In-House Outsourcing

Interdirect April 19, 2013

Georges Van Nevel

• I will try to solve the problem.

• Fact: it is a very old problem.

Unfortunately, there is no ready-made solution.

Introduction

Introduction

• You receive suggestions and experiences in order to make your own decisions.

• New suggestions are always welcome too.

Making a choice is a matter of the following business elements:• Principles• Budget• Culture• People

2 examples

General principle

• Well-defined parts of a job/campaign can be outsourced.• These parts on themselves can’t be complex. • Complex means constant adjustment. • Difficult ≠ complex

An example of outsourcing

• Creation of a DM concept = yes.• Execution of the DM concept = much more complex/dangerous.• Why? Because the strong creatives aren’t always technically strong

in the details. And because the technical experienced people usually aren’t the most groundbreaking creatives. – Conceptual creatives focus on the idea/concept.– Technical creatives focus on the methodology/structure of the campaign. Both are necessary.

• Please don’t forget the role of account management. Especially:– when briefing the conceptual creatives.– when adjusting the campaign.– for the final campaign proposal.– for the execution of the campaign.

In other words

• Conceptual creatives mainly think horizontally. They make connections that others don’t see.

• Technical creatives mainly think vertically. They optimize a campaign.

• In DM, Internet & “activation” are both more necessary than ever.

• After all, they need to understand how people react. Not only how they think.

• Attitude & Behavior

Pre-defined parts can be outsourced

• This certainly applies to a number of technical parts.

• Examples:– Desktop Publishing (DTP)– Photogravure/printing/personalization – Website HTML – Programming e-operations

Pre-defined parts are also:

• Creation of a DM-concept• Creation of an advertizing concept• Creation of an e-concept

Problems specifically linked to Internet

• Gap between the conceptual creation and the technical execution.• Web builders who don’t fully understand the concept of

“usability”.• Web builders who don’t know anything about DM.• Creatives who don’t know (anything about) the web techniques.• Account people who don’t know (anything about) the web

techniques.

Budgetary remarks• Outsourcing isn’t necessarily cheaper.• Your fixed costs diminish/decrease.• Fixed costs become variable costs.• In-house signifies a sufficient volume of work/jobs.• Don’t underestimate the cost of coordination.• Outsourcing signifies coordination by experienced professionals.• Phenomenon: pressure on prices and margins. • Procurement at the advertiser is playing a bigger and bigger role.

Culture

• The agency’s culture.• Some people can handle outsourcing. Others can’t.• Coordination is generally more easy in-house than with

outsourcing.• Competition in-house outsourcing.• Perception by the advertiser.• A number of advertisers do outsourcing and in-house themselves.

People

• Outsourcing demands experienced people.• Miscommunication easily happens.• This is certainly the case with e-operations/websites. As a result,

the execution costs become too high. • Perception of the jobs in-house outsourcing.• “Chemistry” between people. Especially with outsourcing.

Example 1: BMW Case

• Spring campaign BMW Belgium / Luxemburg • Goal of the campaign:

– Spring treatment / Traffic building to the official dealer– Accessories sales– Lifestyle sales

BMW Case

Campaign:

• Direct mailing • POS material• E-mail (iPhone, iPad, Samsung Galaxy, …) • Website • E-shop

BMW Case

• Creative theme: Cycling • Linked to this theme:

– Accessories– Lifestyle– Spring treatment for your car / Traffic building to the official dealer

• Highly personalized: – Client– Dealer– Car model– Male / Female – Language BE-Dutch / BE-French / BE-German / LUX-French / LUX-German– Loyal / Disloyal– …

BMW Case

Direct mailing– Envelope– Letter– Cycling routes– Liftletter

(only M Performance)

BMW Case

BMW Case

BMW CaseE-mailing

Responsive design

BMW CaseE-mailing: pre-filled website forms

BMW CaseWebsite: personalized routes per dealer

BMW CaseWebsite: personalized routes

BMW CaseWebsite: personalized routes

BMW CaseAds: www.routeyou.com

BMW CaseE-shop / Online orders

BMW CaseE-shop / Online orders

BMW CaseE-shop / Online orders

BMW CaseiPhone / iPad

BMW CasePOS Material: banners

BMW CasePOS Material: poster

BMW CasePOS Material: floor stickers

BMW CasePOS Material: front desk ribbon

BMW CasePOS Material: “spring kit” bags

BMW CasePOS Material: canvas

BMW Case

What has been outsourced?• Creation and execution of cycling maps.• Programming CMS-system for e-mail. Not the implementation.• Programming CMS-system for website. Not the implementation.• Why? Product knowledge is an absolute requirement.• The reservation module (e-shop).• Database.• Printing.• Sending direct mail and e-mail; placing POS at the dealer.

Example 2: GFG Case

• Goal of the campaign:rebranding of the Travel Guarantee Fund for travelers.

GFG Case

• Elements of the campaign• Logo • Website & database• POS material• PR (press)• Launch event for the travel sector

GFG CaseLogo

GFG CaseWindow sticker

GFG CaseWobbler

GFG CaseTemplate for leaflets/websites/catalogues …

WebsiteGFG Case

WebsiteGFG Case

WebsiteGFG Case

WebsiteGFG Case

Website:aid fortravel agencyemployees

GFG Case

Website – database members / travel agenciesGFG Case

WebsiteGFG Case

WebsiteGFG Case

GFG CaseDatabase: up-to-date info

What has been outsourced?• Website:

– Creative concept/copy/graphic design: in-house – Technical execution: outsourced– Database: outsourced

• PR: outsourced• Event:

– Invitations & presentations: in-house – Organization: outsourced

GFG Case

Conclusion

• It’s never simple!

• I hope I gave you food for thought.

Good luck!