The importance of financial analysis in determining marketing priorities

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.

In dealing with the management of marketing, a significant component of the work we do is assessing and benchmarking the value of the marketing investment of our clients. This budget is spent with a range of external suppliers.

These external suppliers include advertising, digital and media agencies, but also the thousands of other suppliers who are competing for the share of the marketing budget. These suppliers can include everything from printers and merchandising providers to market researchers and software providers.

Marketing priorities

But much like the industry discussion on whether marketing is Art of Science, or if the Math Men are replacing the Mad Men, the truth of the matter is the TrinityP3 methodology uses both qualitative and quantitative approaches to provide the insights our clients require.

This allows them to better understand how well their marketing investment is performing and where and how they can improve their return on investment.

The Quantitative Approach

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How does TrinityP3 rate as Management Consultants against these 7 critical qualities?

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.

Management Consultants

I had great interest in reading the article by Pete Hayes from Chief Outsiders on how CEOs should select Management Consultants.  Titled “CEO: The 7 C’s of Hiring Management Consultants” it provided a list of seven criteria for a CEO to assess the suitability of a management consultant.

It got me thinking about the way CMOs select their marketing management consultants (including pitch consultants, media consultants, media buying bench-markers and auditors, transformation experts and the like).

Do the same criteria apply and how well would TrinityP3 stack up against these selection criteria?

Self assessment is always fraught with danger being based often on a subjective perspective, but I will try to keep the assessment based on tangible proof and examples.

The seven selection criteria include:

  1. Credibility – Does their resume demonstrate success, progression and business maturity?
  2. Capability – How relevant is their experience to your needs?
  3. Curiosity – Do they dig out insights, or come in with answers?
  4. Courage – Will they speak up, even when unpopular?
  5. Chemistry – Do YOU get along with them?
  6. Culture – How do they fit in with your management team, and others?
  7. Company – Are they backed-up? Part of a firm? Pre-vetted? Proven?

So how do we stack up?

1. Credibility – Does our resume demonstrate success, progression and business maturity?

Continue reading “How does TrinityP3 rate as Management Consultants against these 7 critical qualities?”

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Is the Year of the Rooster an opportunity to address a few major issues for advertisers?

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.

The Chinese Year of the Fire Rooster starts tomorrow on January 28, 2017 and lasts until 15th February 2018. Astrologically we are coming out of a pretty confusing period of time and entering a rational and constructive period.

The Rooster gives the year ahead some of the characteristics of the bird it has as a symbol: ambition, pride, the desire to be admired, punctuality and courage.

Most importantly the relationships between people will be under the sign of great honesty.

We will all prove to have more passion in life, especially regarding work, where we will not hesitate to roll up our sleeves in order to reach our objectives.

“Always higher, always going on” is the motto of the Rooster and it will inspire all of us. Braver than usual, we will not be defeated by difficulties and adversities.

Issues facing advertisers in year of Rooster

So what better time to consider addressing some of the honesty issues that plague our industry including: Continue reading “Is the Year of the Rooster an opportunity to address a few major issues for advertisers?”

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Managing Marketing: Media value, transparency and relationships today

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.

Steve Allen, Chief Executive of Fusion Media has seen significant changes in the media landscape in his career. In this podcast he shares with Darren his views on media value, the problem with lack of media transparency today and the continued importance of having trusted and respected relationships with media owners, media and agencies and the advertisers.

Steve Allen

You can listen to the podcast here:

Follow Managing Marketing on Soundcloud or iTunes

Transcription:

Darren:

Welcome to Managing Marketing, and today I have the great pleasure to introduce someone who knows the media industry in Australia and probably globally better than anyone else and I’m talking about Steve Allen, Chief Executive of Fusion Strategy. Welcome Steve.

Steve:

Thanks very much, Darren.

What is media value?

Darren:

This is, I have to say, a great honour because I remember even when I started out in advertising, which is a number of years ago, you were certainly one of, if not the most, high profile person talking about media, and media value, and media strategies at that time compared to the industry. You were the voice. So, this is a great opportunity to sit down, especially at a time when media is going through so much turmoil and upheaval.

But I want to start off talking about media value because I think it’s a really interesting term at a time when everyone seems to be focused on cost, for us to really reflect on what is the cost of media?

So, from your perspective, Steve, what’s value for you when you’re talking about media to clients and advertisers?

Steve:

Look it does vary and by media type. As much as we can crunch it all down to putting all media types on one spreadsheet to show their performance and their cost efficiency and all the rest. They’ve all got different ways of qualitative communication and you’ve got to weigh that up but unless you get it all down to a spreadsheet, figures thing, many clients don’t believe.

At least if you get it down to that, you can say, ‘guys, look at this, look at the most cost-efficient, look at the least cost-efficient then make your value judgements’. You’re in a much better place when you’ve got that to look at, to range,… well is that worth twice what another medium’s worth to our product or our service?

Darren:

And what’s it bringing to the interaction or engagement that you’re not getting somewhere else? Continue reading “Managing Marketing: Media value, transparency and relationships today”

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Is the problem with data the fact that many marketers misuse it?

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.

A recent interview with Professor Gary Lilien in Marketing Magazine on marketing analytics and the scepticism that still hinders its universal adoption got my attention. Not because of the issue, but because I have been longing to get to the bottom of why marketers are so sceptical. (I have my own hypothesis, which I will share below).

He believes it is due to insecurity due to a lack of understanding of how marketing analytics works.

I have joked a couple of times here that “72% of people are fooled by statistics” yet data and therefore statistics is an important foundation for marketing and understanding the market place. Time and again I hear about marketers struggling with or even rejecting data because it is often too confusing and therefore offers them no value or that the insights derived from the data conflict with their beliefs and so they reject its validity.

But three occurrences have formed my hypothesis on the cause, which is “The reason people reject data and data insights is because they are used to and accepting of the misuse of data and therefore distrust it”.

After all, a casual or other misuse of data to convince or persuade an audience that you are correct, could result in increasingly devaluing the role of data for yourself. How many times as marketers and communicators have we approved statistics and facts such as 100% organic or 35% salt reduced or nine in ten professionals recommend, not to inform, but to persuade, influence or perhaps mislead?

Marketers misuse data

Is it this casual and acceptable manipulation of data that has undermined the credibility of data and the data insights, or is it simply insecurity and lack or understanding? Let me share three very concerning situations that led to this hypothesis that it is a lack of credibility. Continue reading “Is the problem with data the fact that many marketers misuse it?”

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How to transform your agency relationships

This post is by Stephan Argent, CEO of Argedia Group and a member of the Marketing FIRST Forum, the global consulting collective co-founded by TrinityP3

Improve Agency relationships

As a general rule, nobody ever looks forward to the uncertainty and disruption of an agency search process. The earlier we’re brought in to help identify and resolve client – agency issues, the more likelihood there is of helping marketers avoid triggering a search and getting their agency relationships back on the proverbial rails.

So this week, I thought it would be worthwhile looking at some ideas to help transform your agency relationships. And I don’t mean just make them ‘bearable’ – I’m talking about making a transformative shift in the overall relationship and yes, better business results.

Sounds good, doesn’t it?

Well, not only does it sound good, but a positively transformed agency relationship doesn’t require a huge amount of effort to be readily achieved. Here are seven ideas to help transform some of your agency relationships:

1. Define goals

Does everyone on your team and at your agencies clearly understand your business goals and objectives? If you’re not sure, the answer is (emphatically) ‘no’. The first step in any transformation process is to ensure your team and your agencies are completely clear on the objectives they should be striving for.

2. Encourage directness

Before you baulk at this one, ask yourself how direct you are with your agencies (really) – and how direct and honest are your agencies with you in return? If you or your agencies are sugar coating feedback or perhaps not providing feedback at all, it’s difficult for you, your team or your agency to adjust or make improvements. Direct communication helps eliminate misunderstanding and saves time.

3. Identify and eliminate roadblocks

Continue reading “How to transform your agency relationships”

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Agency search and selection for global health client – case study

This post is by Kylie Ridler-Dutton, Marketing Management Consultant at TrinityP3. Kylie is a discipline neutral specialist with consulting and implementation experience spanning across retail, alcohol, utilities and telecommunications.

Storytelling Skills Around the World

Challenging Problem:

A local marketing team, who had never engaged an agency before, were facing a major challenge. They not only required a local agency for their communications campaign locally, they also had an immediate need for campaigns to be developed across the various emerging markets, starting in Latin America and rolling out in the longer term to Asia.

This posed a significant challenge for the marketing team to find and appoint and then work on a global communications campaign, but also a significant challenge for TrinityP3 to find the right solution to deliver the teams needs to the relatively limited marketing budget provided.

Creative Solution:

TrinityP3 developed and presented 3 options to the client that all met their requirements:

  1. A ‘local agency’ model – separate offices in each market working to build strategies in those markets.
  2. An ‘offshore hub’ model – central agency hub based in another market (e.g. the US), leading the account and liaising with local agency offices for campaign activation.
  3. The recommended model being a ‘local hub’ model – central agency hub based in Australia, leading the account and liaising with local agency offices for campaign activation.

Process:

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If you think it’s expensive to hire a professional marketing management consultant to do the job, wait until you hire an amateur

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.

Marketing Management Consultant

I love this quote that I have shamelessly paraphrased in the headline here. Red Adair was a larger-than-life character who built his reputation successfully putting out oil well fires. This is a highly dangerous and incredibly lucrative occupation.

Imagine an oil well producing thousands of barrels of oil, suddenly erupting into flames? It is literally millions of dollars going up in smoke.

Now I am not for a minute suggesting what we do as marketing management consultants is anywhere near as dramatic or a dangerous as Red Adair and his oil fire fighting business, but I think there are some key examples of where in marketing management an expensive professional provides more value than a low cost amateur.

Choosing a professional versus an amateur

The easiest thing in the world is for someone to become a marketing consultant. As Professor Mark Ritson recently questioned, why is it possible to be a marketing expert without any formal qualification?

To become a marketing-consultant is even easier. You simply hang up a shingle and hope that either your work experience or reputation is enough to get you consulting projects and build a business.

Because of the low barrier to entry, many people become marketing consultants because they are currently not working in a fulltime job and it is a convenient way to earn an income until you land that next fulltime gig. You can see this behaviour in the LinkedIn profiles of many marketers who have short bursts of consulting interspersed with fulltime marketing positions.

When I made the decision in 1999 to start TrinityP3 (or P3 as it was then) as a marketing management consultancy it was with the clear vision to build a consulting business that acted as an independent advisor to advertisers and marketers on the issues around agency selection, remuneration and performance and relationship management.

This was not simply a thing I did while waiting for another opportunity to turn up. It was a very deliberate decision to leave the agency world as a creative director and create a brand and professional consulting business. Continue reading “If you think it’s expensive to hire a professional marketing management consultant to do the job, wait until you hire an amateur”

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Media transparency the biggest challenge last year and next

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.

Media Transparency Challenge

2016 was, generally speaking, a difficult year for the world. Brexit, the US election, a number of iconic world figures dying, and various natural disasters, have not made for high levels of morale or happiness.

So can we at least spread a bit of cheer in our tiny little corner of the world, that of the marketing industry? Unfortunately not; the past year has given us very little to cheer about.

If advertisers are looking for some relief from the challenges and issues of the past year, I suggest they make sure they are well rested going into 2017 based on the biggest issues we have noted in 2016.

All signs point to the fact that these issues will continue to challenge the market place right through this year and possibly next. Based on analysis of popularity and engagement of the Top 20 topics on the TrinityP3 blog for 2016 we have seen media transparency rocket into the top three.

Media Transparency rockets to the top

Is it any wonder? Consider that this was the year in which the USA based ANA released the finding from the K2 Study into media rebates and kickbacks in the USA and across the Atlantic, their equivalent in the UK, ISBA released a media agency contract designed to address the issue of media agency transparency.

More recently, the AANA has followed suit with a contract of its own. Whilst it’s good that steps are being taken to address the problems, it’s pretty clear that the problem itself is wide-ranging.

But consider an advertiser who is investing any reasonable budget in media and especially programmatically traded media through their media agency. From the K2 report alone, as well as work done by the WFA, there has to be a tangible recognition that for every dollar you are spending that only an estimated 40 cents of this is reaching the media publisher and that this could be as little as 10 cents in some cases, with numerous intermediaries taking their cut along the way.

Combine this with the issue of viewability and the fact that the ANA further reports that around 50% of paid digital display advertising is not actually viewed by a human-being either because of limitations in the system or fraud. The solution offered by some agencies is to guarantee viewability at a much higher cost with a significantly reduced range of inventory available.

I’m not suggesting that intermediaries shouldn’t be paid, that media agencies aren’t trying to tackle some areas themselves, or that media agencies should not be able to make a profit.

But surely, people are telling us, there needs to be more understanding before purchase, other than ‘buyer beware’. Advertisers will have to definitively address these issues in 2017 as CEOs and Boards question the logic of continuing to invest in a media channel that has so many questions hanging over it.

Rumour of new issues arising

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9 incredible ideas that became a reality in 2016

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.

Incredible Marketing Ideas

There is incredible innovation happening all around the globe. Science fiction is turning real in almost every industry sector.

From augmented reality and artificial intelligence applications, to interoperability in healthcare, light bulbs that kill bacteria and much much more.

It’s opening marketers’ eyes at a rate of knots.

There’s even a $10M contest to develop the Star Trek Tricoder (a multifunction, hand-held device used for sensor scanning, data analysis and recording data) – to be used in healthcare and not in space. 

Here are 9 advances and innovative uses of technology that became a reality in 2016:

1. Wearable sweat sensors to track your health

You may not know that sweat can be used to detect certain diseases due to its chemical properties containing simple ions and complex proteins.

Scientists have been embedding sensors and micro devices into soft rubber patches, about the size of a 20c piece, in order to identify and analyse biomarkers (markers for health).

Whilst this wearable technology and testing has been around for a couple of years now, I like it as it’s starting to yield real results.

Different sections of the sensor slowly change colour as they react to different levels of certain chemicals found in sweat. Then with the right App you can take a picture of the sweat sensor on your smartphone to automatically interpret the colour changes and biochemistry of the sweat as certain health signs.

Which means maybe, just maybe, we can do away with having to sit through blood tests.

2. The world’s first robot lawyer with a 64% success rate

Continue reading “9 incredible ideas that became a reality in 2016”

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