Is the AOR model DOA? Not according to Kraft Foods Group Chief Marketing Officer Deanie Elsner, who is defending agency-of-record relationships in the face of rising criticism that the arrangements are no longer viable in an age of fragmented media.
One of the most-well known critics of the AOR approach is Dana Anderson, VP of marketing strategy and communications for Mondelez International, who wrote in the Wall Street Journal earlier this year that AORs are "no longer the pathway to Oz for clients or agencies."
But Ms. Elsner told Ad Age in a recent interview that she disagrees with her former Kraft colleague. "I don't think it's the end of the AOR, although I have a great deal of respect for Dana, and I've had great years working with Dana," she said. The two women worked together at the old Kraft Foods Inc., which split into two companies nearly two years ago: Kraft Foods Group and Mondelez.
Ms. Elsner -- who will speak at Ad Age's upcoming CMO Strategy Summit -- was named CMO in early 2013 after leading Kraft's beverages business. Ms. Anderson, Kraft's former senior VP-marketing strategy and communications, oversaw significant reshuffling of Kraft's agency roster before she joined Mondelez in late 2012.
Ms. Elsner, for the most part, has kept that roster intact, maintaining AOR relationships with the likes of McGarryBowen (Oscar Mayer); CP+B (Macaroni & Cheese, Jello) and TBWA, New York (Planters).
Still, Ms. Elsner said Kraft will continue to "pressure test" its roster "for the right agencies … where we can win in this world of precision-based marketing." But even as she scrutinizes her agency partners, Ms. Elsner is committed to keeping AOR oversight of big brands, because she said AORs are needed as the caretaker of large creative ideas.