Companies often compare a fractional CMO with a marketing agency because both are outside help that costs less than a full-time executive. They solve different problems, though. A fractional CMO is a part-time leader who owns the marketing plan and the results. An agency is a team that delivers a specific service, such as paid ads, SEO, content or design, against a brief someone else writes.
If you are a fractional CMO, this distinction is also how you win work. Many companies that come looking for an agency actually need someone to decide the strategy first, and many that hire a fractional CMO will then need an agency to carry out part of the plan.
Ownership and accountability
A fractional CMO is accountable for marketing as a whole, including the budget, the plan, the team and the numbers reported to the CEO or board. An agency is accountable for the service it was hired to deliver. When results are mixed, the fractional CMO decides what changes, while an agency usually adjusts its own channel.
Strategy and execution
A fractional CMO spends most of the time on positioning, priorities, hiring and measurement, and does some hands-on work at smaller companies. An agency spends most of its time executing. It can advise on its own channel, but it rarely decides how the whole budget should be split.
When a company needs a fractional CMO
A company usually needs a fractional CMO when nobody senior owns marketing, when spend is growing without a clear plan, or when it is about to hire a team or choose agencies and wants someone experienced to make those calls.
When a company needs an agency
A company usually needs an agency when the strategy is already clear and it needs specialist skills or more hands to carry out one part of it, such as running paid campaigns or producing content every week.
How the two work together
The most common setup at growing companies is a fractional CMO who sets the plan and manages one or more agencies against it. The fractional CMO writes the briefs, agrees the targets and reviews the reporting, so the agencies are measured on outcomes the business cares about.
Related: fractional CMO vs full-time CMO, what is a fractional CMO, how to write a fractional CMO proposal, roles from fractional networks.