Now ad agencies are finding ways to reduce costs

Matt Ryan

Global Chief Marketing Officer

Euro RSCG Worldwide

212-886-2011 (Office)

914-843-6494 (Cell)

E: matt.ryan@eurorscg.com

www.eurorscg.com

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As you know all too well, there’s no time like the present to move the discussion of agency driven efficiencies front and center. And, while many of us immediately think of the on-going client/agency dialogue concerning compensation (and rightfully so) at Euro RSCG Worldwide we’ve significantly improved client cost-efficiencies through a thorough re-think of the way we, and they, do our business.

These programs, outlined below, have helped to drive significant cost-savings with both national and global marketers in 2008 and are at the core of their 2009 plans for further savings.

We thought these programs and tools would be of interest on the eve of the annual ANA Finance Conference.

Strategy Development & Research:

Adscreen (Copy Testing)

Client Situation: Faster and cheaper copy testing methodology allowing for both speed to market improvements as well as ability to test in waves of development

Idea:

Develop proprietary research solution used by our clients that gets them only the information they need while complimenting existing methodologies. And in a tighter timeframe – 3-5 day turnaround vs. 2-3 weeks on most other models

Cost Reduction:

$5-8k vs. $22+ for other models

Animatics

Client Situation:

Reckitt Benckiser produces over 150 animatics per year

Idea:
Use agency interactive departments, not expensive TV production companies to produce animatics via one of four low-cost centers – Argentina, India, Sydney or Eastern Europe

Cost Reduction:

Over 60% per animatic

Process Efficiencies:

Local Market Decision Making Tool

Client Situation:

Air France’s need to empower local markets with the tools they need to succeed as efficiently and effectively as possible.

Idea:

Develop and launch dedicated intranet tool for internal co-ordination – now being transformed into a tool to help markets make strategic and creative decisions on a local level. An actual decision making tool to help answer questions such as “What of the available material can best answer my local issue”?

Cost Reductions:

Launching June 2009

Production:

Cluster Management Multi-Brands (1 or more brands x geographies)

Client Situation:

Multiple brands across multiple geographies entering into redundant production expense

Idea:

Global Production Database Management: This tool has been developed with one of our major global clients to allow complete visibility on Global TVC production, to help maximise opportunities for clustering shoots and other production efficiencies.

Cost Reductions:

Savings of 43% over the last 4 years for one of our major global clients

Cross discipline shooting (1 brand x disciplines)

Client Situation:

Drive efficiencies of production across all platforms and usages from digital to TVC to OOH.

Idea:

For Jaguar we organize single cross-discipline creative productions i,e, we share shoots, and also integrated visual assets (like stills and film), across different disciplines and agencies, including advertising, DM, brochures, digital.

Cost Reductions:

Significantly reduced annual production expense for all disciplines

Leveraging Web 2.0:

Client Situation:
One of the main challenges in the healthcare space today is achieving meaningful and ongoing access to healthcare professionals.

Idea:

Havas Drive is a new company dedicated to using today’s technology for the creation of engaging and intense dialogue with physicians online. Virtual applications include the Virtual Convention Booth – an online reality version of physical convention exhibits and Virtual PharmaPro – a multi-disciplinary, web-based platform that supports physicians’ relationship-building efforts in a more innovative, nimble, and less expensive way.

Cost Reductions:

The virtual applications have been developed on a pay-for-performance basis – savings achieved as clients only pay for the recruitment of healthcare professionals to visit the site, and their engagement in predefined actions.

Agency/Client Relationship Management:

The Global Brands Early Warning System

Client Situation:

Global client requirement to efficiently and effectively understand, and correct as necessary, any agency/client performance issues.

Idea:

A proprietary Euro RSCG tool that helps us ensure the smooth running of client-agency relations. Annual agency/client appraisals are incredibly valuable but a lot can happen in 12 months, and the Early Warning System (EWS) allows us to keep tabs on relationships on an on-going basis for accounts that run across multiple countries. The EWS allows for centralized marketing clients to effectively manage and fulfill local market- and product-specific needs. It is used to ensure that any local market issues are identified and resolved before they become bigger problems.

Thanks for taking the time to look through some of the ways we are addressing the issues of efficiency of marketing operations with our clients. Hope we get a chance to meet in person at the ANA to discuss these and other initiatives we have in development at Euro RSCG Worldwide.

Regards,

Matt Ryan

Naomi Troni