20% it was broadly unchanged (up 0.5 percentage points).

Shell tops the ranking, with its reputation worth £92.3bn, giving it a reputation contribution of 55.8%. BP is in second place on £51.1bn and 51.8%, followed by Unilever (£58.5bn), Diageo (£36.7bn) and Bhpbilliton (£43.6bn).

Source: Reputation Dividend

Online ad spend to overtake offline for first time this year

Online ads will account for more than half of the $660bn forecast to be spent globally on ads this year for the first time.

So-called traditional media is expected to record growth of 1.5% year on year to $324.2bn, its first growth since 2011. But growth in internet advertising will be faster, at 13.2%, making it worth $335.4bn.

TV is set to remain the biggest traditional medium, with spend forecast to rise 2.5% year on year to $192.6bn. However, Google owner Alphabet will generate $149bn on its own, followed by Facebook on $82.9bn.

Source: Warc

A third of small companies don’t think GDPR applies to them

More than a third (38%) of small and medium-sized businesses don’t think GDPR applies to the customer data they come into contact with.

In addition, 18% believe the impact of GDPR has been negative – four times the number across the wider marketing industry.

Nevertheless, most SMBs believe new data regulations have been positive, with 54% citing the impact on marketing programmes, 49% on sales and 60% on internal processes.

Source: Data & Marketing Association

Disconnect between intention and action around sustainability

Some 92% of 10,000 consumers who took part in a survey says they believe the way we treat the planet will have a big impact on the future. However, 48% says that convenience takes priority over sustainability when it comes to purchasing habits.

Furthermore, while 81% describe themselves as eco-friendly, just 50% only buy products from brands that try to be eco-friendly.

Of those who are passionate about sustainability, they are willing to pay up to 15% for products or services that use sustainable practices, are aligned with their values, have transparent business practices, and care about the wellbeing, safety and security of customers.

Source: Getty Images

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