7ReasonswhyMediaProductivityplansdon’tworkasexpectedandHowtoFixitOverthepastcoupleofyearsIhavebeenrequestedtoprovideconsultancyonasubjectIbelievedtobeoutdated:expenditureproductivityinmedia.Companieshavebeeninterestedinknowingaboutthissubjectsincethebeginningoftheeconomyslowdown.Butnowreasonsseemtobedifferent.

• WhyMediaproductivityisstillacompanyneedInrecentyears,commercialcommunicationhasconsistentlychangedforthebetter,movinginbothdirections:top-downandbottom-up,evolvingfromthe“informationhighways”tomultiplecrossroads.AneverchangingMulti-LayerandMulti-DimensionMediaSystem,madeupofdevices,providers,aggregators,formats,platforms,negotiations,exposure,proximity,interconnectivity,performance,tracking,measurement,human/NHinteractionandsoonformorethan20relevantvariables,isnowconsistentlyinplace.Changesarepartofthesystemitself,witheachlayerdividedinto3basicgroups:risingstars,evergreen,sunset(*).Whateverisonthebuzz,today,isarisingstar.Soonerorlateritwilleitherturnintoanevergreenorasunset,slowlyfadingout.Inordertodealwithaslipperymediasystem,companieshavebeenrequestedto1.Managecommunicationinadifferentway(vision,techknowledge,flexibility)2.SetupnewperformanceindicatorsSomeKPIsarealreadyavailableandcanbeproficientlyused.Neverthelessmanyadvertisersaretryingtofindtheirownparticularformulatosuccess.Forthem,theneedforamoreproductiveuseofmedia,doesnotnecessarilyderivefrombudgetrestrictions,butitismainlylinkedtothecostofefficientlymanagingbothliquidityandfragmentation,inordertogettheexpectedperformance.

• Mostcommonmistakesinmediaproductivity

Sowhydoesawellestablishedpractice,likemediaexpenditureproductivity,whosedemandishigherthanever,sooftenfail?Andwhatcanbedonetoavoidthesefailures?Thereareatleast7reasonsthatmayexplainpoormediaproductivityperformance:

1. Cost(thecostofcostcontrolling)2. Tools3. Marketandcompanycycle4. Pasthistory5. Attitude6. RoleofHumanResources7. Incentives

1. Cost(Orthecostofcostcontrolling)Sadbuttrue,reducingmediacostshasitsowncost.Whetheryourcompanysimplycuttheexpensesorhasaproperplan,thereisaneconomicalimpacttobe

quantifiedbeforestarting.Cuttingbudgetstocurrentmediaownershasoftenanegativeeffectonquality.Butalsochangingproviders(suchassw/techprovidersoragencies)shouldtakeintoconsiderationatleast3differentkindsofexpenses:.thecostoffindingandclosingthedealwiththemostsuitableoption(HRtime+optionalpitchcost).thecostofsetuporhandover(HR).thecostofmistakesandmisunderstandingsduringthestartupphase.Therefore,makingarough,commonsenseestimateaboutthecostofproductivityispresumablythebestwaytostartbeingproductive.

2. ToolsThefairsharebetweensavingsandefficiencyItiscommonknowledgethatproductivityinmediamaybereachedthrough2differenttools:SavingsandEfficiency.Everycompanyhasitsownperfectmix,whichisbasedonseveralfactors.Amongthem,companycultureoftenranksnumber1.Nevertheless,noproductivityplanshouldbefocusedononesingleaspect.Ahealthyapproachoughttoidentifyfirstanypossiblesavings,thenanyefficiencyimprovements.Finally,itshouldbefocusedonthegreyandcomplexareawherebothcostsavingsandefficiencymaybeusedtoreachthebestperformance.

3. MarketandcompanycycleThedevelopmentstagemattersAsfarasmediaisconcerned,reachingthefirstcustomersischeaperthanbuyingnewones.Asstartupthecheapestoptionisthebestone.Butacquiringnewcustomerswillbeharderatalaterstage,whenthecompanyaimstofurtherenlargeitscustomerbase.Therefore,whenestimatingmediaproductivity,berealisticandtakeintoconsiderationnotonlytheeconomyandyourindustrytrend,butalsothecompanydevelopmentphase,whichhasanimpactonthewaytheproductivityplanmaybehandled.4. PastPlainandsimple:themoremoneyyouhavebeenwastinginyourrecenthistory,thebiggermaybethemediasavingtoday.Productivityisachallengeforthosewhoperformedwellinthepast,andalmostapieceofcakefortheoneswhodidnot.5.AttitudeFlexibilityandCommitmentarethekeystounlockproductivityThegoodnewsis:thebestpathtoproductivityispavedwithCommitmentandFlexibility.Differentmediamanagementstylescanequallyleadtothesameamountofefficiency.Sokeepaneyeopenontheattitudeofthepeopleinvolved:theireverydaycommitmentisoneofthemostimportantproductivitytoolsavailabletoyourcompany.Atthesametimeensureafairdegreeofflexibility,keepingthecompanyfocusedonoverallresultsratherthanthepath.

6. HumanResourcesPeopleinthecompanyknowbetterthananybodyelsewherethehiddenwastageisandhowtogetridofit.Employeestogetherwithmanagersarelikelytobethemostimportantassetformediaproductivity.FromdigitalplannertraineestotheCsuites,everybodyknowswhatshouldbedonetobetterperformathisownlevelofcompetence.So,beforewritingaplanorgivingthemagoal,brainstormtheirideasonhowmuchcouldbesavedandhow.Finally,doublecheckwiththemtimingandplanfeasibility.

7. Incentives

Sometimesincentivesonproductivity,likePerformanceRelatedBonus,workagainstproductivity.Thishappenswhenachainofdifferentpeople/companiesareallremuneratedforthesamekindofresultsandthewayresultsareevaluatedisinoneoftheirhands.Longtimeagotherewasabadhabitofremuneratingacostcontrollerontheobtainedcompanyefficiencyinmedia.Guesswhat?Themethodologyfortheevaluationwasnotthebestyouwouldhavechosen.Finally,let’sgetbacktoapointraisedon“negotiation,under-deliveryandmediarefunds”:nodealcanbeassessedoverashorttimeframe.Productivity,likenegotiation,canonlybeevaluatedatfiscalyearend:infact,itisonlybytakingintoaccountalongperiodoftimethatmediaproductivityresultsmaybetrulyconsideredsuccessful.(*)FindoutmoreabouttheMultiDimensionMediaSystem.StayconnectedonTwitter@paolafurlanetto,-G+@paolafurlanetto0- Slideshare@paolafurlanetto92–orLinkedinwheretherelevantdocumentwillbeposted.