ZEDTalk 3: Creativity & ROI

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red salt
Pitching a tent in a
hurricane (and what that
has to do with ROI).

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Agenda
Introduction
A story about stress
Client relationships
Conclusion
red salt
Pitching a tent
in a storm

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Introduction

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Three parties determine agency value
Marketing Procurement
Agency

5. Three parties determine agency value Often feel agencies are
inefficient - time is money
- not getting optimal
value.
- thus brand performance
is inhibited and some
money wasted.
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Cost reduction is their
imperative as should be
protection of value. But
responsibility for value is
devolved to Marketing.
Measurable things are
good, so time-based
remuneration is good.
Marketing Procurement
Agency
Agencies need growth - in
SOW and better margins.
Client and talent retention
are essential.
Time-based pricing can
be sub-optimal - little
opportunity to improve
margin.
Client remuneration deals
increasingly include
payment by results.
Performance measures for
agency bonus (or malus)
often include measures for
return on investment.

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The working environment

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The working relationship
Marketing Procurement
Agency

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A story about stress

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What is stress?

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Responsibility and
control must exist in
the same place.

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Drachten -
Holland

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Client relationships

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Diminishing return on control
Value
External agency control

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Meikle matrix
Arrogance Congruity
Vanity and/or Optimal Value
Innovation
Disengagement
Compliance
Agency
Control of agency
Client
Low Agency Responsibility/
Accountability
High
Rubbish Mediocrity/
Conservatism
Higher risk,
higher ROI
Playing safe
lower ROI

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What contributes to client’s control?
Process Strategy Approvals Research
Servility Risk Dependency Time

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Meikle matrix on efficiency
Agency
Control of agency
Client
Arrogance Congruity
Highly efficient
Low Agency Responsibility/
Accountability
High
Disengagement
Compliance
Often highly
inefficient at
agency cost
Often highly
inefficient at
client cost

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Meikle matrix on business problems
Agency
Control of agency
Client
Arrogance Congruity
Question Mark Star
Low Agency Responsibility/
Accountability
High
Disengagement
Compliance
High
Market growth
Low
Market share
Dog
Cash Cow

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Agency
Control of agency
Client
Moving within the Matrix
Arrogance Congruity
Low Agency Responsibility/
Accountability
High
Disengagement
Compliance
Client
Is it appropriate
to the business
problem?

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What assurances can agencies give?
Talent Process Incentive Risk

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Agency
Control of agency
Client
Moving within the Matrix
Arrogance Congruity
Low Agency Responsibility/
Accountability
High
Disengagement
Compliance

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Conclusion

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ROI needs to be consistent
with the business problem.
And is the responsibility of the
party in control.
Clients have to trust you to let
relinquish control.

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thank you

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thank you