Managing Marketing: The challenges facing the advertising agency business model

Andrew Reeves is the Founder and CEO of ARC Limited with a lifetime of experience as an agency CFO. Here he chats with Darren on the current agency remuneration and business models and the challenges facing agencies in finding ways to make this work in rewarding agencies for the value they create. Continue reading

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Learn how CEOs & CMOs are restructuring their marketing teams for success – Infographic

Some of the more interesting work we have been undertaking at TrinityP3 in the past five years is designing new marketing structures for our clients. This work arose from the projects where we would restructure their external roster of agencies and suppliers to their strategy, only to have them ask if we could do the same with their internal structure, which they had realised through the process, was often aligned to the business silo structure and not the customer strategy.This work has been done for a wide range of companies and categories including Financial Services, Automotive, Higher Education, Property & Construction and more.Late last year I was interviewed by Lara Sinclair from Simple.HQ on the trends in marketing structures we had observed beyond the centralised and decentralised dichotomy typically seen in the past. Continue reading

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It’s more than the agency roster and the scope of work. It’s the relationship, stupid!

The disappearance of AOR relationships between advertisers and their creative agencies was not a good thing for either party. Both are at fault for letting this happen, and now both parties have suffered the consequences. Advertisers have to manage complex portfolios of specialised agencies who compete for a portion of the total fee. Advertisers have to take the responsibility for planning the detailed Scopes of Work and decide which agencies will be briefed for which deliverables. Continue reading

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Who’s to blame for the current digital media mess? We all are.

Commentary regarding the various issues facing the digital advertising industry continues to grow. Dishonesty, corruption, complexity, lack of knowledge, inadequate marketing, inadequate agencies, inadequate measurement…the list goes on. Based on the work we do with our clients, these issues are certainly becoming more recognised – even if many advertisers are still extremely challenged in their understanding of who, or what, they need to look at. The trouble is, so much of the commentary lacks objectivity. Continue reading

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Why it is so important to have an agency scope of work

This is the final in our series of articles on agency scope of work management. Managing the scope of work for your agency is possibly the easiest and fastest way to increase the buying power of your marketing budget by removing the duplication and uncertainty as much as possible from the agency work. In this way you are able to get more for your agency budget without simply driving down the rates and prices. Continue reading

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Drowning in Marketing Deliverables

There’s more to the Digital and Social Revolution than programmatic media, online videos, data analysis and overnight billionaires. There’s something else, and it’s called an avalanche of workload. Ad agencies are drowning in deliverables. Scopes of Work are out of control. Advertisers are experimenting, experimenting, experimenting with out-of-scope digital and social deliverables, and agencies are overwhelmed with the amount of work they have to get out the door on a daily basis. Continue reading

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How to build flexibility into an agency scope of work

Being able to plan all of your requirements of the agency for the coming year is an ideal situation. But the world and the market is often an unpredictable place and your brand strategy needs to be able to frame how your responds to the changes in the market place. Luckily there is a way to frame your agency scope of work in a way that lets you obtain the benefits of the increased efficiency. Continue reading

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Can Procurement Fix Madison Avenue’s Mess?

Could Madison Avenue’s mess be any worse? The unhappy picture can be reconstructed from articles in the trade press over the past two years. They say the following: Legacy brands are languishing in the marketplace. The consumer transition from Baby Boomers to Millennials has been rocky and unsuccessful for too many large marketers. CMOs are being held responsible for the lack of growth, and their tenure is only half as long as that of CEOs’. The average CEO will go through two CMOs and see a lot of marketing smoke and mirrors. In marketing, there’s uncertainty about what media mix to use, and there are major concerns about the effectiveness of digital and social media, even though the spend level in these areas is growing. Continue reading

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Organisational Mishmash: The Ad Agency’s Unaccountable Structure

The global ad agency has become a complex, unmanageable mishmash of organisational positions. Complexity reigns. Accountability is invisible if it exists at all. No wonder clients are able to take such advantage of their agencies, loading on unpaid out-of-scope work and cutting fees! Top agency executives, though aware of the problem, are unable to launch a management counter-offensive. No one has the responsibility for the problem or the authority to turn things around. Continue reading

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Which comes first, the media plan or the creative?

Sometimes, using a story can help put things into context; here’s one for this idea. A chicken and an egg meet in a dimly lit bar in New York. After a few drinks, it’s clear that they’re heading for romance. They get a room and feathers fly. Later, in the warm afterglow of the street lights and the hotel neon blinking gently into the room, the chicken lights two cigarettes, hands one to the egg and says, “Well, I guess that settles that.” My apologies, but the debate in the industry over which comes first, the media plan or the creative – is an almost certain way to fall fowl (pardon the pun) of good practice. But it does seem to me that more and more people are asking this (especially with all the new shiny toys and technology)– and it’s a great way of sorting the pros from the cons (The professionals or the people trying to con their way through). Continue reading

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