using payment by results to create better marketing campaigns - napier pr
DESCRIPTION
Payment By Results is a very important aspect for any marketing agency to consider, not only will it help the agency to become more focused, the client will see significant benefits when used properly.TRANSCRIPT
Using Payment by Results to Create Better
Campaigns
Payment by Results (PBR) has great appeal to clients; if the agency doesn’t deliver,
their fee is cut
Agencies often complain about poor briefs, whilst clients can’t understand why their agency can’t see things that should be obvious
PBR means both client and agency put more effort into clearly defining “success” for the campaign
Outputs, Outtakes & OutcomesOutputs are the actions successfully executed within a campaign
Outtakes are the change in knowledge, attitude and opinions of the target audience
Outcomes are the resulting actions and behaviours
Understand which metrics should be used, but bear in mind the
ease and cost of measuring the impact of the marketing activities
on the business goals
Intermediate metrics are highly dependent upon the campaign results, and also clearly contribute to the business goal
Outcome based metrics are the best indication of the campaign’s impact; out-take and output metrics are more under the control of the agency
How Does PBR Work?
While there are many ways to run a PBR campaign, most use an
agreed fee, reduced by an agreed percentage if the agency fails to achieve the objectives. There is, however, an opportunity for the agency to earn a bonus if they
exceed a target
PBR results in better briefs, a more focused agency and a clearly defined common goal
When you can set good metrics, PBR makes sense, however some
campaigns don’t lend themselves to a PBR approach if the metrics are too
difficult or costly to measure