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In this issue

Agency Remuneration: A Loser’s Game Beware the dangers of the cookie cutter approach to benchmarking agency remuneration Why cost benchmarking is the waterboarding of the advertising industry Cost benchmarking and value benchmarking your agency, which one gives the best results?

Newsletter 12 July 2017

Welcome to the 12 July edition of TrinityP3’s e-news

Agency Remuneration: A Loser’s Game

For more than two decades, there has been downward pressure on agency remuneration. While it initially resulted in improved agency productivity, this race to zero has had a negative impact on not just the agencies, but marketers and advertisers too. In fact, everyone involved is a loser.

Read more here.

Beware the dangers of the cookie cutter approach to benchmarking agency remuneration

Benchmarking is often used to negotiate agency remuneration. Yet the use of ‘average’ benchmark costs means that you are really only procuring average agency resources. This cookie cutter approach to benchmarking and negotiating agency remuneration may deliver savings, but at what cost?

Read more here.    

Why cost benchmarking is the waterboarding of the advertising industry

The focus on cost benchmarking has had a hugely negative impact on not only agency fees, but also the quality and performance of many agencies. Of course, this approach delivered cost reductions, but like the effects of waterboarding and other torture techniques it has left the victim weak. The problem is that the focus on cost alone has actually diminished value.

Read more here.

Cost benchmarking and value benchmarking your agency, which one gives the best results?

Warren Buffet said, “Cost is what you pay, value is what you get”. While the focus on cost has reduced cost, it has been at the cost of quality, performance and value. It is more productive to use benchmarking to evaluate the value of your agencies and their performance. Measuring value will increase the value of your agencies and not simply lower the cost.

Read more here.    

Before you move forward with agency remuneration, make sure you look back

Value benchmarking not only provides a view of future agency value to the marketing and advertising plan, it can also be used very successfully to determine the current efficiency and value of the client / agency relationship. This process identifies the opportunities to improve efficiency in this relationship, and deliver increased productivity and value.

Read more here.  

What is the best agency remuneration model for every advertiser?

There are many different agency remuneration models. From commissions, apparently making a comeback for programmatic media trading, to retainers, project fees, performance and value based models and more. What is the right model for each and every advertiser? It depends on a range of requirements and needs. So, what is the right agency remuneration model for you?

Read more here.    

What’s Hot

Here are the most read, most shared and most commented on articles from the TrinityP3 blog in the past month:

  1. 8 ‘Less Obvious’ Reasons Why Agencies Lose Pitches 
  2. Managing Marketing: The challenges of marketing and advertising in the financial services category 
  3. Advertisers with Performance Problems Turn to Management Consultants 
  4. Cannes. And Agency Crocodile Tears Over Remuneration 
  5. How many brief types does an advertiser need to brief their agency? 
  6. What is going on with advertising creative awards?
  7. Tips for more successful agile marketing  
  8. Managing Marketing: The increasing role of science in marketing and advertising 
  9. Heaven and Hell in Advertising 
  10. Why advertisers should never accept a ‘sound-alike’ music track for advertising  

Most in Demand for this Month

TrinityP3’s team has helped our Australian and international customers with the following projects during June:
  • One of Australia’s top universities worked with the TrinityP3 team to ensure the internal marketing group was aligned with the future communications strategy.
  • As a separate next step, we also managed the engagement & partnership strategy for the same university.
  • Media agency roster alignment was called for by a leading global FMCG company.
  • Benchmarking assessments were in demand last month for an international tourism authority.
  • Last but not least, we assisted a large financial corporation with understanding their strategic process so they could organise a market tender.

If you would like assistance or advice on any aspect of your marketing spend, contact us today for a confidential discussion. In other news Click here to view TrinityP3 testimonialsBusiness Events Click here to view up coming business events Are you working at an Agency? Keep your Agency Register details up to date. Click here

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