CMO Confidential: Rishad Tobaccowala on the Omnicom-IPG Merger – What It Means & What's Next | Part 2

Release Date: April 1, 2025

In the second installment of the discussion with industry thought leader Rishad Tobaccowala, hosted by Mike Linton on the CMO Confidential podcast, the conversation delves deep into the ramifications of the Omnicom-IPG merger and its future impact on the agency market. Tobaccowala shares insightful perspectives on the evolving landscape of marketing, the critical role of talent, and the transformative power of AI.

1. The Evolving Importance of Marketing

Tobaccowala emphasizes that marketing is poised to become more crucial than ever due to advancements in modern technology. He articulates a visionary perspective on marketing's future role.

Rishad Tobaccowala [01:45]:
"Marketing is going to be more important in the future than ever before. ... we are now marketing to the gods versus just to people."

He elaborates on the necessity for marketers to harness both creativity and analytical skills, defining marketing broadly as understanding and meeting customer requirements.

2. Data-Driven Storytelling and Trust as Differentiators

With universal access to data, Tobaccowala posits that the ability to craft compelling narratives from data—what he terms "data-driven storytelling"—will set brands apart.

Rishad Tobaccowala [02:46]:
"When everybody has the same data, everybody has the same knowledge. I believe data-driven storytelling will become the differentiator."

He further asserts that trust, embodying what brands represent, will be the key competitive edge in the marketplace.

3. The Premium on World-Class Talent

A significant portion of the conversation centers on the increasing competition for top-tier talent. Tobaccowala argues that organizations must prioritize quality over quantity, investing in exceptional individuals who can leverage AI and technology to drive innovation.

Rishad Tobaccowala [04:40]:
"You're competing for talent, which means you're competing for talent in the outside world versus the inside world. So you actually go to agencies and say, I want the best talent, I'm going to pay a premium for them."

He warns against the pitfalls of undervaluing talent, comparing such approaches to buying a "poisoned hot dog" when focusing solely on cost.

4. Embracing the "Company of One" Mentality

Tobaccowala introduces the concept of the "company of one," encouraging marketers to cultivate skills and relationships that make them indispensable, regardless of their organization's structure.

Rishad Tobaccowala [07:13]:
"Start operating like a company of one. ... build skills that make me world-class outside by myself."

This approach underscores the importance of personal branding and continuous skill development in a rapidly changing business environment.

5. Transitioning from Bosses to Leaders

Highlighting a shift in leadership paradigms, Tobaccowala critiques traditional "boss" roles and advocates for a leadership style that focuses more on building, creating, and mentoring rather than delegating and monitoring.

Rishad Tobaccowala [10:36]:
"We've gone from an age of what I call bosses to leaders. ... if the left-hand side is more than 50%, change it."

He estimates that only about 20-25% of leaders are genuinely effective, emphasizing the need for more capable leaders to navigate future challenges.

6. The Six Essential Skill Sets for Modern Marketers

Tobaccowala outlines six critical skills that marketers must develop to thrive:

1. Cognition (Learning):
   "Spend an hour every day learning, be curious, ask questions."
   [12:12]

2. Curiosity:
   Challenging the status quo and seeking innovative solutions.

3. Creativity:
   "Connecting dots in new ways."
   [12:12]

4. Collaboration:
   Working effectively with others, including AI.

5. Convincing (Salesmanship):
   Persuading stakeholders amidst equal access to information.

6. Communication:
   "You have to be a world-class writer and presenter."
   [13:41]

He stresses that authenticity and the ability to present unique perspectives are paramount for effective communication.

7. The Critical Role of Authentic Communication

Addressing a common shortfall, Tobaccowala critiques how marketers often outsource their communication skills to PR departments, resulting in inauthentic and ineffective presentations.

Rishad Tobaccowala [14:17]:
"They have outsourced everything. They practice their react, they have slides and they come off like bozos."

He advocates for marketers to develop and hone their own communication abilities to build genuine trust and convey meaningful insights.

8. Predictions for 2025: A Landscape of Rapid Change

Looking ahead, Tobaccowala forecasts exponential changes in service businesses driven by technological advancements and a surge in demand for talented individuals.

Rishad Tobaccowala [20:36]:
"We're going to see more change. And part of the reason is many of these underlying technologies have come to fruition."

He highlights the inevitability of AI becoming a commodity and cautions against relying solely on AI strategies, urging businesses to rethink their approaches in the AI era.

Rishad Tobaccowala [23:14]:
"AI itself is going to be a commodity. ... you should basically ask, how do I rethink my strategy in an AI age."

9. Practical Advice: Embracing Change through "Rethinking Work"

Concluding the episode, Tobaccowala recommends his book, Rethinking Work, as a comprehensive guide for professionals to adapt to the evolving work environment. The book offers strategies for personal growth, organizational design, and maximizing the benefits of in-person interactions in a flexible, technology-driven landscape.

Rishad Tobaccowala [24:51]:
"My first book. I think this is even better than my first book. ... it explains why work is going to be different."

Final Thoughts

This episode of CMO Confidential provides a profound exploration of the shifting dynamics in marketing and leadership. Rishad Tobaccowala's insights underscore the necessity for adaptability, continuous learning, and authentic leadership in navigating the future's complexities. Marketers and business leaders alike can glean valuable strategies to thrive in an era dominated by technological advancements and heightened competition for exceptional talent.

Notable Quotes:

• Rishad Tobaccowala [01:45]:
  "Marketing is going to be more important in the future than ever before. ... we are now marketing to the gods versus just to people."

• Rishad Tobaccowala [02:46]:
  "When everybody has the same data, everybody has the same knowledge. I believe data-driven storytelling will become the differentiator."

• Rishad Tobaccowala [04:40]:
  "You're competing for talent, which means you're competing for talent in the outside world versus the inside world. So you actually go to agencies and say, I want the best talent, I'm going to pay a premium for them."

• Rishad Tobaccowala [07:13]:
  "Start operating like a company of one. ... build skills that make me world-class outside by myself."

• Rishad Tobaccowala [12:12]:
  "Spend an hour every day learning, be curious, ask questions."

• Rishad Tobaccowala [13:41]:
  "You have to be a world-class writer and presenter."

• Rishad Tobaccowala [23:14]:
  "AI itself is going to be a commodity. ... you should basically ask, how do I rethink my strategy in an AI age."

For more insights and discussions, tune into CMO Confidential on Spotify, Apple Podcasts, YouTube, or through the I Hear Everything network.