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The Business Case for Digital Marketing
Production Outsourcing

Highlights from the latest
Deliver eBook
Agenda
       What is Digital Marketing Production anyway?
       The benefits of breaking up – creative & production that is.
       The business case – achieve savings & efficiency by rethinking
       how digital marketing gets done
       Leading companies are reaping the benefits, how can you?
       Getting started. Charting a roadmap for success.




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|2
                                                        Del Pr 2
It’s that time of year…budget time




       and marketing budgets aren’t getting
                   any bigger.
The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|3
                                                        Del Pr 3
Did you know:
             Production costs typically
         represent 30-50% of a company’s
          annual digital marketing spend



The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|4
                                                        Del Pr 4
What if you could
                     Save 20-50% on your digital
                     marketing production costs?



The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|5
                                                        Del Pr 5
you could invest in
                      That’s $
                     reaching more customers

                                                                           Through: more channels


                                               with more Programs


                                                or savings to put back
                                                to the bottom line.
The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|6
                                                        Del Pr 6
Let’s start with the basics..




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|7
                                                        Del Pr 7
What is Digital Marketing Production anyway?




       The process by which creative ideas and assets are translated into
       an array of digital media so that the right messages are delivered
       via the right channel at the right time to the right users.

The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|8
                                                        Del Pr 8
Decoupling creative & production; why some things are
  better separate than together




                                                                                     Decoupling allows creative & production
                                                                                      teams to focus on what they do best

The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|9
                                                        Del Pr 9
The business case for digital production decoupling &
  outsourcing rests on 5 key pillars

                                 Digital Marketing Production Outsourcing Business Case




 Cost-effective                          Team and                              Standard         Global        Templates
     staff                                activity                            & optimized      delivery          and
                                       consolidation                           processes        model        automation
                                                                                            implementation




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|10
                                                        Del Pr 10
Executing on the 5 pillars typically results in savings of
  20-50%
                                                                                                          Templates and
  Cost                                                                                                    automation
  Saving
                                                                                                          Global delivery model
                                                                                                          implementation

                                                                                                          Standard & optimized
                                                                                                          processes


                                                                                                          Team and activity
                                                                                                          consolidation


                                                                                                          Cost-effective staff




                                                                                      Production Volume




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|11
                                                        Del Pr 11
Cost-effective staff

                                                                                      Helsinki
                           New York                                    London
                                                                                                                             Beijing
                                                                                                        New Delhi

                                                                                           Moscow                    Dhaka

                                       Bogotá



              San Jose                  São Paulo
                                                                                                         Singapore



                                                                                         Johannesburg

                                                   Buenos Aires


                          Cost-effective markets provide a 30-60% savings over US or Western rates
                          Highly-skilled teams offer a full range of skills, expertise & quality
                          A good digital production outsourcing partner helps clients source the
                          right skills & production locations to meet business needs
The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|12
                                                        Del Pr 12
Team and activity consolidation




                          Uneven supply & demand of                                   Stable utilization of resources
                          resources                                                   Add staff quickly when
                          Skill duplication                                           needed
                          Investment in senior staff                                  More effective utilization of
                          across multiple agencies                                    senior staff: 3>1
The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|13
                                                        Del Pr 13
Standard & optimized processes




                         Improves consistency and quality
                         Allows production and creative teams to transition
                         seamlessly between different work streams, project
                         teams, campaigns or online properties
                         Reduces total resource hours required for a job
                         Shortens turnaround time

The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|14
                                                        Del Pr 14
Global delivery model implementation

                                                                                      1.   Central team creates
                                                                                           concepts

                                                                                      2.   Local clients select and
                                                                                           customize

                                                                                      3.   Centralized production
                                                                                           team executes




      Model Benefits:
           Enforces brand standards
           Ensures the most efficient reuse of creative, content and assets
           Maximizes impact of local marketing budget
           Drives buy-in and coordination of global and local clients
The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|15
                                                        Del Pr 15
Templates and automation




                        A good production template:
                               Minimizes the effort required per piece
                               Reduces costs and turnaround times
                               Maximizes creative flexibility
                               Helps ensure brand consistency
The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|16
                                                        Del Pr 16
What determines the level of savings
    The more times you reply yes, the greater your potential for savings

Cost-effective                 Do you have a moderate to high volume of digital production?
Staff                          Are the staff costs for your current agency (or agencies) high?
Consolidation                  Do you have more than one agency (or team) doing production work for you today?

Standards                      Do you have inconsistent, inefficient or undocumented processes?
                               Do you have problems with process compliance?
Globalization                  Do you have multiple regions?
                               Is your product/brand similar globally?
                               Do you not have global campaigns – or are your global campaigns executed incorrectly in the
                               local markets?

Templates and                  Do you not have templates?
Automation                     Do you not utilize a production automation tool?
                               Do you create multiple versions of similar deliverables?




 The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|17
                                                         Del Pr 17
The business case in action
       Challenge:
               An automotive company used six                                         Step                                           Savings
               separate US-based creative                                             Decoupling and migration from US based
               agencies to support the digital                                        production staff to cost-effective location in
               marketing needs of nine brands                                         LATAM                                                25%
               Some standard tools and                                                Consolidation from 6 agencies to 1                   15%
               processes are in place, but they                                         Reduction of senior management and
               are difficult to utilize and enforce                                     administrative staff
               across multiple agencies                                                 Improved annual utilization rate allowed
       Solution:                                                                        fewer total FTE
               Decouple and consolidate to a                                            Reduction in burden on internal support
               single production agency with                                            staff (IT, legal, procurement)
               staff in LATAM                                                         Standardization and optimization of
       Results:                                                                       processes resulted in increased productivity        7.5%
                                                                                      Templating of appropriate assets resulting
               By year two, the solution was
               delivering approximately 44%                                           in increased productivity and faster
               savings year over year                                                 turnaround times                                    5%
                                                                                                 TOTAL COMPOUND SAVINGS                  44%
               Standards compliance improved
               and IT staff had their agency
               support workload considerably
               decreased

The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|18
                                                        Del Pr 18
Leading companies are reaping the benefits




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|19
                                                        Del Pr 19
Leading companies are reaping the benefits




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|20
                                                        Del Pr 20
Beyond cost there are other
                      business benefits of Digital
                        Production Outsourcing




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|21
                                                        Del Pr 21
Marketing organization benefits



         Stay focused on                                 Know you have                                    Achieve savings
       marketing objectives                            the right technical             Have access to
                                                                                                          to improve the
                vs.                                    knowledge behind                the right skills
                                                                                                          bottom line and
         worrying about                                 you to keep pace              when you need
                                                                                                            fund other
        production details                               with changing                them globally &
                                                                                                              strategic
                                                           technology                      locally
                                                                                                             initiatives
                                                          requirements




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|22
                                                        Del Pr 22
Creative agency benefits



        Focus on strategic                               Design the right
                                                                                      Better manage   Increase project
        thinking, creative                             campaign with the
                                                                                      the peaks and       margin or
            ideation                                     knowledge that                                generate client
               vs.                                     you have the right               valleys of
                                                                                         resource      savings to fund
         worrying about                                     technical
                                                                                        utilization   other initiatives
        production details                              resources behind
                                                         you to execute




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|23
                                                        Del Pr 23
The roadmap for getting started
       Understand your current needs
       Find the right partner
       Perform a complete assessment
       Develop a phase and transition plan
       Reward participation




The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|24
                                                        Del Pr 24
Learn more at:
                                        www.deliveroffshoring.com

        Read about Digital Marketing Production best
                        practices at:
              www.deliveroffshoring.com/blog

                                    Neal Prescott, CEO, Deliver
                                 nprescott@deliveroffshoring.com
                                        +1 (212) 210-4297

The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|25
                                                        Del Pr 25

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The Business Case for Digital Marketing Production Outsourcing : Highlights from the latest Deliver eBook

  • 1. The Business Case for Digital Marketing Production Outsourcing Highlights from the latest Deliver eBook
  • 2. Agenda What is Digital Marketing Production anyway? The benefits of breaking up – creative & production that is. The business case – achieve savings & efficiency by rethinking how digital marketing gets done Leading companies are reaping the benefits, how can you? Getting started. Charting a roadmap for success. The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|2 Del Pr 2
  • 3. It’s that time of year…budget time and marketing budgets aren’t getting any bigger. The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|3 Del Pr 3
  • 4. Did you know: Production costs typically represent 30-50% of a company’s annual digital marketing spend The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|4 Del Pr 4
  • 5. What if you could Save 20-50% on your digital marketing production costs? The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|5 Del Pr 5
  • 6. you could invest in That’s $ reaching more customers Through: more channels with more Programs or savings to put back to the bottom line. The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|6 Del Pr 6
  • 7. Let’s start with the basics.. The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|7 Del Pr 7
  • 8. What is Digital Marketing Production anyway? The process by which creative ideas and assets are translated into an array of digital media so that the right messages are delivered via the right channel at the right time to the right users. The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|8 Del Pr 8
  • 9. Decoupling creative & production; why some things are better separate than together Decoupling allows creative & production teams to focus on what they do best The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|9 Del Pr 9
  • 10. The business case for digital production decoupling & outsourcing rests on 5 key pillars Digital Marketing Production Outsourcing Business Case Cost-effective Team and Standard Global Templates staff activity & optimized delivery and consolidation processes model automation implementation The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|10 Del Pr 10
  • 11. Executing on the 5 pillars typically results in savings of 20-50% Templates and Cost automation Saving Global delivery model implementation Standard & optimized processes Team and activity consolidation Cost-effective staff Production Volume The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|11 Del Pr 11
  • 12. Cost-effective staff Helsinki New York London Beijing New Delhi Moscow Dhaka Bogotá San Jose São Paulo Singapore Johannesburg Buenos Aires Cost-effective markets provide a 30-60% savings over US or Western rates Highly-skilled teams offer a full range of skills, expertise & quality A good digital production outsourcing partner helps clients source the right skills & production locations to meet business needs The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|12 Del Pr 12
  • 13. Team and activity consolidation Uneven supply & demand of Stable utilization of resources resources Add staff quickly when Skill duplication needed Investment in senior staff More effective utilization of across multiple agencies senior staff: 3>1 The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|13 Del Pr 13
  • 14. Standard & optimized processes Improves consistency and quality Allows production and creative teams to transition seamlessly between different work streams, project teams, campaigns or online properties Reduces total resource hours required for a job Shortens turnaround time The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|14 Del Pr 14
  • 15. Global delivery model implementation 1. Central team creates concepts 2. Local clients select and customize 3. Centralized production team executes Model Benefits: Enforces brand standards Ensures the most efficient reuse of creative, content and assets Maximizes impact of local marketing budget Drives buy-in and coordination of global and local clients The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|15 Del Pr 15
  • 16. Templates and automation A good production template: Minimizes the effort required per piece Reduces costs and turnaround times Maximizes creative flexibility Helps ensure brand consistency The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|16 Del Pr 16
  • 17. What determines the level of savings The more times you reply yes, the greater your potential for savings Cost-effective Do you have a moderate to high volume of digital production? Staff Are the staff costs for your current agency (or agencies) high? Consolidation Do you have more than one agency (or team) doing production work for you today? Standards Do you have inconsistent, inefficient or undocumented processes? Do you have problems with process compliance? Globalization Do you have multiple regions? Is your product/brand similar globally? Do you not have global campaigns – or are your global campaigns executed incorrectly in the local markets? Templates and Do you not have templates? Automation Do you not utilize a production automation tool? Do you create multiple versions of similar deliverables? The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|17 Del Pr 17
  • 18. The business case in action Challenge: An automotive company used six Step Savings separate US-based creative Decoupling and migration from US based agencies to support the digital production staff to cost-effective location in marketing needs of nine brands LATAM 25% Some standard tools and Consolidation from 6 agencies to 1 15% processes are in place, but they Reduction of senior management and are difficult to utilize and enforce administrative staff across multiple agencies Improved annual utilization rate allowed Solution: fewer total FTE Decouple and consolidate to a Reduction in burden on internal support single production agency with staff (IT, legal, procurement) staff in LATAM Standardization and optimization of Results: processes resulted in increased productivity 7.5% Templating of appropriate assets resulting By year two, the solution was delivering approximately 44% in increased productivity and faster savings year over year turnaround times 5% TOTAL COMPOUND SAVINGS 44% Standards compliance improved and IT staff had their agency support workload considerably decreased The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|18 Del Pr 18
  • 19. Leading companies are reaping the benefits The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|19 Del Pr 19
  • 20. Leading companies are reaping the benefits The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|20 Del Pr 20
  • 21. Beyond cost there are other business benefits of Digital Production Outsourcing The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|21 Del Pr 21
  • 22. Marketing organization benefits Stay focused on Know you have Achieve savings marketing objectives the right technical Have access to to improve the vs. knowledge behind the right skills bottom line and worrying about you to keep pace when you need fund other production details with changing them globally & strategic technology locally initiatives requirements The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|22 Del Pr 22
  • 23. Creative agency benefits Focus on strategic Design the right Better manage Increase project thinking, creative campaign with the the peaks and margin or ideation knowledge that generate client vs. you have the right valleys of resource savings to fund worrying about technical utilization other initiatives production details resources behind you to execute The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|23 Del Pr 23
  • 24. The roadmap for getting started Understand your current needs Find the right partner Perform a complete assessment Develop a phase and transition plan Reward participation The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|24 Del Pr 24
  • 25. Learn more at: www.deliveroffshoring.com Read about Digital Marketing Production best practices at: www.deliveroffshoring.com/blog Neal Prescott, CEO, Deliver nprescott@deliveroffshoring.com +1 (212) 210-4297 The Business Case for Digital Production Outsourcing| 2011iver|esentation|3.5.11|25 Del Pr 25