What 2016 in marketing, media and advertising can tell us about 2017

Bill Merrick has more than 20 years experience in international business, gained in marketing, advertising and PR – from packaged goods to infrastructure. He is now, from London, partnering with Darren Woolley to launch TrinityP3 UK – to bring all of their combined experience and insight to clients in Europe.

Marketing predictions 2017

Yes, it’s that time of year again when everyone feels compelled to compile their list of predictions for the coming year.

Thank Heavens that unless you’re a major news provider, current or former world or business leader, Stephen Hawkins or have appeared on Strictly Come Dancing, your predictions won’t get embarrassingly reviewed at the end of next year.

So therefore, from the safety of relative obscurity, but a reasonably well-informed position – here are mine – primarily in the broader world context – and then where and how they seem to fit in the world of marketing.

1. Facts will make a comeback.

We’ve all seen that 2016 was the year when shutting your eyes, clicking your heels and making a wish can partly work. All of the people who tried this got their wish and their dream appeared to come true.  

They then realised that whatever they’d been given by the nice people who said they could have anything they wished, were telling the truth.  There was a catch though – you could have whatever you wanted as a dream – but the coming true bit was a problem.

This happened quite a lot – and now lots of people (but let’s face it, not everyone) are wishing that they hadn’t wished at all. Many people all over the world have learnt that bad news does in fact travel fast – and its impact is measured in facts and not wishes. (An important message for marketers – especially in digital media.)

We are currently seeing a trend in business and politics where many people, but still not all – are waking up, rubbing their eyes and saying, “Why are facts so damaging and make me sad? Why can’t they be like wishes – but the ones that come true?” Continue reading “What 2016 in marketing, media and advertising can tell us about 2017”

Posted in data & direct marketing, industry news & trends, interesting observations, marketing process optimisation, social media & digital marketing, strategic management | Leave a comment

Sorry, but there is no best practice agency roster structure anymore

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

best agency roster

There is an on-going industry discussion about agency rosters. What is the best size? Is it better to consolidate and reduce the number of agencies or diversify the agencies to ensure you have all requirements covered?

When you look at the industry it could appear that there is a trend here as marketers add in agencies to the roster and then react to the size and complexity of the roster and then start to consolidate and shed the agencies they believe they no longer need as they consolidate the supposed full service agency.

In these discussions it is common for someone to ask what is the ideal agency roster, or more like what is best practice for the agency roster and the fact is that the answer to this depends.

So I thought it may be worthwhile exploring some of the things that this depends on, because while this is no longer a best practice agency roster model that will suit all advertisers, there are certainly some best practice specific principles that allow you to custom build the ideal agency roster for yourself.

Consolidate or diversify?

Continue reading “Sorry, but there is no best practice agency roster structure anymore”

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Don’t divorce your agency when you can simply change the place settings at the bridal table

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

Have you ever had to organise a wedding?

Recently hearing about the challenges a couple were facing with the seating arrangements at the bridal table, not to mention the seating for the guests, it sounded like the proverbial Gordian Knot.

Past relationships and current emotions meant that while the bride and groom wanted all of the extensive bridal party there, they had to carefully consider not only which bridesmaid was paired with which groomsman but also how and where they were seated at the bridal table to minimise the awkwardness and potential conflict that could arise when the champagne started flowing.

A world record wedding has taken place at Rudding Park Hotel in Harrogate North Yorkshire. Amy Ewing and Alex Simmonds smashed the previous Guiness World record for Bridesmaids and Ushers by having a massive 136 Bridesmaids and 97 Ushers (Photo: Ross Parry / SWNS) http://www.mirror.co.uk/news/gallery/record-wedding-5218177

A world record wedding has taken place at Rudding Park Hotel in Harrogate North Yorkshire. Amy Ewing and Alex Simmonds smashed the previous Guinness World record for Bridesmaids and Ushers by having a massive 136 Bridesmaids and 97 Ushers (Photo: Ross Parry / SWNS)
http://www.mirror.co.uk/news/gallery/record-wedding-5218177

The discussions on this between the bride and groom became so heated at times as both had different perspectives on their respective friends and their pasts. Some in the family thought that the bridal table seating could lead to divorce before they even walked down the aisle.

More importantly, neither wanted one of their friends to miss out on being part of the bridal party on the day.

It made me think about the struggles that some marketers are facing when they are trying to organise their agency roster. The agencies are on the roster for a range of reasons and the marketer wants them all there, but it just does not seem to be working.

It is in circumstances like this that we effectively become Wedding Planners and Relationship Guidance Counsellors. Let me explain.

The art of selecting the bridal party

The first decision is who do you really want in your bridal party? Typically you usually want those people closest to you – family and friends. But if we are talking about an agency roster, sure, beyond those closest to you, that is who understand you and are aligned to your values, the agencies also must have the skills and capabilities you need.

The next decision is the size of your bridal party. This is easy if you only have a few very close family and friends, but you also do not want to end up with a huge group that takes all your time to manage and organise, much like your agency roster. The more agencies on the roster the more time it will take managing them and trying to get them aligned and working together.

Just like a bridal party, you would hope that everyone involved is there with the best intentions, that is to ensure the bride and groom enjoy a fantastic and memorable day. But also like a bridal party it is made up of a number of individuals, who bring their own ideas, experiences and expectations to the party, which are not always aligned.

The larger the bridal party, the greater the diversity of ideas and expectations and the more care and attention the bride and groom need to take in managing the outcome.

Therefore the right number for the bridal party is as many people as you must invite to join and as minimal as possible to make it manageable. Of course you do not want to leave anyone out who will be offended, just as you do not want to drop an agency from your roster who has been loyal and hard working either.

It is simply a matter of working with the circumstances you face to ensure the best possible outcome for all involved. But ultimately it is the bride and groom’s special day and so everyone should be aligned to delivering that outcome.

The placement at the bridal table

Continue reading “Don’t divorce your agency when you can simply change the place settings at the bridal table”

Posted in agency remuneration / compensation, agency solutions, Evalu8ing - Relationship Performance Monitoring, marketing procurement | Leave a comment

Is your programmatic media function right for you – and what are your options?

This post is by David Angell, General Manager of the fast growing Melbourne market and National Head of Media. David has extensive commercial and media experience gained through a fifteen year career in media agencies, which he uses to help drive optimal results for TrinityP3 clients.

programmatic media function

Programmatic media. For a while, the word ‘programmatic’ was an industry buzzword, a sign of things to come. More recently, programmatic trading of digital media has of course gained huge traction.

For many advertisers, the programmatic function is completely or partly run by a programmatic trading team (or ‘Agency Trading Desk’) operating as part of an overall media agency arrangement.

Various data sources forecast continued double digit year on year growth of digital media expenditure, with programmatically traded media accounting for at least 40-50% of those dollars.

And it’s not just traditional digital; programmatically traded outdoor, and now TV, continue to build momentum with big things predicted for the future.

So, programmatic media trading certainly can’t be ignored, given that an ever-increasing amount of marketing dollars are being channeled this way by agencies.

Ever increasing amounts of marketing dollars require a greater level of scrutiny on the part of the marketer, to ensure best practice servicing, operation, fee structure and outcomes.

Which begs the question; should marketers consider pitching programmatic trading desk functions as a separate entity?

Lack of understanding can be a block

There are of course many reasons not to take a pitching route, most if not all of which will be familiar.

It costs money to pitch, in the form of resource and time.

Pitching can cause stress, both internal and external.

It can damage day to day operations, temporarily affecting campaign results.

And, of course, in the event of a new supplier winning a pitch, the marketer is required to take on and manage another agency relationship, which can result in supplier resource double up and roster relationship fracture lines.

But there is one over-riding reason for not pitching – or perhaps, the reason why the majority of marketers choose not to. Continue reading “Is your programmatic media function right for you – and what are your options?”

Posted in agency search & selection, agency solutions, data & direct marketing, industry news & trends, interesting observations, marketing process optimisation, media planning & buying, social media & digital marketing | Leave a comment

Who should really be paying for advertising agency pitches?

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

advertising agency pitches

The first point I have to make is “Why are you pitching any way?” But the fact is that pitching is happening throughout the industry and across the globe. Not just creative and media but increasingly other disciplines including technology providers, call centres, POS vendors and more.

The diversity, range and depth of marketer requirements is growing and seemingly endless.

But in all this pitching has anyone considered the costs? I am not talking about the emotional and social costs, I mean the hard financial costs of the pitch process.

Clearly the advertising agencies have thought about their costs with industry bodies representing them regularly calling on advertisers to pay pitch fees. In some markets pitch fees are standard with the advertiser paying fees to the agencies for their participation in the pitch process.

But who should be paying for the pitch? The agency? The advertiser? Or both?

The economics of a pitch

When an advertiser invites agencies to tender for their business there are two positions here: the incumbent agency who is pitching to maintain the business and protect their revenue, and the non-incumbent who are participating to gain additional business and revenue.

The cost of the pitch depends on whether you count only the agency’s out-of-pocket or external costs or also include the agency resource costs and the opportunity costs of the lost revenue from those staff members while they are participating in the pitch.

Our calculations on pitch costs indicate that a single market pitch can take several thousand billable hours of agency time and cost hundreds of thousands of dollars in non-recoverable costs.

If the agency wins, they will be looking for ways to recoup this investment in money and time, which could take 6 to 12 months to recover, depending on the remuneration agreement. If the agency loses then they have to write off this cost to their new business budget, which is part of their operational overhead, the same overhead under pressure in negotiations.

On the advertiser side there is also a financial cost, but this is the unseen and usually unaccounted cost of lost productivity as the marketing team is distracted by the pitch process and also the cost of the other stakeholders that may be engaged including legal, procurement and senior management.

Of course there could be hard costs if the advertiser engages a third party to manage the process or if there are other external costs associated with the process. But our calculations on the resources required show that the advertiser time for an equivalent pitch is less than half the time of the agency’s.

But then again for each advertiser calling a pitch, possibly up to six agencies could be invited to participate. Therefore on this basis the number of advertiser hours and therefore costs could be 1/12 that of the agencies participating.

On this basis, who should pay? Lets look at the models currently in play. Continue reading “Who should really be paying for advertising agency pitches?”

Posted in agency remuneration / compensation, agency search & selection, interesting observations, marketing procurement | Leave a comment

Managing Marketing: Social Media Marketing and the Law

Managing Marketing is a podcast hosted by TrinityP3 Founder and Global CEO, Darren Woolley. Each podcast is a conversation with a thought-leader, professional or practitioner of marketing and communications on the issues, insights and opportunities in the marketing management category. Ideal for marketers, advertisers, media and commercial communications professionals.

Sara Delpopolo is the Principal at Axis Legal and the founder and President of the International Social Media Association and talks with Darren on the legal issues concerning social media, particularly about the role of copyright, intellectual property and trademarks but also many of the other legal issues often overlooked in the social online world.

Sara Delpopolo

You can listen to the podcast here:

Follow Managing Marketing on Soundcloud or iTunes

Transcription:

Darren:

So, welcome to Managing Marketing and today I’m talking with Sara Delpopolo who’s Principal of Access Legal but she’s also the founder and President of the International Social Media Association.

Welcome, Sara.

Sara:

Thank you.

Darren:

Look, the reason I’m so interested is clearly marketing and digital online and social media are such big areas of marketing and such a big focus, and you’ve obviously got a very deep understanding of that with the International Social Media Association.

But a lot of people seem to overlook the legal aspects of social media, particularly around intellectual property, copyright, and patents. I was just wondering if you could give me a sort of layman’s guide to what that actually means, what is copyright, and what is the general thing of intellectual property?

An overview of potential legal issues

Sara:

You’ve hit the nail on the head. Look, most people still do think that social media doesn’t involve legal probably because of the word ‘social’. But ultimately whatever happens on the various platforms, and I know we’ve got the Facebooks, and the Twitters, and everything else but we’re very quickly, I think, moving into other territories, new platforms.

I think of virtual reality, augmented reality, how’re they going be incorporated into these platforms in the future? But there are really big legal questions that do come out of these platforms and we’ve identified, in our firm, about 14 different areas of the law.

Darren:

Wow.

Sara:

Yeah. So, obviously we’ll focus on the IP stuff for your listeners but when you’re looking at the fact that so many CEOs, CIOs, CMOs, you know all the C-Suites are encouraged these days to be on social media.

When you think that many companies are outsourcing their social media content creation and listening to companies who are effectively making unilateral decisions and you have the corporations, I don’t want to bore you with too much legal jumble but everyone in these very senior autonomous decision-making roles could actually be exposed to corporate breaches, if they say the wrong thing.

Darren:

What, like insider trading, if they talk about potential takeovers and things? Continue reading “Managing Marketing: Social Media Marketing and the Law”

Posted in industry news & trends, marketing procurement, mobile marketing, return on investment, social media & digital marketing, strategic management | Leave a comment

When an agency pitch is not the right answer – case study

This post is by David Angell, General Manager of the fast growing Melbourne market and National Head of Media. David has extensive commercial and media experience gained through a fifteen year career in media agencies, which he uses to help drive optimal results for TrinityP3 clients.

agency pitch process case study

Challenging Problem:

The marketing team responsible for a $50m marketing budget approached TrinityP3 wishing to consolidate its agency roster via a pitch process.

The team had experienced servicing challenges with its current roster of agencies. Furthermore, a new focus on cost and efficiency following a merger had generated downward pressure and a perceived need to demonstrate significant efficiency gains.

The client operated in a complicated sector, and was required to navigate numerous stakeholders to achieve change of any kind.

TrinityP3 Approach

Although accepting a round of agency pitches would have been straightforward, before leaping to solution mode we prefer to fully understand the situation of the marketer.

With this in mind, TrinityP3 spent several hours with the marketer, pre-project, to determine causal factors before agreeing to embark on a potentially lengthy pitch process.

We uncovered the following challenges: Continue reading “When an agency pitch is not the right answer – case study”

Posted in agency search & selection, agency solutions, case studies, marketing process optimisation | Leave a comment

The most important quality in client agency relationships (and no, it’s not trust)

This post is by David Angell, General Manager of the fast growing Melbourne market and National Head of Media. David has extensive commercial and media experience gained through a fifteen year career in media agencies, which he uses to help drive optimal results for TrinityP3 clients.

Bravery in client agency relationships.

I was contacted the other day by a long lost British client, from my UK days. Someone who I ‘cut my teeth on’ in the early part of my career, and with whom I eventually developed a client-agency relationship so strong that it would end up representing a springboard to promotion.

All very good. But her reaching out to me, after nearly fourteen years, also jogged a suppressed memory of one of the biggest client relationship mistakes I ever made.

One of my biggest mistakes.

To cut a long story short, a situation arose where my client was suddenly undermined by a new, senior appointment at a regional level, operating out of France.

This person contacted me directly from France for a ‘private’ conversation, asked me to contravene some previous instructions of my British client and also send him some information about previous work. He asked me not to contact her about it.

Whilst troubled, I acquiesced. After I’d done so, my British client found out. And she was furious with me.

She told me that our trust had been broken, that I should never have gone behind her back, that she couldn’t believe that I’d done it. I have literally never had a client so upset with me, either before or since.

What did I lack?

Continue reading “The most important quality in client agency relationships (and no, it’s not trust)”

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Managing Marketing: The major challenges facing Marketers and their Brands

Managing Marketing is a podcast hosted by TrinityP3 Founder and Global CEO, Darren Woolley. Each podcast is a conversation with a thought-leader, professional or practitioner of marketing and communications on the issues, insights and opportunities in the marketing management category. Ideal for marketers, advertisers, media and commercial communications professionals.

Bill Merrick, Managing Director of TrinityP3 UK has had an extensive career as both a marketing director and in regional and global roles on the agency side. Here he chats with Darren on the challenges facing marketers with growing expectations from boards and shareholders, greater accountability, increased demands on their time and resources and reduced average tenure in the role.

BillMerrick

You can listen to the podcast here:

Follow Managing Marketing on Soundcloud or iTunes

Transcription:

Darren:

Welcome to Managing Marketing and today I’m joined by Bill Merrick who is the Managing Director of TrinityP3 U.K. and we’re here in London because TrinityP3 U.K. is up and running, so, welcome, Bill.

Bill:

Thank you, Darren; it’s great to be here.

Darren:

And welcome to the TrinityP3 group of companies or “The Gang” as we like to call them.

Bill:

Well I must admit I love being a gang member so I’m enjoying it very much so far.

Darren:

Well you know it’s when we start inking in tattoos with our textas and markers that you know you’re really part of the gang.

Bill:

Do I have to scrub the ones I’ve already got?

A diverse career

Darren:

Look, Bill, one of the great things is that you have the perfect experience for what we do because you’ve got that incredible balance of being both previously a marketer and managing some big global accounts from an agency side, so if you don’t mind I wouldn’t mind exploring some of those things.

Bill:

Sure, that’s great. I mean it does go back a bit further than just the marketing and the backwards and forwards between agency and marketing director because I started my life in retailing as a graduate trainee with Woolworths in Australia and ended up being the new store-opening manager for Target in NSW.

Darren:

Wow, so you’ve even been at the coal face, as they call it.

Bill:

I have, and then I went on to the Mars Corporation where I was the Sales Training Director and then State Manager doing major negotiations with Woolworths, Coles and Safeway. After that I ran Taubmans, the paint company in the southern states for a year before I moved into agency.

Darren:

Wow, so this means you can also appreciate the chasms that often form within organisations between for instance marketing and sales? Continue reading “Managing Marketing: The major challenges facing Marketers and their Brands”

Posted in agency solutions, interesting observations, marketing process optimisation, marketing procurement, Podcasts, return on investment, strategic management | Leave a comment

How to apply the 80/20 rule in your business for more effective marketing

This post is by Anton Buchner, a senior consultant with TrinityP3. Anton is one of Australia’s leaders in data-driven marketing. Helping navigate through the bells, whistles and hype to identify genuine marketing value when it comes to technology, digital activity, and the resulting data footprint.

80 20 rule for marketing

The Pareto principle (also known as the 80/20 rule), states that, “for many events, roughly 80% of the effects come from 20% of the causes”.

Wilfredo Pareto developed the concept in the context of the distribution of income and wealth among the Italian population in the late 1800s when at the University of Lausanne.

I’ve always loved the rule, and often apply it in marketing planning.

It’s a simple way of identifying where business value is coming from when analysing a customer base. (ie: 80% of the revenue, or profit, comes from 20% of consumers).

90/10

We have just completed a project for a global trading platform.

After initial discussions of their marketing challenges, we arranged for some deeper customer value analysis.

Their customer base turned out to be 90/10 with 90% of the value coming from the top 10% of their customer base!

This number challenged their current marketing mix and channel activity thinking. It highlighted the need to think differently about their VIP trading base (the top tier).

How can the Pareto rule be applied?

Continue reading “How to apply the 80/20 rule in your business for more effective marketing”

Posted in customer relationship management, data & direct marketing, interesting observations, marketing process optimisation, return on investment, social media & digital marketing | Leave a comment