Top 10 Ways Marketers Waste Money

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  1. 1. Top ten most common waysadvertisers waste money and how to avoid themLessons from more than a decade of advisingAustralias largest and most successful advertisers Presented by TrinityP3 marketing management consultants
  2. 2. 1. Changing agencies when changing Marketing DirectorsThe loss of brandand market knowledgewithin the incumbentagency is one of the great unaccounted assets.marketing management consultants
  3. 3. Remember 1. Changing agencies can take up to 3 months and require more than600 internal head hours to complete successfully. 2. The new agency will require 3 - 6 months of 20% more time to getup to speed on your business. 3. With marketers average tenure now less than 25 months theagency is often the most consistent source of brand knowledge. 4. Poorly managed reviews can lead to irreparable damage to thebrand and corporate reputation. marketing management consultants
  4. 4. To avoid this 1. Clearly identify the areas were the agency is underperforming bydiscussing expectations and delivery with the marketing team. 2. Meet with the agency management and communicate your concernsand agree objectives, timelines and metrics for improvement. 3. Schedule and provide regular feedback to the agency or considerusing a relationship survey (such as Evalu8ing) to monitor therelationship. marketing management consultants
  5. 5. 2. Incomplete or poor quality brieng If you don t know what you want or needhow is the agency goingto know?marketing management consultants
  6. 6. Remember 1. If the agency doesnt crack the brief first time, it is more often thebrief rather than the agency. 2. Every iteration of creative work creates a hidden cost in agencyfees and tangible costs in production fees. 3. Time wasted on developing consecutive creative concepts eats intoproduction time, driving up cost or compromising quality. marketing management consultants
  7. 7. To avoid this 1. Develop the brief with stakeholder and agency input and beforework commences make sure all parties agree on the direction inwriting. 2. Always use the brief to judge and critique the work and whenpresenting work make sure it is presented in the context of theagreed brief. marketing management consultants
  8. 8. 3. Lack of time and project management disciplineIf you don t allowenough time to get the job done right,be prepared to pay for it later. marketing management consultants
  9. 9. Remember 1. Mistakes are made more often when people are in a hurry and costmore to fix later. 2. Quality requires either time or money to achieve and the less youhave of one the more you will need of the other. 3. The cost of revisions rises in direct relation to the approach of thedeadline, and if it doesnt you have probably paid for it already. marketing management consultants
  10. 10. To avoid this 1. Have within your contract agreed timelines for strategy, creativedevelopment and production. 2. Make the agency responsible for project management based onyour planned activities. 3. Have agreed processes for fast track activities that arise outsideof your planned activities. marketing management consultants
  11. 11. 4. Spending the budgetMany marketers and agenciesare too focusedon how to spend the budgetrather than how to invest tomaximise the results. marketing management consultants
  12. 12. Remember 1. What sticks says that it is not 50% of advertising that is wasted, itis only 37.3% because marketeers do not learn from their mistakes. 2. You cannot learn if you do not bother to measure, record andanalyse the results of your actions. 3. Vague objectives and general statements on improvement do notprovide meaningful results. marketing management consultants
  13. 13. To avoid this 1. Make sure all activities have a specific and measurable outcome. 2. Implement a detailed and rigorous measuring and reportingprocess for each activity / project / campaign. 3. Share this information with the agency and link their remunerationto the result to drive efficiency and effectiveness improvements.marketing management consultants
  14. 14. 5. Being too prescriptive in your requestsinstead ofYou re payingslaves.professional rates,treat the agencyso like professionals marketing management consultants
  15. 15. Remember 1. If you are telling your agency what to do and how to do it, where dothey get to add value? 2. This behaviour leads to high agency staff turnover and lower qualitypeople working on your account. 3. Agencies are there to provide specific strategic and creative value,not to be an outsourced personal assistant to the marketingdepartment. marketing management consultants
  16. 16. To avoid this 1. Always define the requirements and / or problem clearly and listento the agency s suggestions. 2. If it the agency is consistently not delivering to your requirements,discuss the issue with them to determine why. 3. If yelling at the agency is the only way to get what you need, theneventually you will end up with a new agency. marketing management consultants
  17. 17. 6. Lack of clarity and focus in providing feedback Garbage in leads to garbage out in IT and similarly in advertising - socareful and be concisein providing feedback to the agency. marketing management consultants
  18. 18. Remember 1. Providing feedback on strategy, creative, concepts and aestheticsis difficult as it is often abstract or highly subjective. 2. Misinterpretation of feedback can lead the agency in the wrongdirection and cause additional work and create costly delays. 3. No matter who is at fault for the misinterpretation, the advertiserends up paying for it in energy, time, frustration and budget. marketing management consultants
  19. 19. To avoid this 1. Do not allow yourself to be rushed into providing feedback, wherepossible use the overnight test 2. Use the brief as the basis for providing feedback at all stages ofdevelopment, not just concept but right through production 3. Do not use subjective language like edgy or contemporary ,but where words fail use pictures and examples insteadmarketing management consultants
  20. 20. 7. Convoluted approval processes within the organisationEveryone can have anopinion, but inthe end the onlyone that counts ultimateis the decisionmaker.marketing management consultants
  21. 21. Remember 1. The more people involved in the approval process the greaternumber of changes required to get an approved execution. 2. Each iteration of change incurs a cost and creates opportunities forwaste with unnecessary changes. 3. There is no incentive, other than the timely delivery of the job, forthe agency to keep the number of changes to a minimum as thesechanges increase revenue and profitmarketing management consultants
  22. 22. To avoid this 1. Identify who can say YES and minimise all of the approval stagesthat can only say NO 2. Have everyone responsible present at the one time for approvals 3. If you cant, get everyones feedback before de-briefing theagencymarketing management consultants
  23. 23. 8. Poor understanding of the advertising process This can lead to making decisions at the worst possible time in the process. Know theprocess and you ll get better results. marketing management consultants
  24. 24. Remember 1. The creative process commences with the strategy and continuesthrough the concept and execution 2. At every stage decisions, feedback and directives have an impacton the cost, quality and time required to deliver the final outcome 3. The agency will always focus on the delivery of the advertisersstated requirements over the cost effective delivery of the concept 4. In six months time no one will thank me for delivering it on time oron budget - Creative Directormarketing management consultants
  25. 25. To avoid this 1. Never dictate specific executional outcomes unless you understand allthe cost, time and quality implications. 2. When discussing projects with the agency, always ask for a writtenassessment of the cost implications before proceeding. 3. If changes are required to deliver strategic imperatives, ask the agencyto recommend multiple solutions and costs to achieve these. marketing management consultants
  26. 26. 9. Having a remuneration model that rewards inefciency resources Focusing on head hours instead of outcomes resultsencourages poor practices efficiency. marketing management consultants
  27. 27. Remember 1. Paying for head hours can encourage agencies to work slowly andinefficiently to increase revenue and profit. 2. Commissions and service fees reward the agency for spendingyour budget and are not related to the cost or effort involved. 3. Head hours are a notoriously inaccurate record and measure of theresources and efforts required to deliver a specific outcome.marketing management consultants
  28. 28. To avoid this 1. Define your requirements from the agency in the form of capabilitiesand volume (scope of work). 2. Negotiate remuneration based on the delivery of those services andoutcomes not simply the resources required. 3. Monitor the scope of work and the agency performance and resourcesto identify opportunities for improved efficiency.marketing management consultants
  29. 29. 10. Falling in love with the (new) agencyWhile the best advertiser/agency relationshipsare based on mutual respecttrust,it is still a business relationshipthat requires management.marketing management consultants
  30. 30. Remember 1. The honeymoon period does not last forever but a great working relationship can. 2. Many contracts fall into three year cycles, the first year is great, the second year is ordinary and the third year is not much better. 3. Great relationships deliver great outcomes and increased ROI, but they take time and effort to manage. marketing management consultants
  31. 31. To avoid this 1. In establishing the relationship, ensure that agreement / contractincludes measurable expectations (SLA, KPI etc). 2. Plan an allocate the time and resources to manage the relationship ona regular basis (ideally quarterly). 3. At each review stage, discuss outcomes, performance, process,resources and remuneration with specific recommendations forimprovement. marketing management consultants
  32. 32. Summary Tired ofwastingmoney? marketing management consultants
  33. 33. then avoid 1. Changing agencies before it is really necessary 2. Poor briefing practices and implement ways to improve quality 3. Being too prescriptive with the agency, it stops them being their best 4. The last minute minute rush, it increases the chance of costly mistakes 5. Simply spending the budget, instead of looking for ways to invest 6. Costly mistakes and misinterpretations in your feedback 7. Convoluted approval processes, instead look for ways to streamline 8. Making changes without understanding the real cost and impact 9. Remunerating your agency for time instead of outcomes 10. Forgetting to manage the relationship which needs investment to growand if all else fails marketing management consultants
  34. 34. Contact TrinityP3 to nd out how to reduce waste and increase value in your advertising. TrinityP3 Pty Ltd Sydney +612 8399 0922Melbourne +613 9682 6800 Hong Kong +852 3478 3982Singapore+65 6631 2861 people@trinityp3.comwww.trinityp3.com marketing management consultants