The impact of economies of scale on scope of work cost

This is the second in a 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. There has been a dramatic increase in the outputs agencies are producing for their clients these days, especially due to content marketing, social media and digital advertising. The multiplier effect on the scope of work can inflate the agency fee without the allowance for economies of scale. But economies of scale must be applied carefully to avoid undermining the process. Continue reading

Posted in agency remuneration / compensation, marketing process optimisation, marketing procurement, return on investment | Comments Off on The impact of economies of scale on scope of work cost

How to define an agency scope of work to deliver increased value

This is the first in a 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. But why is specificity so important? Anyone that is involved in manufacturing, construction or technology knows, by clearly defining and specifying the actual requirements upfront you are better able to plan and execute the construction/manufacturing process more efficiently and effectively. Continue reading

Posted in agency remuneration / compensation, marketing process optimisation, marketing procurement, resource rate calculator, return on investment | Comments Off on How to define an agency scope of work to deliver increased value

The natural fear of driving blind with your advertising media budget

Since the release of the ANA K2 Report on Media Transparency and now with Marc Pritchard, CMO of Procter & Gamble and Chairman of the ANA calling on the digital media industry to sort out their industry, many advertisers are in the difficult situation of knowing the need to address this issue but equally confused as to what to do first. Part of this is due to the complex nature of the digital media buying value chain, but it is also a fear of any changes revealing where they were possibly getting it wrong. Just as FOMO (Fear Of Missing Out) will often drive marketers into action when it comes to embracing new technology like Virtual and Augmented Reality, FOBFO (Fear Of Being Found Out) is often paralysing some advertisers from making the changes they need to make in the context of the very public statements of where digital media is failing. Continue reading

Posted in agency remuneration / compensation, marketing process optimisation, marketing procurement, media planning & buying, return on investment, social media & digital marketing | Comments Off on The natural fear of driving blind with your advertising media budget

Cut through the clutter in your marketing technology stack

The technology transformation era has caused businesses to sit up and take note that in order to sustain your brand for future growth and profit you need to invest in the latest technology to keep up with….what exactly? This question, and often panic, has led to businesses investing in multiple technology solutions and internal marketing departments facing restructure to manage the investment, which ultimately leads to more (poor) investment. Sometimes businesses get it right investing in technology and sometimes it can lead to dormant software and marketing divisions not really achieving results. Which leads to the big question that often cannot be answered, or in most cases is not even being asked ‘What has the ROI been on that investment?’ Continue reading

Posted in data & direct marketing, industry news & trends, interesting observations, marketing process optimisation, marketing procurement, return on investment, social media & digital marketing, strategic management | Comments Off on Cut through the clutter in your marketing technology stack

How to optimise your agency roster and increase your budget value

The industry is talking about agency rosters, with companies like McDonalds, consolidating their roster with one agency or holding company to create a single entity roster. Other advertisers are choosing to move away from the Agency of Record (AoR) to a more collective roster of agencies (or a Village). This trend was so prevalent in the past 2 years that some industry commentators were calling the death of the Agency or Record. But many advertisers are yet to significantly review their roster of agencies and marketing suppliers, even though for many their marketing strategy and plans and therefore their requirements have significantly changed in the past five to ten years. Continue reading

Posted in agency solutions, interesting observations, marketing process optimisation, marketing procurement, return on investment, strategic management | Comments Off on How to optimise your agency roster and increase your budget value

What Kind of CMO Leadership Do Advertisers Need Today?

CMOs are getting a lot of attention from the trade press these days, where writers drag in the usual suspects — Big Data, analytical skills, experiential marketing, Instagram, programmatic buying, Facebook, mobile platforms, Millennials, AI, Virtual Reality, etc. All to demonstrate how CMOs need to become superhuman masters of everything new and challenging, pushing themselves and their marketing organisations to achieve higher levels of marketing and technological sophistication. Continue reading

Posted in agency remuneration / compensation, agency solutions, data & direct marketing, industry news & trends, interesting observations, marketing process optimisation, marketing procurement, return on investment, strategic management | Comments Off on What Kind of CMO Leadership Do Advertisers Need Today?

Marketing Technology and its impact on Media Ethics and Transparency

There is much discussion on Marketing Technology and the impact it has on Media Transparency. In this post, myself and David Angell from TrinityP3 deliberately take differing points of view to explore the issues and encourage industry discussion on this important topic. Continue reading

Posted in agency remuneration / compensation, marketing procurement, media planning & buying | Comments Off on Marketing Technology and its impact on Media Ethics and Transparency

The negative impact of overworked agency staff on agency remuneration

Any work related death is a tragedy. But the death of a young woman at Dentsu Inc in Tokyo on Christmas Day, 2015 was shocking. Even more so because the official cause of death was overwork. Her sad demise has resulted in a major rethink of the culture at the agency and contributed to the CEO announcing his resignation early this year. But this is not an isolated incident with a young copywriter dying from heart failure due to overwork and an overdose of energy drinks in Indonesia at the end of 2013. This culture of working often ridiculously long hours is not new to the advertising industry. I remember as a copywriter and especially as a creative director often working 12 hour days and longer, including weekends if we were working on new business pitches. Continue reading

Posted in agency remuneration / compensation, industry news & trends, iPhone business app, marketing procurement | Comments Off on The negative impact of overworked agency staff on agency remuneration

Time for marketers to follow P&G’s lead and apply the Golden Rule

Congratulations to Procter & Gamble CMO Marc Pritchard on an excellent example of how marketers need to apply the Golden Rule. The Golden Rule is the Man with the Gold makes the rules. Or put another way, the market sets the price but the buyer sets the terms. But there is certainly an argument that for the past ten years marketing and procurement have been setting the price, using competitive tensions and tenders to drive down the agency fee but largely ignoring the importance of setting the terms. By terms I do not mean payment terms, but even the introduction of extended payment terms has been cost driven. Continue reading

Posted in agency solutions, Evalu8ing - Relationship Performance Monitoring, industry news & trends, marketing process optimisation, marketing procurement, media planning & buying, strategic management | Comments Off on Time for marketers to follow P&G’s lead and apply the Golden Rule

The importance of financial analysis in determining marketing priorities

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. Continue reading

Posted in agency remuneration / compensation, agency search & selection, marketing process optimisation, marketing procurement, media planning & buying, return on investment, strategic management | Comments Off on The importance of financial analysis in determining marketing priorities