edition 20 jan 22 2004

planning for the year ahead

Happy New Year and welcome to the first edition of the P3 e-news for 2004. Hopefully your plans and budget for the coming year are in place. But what does the year ahead have in store?

In this edition of P3 e-news we look into the economic crystal ball and look at the options available to maximise advertising value on the roller coaster ride ahead.

P3 - helping people achieve commercial purpose through creative process

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maximising returns in 2004

Views on the economic outlook for 2004 / 05 are as diverse as the number of economic commentators. Up, down, stay they same or keep on changing, here are some tips from a marketing and advertising view point on ways to manage your advertising budget to achieve maximum value.

If the market goes up...
While a buoyant market expands sales opportunities, the associated advertising costs can increase as well, with greater demand on media availability and production resources increasing rates.
Managing rate increases requires:
1. Ensuring a detailed and accurate reporting process to monitor real costs against outcomes.
2. Creating or accessing cost benchmarks to measure the increased cost against the potential revenue gain.
3. Ensuring longer term planning to provide marketers and agencies with opportunities for negotiating more competitive rates.
4. Locking key suppliers into price agreements to avoid inflationary pressures.

If the market stays flat...
Depending on budget allocations, most advertisers are under constant downward pressure. Especially at a time when business perceives marginal growth opportunities. Rather than being pressured, this is an ideal time to take a proactive position on advertising costs and:
1. Review your advertising processes (especially briefing and approvals) to ensure the most cost effective system is in place.
2. Identify opportunities within existing advertising collateral to leverage greater longevity (eg. refresh rather than renew an existing campaign)
3. Calculate the costs associated with all elements of your advertising program and  prioritise each, taking into account the hidden costs associated with cutting the activity.
4. Use the opportunity to review longer-term agreements, developing more efficient and cost effective remuneration models.

If the market fluctuates...
To take advantage of a fluctuating market requires the ability to react tactically and strategically. The rapid pace required to move with the market requires well-structured processes and cost control systems to ensure cost effectiveness is maintained.
To ensure the marketing team and agency can focus on the task you should:
1. Develop both a long-term strategy and short-term tactical plans up front.
2. Develop agreed and fixed cost remuneration to make cost control and reporting more efficient.
3. Negotiate supplier agreements based on minimum volume / activity.
4. Ensure detailed briefing and approval processes to minimise delays and mistakes.

P3 provides advertisers with a range of independent and qualified services to achieve greater value and cost effectiveness across all aspects of media and advertising production. We have extensive experience in remuneration negotiations, cost and process benchmarking and training. In reviewing your year ahead, call us to discuss how P3 can help you maximise your budget in 2004.

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new look - new services


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television production workshops
  Confused on rollover talent rates for TVCs? Wondering what those costs are on the TV estimate? Looking to find better ways of managing the production process with the agency and film company?

You are not alone. Television production is a complex and technical aspect of advertising and often the single most expensive cost after media. Therefore P3 is planning a half-day workshop in late March to be held in Sydney and Melbourne.
If you are interested in attending, email your details to tv@p3.com.au  and we will send you further details regarding the workshop.

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