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thenetworkonean introduction
www.thenetworkone.com
https://www.facebook.com/thenetworkone https://www.linkedin.com/in/julianboulding/
https://twitter.com/thenetworkone?lang=en
• the world’s largest independent agencies network
• founded 2003
• headquarters in London, UK
• 1,200 agencies in 109 countries worldwide
• each agency personally visited, evaluated and accredited
• creative, media, PR and all forms of digital communications
key facts
Julian Bouldingpresident
Paul Squirrelldirector
Stephanie Foxinternational consultant
thenetworkone people:
Lizzi Goldinformation database
coordinator
where we work:AlbaniaAlgeria AngolaArgentinaAustralia AustriaAzerbaijan BahrainBangladesh BelarusBelgiumBoliviaBotswanaBosniaBrazil BulgariaCambodiaCanada CameroonChile
China Colombia Costa RicaCroatia Cyprus Czech Republic DenmarkDominican RepublicEstoniaEcuadorEgypt FinlandFranceGeorgia Germany GhanaGreeceHungary Iceland India
Indonesia IranIraq Ireland Israel Italy JamaicaJapanJordan Kazakhstan KenyaKosovoKuwait LaosLatviaLebanonLithuaniaMacedonia MalaysiaMalta
Mauritius Mexico MoroccoMyanmar NepalNetherlands New ZealandNigeria NorwayOman Pakistan PanamaParaguay Peru Philippines Poland Portugal Qatar Romania Russia
RwandaSaudi ArabiaSerbiaSingaporeSlovakiaSloveniaSouth AfricaSouth KoreaSpainSri LankaSwedenSwitzerlandTaiwanTanzaniaThailandTrinidad and TobagoTunisiaTurkeyUgandaUkraine
United Arab Emirates United KingdomUSAUruguayVenezuelaVietnamYemenZambia
why choose independents?
agility speed • entrepreneurial approach
cost efficiency
… and
managementconsistency
personal involvement with senior players
the balance is shifting: from global to local
• less air miles, less food miles
• secure supply chains
• return of national consciousness
• cultural understanding
• customer experience
• personalisation
• interactivity
• rapid test-and-learn
the client proposition: agency choices
in-house resource ‘holding companies’ independent agencies
• gaining momentum: first in US, now worldwide
• trust factors
• first-person data
• IP protection
• cost efficiency
• long term planning
but: an external perspective is still essential
shift to in-house
shift away from agency holding companies
• lack of big-agency transparency has eroded trust
• the problem is bigger than just digital media buying
• holding company model is self-serving (shareholder value, short-term growth)
• declining profitability, departure of senior people
• buy-now, pay-later business model unsustainable in low-growth economies
• markets have lost confidence
22.05.17 25.05.20
WPP
Publicis
Dow Jones
Amazon
Dow Jones against holding and tech companies(last 3 years)
Source: MarketWatch. 26.05.20
100%
- 100% WPPPublicis
Dow Jones
FacebookGoogle
Amazon
03.02.20 25.05.20WPP
Publicis
Dow Jones
Amazon
Dow Jones against holding and tech companies(during the Corona crisis)
Source: MarketWatch. 26.05.20
even big agencies are small players
Source: Google 13.03.2020
WPPPublicis
10
100
200
300
400
500
600
700
800
900
1000
USD/b
2030
8.43bn
as at 13.03.2020(pre Corona Crash)
6.82bn
Omnicom
12.19bn
traditional communications holding companies
Market Cap
Source: Google 13.03.2020
WPPPublicis
10
100
200
300
400
500
600
700
800
900
1000
USD/b
2030
8.43bn
as at 13.03.2020(pre Corona Crash)
6.82bn
Omnicom
12.19bn
101.32bn
Accenture
traditional communications holding companies
consulting businesses
even big agencies are small players
Market Cap
Source: Google 13.03.2020
WPPPublicis GoogleFacebook Amazon
10
100
200
300
400
500
600
700
800
900
1000
USD/b
20
30
8.43bn
as at 13.03.2020(pre Corona Crash)
6.82bn
Omnicom
12.19bn
101.32bn
Accenture
770.56bn
457.04bn
842.26bn
traditional
communications holding
companies
consulting
businesses
media channels
even big agencies are small players
Market Cap
Source: Google 13.03.2020
WPPPublicis GoogleFacebook AppleAmazon
10
100
200
300
400
500
600
700
800
900
1000
USD/b
20
1,11t
30
8.43bn
as at 13.03.2020(pre Corona Crash)
6.82bn
Omnicom
12.19bn
101.32bn
Accenture
770.56bn
457.04bn
842.26bn
traditional communications holding companies
consulting businesses
media channels
technology platform / media ownereven big agencies are small players
Market Cap
Mark Read, CEO of WPP
“We need to think less like a group and more like a Company”
independent agencies: potential to reality
• former problems – communication, experience sharing, consistent messaging – have disappeared in the age of 4G/5G
• communications management is better done in-house
• the new model for clients: know-how plus know-who
‘holding companies’
independent agencies
in-house resource
know-who: the challenge and the solution
• limited headcount and personal bandwidth preclude most clients from keeping track of agency developments – especially internationally
• search consultants have failed to raise their game: rarely travel beyond the top 10 world markets
• there is a solution
thenetworkone
• purpose
• agency accreditation and membership
• how it works for agencies
• how it works for marketing and communications clients
thenetworkone: purposethenetworkone was founded:
• to help each international client company, identify the best independent agencies for its individual needs – and work with them effectively
• to help any good independent agency, develop the skills and connections to serve international clients effectively
• to promote and facilitate the effective and ethical use of communications, for business and social good
how we accredit agencies:the five key steps
need identification: are there new skills we need, or countries where we need to strengthen our representation?
pre-research: media reports, awards, membership of associations, local recommendation, awards, conferences, etc
personal visit: all agencies we recommend have been individually evaluated by a senior Director or representative of thenetworkone. At least 90% have been visited personally. Do we like them? Do we trust them? Is there a positive vibe in their office? What really motivates them?*
agreement to terms: including the upholding of international standards of ethics and transparency
add to TNO proprietary database:
o agencies supply key data on ownership, size, revenue, major clients, experience and services providedo TNO team updates regularly: not only information but also regular re-evaluation and experience of
working together
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3
45
* due to the pandemic, this is now conducted via Zoom. When international travel is practical, personal visits will resume.
how do we get paid?
• transparency is important to us and to you
• we receive annual membership fees from agencies who wish to join
• we will receive a fee from the agency(s) we recommend to you, if you choose to work with them
• our fee is 7% of the net income the agency receives from you, for one year from the date of their first invoice to you
• to ensure our recommendations are objective, our fee is the same from every agency we work with
• we host workshops and events for which we charge
• we undertake bespoke consultancy projects on request
agency membership: an optional extra step
• around 20% of agencies choose to become “members” of thenetworkone
• members are those agencies capable and willing to lead international assignments
• members pay an annual subscription (currently US$ 3,350 GB£ 2,650 Euro 2,950)
• members received additional training and information services, and can call on TNO to provide local partners – a “network on demand”
a global network on demand
selection criteria: who are the best local partners for you?six key factors:
cultural fit – this is based on our judgment, knowing you, and knowing the agency? It’s the biggest factor in a successful relationship, and the reason we offer a curated recommendation rather than a self-service menu.
availability – is the agency conflict-free and does it have capacity to handle your requirements?
role of the agency – are you looking for insight, big picture strategy and original creativity, or more of an activation or adaptive role?
experience – will the agency need expertise in a broad category (like ‘consumer tech’) or a specific sector (like ‘airlines’)
capabilities – what skills do they need? Strategy, creativity, media planning and buying, PR, event management, customer experience, digital and social, etc. They should complement your capabilities.
location – country or city where you need local agency services (or regional leadership)1
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how does thenetworkone work – for you as a lead agency?
we introduce you to the key person (usually the owner/CEO) at each agency, for a mutual ‘chemistry check’
and Q&A – usually by video call.
we run a conflict check, to ensure that the agencies are available to work with you
recommendations may be adjusted based on your feedback
we can also recommend regional and global agencies, where these are more appropriate – and provide a
profile of each one
we recommend the best agency(s) for your needs, for each country where you need local services
we encourage a verbal follow-up (phone or videoconference) to discuss details and add colour and nuance
you complete a simple, two-page briefing form1
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what happens after we have introduced the local agency to you?we always remain available to help, in case problems arise or your client’s needs change
if you need an agency-side “International Account Director” we can provide one, who will report directly to you
we are not usually Principals in client-agency contracts
we are happy to advise on contracts and scopes of work
you and/or your local colleagues will contract the client directly12345
who have we worked with?many of our assignments are confidential, but here are some examples of companies we have worked for –either directly, or for their lead agencies:
B2C: ACS International School, Air Serbia, Audi, Ask FM, Bacardi, California Almond Board, Dyson, Exxon Mobil, FreshPet, GSK, William Grant (Glenfiddich), Johnson & Johnson, KLM, Lego, Lufthansa, Pernod Ricard, Sociosand SwissAir
B2B: Blanco, Esselte, EY, International Coach Federation, Japan House, Lexar, Metsa, Nokia, Tate & Lyle, TCS (Tata Consulting), SAP Sun Chemicals and MTN
case history: Achtung! & Lufthansa
opportunityGerman based independent agency, Achtung!, wants to pitch for The Lufthansa Group’s global PR account.
solutionIdentify suitable agency partners in 41 markets. Create a bespoke global network pre-pitch.
outcomeAchtung! is chosen to lead the global PR activities for the Lufthansa Group.
case history: Sterling-Rice Group & Damm & BierbaumopportunitySterling-Rice Group in the US needed a partner to create the Californian Almond Board’s first ad campaign in Germany
solutionRecommended Damm & Bierbaum: a creative agency with digital skills and sector experience
outcomeDamm & Bierbaum launched a campaign on TV, social media and print to establish almonds as a modern and light snack
case history: ANTECH & Silver Machine
opportunityANTECH (Advanced Nutritional Technologies), the exclusive distributor of HiPP organic baby food products in the Philippines, sought a digital agency for their 2018 marketing program
solutionthenetworkone introduced ANTECH to three digital agencies in the Philippines
outcomeafter meeting, the client decided to work with Silver Machine Digital
case history: Stanton & The International Coach FederationopportunityStanton Communications in the US has been agency of record for The International Coach Federation since 2015. The ICF is a global organisation with chapters around the world, so they needed international B2B communications partners
solutionOver the past 3 years, thenetworkone has introduced Stanton Comms to partners in the UK, Bulgaria, Czech Republic and Kenya
outcomeStanton has successfully worked with these agencies and they continue their relationship with the ICF
case history: UK partner search for 90octane
opportunityColorado based agency 90octane needed partners in the UK to service several existing clients.
solutionConduct a review of the UK agency landscape to identify suitable partners that had the right skill and experience and shared 90octane’s values.
outcomeSeveral partners identified and now working together on client projects
case history: China partner for Metsä
opportunityFinnish agency hasan&partners works with Metsä, an international forest industry group and producer of wood and paper products. Metsä needed to support their channel in China.
solutionIdentify specialist B2B partner agencies in Shanghai able to trans-create channel materials supplied from hasan&partners.
outcomehasan&partners introduced to Brandigo – a B2B agency that helps brands enter China.
case history: logistics researchopportunityA German based member was asked to conduct some research on key players in logistics in a number of countries.
solutionWe researched the key players’ communications activities and asked thenetworkone agencies to forward relevant work from their home market
outcomeWe pulled together information on all markets and successfully answered the client’s query
case history: premature babies
opportunityA member from Romania was creating a presentation for a client and needed to know about significant campaigns in Serbia, Greece and Bulgaria on premature babies
solutionWe asked several agencies in the relevant markets to help, and they shared some fantastic examples
outcomeWith the help of our partners, we were able to provide examples of campaigns in all the markets for their presentation
sharing, learning and up-skilling the agency communitythenetworkone has launched many initiatives to inform, educate and up-skill the independent agency community. These include:
• our flagship annual conference: The Indie Summit*
• our international awards program: The Indie Awards*
• our regional and seasonal conferences: The Indie Forums**
• our publications: ‘The World’s leading Independent Agencies’, the annual ‘Cannes Review’, white papers, newsletters and media articles
• our Wednesday Webinars: specially for agencies during the Covid-19 pandemic, a series of webinars to help agencies survive and thrive – short term and long term
* if it is safe to do so, these events will be live, otherwise they will be delivered digitally** delivered digitally during the pandemic
“The summit was absolutely brilliant…we learned a lot and are still discussing topics we heard of at the summit…it was a perfectly organised event.”
Joachim Krügel, Managing Director, Media1, Austria
“The most entrepreneurially inspiring conference in the industry.”
Martin Albrecht, Founder, CrossMedia
http://www.indiesummit.netimages from 2019 pre-pandemic event
http://indieawards.global
http://indieawards.globalimages from 2019 pre-pandemic event
Tiffany Kelly, RoundTable, Simon Rhind-Tutt, RAM, Maja Pawinska Sims, Holmes Report, Ian Winton, Crimtan, Jack Skeels, AgencyAgile, Nontokozo
Madonsela, MM Holdings, Tina Fegent, Tina Fegent Consulting, Elli Tuominen, Kurio and Lorenzo Marini, Lorenzo Marini Group
https://thenetworkone.com/the-indie-forum-digital/
The World’s Leading Independent Agencies
https://leadingindependents.com
our publications
thenetworkone and Covid-19
• thenetworkone has remained fully operational throughout the pandemic.
• no business day was missed, no assignments or client requests could not be met.
• we use standard remote working tools: Microsoft Teams, Zoom and Whatsapp.
• we have not furloughed or terminated any staff
• we work in exactly the same way, with marketing clients and with our agencies – just online
• publications and events have moved online
• “Wednesday Webinars,” each reaching up to 350 independent agency leaders
• our support for agencies – especially, sharing of expertise and best practices, has been enhanced
our webinars
thenetworkone and Covid-19 shared learnings
thank youthenetworkone Management Limited
3rd Floor, 48 Beak Street
Soho
London, W1F 9RL, UK
www.thenetworkone.com
Julian Boulding
+44 7788 922 299
@thenetworkone
