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trinity p3 - industry updates on people, purpose and process

Issue 154, 28/11/13

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World Federation of Advertisers Global Strategic Partner

Marketing First Forum Founding Partner

AANA Strategic Partner

In this Issue

» Risk vs reward in agency compensation
» Benchmarking is more than just rates
» Golden Rule for agency performance
» Top TrinityP3 Posts for the Month
» Most In Demand this Month

In Other News

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Welcome to the November edition of TrinityP3’s e-news for 2013.

Have a question about

  • agency search and selection,
  • agency engagement and alignment, or
  • agency benchmarking and monitoring?

  Just ask us, we’re always happy to help.

Risk vs reward in agency compensation

This post is by Darren Woolley, Founder of TrinityP3.

The current resource based model is low risk for both agencies and advertisers, which is possibly why it is so increasingly popular. The marketer knows what they are paying and knows what resources they are supposedly getting for their fees and retainers. The agency is guaranteed to recover their salary costs and overheads and make an agreed margin on these costs.

Everything is calculated and determined and there is minimal risk for both parties.

But here is the problem. Like most businesses, agencies need to demonstrate growth to their shareholders and for publicly listed companies this is a quarterly requirement. If I am going to increase my revenue and profit it is through selling more resources for more money to my clients, who increasingly are looking for more cost effective ways of having their advertising requirements delivered.

Continue reading Risk vs reward in value and performance based agency compensation

 

Benchmarking is more than just rates

This post is by Darren Woolley, Founder of TrinityP3.

Last year I was contacted by a major advertiser’s global procurement team asking if I would tender to provide them with agency hourly rate benchmarks across global markets. I declined. In the conversation I explained that simply looking at rates alone is a flawed process as it is not the hourly rate but the total cost that is important.

Nevertheless they had made up their minds that this was the approach they wanted to take. Eight months later I checked in with them to see how the project was progressing. Apparently I was right. All they ended up with is a list of rates by job title or service.

Rate Benchmarks

At TrinityP3 we have collected and analysed a significant amount of rate data across brand agency, media agency, digital, production, public relations, direct marketing, promotional marketing and more for more than 40 major advertising markets, mostly focused in Asia Pacific.

Continue reading Agency remuneration benchmarking is more than just rates

 

Golden Rule for agency performance

This post is by Darren Woolley, Founder of TrinityP3.

In China they have the Golden Rule: The man with the gold makes the rules. This is an interesting principle as a buyer of services. The fact is that as the buyer you get to set the terms. Therefore if you are unhappy with the terms of the purchase then you only have yourself to blame.

This especially applies to marketers complaining about their agencies and their performance. Because, as the buyer, you get to set the terms of the engagement between the two parties. Let me demonstrate.

Case Study 1: I just assumed…

“My agency is not performing to my expectations”

I wish I had a dollar for every time I have heard this from a frustrated marketer. Invariably, this is because everyone involved is relying on the power of mind reading. We usually find that these expectations are not usually articulated in a clear and consistent manner.

Continue reading Have marketers forgotten the Golden Rule for agency performance?

 

Top TrinityP3 Posts for the Month

Top 5 TrinityP3 posts for October

 

Most In Demand this Month

Last month at TrinityP3 we helped our clients achieve their goals in the following ways:

  • Managed a Creative Agency Review for a global Fashion client
  • Benchmarked a TV production campaign for a global FMCG client
  • Benchmarked Creative Agency Financials for a HR client
  • Managed and facilitated a Strategic Brand Initiative for a Financial Services client
  • Benchmarked the SOW Resources for a Financial Services client
  • Managed a Creative Agency Review for a Retail client
  • Benchmarked a TV production campaign for a global Personal Care client
  • Managed and assessed TV production campaigns for a global Restaurant client
  • Benchmarked Media Buying for a Utilities client
  • Benchmarked Creative Agency Financials for a global Healthcare client
  • Facilitated an Engagement Agreement for a Motoring Services client
  • Benchmarked and assessed Agency Remuneration for a global Automotive client

If you would like assistance or advice on any aspect of your marketing spend, contact us today for a confidential discussion.

 
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trinity p3 - industry updates on people, purpose and process