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Company Profiles in association withThe Immortal Awards
Group745

A New Dawn for Marketing with AAR

11/09/2024
Consultants
London, UK
355
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LBB’s Tará McKerr speaks to Victoria Fox, CEO of AAR Group, about the importance of operational excellence, and how AAR is quietly driving transformative change across the industry

When I meet Victoria Fox for the first time, I am struck by her candour. Everything she says seems to be seasoned with the kind of unvarnished pragmatism that comes from years of navigating the most complex challenges in marketing. But it’s also coupled with a true sense of empathy. It’s a quality rooted in her academic beginnings; she studied geography at university – not with any intention of becoming a geographer, but simply out of love for the subject. For Victoria, geography wasn’t just about maps and landscapes; it was a study of people, cultures, and the intricate ways in which humanity interacts with the world. This early curiosity about human behaviour would later become the foundation of her career in marketing. 

Now she’s running AAR – consultancy to the marketing industry with an almost 50 year, storied history. I sat down with Victoria to get a glimpse into how this once modest agency register has evolved into an indispensable partner for brands seeking to master the complexities of modern marketing. Doing so, by specialising in designing and optimising marketing operating models through the lenses of people, partners, process and platforms.

In 1975, AAR was founded by Lyndy Payne CBE – an icon in the advertising community. It was ground breaking not just for its time, but for what it represented too – a female-led enterprise in an industry where such occurrences were almost unheard of. Speaking to Victoria, it doesn’t take long before she highlights Lyndy’s pioneering spirit. “She was an absolute trailblazer,” Victoria tells me. “This was the first in the category of ‘intermediary’ anywhere in the globe.” Lyndy’s vision was clear from the get go: to be a trusted advisor for senior marketers, guiding them through the often murky waters of agency selection with neutrality and insight. Lyndy’s tenure lasted for two decades, during which time she not only established AAR as the respected player it is today, but set a standard for the company’s enduring ethos – one that emphasises doing right by clients. It’s really that simple. This foundational value of integrity, no matter what, would prove to be a cornerstone for the company's later evolution. 


A Multi-Chapter History

When the reins were handed over to Martin Jones, Kerry Glazer, and Paul Phillips in 1998, AAR entered what Victoria describes as its ‘second chapter’. This era was marked by significant diversification. “Marketing had become a bit more complex,” Victoria explains, pointing to the fragmentation within the industry as media agencies split from creative ones – with new disciplines like brand strategy, PR, and direct marketing emerging. AAR has known for a long time that a brand must evolve in order to stay relevant. 

So, under the new leadership, AAR broadened its expertise to cover these various disciplines, ensuring that it remained relevant and valuable in an increasingly complex ecosystem. Kerry, Martin, and Paul’s tenure was defined by this adaptability – shifting from a focused advertising agency register, to a more multifaceted consultancy, capable of advising on a wide range of functions. 

Flash forward to 2019, and that’s where Victoria enters the scene. Her arrival marks the beginning of AAR’s ‘third chapter,’ – a period shaped by the seismic shifts in marketing brought about by data and technology. “Data and technology have driven a truck through how marketing is delivered,” Victoria tells us. Her mission is clear: to help brands not only develop effective strategies, but also implement them, through efficient and well-structured operating models. 


People, Partners, Process, Platforms

Victoria tells me her focus is on what she calls the “how of marketing”. It’s a nuanced approach that works to address the operational aspects of delivering a marketing strategy. “How you get stuff done, how your people and partners operate, is as important as what you’re trying to achieve strategically,” she explains. This emphasis on the operational side of marketing – people, partners, process and platforms – reflects a broader industry trend where the efficiency of execution is becoming just as crucial as the creativity of the strategy.

At AAR, there is a depth of understanding that can only be drawn from first hand experience. Each consultant comes from a marketing background, so is able to stand shoulder to shoulder with clients, knowing intimately the challenges they face.

AAR’s consultancy approach to building operating models can be broken down into these four key components.

1. People: This focuses on how marketing teams are organised and what capabilities they need both now and looking ahead. “How do you upskill for the marketer of the future?,” Victoria asks. It’s a question that many brands are grappling with as they try to navigate rapid changes in the industry. 

2. Partners: AAR helps brands evaluate whether they have the right agency model, the right partners, and the best commercial structure in place, including in-house teams. While AAR continues to guide marketers in finding the perfect agency partners, their focus has expanded to ensuring clients maximise existing relationships. This involves setting up both agency partners and in-house teams for success. Additionally, AAR works with agencies to evolve their operations, aligning with the changing needs of clients and adapting their market presence in a shifting landscape. Positioned at the industry's core, AAR plays a pivotal role in driving essential transformation. 

3. Process: While not the most seemingly glamorous side of marketing, process and governance are crucial for ensuring that work flows efficiently, and that the ways of working are reflective of a brand's culture and requirements. The smooth running of a complex operating model is never easy, but the right processes help ensure things stay on track through a company's system.

4. Platforms: Finally, as marketing becomes evermore platform dependent, AAR helps brands navigate the complex world of workflow and demand management systems. Increasingly, this also includes generative AI and its impact on production at scale.

When we speak about the current state of marketing, Victoria paints a picture of an industry in the grips of profound transformation. Although she still firmly believes in the power of brand and creativity, the way these elements are leveraged to connect with customers has undergone a complete change. She explains that marketers today face the relentless pressure to achieve more with fewer resources. CEOs and CFOs now wield greater influence over marketing budgets than CMOs, while many economies remain stagnant.

Consumers are demanding better value, more personalised experiences, and the freedom to engage with brands on their own terms, whenever and however they choose. On top of this, the advent of generative AI is poised to fundamentally reshape how marketing teams operate, the skills they require, and the nature of their relationships with in-house and agency partners. This underscores the urgent need for brands to prioritise the efficiency and resilience of their operating models. 

At the heart of AAR is a philosophy that marketing is only as effective as the operating model that supports it. It’s a belief that permeates every aspect of the company’s work, from high-level strategy right down to the nitty-gritty details of process optimisation. 

But this philosophy is more than just a business strategy; it’s a call to action for the entire industry. “Some areas of marketing are being absorbed by CTOs and CCOs – meaning our beloved industry is losing its position in the boardroom. A large part of the reason for this is that there is not enough operational robustness in marketing. And, if we can help sort that, it will play a big part in ensuring that marketing re-establishes and maintains its position at the top of the C-suite,” says Victoria.

She believes that the industry stands at a critical crossroads, citing the massive change brought about by digital transformation and the rise of AI. These changes, she believes, will fundamentally alter the way marketing is delivered, creating both challenges and opportunities in tandem. One of the biggest challenges being that the industry often struggles to embrace change. “Some of the best talent is in this industry, but the opportunities and the skillsets we need, and the way we operate, needs to adapt at speed in order for marketing's true potential to be realised.” Yet, she remains optimistic about the future, particularly for those who can see where creativity and technology intersect to drive growth. 


Evolution with Ambition 

The goals for the future of AAR are ambitious. “If we get to a place where the operating model is as important as the strategy, it means that we unlock the potential of the marketing strategy,” Victoria explains. It’s a vision that speaks to her belief in the transformative power of operational excellence; one that has already begun to reshape the way brands think about their marketing functions. 

AAR’s influence is also set to expand through initiatives like AAR Exchange – a community that pairs the next generation of marketing leadership with experienced non-executive directors. This reverse mentoring program is designed to help the marketing leaders of tomorrow to progress, while giving seasoned professionals a chance to keep their feet on the ground and stay connected to the latest industry trends. 

Victoria and her team embody this rare blend of rigour and empathy – driven not by the pursuit of recognition, but rather an unshakeable commitment to their clients’ success. You won’t see companies like AAR in the spotlight very often, but that’s by design. The people who work there thrive as the industry’s architects, building effective operating models with precision and care – not seeking accolades, instead taking pride in guiding marketers in their transformative journeys from conception to flawless execution.

In focusing on the “how” of marketing, AAR ensures that each project they touch isn’t just a set of bland recommendations, but a roadmap to impactful change. That's how they're planning to unleash the potential of this industry, bringing about a new dawn for marketing. One operating model at a time.

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