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Marketing Disrupted.
Right-sizing the
agency model.
Robert Green, Managing Partner
robertgreen@oliver.agency
07812 380 610
Twitter: @robolivermx
LinkedIn: Robert Green
2
Stampy the Cat - 5,818,322 subscribers
Disney animations - 2,255,239
subscribers
Stampy - 3,353,080,883 views
Disney - 1,428,665,972 views
3
CHANGING COMMUNICATIONS
4
“A wealth of information creates a poverty of attention”
Krystal Higgins, Sr UX designer, Google
MARKETING SPEND AS A % OF
COMPANY REVENUE
The CMO Survey February 2015.
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
7
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
8
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
9
MARKET ORIENTATION
Sustainable
client benefits
Competitor
differentiation
Operational
capability
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
11
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
12
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
14
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
18
“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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Marketing disrupted - Right-sizing the agency model

  • 1. Marketing Disrupted. Right-sizing the agency model. Robert Green, Managing Partner robertgreen@oliver.agency 07812 380 610 Twitter: @robolivermx LinkedIn: Robert Green
  • 2. 2 Stampy the Cat - 5,818,322 subscribers Disney animations - 2,255,239 subscribers Stampy - 3,353,080,883 views Disney - 1,428,665,972 views
  • 4. 4 “A wealth of information creates a poverty of attention” Krystal Higgins, Sr UX designer, Google
  • 5. MARKETING SPEND AS A % OF COMPANY REVENUE The CMO Survey February 2015.
  • 6. 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
  • 7. 7
  • 8. 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 8
  • 9. 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 9
  • 11. 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 11
  • 12. 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 12
  • 13. 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
  • 14. 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 14
  • 15. 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
  • 16. RIGHT-SIZE YOUR AGENCY MODEL •Part way there by right-sizing the roster. . . •Achieve better value by right-sizing your agency model
  • 17. 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
  • 18. 18 “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
  • 19. 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.

Editor's Notes

  1. Joseph Garrett. 24. Portsmouth. Daily YouTube upload. Stampylongnose; stampylonghead; stampy. £200-£400k per month on youtube pre-rolls. Disney – on youtube since 2008; Stampy – 2011 Just one example of disruption that brands are facing
  2. Whatsapp – 2009; acquired by FB for $22bn. 800m active users For marketers and procurement alike, its hard to keep pace. It’s a disruptive marketing world. Have some empathy for your marketing colleagues!!!!
  3. Brands have to fight harder to be heard
  4. More to do, less real £££ to do it with.
  5. And marketers have to do it faster than ever!
  6. Market orientation is a business model that focuses on delivering services designed according to customer desires, needs, and requirements in addition to product functionality and production efficiency
  7. Why – talent; creativity; service led What – brilliant work; specilasim – MOST AGENCIES TRADE ON THIS – THE WORK How – little differentiation – area of need
  8. How do procurement leaders ensure they can achieve an opportunity not a threat?
  9. 12 agencies pitched – 2 x creative briefs from cold … who’s paying for this? Other clients…. SPEED; VOLUME & COST issues are exacerbating this problem
  10. Win – win Marketers get the service that they want Purchasing can deliver more value through having a more transparent service