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ZEDTalk 3: Creativity & ROI
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© C
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Pitching a tent in a hurricane (and what that
has to do with ROI).
© C
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Agenda
Introduction
A story about stress
Client relationships
Conclusion
red saltPitching a tent
in a storm
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© C
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Introduction
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Marketing Procurement
Agency
Three parties determine agency value
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Three parties determine agency valueOften feel agencies are inefficient - time is money - not getting optimal value. - thus brand performance is inhibited and some money wasted.
Cost reduction is their imperative as should be protection of value. But responsibility for value is devolved to Marketing. Measurable things are good, so time-based remuneration is good.
Marketing Procurement
Agency
Agencies need growth - in SOW and better margins. Client and talent retention are essential. Time-based pricing can be sub-optimal - little opportunity to improve margin.
Client remuneration deals increasingly include payment by results. Performance measures for agency bonus (or malus) often include measures for return on investment.
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The working environment
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The working relationship
Marketing Procurement
Agency
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A story about stress
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© C
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What is stress?
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© C
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Red
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© C
opyr
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Red
Sal
t Lim
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2013
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© C
opyr
ight
Red
Sal
t Lim
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2013
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© C
opyr
ight
Red
Sal
t Lim
ited
2013
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© C
opyr
ight
Red
Sal
t Lim
ited
2013
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© C
opyr
ight
Red
Sal
t Lim
ited
2013
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© C
opyr
ight
Red
Sal
t Lim
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© C
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Responsibility and control must exist in
the same place.
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Drachten - Holland
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Client relationships
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Value
External agency control
Diminishing return on control
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Disengagement
Arrogance Congruity
Compliance
AgencyC
ontro
l of
agen
cy
ClientLow Agency Responsibility/
Accountability High
Optimal ValueVanity and/or Innovation
Rubbish Mediocrity/ Conservatism
Meikle matrix
Playing safe lower ROI
Higher risk, higher ROI
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What contributes to client’s control?
ApprovalsProcess Strategy Research
Servility Risk Dependency Time
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AgencyC
ontro
l of
agen
cy
ClientLow Agency Responsibility/
Accountability High
Disengagement
Arrogance Congruity
Compliance
Often highly inefficient at agency cost
Often highly inefficient at client cost
Meikle matrix on efficiency
Highly efficient
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AgencyC
ontro
l of
agen
cy
ClientLow Agency Responsibility/
Accountability High
Disengagement
Arrogance Congruity
Compliance
Meikle matrix on business problems
Market grow
th High
Low
Market share
Dog
Question Mark Star
Cash Cow
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AgencyC
ontro
l of
agen
cy
ClientLow Agency Responsibility/
Accountability High
Disengagement
Arrogance Congruity
Compliance
Moving within the Matrix
Client
Is it appropriate to the business
problem?
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What assurances can agencies give?
Talent Process Incentive Risk
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AgencyC
ontro
l of
agen
cy
ClientLow Agency Responsibility/
Accountability High
Disengagement
Arrogance Congruity
Compliance
Moving within the Matrix
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Conclusion
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ROI needs to be consistent with the business problem.
And is the responsibility of the party in control.
Clients have to trust you to let relinquish control.
© C
opyr
ight
Red
Sal
t Lim
ited
2013
. All
right
s res
erve
d.
thank you
© C
opyr
ight
Red
Sal
t Lim
ited
2013
. All
right
s res
erve
d.
thank you
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