Talking earlier this month at the annual CES new tech showcase, Sir Martin Sorrell claimed that the job of the chief marketing officer has become easier, because there are only four platforms left: Google, Amazon, Meta and TikTok. Has your job become any easier?
On the contrary, it has become incredibly more complex. If you define the role of a CMO very narrowly as advertising, then you're talking about four platforms. But marketing is so much more than that.
It starts with insights. Consumer insights, business insights, governmental insights, channel insights. You’ve got a whole bunch of stuff happening based on these insights. A lot of companies work with the four Ps of marketing: Product, price, place, promotion. Into each of these goes a lot of thinking and strategy. I believe narrowing all this down to four platforms is way too simplified. So, I disagree with Sorrell’s conclusion.
If you look at all the theories and principles of marketing, like the four Ps, the purchase funnel or loyalty programmes, the foundational aspects and theories are all 50 to 60 years old. At that time, there was no internet, no mobile, no social, no AI. So, I looked at what fundamental truths of marketing there are, that are immutable and still valid today. I found none.
None?
Let me give you an example. Consumer insights often come from market surveys, focus group discussions or in-depth interviews. But it has been proven that people’s purchasing decisions are not rational, they are not logical; they are not even conscious. Now, when you ask a consumer why they bought a certain product (or not), they post-rationalise their decision. And that tells you absolutely nothing useful. We need a new way of thinking about consumer insights.
Same with brand loyalty—it’s a myth. A survey in the UK has shown that a stunning 70% of participants have cheated on their spouses and a further 15% would be open to cheating if it were guaranteed that they wouldn’t get caught. If people aren’t even loyal in their personal lives, why would they be loyal in their relationships with brands? If you go and give them an air mile every time they fly with you, that’s not loyalty, that’s consumer stickiness. I believe we need to reinvent every single aspect of marketing. And that reimagined model is quantum marketing.
What does that mean for traditional advertising?
Advertising as we know it is dead. The need for communication is still there, but it’s not happening through advertising any more. Since I joined Mastercard, we have dramatically reduced our advertising budget. We have moved into experiential marketing, which means we curate experiences that money cannot buy, but you can get them with Mastercard. That creates a very different brand pull, preference or love, whatever you like to call it. Other areas like multi-sensory marketing, sonic branding and neuromarketing are also a part of quantum marketing.
Some brands have been dialling back on purpose and the commitment to social good, notably US tech firms. What’s your take on that?
When I talk about purpose, one of the most important aspects is earning consumers’ trust. Most people are not impressed when you throw ads at them. They want companies to do something beyond advertising, something that is good for society or the world. And whatever they choose to do, they must do it genuinely. Not just for pretences, political correctness or something to talk about at conferences. It has to be meaningful, consistent and authentic. If you do that, you start earning consumers’ trust.
Mastercard is now one of the most-loved brands in the world. It used to be the 87th most-valuable brand, today we’re the 11th. All that happened because we were consistent in our focus. We don’t switch initiatives every few months, we stick with a cause and pull through. If you’re scared of a backlash and change course too often, you will lose consumers’ trust. Consistency and conviction are essential when talking about purpose.
Is it easier for a brand like Mastercard to “do good”?
No, it’s just a decision you have to make. Also, you have to find a creative angle. If you present your engagement in an uninteresting and uninspiring fashion, it will fall flat. You have to connect emotionally with consumers and make them believe that you really mean what you’re saying. That's what makes a difference.
What do you make of Mark Zuckerberg’s recent turnaround on fact-checking?
Well, he’s making a media decision. It’s too early for us to say what the implications are for us. We’re in the process of evaluating this for our brand, but essentially the Meta platforms are advertising platforms. And Mastercard is about experiences. The bulk of our marketing budget does not go into these platforms. Therefore, we are less affected than other brands.
Your lead creative agency is McCann, an IPG agency. As a client, what are your thoughts on the merger of Omnicom and IPG?
Actually, we work with agencies from both companies, like Ketchum from Omnicom. I believe when these two companies go together, they will have a scale advantage. There will be more exchange of competencies. Since we are one of the most prestigious clients of McCann and IPG, I’m sure they will push all the necessary buttons to make sure our business needs are met well. I’m not concerned.
You’ve been a sponsor of the Uefa Champions League for 30 years and recently announced a partnership with the McLaren Formula One team. How does this kind of old-school sponsorship model fit into the quantum marketing idea of reimagining everything?
These sponsorships have actually changed a great deal. In the past they used to be a way to showcase our brand. We would put our name on the perimeter board and advertise our sponsorship. Nowadays, it is experience-led. For example, we curate experiences at F1; a limited number of our card members actually get the chance to visit the pit lane. That is truly a once-in-a-lifetime experience. It’s not about advertising any more, it’s about the experience. We offer similar curated experiences in various other fields, like film and music.
These are real-life experiences. What about immersive tech like AR and VR?
Our Priceless Experiences are predominantly physical. During Covid we pivoted to virtual experiences, like everybody else. However, the kind of experiences we offer are only accessible for a limited number of people. So, we use AR and VR to make their real-life experiences virtually accessible to others. Our clients share it on their social media, get asked how they were able to experience that and voilà: people are talking about Mastercard.
Specialist agency Amp has named you the best audio brand for a fifth consecutive year. Why is sonic branding so important?
Most brands have a mnemonic sound, like a jingle or certain songs they always use. We went beyond that. We discovered that there are 10 layers of sound, and we cater to all of them. We use melodies that are adapted to different cultures, we have a sonic signature we use in our ads, we created a special sound that machines make when your Mastercard is accepted, we created music and released an album and so on. Sound has become one of the major dimensions of how our brand is represented.
What’s next in AI?
Last year was the year of GenAI. This year will be the year of Agentic AI. A series of specialised agents will each be capable of executing one thing exceptionally well. And these agents will be managed by one super AI agent, which in turn will be monitored by a human. We are already piloting some projects in this direction.
You have a very holistic approach to marketing. How do you stay on top of new developments? Do you have any advice for marketers struggling with this?
First, you must invest time to learn. I spend five hours every weekend learning something new. For example, I actually have my own AI studio at home and play with the technology. It’s the only way to really understand its implications. And then, you also have to make sure your team stays on top of it. We have focused on educating our teams about AI. Also, I reach out to my colleagues and ask them what they are doing in their respective industries. Sometimes you can adapt things from other fields. You do have to take initiative to stay at the cutting edge.
You wrote a book on quantum marketing. Doesn’t it feel like you’re giving away your secret sauce?
No, I could share the instructions to build a rocket with you and you still wouldn’t be able to build one. That’s where the power of execution comes in. In the book, I outlined all the audio layers I mentioned a moment ago. And still, not many brands have a strong audio brand. That’s because implementation is very difficult. Also, I feel very committed to this profession. It has given me my bread and butter for over three decades. I want to give something back.
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