The new ANA Thought Leadership magazine features 2 new articles from Decideware.
“Similar But Different, the Unique Challenges of Marketing Procurement” by Richard Benyon explores the key similarities between Marketing Procurement and Procurement – and argues that while there are distinctions in the marketing environment there are tools and techniques that can be successfully applied across both business environments.
“Making the Most of Your Production Spend” also by Richard furthers the argument that value and not lowest cost should be the goal of successful production spend management, and that access to reliable, timely production spend data is necessary to allow reliable analyses.
This latest ANA Thought Leadership magazine is distributed to 10,000+ ANA members .
It is available here:
Decideware is pleased to announce its strategic partnership with the World Federation of Advertisers (WFA).
Decideware is one of five new strategic partners who will work to provide better advice and great insight to WFA members. The partners will also create research projects and events with the WFA to bring light to key issues that affect all multinationals marketers.
As the Efficiency partner, Decideware will assist the WFA on projects involving scope of work management and understanding and assessing agency performance management. These projects are due later this year.
Although this partnership is not exclusive, Decideware, along with the other four companies, have become the first key contacts as the WFA works to support its members regarding new marketing trends as well as highlighting better techniques for managing partners and internal teams.
For the full release regarding this new partnership, please read here: http://wfanet.org/en/global-news/wfa-unveils-first-strategic-partners
Steven, Richard, Zorina and Melinda will all be at the ANA Financial Management Conference in Naples Sunday 4th May till Wed 7th May and if you are attending please come to the Decideware booth and say hello.
We are thrilled to be launching the Decideware 2.0 initiative.
Although we are proud to be the Number 1 provider in our space, we are working harder than ever to get even better. Across software, services, operations, and our people, we are investing in new technology, processes and training to improve all dimensions.
Please come and find out about our new User Experience initiatives, better services options, as well as the new Production Budgeting module we are releasing in July.
See you there!
Announcing ANA Webinar Friday, March 14, 2014 at 1:00pm (Eastern) : How Procurement Executives Can Help Manage Marketing Spend
ANA Webinar: How Procurement Executives Can Help Manage Marketing Spend: Friday, March 14, 2014 at 1:00pm (Eastern)
Decideware's new whitepaper, Marketing Procurement, Similar but Different has proven so popular with ANA members that it was included in the ANA's Encore Newsletter edition.
The Encore edition is a collection of top rated marketing insights from the past week.
The paper is also available from Decideware, Inc. COO Steven Wales; email@example.com
This white paper examines the five critical stages in the lifecycle of a client-agency relationship and includes a range of proven strategic supply management techniques that you can use to get the most effective and efficient return on your marketing investment
A quick note that we are pleased to again sponsor the ANA / WFA dinner in NY, details below ...
WEDNESDAY, DECEMBER 11
Gaining Rapid Traction
The 2nd annual ProcureCon for Digital and Marketing Services Conference took place in Dallas Nov 13th - 15th.
Decideware were proud to be key sponsors of this event which is proving to be highly successful addition to the marketing procurement calendar. Indeed, it and the ANA Financial Management conferences are proving to be core to this important segment of spend management.
Some of the topcs discussed are covered in this post below.
Marketing Procurement is Different
Many of the presentations reinforced the subtle differences around the marketing procurement category, and how practitioners need to be cognizant of the creative nature of the stakeholders they deal with.
Melanie Howard of 3M discussed how she gained influence in the category through building trust with her marketing colleagues over time, delivering them wins before moving deeper into the value chain.
The question she asked when she first started on this path was that marketing are being asked to demonstrate ROI, can procurement help them get the data they need and build processes?
Sopan Shah of Nestle and Mary-Ann Brennan of Mattel provided one of the more advanced presentations in discussing how to structure global client-agency agreements.
For Sopan a basic foundation for global contracts is to understanding exactly what your organizational structure looks like. Global, regional and local agreements all need to dovetail into this structure.
A key message from Mary-Ann was that it's vital to have your global strategy correct first, before you can properly define local Scopes of Service.
ANA In-house Agency Survey
Bill Duggan, Executive Vice President at the Association of National Advertisers provided insights into the latest survey around in-house agencies. The results show a strong movement to creating in-house agencies, and not just for traditional print or production capabilities but increrasingly for more strategic functions.
This topic generated much heat from the floor during the Q&A time. Some comments supported the efficiency argument, while others questioned whether in-house agencies can draw the talent needed to create strategic campaigns.
A copy of the survey is available via the ANA for ANA members for Procurecon 2014 attendees.
Agency Lifecyle Management
At the conference Steven Wales, Decideware Inc's Chief Operating Officer, spoke on the topic of agency lifecycle management (abstract below).
Please feel free to contact him on swales (at) decideware (dot) com if you would like a copy of his slide deck.
"Successful agency management encompasses the entire lifecycle of the client agency relationship. From the selection of the right agency, based on their proven capabilities, to the development of the agencies Scope of Work, understanding the true cost and resource mix of the agency. It continues by ensuring that the briefing process provides the agency with the best information to produce the best work and a formal performance evaluation of the overall client agency relationship. Gain best practice and insights into what's possible by implementing an enterprise wide Agency Lifecycle Management process."
Author: Richard Benyon (Decideware)
Fee-Based Compensation Dominates
In a recent survey by the Association of National Advertisers "2013 ANA Trends in Agency Compensation, 16th Edition" one of the key trends is the inexorable rise in compensation agreements to use labor-based or fixed fees as the primary basis for agency compensation.
This year 81% of all client-agency agreements are fee-based, up from 75% in 2010.
This is even more pronounced in larger advertisers (spend > $500 Million) where a full 94% use fee-based compensation as their primary model.
Labor-Based On the Rise
Also of interest is the fact that within the fee component, labor-based fees are increasing in popularity and account for 65% of all fee agreements. Output-based fees (i.e. those that are negotiated for a fixed-fee, either a specific deliverable or project) dropped from 20% to 15%.
This may be to do with the relative simplicity of labor-based fees, and certainly irrespective of the reason, both clients and agencies seem to be favoring this model.
Scope of Work Process
With these results there is little surprise at how important a well managed Scope of Work process is becoming. It is vital for large advertisers that they can accurately define the work needed on an annual basis and have an accurate methodology for budgeting & tracking this important area of spend.
Certainly at Decideware we are seeing a tremendous uptake in our Scope of Work module. Major client companies are spending a good deal of energy on mapping their SOW processes, capturing all the key inputs, benchmarking costs and ensuring that they have all agency spend "under management" (i.e. a rigorous approval process). They are focused on the most effective (and efficient) return on their fee-based budget.
Author: Richard Benyon (Decideware)