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CAMBRIDGE, Mass. – December 13, 2006 – Just over half (52%) of Chief Marketing Officers (CMOs) believe that traditional, large advertising agencies are ill-suited to meet online marketing needs, according to a study of senior marketing executives conducted by Evalueserve and released today by Sapient (NASDAQ: SAPE).  Similarly, 49% of survey respondents believe that traditional advertising firms have difficulty thinking beyond traditional print and TV media models, which no longer are effective ways of engaging consumers who now get their information and influence one another primarily through digital channels.  

As a result, fewer than 10% of those polled seek to partner with large advertising agencies for their online marketing.  Instead, the majority of senior marketing executives show a strong preference for blended firms - firms with roots in technology that can also offer creative and traditional print expertise.  Even more (68%) prefer to work with multiple agencies, in order to derive the benefits of specialization.

Sapient’s research, Electronic Media, Marketing and Advertising Buyer Value Study, surveyed more than 100 CMOs and senior marketers from the US and UK in a range of industries to understand the drivers behind their selection of marketing and advertising agencies.  Interviews were conducted by independent research firm Evalueserve during the late summer of 2006.  The study also examined marketers’ views on whether traditional firms are equipped to handle the new breed of marketing needs.

“Both corporate marketing organizations and agencies are undergoing seismic changes trying to create innovative marketing approaches that deliver real strategic business value,” said Gaston Legorburu, Sapient Chief Creative Officer and head of the Experience Marketing practice at Sapient.  “But innovation doesn’t just mean snapping some cool digital programs into a conventional advertising platform.  Two of the greatest challenges companies are struggling with are how to measure the effectiveness of the marketing spend and how to operationalize their entire digital strategy.  Most agencies and corporate teams are just not equipped to do either yet.”

The Top Six Marketing Buyer Values
The study revealed that the six most important factors to a CMO when choosing a marketing partner today are (in order of importance to aggregate respondents):
 
1. Quality of Creative Content
2. Innovation and Strategic Value
3. Price/Cost
4. Sophisticated Analytics and Measurement Systems
5. Proficiency in Emerging, Interactive or Digital Media
6. Traditional Print, Offline and Media Buying Services

The findings indicate an evolution in the CMO’s marketing priorities.  When respondents were asked about their criteria for choosing a partner in the past, quality of creative content remained at the top of their list – but price/cost moved down a notch with innovation/strategic value now the #2 criterion.  Additionally, traditional print services are considered less important, now superseded by sophisticated analytics and a proficiency in digital media.
 
Marketing Innovation – new ways to connect
CMOs now view strategy and innovation as a top factor in hiring a marketing agency.
(The majority of respondents understand marketing innovation as the creative use of new and emerging media.)  A typical verbatim of the majority view on the “How important are strategy and innovation when considering agencies?” question:

“In the new world of splintering media and new channels, marketing innovation means finding new ways to connect the brand to the customer and make it relevant so that we remain top of mind with the customer, even if they are not in the purchase process.  An innovative agency would be on the cutting edge of new

technology (i.e., media agnostic, looking for the right solution regardless of the execution channel).  Local search, video on demand, broadcasting and blogs are all upcoming trends in interactive marketing.”

Regional Findings
Survey responses from the US and UK were fairly consistent, with one major exception: the view of traditional agencies.  In the US, 64% of respondents believe that traditional advertising agencies have difficulty thinking beyond traditional print and TV models, compared with only 40% of UK respondents.  Accordingly, only 40% of senior marketers in the US believe that traditional advertising firms are well suited to the new breed of online marketing needs, compared to 56% of their UK peers.

About Sapient’s Experience Marketing Practice
Sapient’s marketing services business -- Experience Marketing (EM) --  integrates creative marketing concepts with technology tools and platforms that drive new customer acquisition, build loyalty and increase meaningful dialogue between brands and their customers.  The practice operates like a new breed of digital agency, providing a full range of services including interactive experiences, online and offline media strategy, real-time campaign

optimization, sophisticated analytics and database management, and Web site design and delivery. 
http://www.sapient.com/clients/Client+Success.htm.

About Sapient
Sapient helps clients innovate their businesses in the areas of marketing, business operations, and technology.  Leveraging a unique approach, breakthrough thinking, and disciplined execution, Sapient leads its industry in delivering the right business results on time and on budget.  Sapient works with clients that are driven to make a difference, including BP, Essent Energie, Harrah’s Entertainment, Hilton International, Janus, National Institutes of Health (NIH), Sony Electronics, the U.S. Marine Corps, and Verizon.

Founded in 1990, Sapient is headquartered in Cambridge, Massachusetts, and operates across North America, Europe, and India. More information about Sapient can be found at www.sapient.com.

Sapient is a registered service mark of Sapient Corporation.