The shift in marketing towards digital combined with the emergence of evolving agency models, alternative marketing service providers and channels are significantly impacting the traditional agency relationship. This demands new evaluation and assessment practices, closer linkage of measurement criteria to business value, and better ways to quantify and justify agency investments.

1. Building Value Into Agency Relationships
January 24, 2014
Geoffrey Colon, Group Marketing Manager, Social Media
Bing Ads / Microsoft

2. Today’s discussion
Redefining value
The evolving Agency / Partner business model
How the Consumer Decision Journey picks your agency
Social sentiment and big data as your agency calibration
Programmatic scorecards and surveys
Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

3. Redefining value
“While businesses in every
sector struggle with the
influence and disruption
digital technology has on their
business models, marketers
remain (paradoxically)
unchanged. Structurally,
procedurally, and culturally,
many agencies and marketers
look broadly the same as they
did 50 years ago. It’s Mad Men
- with computers.– Kristin Low,
ClickZ, January 22, 2014

4. Redefining value
“There is nothing so useless as doing efficiently that which should not be
done at all.” -Peter F. Drucker
The impact of digital technology and media proliferation on marketing
has largely been to streamline and increase the efficiencies of existing
methods, rather than re-define them. And when the benchmark for
success in our industry is campaigns or projects with single digit
conversion rates, it’s not hard to conclude that the methods that
underpin traditional marketing (be they digital or analog) are a wasteful
pursuit.

5. Redefining value
Hours and costs look inside the agency, but value is
created outside the agency
Agencies believe value is created inside, rather
than outside, their organizations, because they’re
paying close attention to internal activities and very
little attention to external outcomes
Turn your attention and energies to what you are
really buying from agencies
Provide value: Become an expert in
identifying, measuring, and analyzing agency
business results instead of them selling you internal
accounting data

6. Today’s discussion
Redefining value
The evolving Agency / Partner business model
How the Consumer Decision Journey picks your agency
Social sentiment and big data as your agency calibration
Programmatic scorecards and surveys
Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

7. The evolving Agency / Partner business model
Paid
Owned
Earned
Emerging
-
-
-
•
•
•
•
•
•
•
•
-
Creative
- TV
- Radio
- Print
- OOH
- Experiences
- Content Creation
Purchasing
-
Airtime
Impressions
Search
Display
-
Creative
- Website design
- Social property UX
- Ecommerce UX and
UI
Tracking and Analytics
PR
Social
Content Distribution
Tracking and Analytics
Trends
Innovation
Disruption
Start-ups
Growth Hacking
Optimization
Measurement
Tracking and Analytics
>These offerings still work where the company pays the agency in
a vendor mode based on hourly billing (planning > execution)

8. Today’s discussion
Redefining value
The evolving Agency / Partner business model
How the Consumer Decision Journey picks your agency
Social sentiment and big data as your agency calibration
Programmatic scorecards and surveys
Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

9. Open to
possibility
Consumer
decision
journey should
decide your
agency needs
01
Decision
to change
02
Evaluating
03
Shopping
04
Experiencing
05

10. Mapping the CDJ to Agency directives
If the CDJ is stacked in
experiential, how do you
also solve for the other 360
degree areas that help
amplify and track
effectiveness?

11. Today’s discussion
Redefining value
The evolving Agency / Partner business model
How the Consumer Decision Journey picks your agency
Social sentiment and big data as your agency calibration
Programmatic scorecards and surveys
Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

12. Social sentiment and big data as your agency calibration
• How are you measuring offline?
• Are you analyzing the “good data” from the “big data” to determine
effectiveness at a micro level?
• Instead of asking, “Is my agency providing ROI?” Ask, “Is my agency providing
ROI within this particular area?” e.g., general awareness of a new
product, driving traffic to experiential online Q&A, membership in a
community, etc.
• Is your paid and owned media “social by design?”

13. Today’s discussion
Redefining value
The evolving Agency / Partner business model
How the Consumer Decision Journey picks your agency
Social sentiment and big data as your agency calibration
Programmatic scorecards and surveys
Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

14. Programmatic scorecards and surveys
10 questions total per concentration:
•
Scale of 10-1
•
Strongly Agree/Somewhat Agree/Disagree
•
Objective/Provider
•
Survey is answered by both agency and
company
•
Creates three scaled graphs
•
0 to 200
•
Above 100 exceeding expectations/ Below
100 not meeting expectations
•
1x per year/2x per year/Quarterly

15. Today’s discussion
Redefining value
The evolving Agency / Partner business model
How the Consumer Decision Journey picks your agency
Social sentiment and big data as your agency survey
Programmatic scorecards and calibration
Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

16. Moving Beyond the Timesheet
Require each agency to deliver a trend
report in their field of expertise 1x per
quarter/2x per year/1x per year
Task the agency with execution
Enable digital measurement into the
equation
Build 20% of compensation into results

17. Agency Partner Checklist
 Evaluate if you have the right agency partners via CDJ tracking
Measure and map where your customer is prior to choosing an agency. If you
have a current partner, reconfigure based on the CDJ experience (Amazon)
 Invest in social sentiment software
Tracking offline and online campaigns via earned media is a must (IBM, CocaCola, Kraft)
 Create scorecards to determine relationship barometer
Are both partners meeting the objectives? Are both partners being realistic in
their asks? Has everyone refined their skillsets for success? Can we trade for
the right players to win the league?
 Prepare for the future
An agency is only as good as executing its strategy and thought leadership in
a dynamic climate

18. Questions? – gcolon@microsoft.com
Twitter: @djgeoffe
Blog: futuristlab.tumblr.com
Podcast: spreaker.com/user/futuristlab
SlideShare: slideshare.net/geoffreycolon