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.
Mike Duda, Managing Partner of Bullish, explores the role of agencies in creating business value for their clients and yet the business model of the majority of agencies is cost recovery centric and not value based. They discuss the role of performance based models and incentives and the need for agencies to transform their compensation models to thrive.
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Welcome back to Managing Marketing. We’re here in Florida for the ANA Advertising Financial Management Conference and I have great pleasure at the moment to sit here with Michael Duda who’s Managing Partner at Bullish.
It’s an opportunity for me to catch up with someone I first met about three years ago in New York and has been doing some really interesting things. So thanks Mike for making the time.
It’s great to be here and it’s good to see you again Darren.
Look, one of the reasons that I was really wanting to catch up with you is because I read in the news that you’ve started a new business, you had Consigliere which was sort of the trusted advisor for marketers and you’ve started this new business called Bullish and it has a consumer investment fund. Give me the concept.
Yeah, you know, forgive the fore score and seven years ago, this might be ramble. But what I realised back at the end of the 2000 crash is that clients aren’t really the clients. It’s the CEO and the CEO’s clients are Wall Street and if you don’t make your numbers, heads roll.
And it’s not just the CMO as we talk about in our world but it’s the CEOs as well too and things go kind of downhill. I saw something amazing at a 2003 conference with Goldman Sachs.
Walmart went up there and they said they saved 15% in global procurement in 2002 by doing cost-cutting. That was the first time I saw the word procurement. And then if you look, at least in the States, like over the next ten years, procurement people became the new rock stars.
What Bernbach and Ogilvy were in the sixties, procurement was in the advertising industry and I wish that was funnier than it sounds but that’s the God honest truth as you might say.
Especially when we’re here surrounded by about 700 of them.
Isn’t that amazing?
And agency people.
Isn’t it amazing? And quite frankly, I got a little bit ticked off that these bloody people on Wall Street looked at my breed as an expense.
Advertising has done well, we’ve seen the stats if you’re listening to this podcast that if you invest in times of downturn, you will reap unbelievable benefits in terms of ROI.
Tough to do. Because you can control the causes but you can’t necessarily fire a plant that makes Pepsi on there but it’s like, you can cut the marketing back.
As you know, the agency model’s predicated on getting paid for the time it takes to create stuff and something just seemed really wrong to me in that we have such an unbelievable talent to combine the left and right side of the brain.
Identify business problems and how brand can do it and then some of the best creative minds in this business to solve business problems and we get paid for the time it takes to solve them, not for the outcomes.
Continue reading “Managing Marketing: Putting the value back into agency remuneration”