aquent/ama webcast: how to do more with less: exploring decoupling strategy and execution for...
DESCRIPTION
In an evolving marketplace, brands are required to have an active presence in a wide variety of traditional, social and mobile channels. Despite the complexity of the current marketing environment, doing more with less is the new normal. There has been much discussion in the C-suite about how to achieve aggressive marketing goals, yet reduce marketing spend, without compromising the brand. Consolidating agencies, paying for performance, and reducing broadcast spend are common alternatives. However, one idea that is gaining momentum and delivering results is the practice of “decoupling.”TRANSCRIPT
How To Do More With Less: Exploring Decoupling Strategy and Execution for Marketing Projects
There has been much discussion in the C-suite about how to achieve aggressive marketing goals, yet reduce marketing spend, without compromising the brand. Consolidating agencies, paying for performance, and reducing broadcast spend are common alternatives. However, one idea that is gaining momentum and delivering results is the practice of “decoupling.”
Decoupling is a strategy that works; brands around the world are adopting this very effective strategy and saving real marketing dollars.
Find out more in this webcast, presented by Tom Reynolds, Vice President, Enterprise Solutions, at Aquent Studios.
AMA Webcast:How To Do More With Less: Exploring Decoupling Strategy and Execution for Marketing ProjectsPresenters:Tom Reynolds, Vice President, Enterprise Solutions, Aquent Studios
Moderator:Alli Libb, American Marketing Association
Sponsored by:
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Housekeeping Items
Recording and Slides
You will be provided with a recording of today’s presentation and a PDF of the slide deck
Please reference hash tag: #AMAAquent, when tweeting about this webinar
Today’s Presenter
Thomas ReynoldsVice President, Enterprise SolutionsAquent Studios
•Works to create the most efficient and cost effective models for clients’ marketing projects
•Provides executive oversight on all major accounts, ensuring that clients receive the right resources at the right time
Exploring a Decoupling Strategy for the Execution of
Marketing Projects
Presented by
Thomas ReynoldsVice President, Aquent Studios
18 April 2012
How To Do More With Less
8
Marketing Budget Trends
Survey: Has your marketing budget increased, decreased or remained flat for 2012?
9
Marketing Budget Trends
CMO Survey states there will be a modest increase
of 8.1% in marketing budgets in 2012
yet there will be a decrease of 39% in hiring.
More work, less people!
10
Agency consolidation
“Earlier this month, GM executives
told analysts at a dinner meeting
in New York that the company
expected to save $2 billion over
five years from the consolidation
of advertising agencies, globally.”
MoneyNews | March 27 ,2012
Recent Cost Reduction Trends
11
Pay for performance
Coca-Cola Co. is trying to start an industry
wide movement toward a "value-
based" compensation model.
Basically, this arrangement promises
agencies nothing more than recouped
costs if they don't perform, but profit
markups as high as 30% if their work
hits top targets.
Recent Cost Reduction Trends
12
Decrease in broadcast spend
Respondents to the Association of National
Advertisers/Forrester study of national
advertisers said their TV ad spending will
remain flat this year. They also reported
allocating only 41 percent of their media
budgets to television last year (2010)
versus 58 percent in our 2008 survey.
In 2012, TV ad spending will account for 47 per cent of
budgets, up six per cent from levels recorded in 2010, the
ANA reported.
Recent Cost Reduction Trends
13
What it is not:
Separation of tactical versus strategic tasks
or activities.
Decoupling
What it is:
Separation of tactical versus strategic initiatives.
14
Decoupling
Survey: Have you tried a decoupling strategy in the past or currently have one?
15
Decoupling: the Approach
self-serve
strategic design -agency relationship
original design
design from seed piece
produce from template
tier 1
tier 2
tier 3
tier 0
tier 4
com
ple
xity
an
d s
trate
gic
imp
orta
nce
16
Decoupling: the Approach
17
Decoupling: the Approach
strategic importance 1 externally facing, high brand/revenue impact
strategic importance 2external with moderate brand/revenue impact
strategic importance 3 internal, or external with low revenue impact
complexity b multiple steps/
stakeholders, rework pre-existing design
complexity amulti-stage, many steps/stakeholders,
original design
complexity c revisions/adaptations,
few stakeholders
str
ate
gic
im
port
an
ce 3 %
8 %
17 %
complexity
web landing pages
brand guidelines revision
2 %
9 %
14 %
webcast
training video
NASCAR sponsorship
campaign
18 %
12 %
24 %
publications/ ads
poster - internal
solution/selection guide
event collateral
18
Strategic Importance Criteria
Criteria for Decoupling: Tiering
19
Criteria for Decoupling: Tiering, con’t.
Complexity Criteria
20
Decoupling: Alignment of Resources
Internal or
Agency
tier 1
Internal or
Brand Execution
tier 2
Brand Executiontier 3
Agency of Recordtier 0
Brand Executiontier 4
com
ple
xity
an
d s
trate
gic
im
porta
nce
21
Case Study
Large agency was expensive
Serious budget pressures
Irregular brand compliance
Long cycle times were inefficient
Tactical initiatives assigned to expensive agency resources
22
Case Study (con’t.)
60% savings in execution work
Streamline workflow with cost effective resource alignment
Improved focus on execution detail
Shorter cycle times = improved speed to market
23
Case Study (con’t.)
24
Decoupling Clients
25
Summary
More with Less
Be smart
Evaluate your strategy
Consider decoupling
Do it right
Chose the right partners
Questions and Answers
How to Submit Questions
1.Submit questions using the chat box located on the left-hand side of your screen.
2.Submit questions via Twitter by referencing the hash tag #AMAquent
Additional Questions? Contact our speaker at: [email protected] AMA Questions can be sent to: [email protected]
Thank You for your Participation!
Additional Questions? Contact Tom at: [email protected] AMA Questions can be sent to: [email protected]
Recording and slidesA presentation recording and slide deck will be sent to you
Twitter Please reference hash tag: #AMAquent, when tweeting about this webinar
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