The Future of Digital Agency Compensation

65
The Future & Getting Paid for it R3

description

Presentation to iMedia Conference, Phuket , Oct 2009

Transcript of The Future of Digital Agency Compensation

Page 1: The Future of Digital Agency Compensation

The Future&

Getting Paid for it

R3

Page 2: The Future of Digital Agency Compensation

Who are we?• Asian based global consultancy • Helps marketers and agencies be more efficient and

effective• A ‘coach’ , not a ‘policeman’

• Equally hated and loved

Page 3: The Future of Digital Agency Compensation

Why are we here?

• Our clients have no clue about Digital

• Even the ones you think have a clue – don’t really have a clue

• We don’t want to be equally clueless

Page 4: The Future of Digital Agency Compensation

Today1. What Clients Want

2. The Future of Them Paying You

3. Secret Tips to Master Them (and R3..)

Page 5: The Future of Digital Agency Compensation

5

What Clients Want

1. What

Clients Want

Page 8: The Future of Digital Agency Compensation

8

Ask them!

Page 9: The Future of Digital Agency Compensation

The biggest relationship issue

Page 10: The Future of Digital Agency Compensation

R3 REGIONAL STAKEHOLDER RESEARCH170 Interviews

Face to Face One Hour

Page 11: The Future of Digital Agency Compensation

38% of advertisers cite creativity as the most positive aspect of the digital agencies currently engaged

Part

O

ne

Base: 102 clients

IDEAS MATTER

Page 12: The Future of Digital Agency Compensation

HOW TO MEASURE?44% of advertisers cite lack of ROI as the biggest

barrier to increasing budget for digital marketing

Part

O

ne

Base: 102 clients

Page 13: The Future of Digital Agency Compensation

60% of advertisers believe their own marketing teams’ understanding of digital is not strong enough

Part

O

ne

Base: 102 clients

33%

60%

7%

S trong enoug h

Not s trong enoug h

Don't know/ NA

SKILLS

Page 14: The Future of Digital Agency Compensation

84% of advertisers would welcome more training from their agencies on new media/ new digital platforms

Part

O

ne

Base: 102 clients

9%

7%84%

Agree

Dis agreeDon't know/NA

EDUCATION

Page 15: The Future of Digital Agency Compensation

Only 23% of advertisers believe the current market instability has made them cautious about trying new media and digital formats

Part

O

ne

Base: 102 clients

23%

69%

8%

C autious

Not cautiousDon't know/NA

TIME IS RIGHT

Page 16: The Future of Digital Agency Compensation

WHY ?

Page 17: The Future of Digital Agency Compensation

61% of advertisers themselves are using more than 2 forms of social media frequently (eg Facebook, Twitter)

Part

O

ne

Base: 102 clients

61%

31%

8%

Us e

Don't us eDon't know/NA

SELF USE

Page 18: The Future of Digital Agency Compensation

WHO IS LEADING DIGITAL?

% of advertisers

Base: 220 China, 214 India

China

India

Page 19: The Future of Digital Agency Compensation

The Concubine Category…adidas

- 21 Communications (CN) – One Xeno (CN/HK) – Isobar: wwwWins (CN), AgencyW (KR), OneDigital

(AU), Digithais (TH) Sony

– i2K (SG)– Nokomai (SG)– Qais (SG)– Euro RSCG (AU) – The Upper Storey (SG) – Bascule (JP)

Coca Cola– 21 Communications (CN)– Arachnid (MY)– The White Agency (AU)– Euro RSCG (SG) – Clear Blue Day (AU) – Profero (CN)– Isobar: wwwWins, Digithais, Carat Interactive,

AgenciaClick, Carat Fusion, Molecular, Marvelous McDonald’s

– Arc (CN, AU)– Tribal DDB

Motorola– 21 Communications (CN) – digitalDigm (KR)

Nokia – XM Asia/RMG Connect (SG, CN)– Formul8 (SG)– The Upper Storey (SG)

OCBC (Robinson’s card)– Formul8 (SG)– Proximity (SG)– Isobar (SG)

P&G– XM Asia (AU)– Saatchi & Saatchi– Digital Digm (KR)– Nurun (CN) – Proximity (AP)– G2 (AP) – Publicis Modem (AP)

Radico Khaitan– Proximity (IN)– Euro RSCG (IN)– G2 (IN)

Toyota/Lexus– Saatchi & Saatchi (regionally)– Arachnid (MY)

Visa– XM Asia (SG)– Blue Interactive – Proximity

HP– 21 Communications (CN)– Blue Interactive – XM Asia (SG, CN) – Digital Digm (KR)– Euro RSCG (KR)

eBay– Blue Interactive (SG)– One Xeno (HK)

J&J– One Xeno (CN/HK)– 21 Communcations (CN)– Agenda/i2K (HK) – Proximity– Blue Interactive (CN), (Acuvue)– Euro RSCG (KR)

Page 20: The Future of Digital Agency Compensation

2. The

Future

Page 21: The Future of Digital Agency Compensation

If you’ve been listening for two days… the old model is broken

Page 22: The Future of Digital Agency Compensation

Even last year’s model looks old

Page 23: The Future of Digital Agency Compensation

Clients are making moves

Page 24: The Future of Digital Agency Compensation

Even….crowdsourcing….http://econsultancy.com/blog/4511-q-a-unilever-s-noam-buchalter-on-crowdsourcing-peperami-ads

Page 25: The Future of Digital Agency Compensation

19 million ways forward….

Page 26: The Future of Digital Agency Compensation

Sapient Wish List Study1. Greater knowledge of the digital space.

2. More use of “pull interactions.”

3. Leverage virtual communities.

4. Agency executives using the technology they are recommending.

5. Chief Digital Officers make agencies more appealing.

Page 27: The Future of Digital Agency Compensation

• 6. Web 2.0 and social media savvy.

• 7. Agencies that understand consumer behavior.

• 8. Demonstrate strategic thinking.

• 9. Branding and creative capabilities.

• 10. Ability to measure success.

Sapient Wish List Study

Page 28: The Future of Digital Agency Compensation

Top 8 Creative Agencies

• Source – Gunn Report

TBWA\Chiat\Day New York US Omnicom

Saatchi & Saatchi New York, Los Angeles US Publicis

DDB London UK Omnicom

Dentsu Tokyo Japan Dentsu

Fallon London UK Publicis

TBWA Paris France Omnicom

Ogilvy & Mather Singapore Singapore WPP

BBDO New York US Omnicom

Page 29: The Future of Digital Agency Compensation

Top 8 Digital Agencies

• Source – Gunn Report

Far Far Sweden Aegis

CP&B US Independent

Forsman & Bodenfors Sweden Independent

R/GA US Interpublic

Goodby Silverstein US Omnicom

FramFab Netherlands Independent

Glue London UK Aegis

Great Works Sweden TYO Group

Page 30: The Future of Digital Agency Compensation

The New Agency Model

A. Consultative

B. Collaborative

C. Creative

D. Cashed Up!

Page 31: The Future of Digital Agency Compensation

A. Consultative

Page 32: The Future of Digital Agency Compensation

• We don’t think that the toilet bowl has any unpleasant meaning. Human beings can live several days without food but toilet bowl even one day, other wise the world must turn into the mass. The deep culture of toilet bowl is a criterion of the civilization. Equanimity and imperturbability being able to stand pressure with enthusiasm are the toilet bowl’s characters.The combination of responsible, sacrificing and readiness is the spirit of toilet bowl. The toilet Bowl can release the pressure and make you comfortable.The beauty of toilet is willing to clean itself and fresh forever! So! for our client, unconditional offerings is Meikao’s spirit

Page 33: The Future of Digital Agency Compensation

• CEO only

• Flat fee

• Sales Incentive

Page 34: The Future of Digital Agency Compensation

B. Collaborati

ve

34

Page 35: The Future of Digital Agency Compensation

35

Page 36: The Future of Digital Agency Compensation

Red Lounge

36

Page 37: The Future of Digital Agency Compensation

37

Page 38: The Future of Digital Agency Compensation

38

Page 39: The Future of Digital Agency Compensation

Results

39

Page 40: The Future of Digital Agency Compensation

40

Spontaneous Awareness Top 10 Brands

Q 7-1. Can you tell me what Olympic sponsors you know?(No prompted,Maximum:6)

Page 41: The Future of Digital Agency Compensation

41

Promotion that leave strong impressions

Q 8-1. Please tell me which Olympic sponsor’s promotions have left a deep impression on you?

26.5%

7.3%

5.1% 4.9%3.5% 3.4% 2.7% 2.2% 2.2% 1.9%

0%

5%

10%

15%

20%

25%

30%

Coca-Cola China

Mobile

Yili Lenovo Mengniu Pepsi Li Ning Nike Adidas Bank of

China

Page 42: The Future of Digital Agency Compensation

C. Creative

42

Page 43: The Future of Digital Agency Compensation

Snickers USA

43

Page 44: The Future of Digital Agency Compensation
Page 45: The Future of Digital Agency Compensation
Page 46: The Future of Digital Agency Compensation

D. Cashed Up!

46

Page 47: The Future of Digital Agency Compensation

Measure it. Move it. Make it

• Differentiate based on results. Not price

• New content relationships

• New media relationships

Page 48: The Future of Digital Agency Compensation

“Risk – Reward”Did he say “Reward – Reward”?

Page 49: The Future of Digital Agency Compensation

Who’s Doing it Well?

Page 50: The Future of Digital Agency Compensation
Page 51: The Future of Digital Agency Compensation

A ConfidentialR3

Case Study……

Page 52: The Future of Digital Agency Compensation

52

What Clients Want

3. Secret Tips to Master Them!

Page 53: The Future of Digital Agency Compensation

“80% of agencies have the same point of

difference”

Page 54: The Future of Digital Agency Compensation

“We are an integrated, full service digital

agency that believes in brand building solutions that are highly creative”

Page 55: The Future of Digital Agency Compensation

“Please meet our CEO and our Regional Strategist.

You will never ever see them again”

Page 56: The Future of Digital Agency Compensation
Page 57: The Future of Digital Agency Compensation

Market your brand as if it was your client

57

Page 58: The Future of Digital Agency Compensation

58

Write a MARKETING brief

Page 59: The Future of Digital Agency Compensation

Remember….

Page 60: The Future of Digital Agency Compensation

ADVERTISE

Page 61: The Future of Digital Agency Compensation

What is YOUR Advertising to Sales

ratio?

61

Page 62: The Future of Digital Agency Compensation

62

Write a PRESENTATION brief

Page 63: The Future of Digital Agency Compensation
Page 64: The Future of Digital Agency Compensation

Identify, Diagnose and Cure

the Business Pain

Page 65: The Future of Digital Agency Compensation

Be nice to (some of..) the consultants!