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Marketing Disrupted.
Right-sizing the agency model.
Robert Green, Managing Partner
robertgreen@oliver.agency07812 380 610Twitter: @robolivermxLinkedIn: Robert Green
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INCREASED DEMANDS ON SPEED TO MARKET
•Real time marketing & content marketing have completely changed the
time available to plan and manage campaigns
•Campaign lead times are being cut by up to 1/3 and the race to be faster
is constant
•Marketers need to react quickly to events – or their competitors will
•Less time to do things well
THE PERFECT STORM?
•More demand for content
•More channels to market
•More complexity and sophistication of technology
•More competition
•More testing and learning required
•More pressure on the client / agency relationship
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WHAT DOES THIS MEAN FOR PURCHASING?
•Purchasing is being challenged to deliver more value
•Right-sizing your supply chain will only go so far
•To really deliver value and efficiency, you need to right-size your agency
model
•How you work with your agencies is crucial to success
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NOT MARKET ORIENTED
Market share - 30.6% in 2000, 50% in 2007, 3.1% in 2013
Value - $62.50 per share 2000, $7.86 in 2015
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MARKET ORIENTED
16% of revenue is from completely new product sectors – they have
invented categories
Market cap grew in 2014 by more than the complete value of Google
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ARE AGENCIES MARKET ORIENTATED?
WHAT?
HOW?Most agencies
deliver their services in the
same way.
WHY?What is the purpose of agencies?
Type of agency – network, digital, social, brand,
promotional, advertising etc
TURNING DISRUPTION INTO OPPORTUNITY
Retain the quality of “WHAT” agencies do
But revolutionise “HOW” they do it
“WHY?” Purchasing and marketIng alike can achieve better results by
turning disruption into an opportunity
Failure to adapt in this disruptive world will deliver diminishing results
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AGENCY PRODUCTIVITY
The traditional advertising agency model features:
High indirect costs – Business costs such as pitching, offices and
salaries need to be recovered through high fees
Lack of transparency – The real effort and who is working on a project is
often hidden
Too distant from the point of need – Collaboration is key to efficiency
and productivity
Insufficient reporting – How much performance data does your agency
give you?
Agency structures have remained relatively consistent for decades
RIGHT-SIZE YOUR AGENCY MODEL
•Part way there by right-sizing the roster. . .
•Achieve better value by right-sizing your agency model
THE RIGHT-SIZED MODEL
•Agencies must adopt lean principles whilst inspiring and harnessing talent
•Built around the method not just the output
•Must be amorphous, adaptable and dynamic
•Communication needs to be continual, fast and at the point of need
•Agencies must change from being introspective…
•… to oriented around the client’s needs to be effective in a fast, disruptive
world
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“Today's digitally-empowered marketing ecosystem is clearly defined
by a ‘whole different dynamic’ than in the past – meaning agencies
urgently need to adopt new working patterns”
Marc Strachan, VP Marketing & Multicultural Marketing US, DIAGEO, WARC 2015
To find out how OLIVER can help you right-size your agency model, get
in touch with us at marketing@oliver.agency or 0203 142 3593.
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