Welcome to the December edition of TrinityP3’s e-news
Almost all of the performance and value issues facing marketing and advertising can be traced back to the long-held practice of cost management – marketing budgets as a cost of business and agency fees as a cost of marketing. But to move beyond this, agencies and their advertiser clients need to move away from cost and embrace productivity, value and performance.
We are seeing marketers and advertisers increasingly focus on performance and value but how long more do we need to wait for agencies also to embrace the shift from cost to value? One of the ways to achieve this and return to agency growth is through the application of the Scope Metric model, as we explain here.
How Do Ad Agencies Rekindle Revenue Growth?
What are the steps that creative ad agencies can take to rekindle revenue growth? We recall that agency fees have been under downwards pressure for quite some time due to brand globalization, client obsession with “shareholder value,” the rise of procurement, the fragmentation of media, the scrapping of AOR relationships and the stagnation of brand growth.
These factors have driven fees downwards and reduced the length of client relationships. The agency scramble for new business has pitted agency against agency in an industry price war. Where is this headed? Can any agency “break out” of this deadly cycle and join the Madison Avenue Makeover Club? Is there a way to restore ad agency revenue growth
Five ways to use the Scope Metric Model more effectively to manage agency fees
Since the mid 1990s Michael Farmer has been developing and using the Scope MetricTM Units (SMU) model to measure agency productivity against advertiser scope of work for content agencies such as creative, digital and activation. Three years ago he became the Chairman of TrinityP3 USA and realised that the data that TrinityP3 had been collecting on media agency scope of work for almost two decades would allow the company to create a media version of his trademarked Scope MetricTM for media, or the Media Scope MetricTM Unit or MSMU.
But this is about the various ways marketers and advertising agencies can use both SMUs and MSMUs not only to measure the units of resources required to deliver the outputs or deliverables, but also to use this to create a fair, sustainable and accountable agency fee model that is value based rather than simply resource cost based. Find out more here
What Drives Holding Company Growth — and What Gets in the Way?
Holding company chief executive officers are responsible for performance, and shareholders and journalists interrogate them when growth rates are down. What’s missing are questions about how their agencies manage and measure themselves. Poor agency executive practices are the source of depressed holding company performance. Holding company CEOs have to change the way their agency CEOs manage and measure themselves. Find out more here
Most in Demand for this Month
The TrinityP3 team helped our clients on the following projects last month:
Aligning an agency roster model for a large financial marketer
Aligning marketing requirements with organisational structure, capability and process for a higher education marketer
Managing a tender process for an automotive brand
Assessing a media agency partner for a financial marketer
Surveying agency relationships and performance for a major government department