#BigQ2020: It’s time we talked about money

by MarkLives (@marklives) What are the industry expectations for the marketing and advertising industry in 2020? A panel of key agency and marketing execs discusses the macro environment, budgets, changes in messaging, movement in the industry and any consumer and communication trends they’ll be looking out for in the year ahead. Next up is Jupiter Cape Town‘s Michelle Beh.

Michelle Beh

Michelle BehWith over 20 years of experience in the industry, Michelle Beh works with clients to drive business performance by building meaningful and distinctive brands. She is the managing and strategy director at The Jupiter Drawing Room (Cape Town) (@JupiterCT).

There have been many discussions about how the agency remuneration system is outdated and should be changed. On the one hand, clients are asking agencies to put skin on the game; agencies, on the other, are struggling to provide better service levels at lower fees. Although there’s been much talk, little is different.

Doesn’t make sense

Procurement managers are still asking for rate cards, trying to negotiate hourly rates down and comparing agencies based on their hourly rate card — yet the time-based retainer system just doesn’t make sense.

Imagine you’re building a house. To get a quote from the contractor, you provide the vision of the house that you want to build and maybe the architect’s drawing. Sometimes you don’t even have that and expect the contractor to help you to draw it.

Then you ask the contractor how many people she will need to build the house and how much time each person needs every day. For the contractor to make more money, she needs to put as many people she can on the project (and charge senior people’s rates but use junior people to save on salary) and then make sure her staff members spend as much time as possible. It doesn’t matter if she has the right people for the job or not; she just has to justify that she needs many layers of people — supervisors to oversee the builders and junior builders to report back to mid-level builders. As long as she builds more hierarchy and justify why she needs that amount of people, she will be able to drive up the fee. She will be penalised for delivering the house with less staff and in a shorter time, so why should she?

Why does it matter to the client if the contractor needs 10 people or two? Or if each staff member spends 400 hours vs 200 hours? Don’t you just want to know that you have a house built by your deadline, according to your requirements, with the number of bedrooms and bathrooms that you need, and the finishing and quality that you want? Isn’t it better for you if the house is completed earlier and faster, so why penalise the builder if she spends less time on it?

If I bring it back to our industry, is a logo conceptualised and designed in three days worse than a logo that takes three weeks to be developed?

Why are we still looking at agency’s fees based on its resources? That should be the agency’s problem. Clients should be focused on what they want to achieve, the annual plans that will achieve their goals and the right agencies which can help them get there.

Output-based

We should be moving from a resource-based remuneration model to an output-based model as a first step.

There may be complexity as clients will need to be confident of their scope since the discussion will not focus on the resources required but the outcome and deliverables. It means that marketers need to have plans in place before a retainer discussion can take place.

It could also make the procurement’s job difficult because how do you compare an agency which charges R500 000 for a brand campaign vs an agency which charges half or double that? How do you justify the value of the deliverables?

On the flip side, agencies will need to have strong capabilities in project scoping and resource management. Their project planning and management need to be effective, as they’re committed to deliverables and not time. Things could get out of hand and very costly for agencies if they’re unable to manage projects tightly. They stand to win if they deliver the project in less time than expected, but will the quality be as high?

However, what this model does is force both clients and agencies to focus on clients’ plans, what they want to achieve and the deliverables required. Is the scope right for clients’ goals? The discussion becomes more strategic, rather than focusing on resources.

Changes

Client has been asking for more accountability from agencies in terms of linking their fees or, at least, a portion of their fees to the performance of the brand and even business. In theory, it’s a great idea as it really makes the agencies think about the right solutions for the brand and business. However, if the agency doesn’t have control over decisions, clients’ resources and even how brands are being managed, is it fair for the agency? This is when agencies becomes more critical of clients’ success measures, how they are tracked and what business impact those measurements have to justify the remuneration value.

I believe performance-based remuneration does drive more accountability on both sides as it really drive both parties to set out and interrogate the plans to achieve them, ensure plans are executed as well as possible and track KPIs.

Changing remuneration model to an output-based and performance-based isn’t easy as it requires many other changes:

  1. There must be a mindset shift from clients to understand the value that agencies can bring to their businesses. That it’s not just bums on seats and hours on timesheet. The solutions that agencies bring ultimately have business value.
  2. There must be much more accountability on both sides. Clients need to know what they want to achieve, and their strategies and plans to achieve that. Agencies need to understand them to be able to scope and put together their fees. Both parties will definitely have robust discussions about what the KPIs are for the agency and what should be tracked if they’re being remunerated based on performance.
  3. Agencies will need to restructure to be able to work within this model. First, the person discussing and negotiating with the agency will need to be able to think about the client’s plans strategically. There isn’t a need for all those layers of account executives, account managers, account directors, business directors and client service directors. Everyone needs to be adding value to the process and solution. Agencies will be looking to find the best person for the solution so they can get to the right and best solution in the shortest amount of time. Project planning becomes an important tool as you will need to be able to anticipate clients’ needs to plan who and how to deliver that in order to work out the fee.

By no means is this the best remuneration solution, nor is there a one-size-fits-all solution. But it’s time for agencies to seriously relook their remuneration model with their clients to show how they’re driving better value, interested in providing the right solutions and being more accountable.

See also

 

MarkLives logoLaunched in 2016, “The Big Q” is a regular column on MarkLives in which we ask key advertising and marketing industry execs for their thoughts on relevant issues facing the industry. If you’d like to be part of our pool of panellists, please contact editor Herman Manson via email (2mark at marklives dot com) or Twitter (@marklives). Suggestions for questions are also welcomed.

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Extract: Impact on industries in Africa’s future world of work

MarkLives (@marklives) is running two extracts from a recent Yellowwood paper, “Africa’s Opportunity in the Future World of Work”, over the next couple of weeks. Here’s the first, “Disintermediation of industries expands Africa’s access to the future world of work”.

Yellowwood September 2019: Africa's Opportunity in the Future World of WorkDisintermediation of industries expands Africa’s access to the future world of work

by Amanda Murray & Nokuthula Radebe (@askYellowwood) Africa’s cultural comfort with diversity and informal short-term work, constantly requiring the reinvention of skills in a fluid business environment prioritising consensus, means that the continent is well-placed to access the future world of work.

In future, industries and professions may not be as narrowly defined, exclusive or expensive to enter as they are today. Technology and globalisation will lower barriers to entry across most professions and industries. Technology also improves individuals’ ability to quickly and efficiently acquire new skills, allowing workers to perform a range of different tasks across multiple industries or professions.

4IR

Businesses emerging in the fourth industrial revolution (4IR) arise to meet specific, usually very narrow, needs. Initially structuring themselves as a lean core, they expand by building an ecosystem of partnerships, all focused on efficient delivery of new or better services. In this much more fluid concept of what a business is, how it grows and where it fits within a wider universe of relationships and services, there is much more room for experiment, failure and, ultimately, innovation and broader inclusion.

A culture of ‘failing fast, failing forward’ presents a broad and constantly shifting theatre of opportunity to access and service a multidimensional business ecosystem.

Technology has, for example, the potential to increase financial inclusion by reducing the barriers to capital and scale that traditionally define the financial services industry. M-Pesa, East Africa’s most-widely used mobile money platform, for example, allows Africans to transact, even cross-border, without cash, foreign exchange or even a bank account. Hundreds of thousands of previously economically excluded Africans are now economically active, able to transact and store value. Most importantly, they can also access other resources, services and opportunities through a simple mobile phone, without the need for cash.

Access

Technology has also increased the ability of businesses to quickly achieve scale by reducing the barriers to access. A surgeon in Johannesburg can, for example, today, perform an operation in rural Eastern Cape. The point is that, in the future world of work, scarce skills and resources can be leveraged much more broadly in a significantly expanded opportunity ecosystem. Skills can also easily access opportunity, regardless of where this is. Equally, people can more easily access the skills that immediately connect them to a broad and increasingly integrated — and accessible — global opportunity network.

In this much more fluidly composed and defined future world of work — where almost everything has the potential to be integrated — strict definitions of professions and industries dissolve.

In response, businesses will need to shift away from set definitions of sector expertise, choosing instead to constantly redefine what they do according to current needs, or as new opportunities evolve. In this much more cross-connected business environment, divisions between functions, professions, authority, hierarchies, skills and chains of command become a lot more fluid. With this fluidity comes increased opportunity for businesses to branch out into new sectors, accessing ever-wider opportunity as they constantly reinvent relevance across an expanding value chain.

Flexibility

For people, this means learning how to adapt skills across different industries so that each person can work, flexibly, across a range of tasks and organisations. This will also mean that learning needs to be viewed as an ongoing process, acquired through doing. In an age of information readily available to all, expertise will no longer be defined by the acquisition and retention of scarce skills or knowledge. Instead, the kinds of expertise required and valued in the future world of work are more likely to be those enabling the finding, assessing and application of readily available information and knowledge. The highly integrated and pervasive service-focus of the future economic ecosystem will also require complex problem solving, advanced critical thinking and highly developed people management skills.

The roles of the CEO and boards are, for example, being completely redefined. Today, leaders need to be ‘activist’ in the sense that they understand the broader social and environmental landscape in which they operate — taking accountability for issues in these environments. They are also tasked with building businesses that are ‘future-proof’, able to blend multiple skills, sectors and services successfully on an ongoing basis. Ensuring the sustainability of businesses within the broader human and natural environments in which they operate is also increasingly a key leadership requirement. Only platform-thinking enabled by an operational ability to move seamlessly across multiple ecosystems will enable sustainable outcomes to a much-expanded community of stakeholders in tomorrow’s economy.

Enabling Africa’s highly fluid and complexity-literate human and working culture to access broader opportunity ecosystems holds incredible promise for wider inclusion in tomorrow’s global economy. Digitising the continent’s existing and largely task-based informal economy in a global environment defined by less rigid sector, industry and professional divisions presents the continent with a historic opportunity to redefine its relevance to — and participation in — the future world of work.

See also

 

Amanda MurrayNokuthula RadebeThe above is an extract from the research report, “Africa’s Opportunity in the Future World of Work”, by Yellowwood’s strategy director, Amanda Murray, and marketing mananger, Nokuthula Radebe, published in September 2019. Focusing on Africa, it contends that the fourth industrial revolution offers the continent an opportunity to leapfrog many of the developmental, skills acquisition and infrastructural hurdles that have been contributing factors in limiting the progression of Africa. It also considers how the world of work is likely to change and addresses some of the potential implications for businesses and the people they employ. Download the full report here (registration required). “Extracts” is a MarkLives column featuring excerpts from books and research relevant to advertising, marketing and related industries.

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#BigQ2020: It’s the evolution of the world as we know it… not the end!

by MarkLives (@marklives) What are the industry expectations for the marketing and advertising industry in 2020? A panel of key agency and marketing execs discusses the macro environment, budgets, changes in messaging, movement in the industry and any consumer and communication trends they’ll be looking out for in the year ahead. Next up is Vodacom‘s Tumi Rabanye.

Tumi Rabanye

Tumi Rabanye. Credit: Leeroy Jason.Tumi Rabanye (@tumirabanye), Vodacom music portfolio manager and former Brave Group head of strategy, has over 16 years’ experience in the marketing comms industry, both client- and agency-side. She cut her teeth in strategy, a discipline that inspired the entire trajectory of her career working across broadcast, telecommunications and public service campaigns. Tumi was recognised among the Mail & Guardian Top 200 Young List in 2014, was a 2019 AdFocus Awards juror and continues to consult in the content creation space.

If the rear-view mirror is anything to go by, the road ahead looks rocky still. Marketing budgets will continue to shrink as the major spenders aggregate and insource their creative output. From an agency-client point of view, the demand for deeper understanding of clients’ businesses in order to propose the right creative with returns is ever-increasing. The time for marketers (partners included) to learn and speak C-suite language is more crucial than ever now.

Change begins within

All of the above, in my mind, spells opportunity: a new way to raise the relevance of the agency-client relationship. However, I think the change begins within and this is my 5c of how:

1. Fear of change is not a viable solution

The description of the ad industry being in an “existential crisis” is one I’ve heard most frequently over the last two years, matched with the looming redundancy of strategy’s role which data and artificial intelligence (AI) will take over. It’s also one I’m loathed to embrace as I see the exponential changes we’ve all written about as a sign of the times we’re in. We’re not immune to change — there is no sense lamenting on how we will be impacted — but a proactive look at our agency models with the objective of agility would go a long way.

2. Rise to the occasion and be liberated from short-termism

The fourth industrial revolution (4IR) is described as a time of exponential change catalysed by technology. The discussions I see and hear around the internet of things (IoT) are about how digital enablement will expedite technical problem solving, making room for critical and conceptual thinking and raising the impetus for the soft skills characterised by the humanities. Isn’t critical and conceptual thinking what the advertising… (reframe)… the marketing communications industry is about? The reorientation towards greater critical thinking, matched up with emotional intelligence, signals for me how creativity is back on the agenda to continually conscientise society — on climate change, socio-political issues or even why the composition of our FMCG products has changed. The invitation is for us to rise to the occasion and be liberated from short-termism in our thinking. As we solve for an immediate brief, let us consider the broader impact of our solutions.

3. Re-skilling for the future

The writing is on the wall for the urgency of reskilling “classical advertising agency” human resources for future fitness. In a world where creative agencies are on the radar of consultancies for acquisition, the indication is that creativity has gained in premium, not become endangered. In South Africa, however, the tendency is to maintain a myopic view of the world, where change is happening to us as opposed to us being its agents and we therefore remain under-skilled. Developing an appreciation for data and clients’ metrics of success is necessary. Exposure to the content world within telco was an incredible learning curve in efficacy of data in making creative decisions and deployment. I believe in the agency as we deepen the understanding of clients’ metrics and thus become empowered to co-craft and deliver work that gives reciprocal value.

4. SA is part of a network of markets… let’s act the part

SA is part of a constellation of gateway markets to the continent of Africa, along with Nigeria, Kenya, and Mauritius. The Loerie Awards property and Effies are proof of the broadening horizons. While it’s great to lean on localisation, the media landscape we serve is interconnected. One need only take the cue from the telcos and the MultiChoices of this world. Gone are the days when we were a singular, isolated market; even more so, gone are the days when clients’ budgets were deployed as such. Intensifying our value by understanding the regions we serve i, means accepting that EMEA, SSA and SADC are no longer the preserve of the “Africa” office. The reality is we are located at the southern tip of our great continent and we compete as such for global budgets.

5. Gender and so much more staying on the agenda

Feminism! Gender activism! Whatever you want to call it, two things are clear — as the world’s population is definitively majority female and more ethnically diverse, so it goes for Africa and SA. Today, representation is table stakes. Many a boardroom have I sat in where this echo of who our consumers are registers as an activist point, as opposed to a statement of fact. As the industry grapples with transformation in gender and diversity in its boardrooms and management structures; I think the creative challenge is to see output through a less-heteronormative lens. Needless to say, it’s a point I don’t tire of making and, for the purposes of future trends. I register this point as the basis for a creative revolution.

The world’s most-noteworthy global campaigns today demonstrate the audacity to challenge many of the existing heteronormative stereotypes, from disability to race and gender. In reality, the changes we’re witnessing aren’t an occasion; they’re who we’ve become, and it’s time to live it creatively, not only on Women’s Day, Africa Day, or Human Rights Day. Those are great for punctuation… but we have changed! Fact!

See also

 

MarkLives logoLaunched in 2016, “The Big Q” is a regular column on MarkLives in which we ask key advertising and marketing industry execs for their thoughts on relevant issues facing the industry. If you’d like to be part of our pool of panellists, please contact editor Herman Manson via email (2mark at marklives dot com) or Twitter (@marklives). Suggestions for questions are also welcomed.

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Thinking B2B: What does a B2B brand marketing team look like in 2020?

by Warren Moss (@warrenmoss) Now that it’s 2020, it’s time for the South African B2B marketing industry to start looking at what a B2B brand’s marketing team should look like in order to ensure that they position themselves to take advantage of all strategies, tactics and techniques that are available to B2B marketers in the 21st century.

Broadly speaking, B2C marketing teams in South Africa are actually of very high marketing maturity and do very progressive work at a world-class level, while most local B2B marketing teams have a much-lower marketing maturity, based on the lack of a B2B marketing ecosystem consisting of education, agencies, conferences and awards. It’s time to set this right but the first step requires one to identify what type of a B2B brand marketing team one is part of.

Having been in the industry for a while now, I’ve discovered that B2B brand marketing teams may be broadly categorised in three ways: pre-modern, modern and post-modern.

Pre-modern

Let’s look at the part of the industry that has the lowest B2B marketing maturity — the pre-modern B2B brand marketing team. Historically-speaking, a B2B brand’s marketing department was a loose assembly of people who weren’t necessarily trained in marketing. They often came together because they progressed through their companies as PAs, secretaries and admin people who outgrew their roles — they organised events and participation at trade expos, hosted customers on behalf of the sales teams, arranged suites at sporting events and made sure there was always branded collateral (t-shirts, pens, caps etc) available. They were the events team and the design team who occasionally did a basic print ad for a trade publication. The pre-modern teams came together and operated under a supplier mentality — subservient within their own business.

The vast majority of B2B brand organisations in SA which have a marketing function still look like this. Whenever I onboard a new client who’s never worked with a specialist marketing agency before, the first part of the job is upskilling and educating that marketing team because of a combined lack of pure B2B marketing capability and maturity.

Modern

The middle ground, to an extent, is the modern marketing team. Half of the team still has that supplier mentality; they’re still doing events, trade expos and basic design. The other half is adding some measure of strategic marketing value to the organisation; they’re the ones who found themselves part of the department when someone higher up decided, a few years ago, that the company needed to ‘do something in the digital space’. So, they brought in a social media or digital person who’s inevitably a lot younger than the rest of the team and not always a good fit culture-wise with the organisation. The exact role that these shoehorned digital people play in the team is often largely mysterious and misunderstood to the other members — and. since nobody entirely understands what they do, they tend to wield a lot of power. They add an element of strategic value to the business, but the business isn’t necessarily ready to receive it.

This leaves the team caught between the old and new way of doing things in the B2B marketing space — but these are also the teams that I like to work with, because they’ve at least taken a few tentative steps towards becoming post-modern B2B marketing departments. The hybrid nature of these teams is that some of the members add strategic value to their organisations while the other members are suppliers; it causes chaos.

Post-modern

Post-modern teams are the ideal. They’re structured in terms of the value they add to the business: not how the business sees its customers but what the business’ customers really look like. If, for example, the company distinguishes its customers by their size — small, medium and large enterprises — the post-modern marketing team’s roles reflect this structure. It makes the organisation’s marketing effort much more customer-centric. They add value to the customers, rather than just selling products or services to them. The team that looks after large customers is skilled in the type of marketing work that’s relevant and effective to enterprise-level businesses with complex processes and long buying journeys. The team which looks after smaller customers has specialisation in marketing techniques which have more of an impact on businesses without many layers and which have quicker buying cycles.

This requires a B2B brand to have a truly customer-centric worldview and see it from an outside-in perspective, as opposed to an inside-out one. I’ve seen many B2B organisations structure their teams based on what they sell as opposed to who their customers are. If you’re a product-marketing person or a solutions-marketing person or you represent a vertical, then you’re part of a modern marketing organisation, not a post-modern one.

Underpinning post-modern B2B marketing teams is a real competence regarding marketing technology and digital capabilities; they’re all about the value-add and the benefit to the customer. When organisations stop thinking about selling products and services and focus their thinking on adding value to their customers, helping them grow their businesses and cutting down on marketing wastage, they’ve truly matured into a post-modern department — and are therefore best equipped to thrive in the 21st century B2B marketing world.

 

Warren MossWarren Moss (@warrenmoss) is the CEO and founder of Demographica, a multi-award winning full service agency that specialises in the B2B category. He has been chair of both the Direct Marketing Association of South Africa (DMASA) and the Assegai Integrated Marketing Awards (Assegais), as well as the only African to judge the B2 Awards, which recognise the top performing B2B marketers in the world. Warren contributes the monthly “Thinking B2B” column, which looks at the latest trends in B2B communications and explains why it is fundamentally different from B2C comms.

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#BigQ2020: Speed to market in a cancel culture

by MarkLives (@marklives) What are the industry expectations for the marketing and advertising industry in 2020? A panel of key agency and marketing execs discusses the macro environment, budgets, changes in messaging, movement in the industry and any consumer and communication trends they’ll be looking out for in the year ahead. Next up is Joe Public United‘s Leigh Tayler.

Leigh Tayler

Leigh TaylerLeigh Tayler (@LeighAnneTayler) is the strategy director at Joe Public United. During her career of more than 12 years, she’s worked in just about every imaginable category and has fostered a well-rounded and instinctual approach to strategic thinking that she applies at every level, from big brand concepts to last-mile moments of truth.

The past few years have seen a swing in the seats of power in the marketing and advertising world; brands and marketers are no longer in power — more and more the public are. I know this isn’t new news and this article is meant to be about future predictions, but this is a trend that’s no longer a trend but reality. So where to from here?

Speed to market

As we came to the end of 2019, there were several words buzzing around, one of which was “speed to market”. This is a term that many established and sizeable brands and, I’m sure, their ad agencies wish would drop dead, because it’s a hard one to get right. Complicated internal and external processes, production budgets and standards, corporate identity adherence, legal compliance, and many other barriers stand in the way of producing creative that keeps pace with the speed of culture.

Considering that most clients and their agencies are structured in a way that makes the Titanic look nimble, “speed to market” is at odds, too, with the very ways of working most of us in this industry live by. For brands to act in this manner, they need to be agile, intuitive, confident, responsive, proactive and have their eyes peeled, ears open and fingers ready 24/7.

I suspect that this notion will be the critical business imperative for marketers and ad agencies in 2020, as it’s firmly entrenched as the new normal.

Consumers are fickle and bursting with expectation from brands and how they behave within the consumer’s world. Brands must earn the right to take part in culture; it’s no longer a given as it has been in decades past. In order to earn this right to participate, brands need to authentically show up in the moments where culture is happening, in real time, and not three days or six weeks later. Speed like this requires bravery, gut instinct, and the freedom and confidence to leap into the unknown, because this kind of speed doesn’t allow for multilevel approvals, massive productions and post-productions, nitpicking, countless reverts and revisions, and definitely not box-ticking.

To do this authentically, brands need to be as engrossed in the world of their consumers as their consumer is: always listening, watching and engaging as if they were just any other being surfing culture. Brands must also be careful not to co-opt but to build on the existing wave of culture and, ultimately, to add value to those engaged in any given aspect of culture or sub-cultures.

Cancel culture

This leads me to the second aspect of my prediction and yet another buzzword doing the rounds: “cancel culture”. As if marketers and advertisers weren’t facing a big enough challenge already with having to adapt to be less Titanic and more Millennium Falcon, now they need to be cautiously brave — but at speed.

One wrong step and you are “cancelled”. This is the 2020 version of leprosy, the scarlet letter, or being at the bottom of any high-school hierarchy. In the eyes of society (virtual society), you cease to exist. You are excommunicated, forbidden from participating in culture, your airtime is shut down and your name is worth less than the data used to tweet about it.

As I’ve said, consumers are fickle and powerful and brands need to earn their place in consumer’s lives, earn the right to participate and keep on earning it. A brand’s credit is only as valid as its last interaction. And while for as long as brands have existed, some of them have been tacitly ‘cancelled’. Now consumers are empowered to do it at an accelerated level, the speed of cancel culture is staggering. They will take no prisoners as they become increasingly militant about holding brands accountable to their words and actions.

Who remembers Total Sports and the 2019 World Cup Eben Etzebeth posters saga? No one. That’s because Total Sports was cancelled.

So, just to be clear: Brands must be brave, leap into the unknown, think less, act more and react at the speed of culture. But they must also be cautious, not offend, not cross any lines and take time to consider the implications of their actions and choice of words.

Shift perspective

How does a brand get speed to market right when operating in a cancel culture?

Brands need to shift their perspective. They need to move from being cautious to being conscious, from being careless to being conscious. With greater consciousness (in other words, social awareness and self-awareness), brands can act at the speed of culture, safe in the knowledge that they aren’t going to get cancelled. Probably. Well, most of the time.

There are always risks when engaging consumers in an environment where they have most of the power but at least if you’ve acted authentically and consciously and have built up some credibility, any wrong step may not result in cancelling but just a short timeout, maybe.

If brands enter this arena with a great deal of awareness — of both the rules of the culture they wish to engage and of their own limitations in engaging in this culture — chances are they will be accepted with open arms and treated fairly.

There are already brands getting this very right. Take Budweiser: 15 minutes after some guy took a baseball to the gut to save his Bud Lights, the brand (aka the agency) had commented; a few hours later it had a t-shirt designed with the man’s face on it; and a few days after that it had a TV commercial leveraging the incident on air. Apex Marketing estimated that this earned media stunt garnered media value of US$7.2 million for the brand.

Moral of the story? There are massive gains to be won by participating in culture, and at the speed of culture, as long as the brand in question has developed a keen sense of self-awareness and social awareness.

See also

 

MarkLives logoLaunched in 2016, “The Big Q” is a regular column on MarkLives in which we ask key advertising and marketing industry execs for their thoughts on relevant issues facing the industry. If you’d like to be part of our pool of panellists, please contact editor Herman Manson via email (2mark at marklives dot com) or Twitter (@marklives). Suggestions for questions are also welcomed.

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Q5: Beyond the hashtag with Ingrid Lotze & Gavin Moffat [interview]

by Carey Finn (@carey_finn) Ingrid Lotze (@ingridlotze) and Gavin Moffat (@gavinmoffat) — the co-founders of communication training, reputation management and brand development agency, join.the.dots Academy, and who are also behind transformation and gender diversity and inclusion agency, Hers&His — weigh in on the way we talk about social justice, and what brands can do to help.

Q5: You’ve said we need to think about the use of hashtags in communication around gender-based violence. Could you explain?
Ingrid Lotze: From a branding and marketing campaign perspective, hashtags are a great idea because they’re easy to understand, can be a driving force for a cause or idea and can gain great momentum and traction. The challenge is that there needs to be action and progress behind the hashtag. Many a social activist posts comments and hashtags from the comfort of their home without actually making a real contribution to the cause they support.

When we drill down into specific hashtags, the invitation is to think twice about concepts and ideas that are being promoted with a hashtag. #MenAreTrash is a good example. Words matter, and they can hurt. This hashtag is hurtful to men and blames the man, not the behaviour. If we keep blaming and “othering”, we’re not going to find solutions to the diversity and inclusion challenges the world is facing, let alone the issues related to gender-based violence in South Africa. When we communicate in any form, on any platform, I would encourage everyone to think about their intention and the potential impact.

If the intention is to build gender equality, then #MenAreTrash will not have the desired impact. All it will do is bring up defensiveness and shut down co-operation between genders.

Q5: Would it be accurate to say you encourage “talk-out” rather than “call-out” culture, ie conversations, rather than accusations, when it comes to working through certain societal issues?
Gavin Moffat: Yes, we encourage a “talk-out” rather than “call-out” culture, and I’m tempted to create the hashtag #TalkOutNotCallOut — but we’ll stick to the argument that hashtags are a tiny part of the big pie.

The most-common way of telling someone you don’t like what they are doing is referred to as Calling OUT. The call-to-action to people is to Call IN. When we call people IN, we come from a place of curiosity and openness with an intention of listening and talking with an open heart and mind.

Calling someone IN (or Talk-Out) starts with a genuine question that checks on the facts about the other person’s actions/words rather than jumping to our own biased conclusion. When we call in, we listen to hear, not listen to respond with your next good retort. With the aid of genuine curiosity and calm and considered communication, we invite the person into our perspective and explore if there is a different way to see things for both of us — knowing that consensus may not happen.

Calling IN allows for connection through dialogue and exploration rather than disconnection through blaming and shaming, which is what calling OUT does. That being said, we do find that occasionally calling OUT is needed as a response to something said or done.

Q5: When it comes to issues of social justice, do you think it’s possible for brands to be neutral?
IL: There is always an argument for and against standing for social justice, and research tells us that corporates/brands who take a stand against injustice, in the right way, with purposeful and carefully thought-through actions and communication, can:

  • Build trust
  • Increase exposure
  • Build loyalty by associating the brand with a purpose

It is important to remember the words of Archbishop Emeritus Desmond Tutu: “If you are neutral in situations of injustice, you have chosen the side of the oppressor.” Having said that, if you are not an authentic brand, you’re not going to engage with your customers. If you don’t walk the talk, you’re going to lose customers.

If you do not take a stand for the things that are important to your customers, you [run] the risk of them believing that you are only in it for the cash. If you are building a sustainable brand, your intention should be to walk the journey with the people who do business with you.

Q5: What can brands actually do to help make society a more-positive, -progressive place?
GM: It is not actually a brand’s job to change the world; it is their job to do the business, and yet this doesn’t mean that they must do nothing. It means that they must ensure that they are making an impact on society in a positive and progressive way that makes the space for all other stakeholders, including each individual, to make a positive difference in society. Everyone can contribute.

To start, brands can:

  • Look at the customers
  • See what they are struggling with and the issues they are facing
  • Stand for what they need — or part of what they need
  • Stand for social justice
  • Run corporate initiatives internally and externally
  • Continually ask: “How can I make a difference?”

Q5: What is one thing adland on the whole can do to help the gender equality cause today?
IL: There isn’t just one thing, but there are many easy, small things that can make a big impact on gender equality.

  1. Remain curious. Your unconscious bias is just that — unconscious — and it is a blind spot, so check and recheck your intention with everything you’re planning on doing and vigorously test the possible impact with various parts of your target audience.
  2. Dismantle biased and stereotypical representations that perpetuate harmful gender norms.
  3. Use gender-neutral language in all documentation and communication — always.
  4. Did we mention #BeCurious? It is through curiosity that we explore, learn and shift behaviour.
  5. The change can’t be achieved overnight but every brand and individual can contribute to gender equality and the data is clear — empowered women transform societies. There is no reason not to do the work.

Connect on Linkedin with Lotze and Moffat.

 

Carey FinnCarey Finn (@carey_finn) is a writer and editor with over decade and a half of industry experience, having covered everything from ethical sushi in Japan to the technicalities of roofing, agriculture, medical stuff and more. She’s also taught English and journalism, and dabbled in various other communications ventures along the way, including risk reporting. As a contributing writer to MarkLives.com, her regular column “Q5” hones in on strategic insights, analysis and data through punchy interviews with inspiring professionals in diversive fields.

Sign up now for the MarkLives newsletter, including Ramify.biz headlines, emailed every Monday, Wednesday and Friday!

Q5: Mathe Okaba on #EffieAwardsSA & future-fit leadership [interview]

by Carey Finn (@carey_finn) Mathe Okaba, CEO of the Association for Communication and Advertising (ACA) South Africa, chats about her role, the inaugural South African Effie Awards, and nurturing young talent.

Q5: Could you tell us a bit about your role? What does your task list look like?
Mathe Okaba: My role is to offer strategic oversight and guidance for the ACA. [I] ensure delivery of industry initiatives that shift the needle, such as ensuring the setup of the MAC Charter Council and driving true transformation within. My top three on my task list are: delivery on the MAC Charter Council, informing and shaping the Copyright and Performers Amendment Bill, and, most importantly, ensuring a happy and solid team that will support me in delivering all initiatives required of the ACA by its members.

Q5: Moving to the organisation itself, we know the inaugural South African edition of the Effie Awards will be taking place this year — could you tell us about those plans, and what else is on the ACA’s agenda for 2020?
MO: This is a very exciting project that the ACA is embarking on. Numerous brands and agencies have earned their peers’ well-deserved respect by winning an APEX Award and, while it may be the end of an era, it is the dawn of an exciting new period on the awards calendar in our industry and on the continent.

Effie South Africa logoWhile it remains focused on effectiveness, the Effie Awards will look vastly different from the APEX Awards. The Effie Awards [is] known by advertisers and agencies globally as the pre-eminent awards [show] in the industry, and recognise[s] any and all forms of marketing that contribute to a brand’s success. Moving to Effie means that our industry will gain the recognition it richly deserves on the global stage — for the value it adds to business success — and claim its seat at the table alongside the world’s leading effective marketing campaigns. The ACA will be in a position to provide more information on the awards programme in due course. We promise to excite the industry, so please buckle up and enjoy the ride. [According to a December 2019 press release, “Effie South African finalists and winners will receive points towards the Global Effie Index, which ranks the most effective marketers, brands, holding companies, agency networks, agency offices and independent agencies globally. The Effie Index will also determine the local rankings.” — ed-at-large]

For 2020, we want to create an association that is accessible to all industry players, which is future-fit and agile. We aim to create more-interesting networking sessions, which are thought-engaging and contribute to knowledge creation.

Q5: Let’s talk about young people and the industry — besides bursaries, what can be done to support and nurture them?
MO: Young people in the industry are critical to the success of our sector. We need to develop leaders who are future-fit and are brave [enough] to take on future challenges. To integrate the younglings, we have developed a networking session of youthful peers called Future Ballers, which happens quarterly. Currently, the sessions are only held in Johannesburg but we intend rolling them out in Cape Town from 2020, too.

Q5: What can agencies do to position advertising and marketing as strong, rewarding career paths?
MO:
As the ACA, we are currently working on a strategy, which was developed by the industry, that positions advertising and marketing as a viable career. Our aim is to create awareness of advertising as a career to school learners and their parents. We have realised that our career doesn’t have high levels of positive awareness and, as such, would like parents and potential employees to know that “creativity pays off”.

Q5: What interested you in this field when you were starting out?
MO: Back in the day, I didn’t want to conform; being a revolutionary was in my nature. I didn’t know any young black women in advertising. Most of my peers were running after being lawyers, doctors and chartered accountants. So, I chose the alternate: ADVERTISING. My mother was opposed to this but warmed up to it as time went on. Now I am here and joyfully here. Passion keeps me here.

  • Connect with Okaba on LinkedIn
  • Find out more about the South African Effies at effieawards.co.za, including social media handles and award entry workshop dates

See also

 

Carey FinnCarey Finn (@carey_finn) is a writer and editor with over decade and a half of industry experience, having covered everything from ethical sushi in Japan to the technicalities of roofing, agriculture, medical stuff and more. She’s also taught English and journalism, and dabbled in various other communications ventures along the way, including risk reporting. As a contributing writer to MarkLives.com, her regular column “Q5” hones in on strategic insights, analysis and data through punchy interviews with inspiring professionals in diversive fields.

Sign up now for the MarkLives newsletter, including Ramify.biz headlines, emailed every Monday, Wednesday and Friday!

#BigQ2020: Personal, visual & always visible

by MarkLives (@marklives) What are the industry expectations for the marketing and advertising industry in 2020? A panel of key agency and marketing execs discusses the macro environment, budgets, changes in messaging, movement in the industry and any consumer and communication trends they’ll be looking out for in the year ahead. Next up is Hoorah Digital‘s Shaune Jordaan.

Shaune Jordaan

Shaune JordaanShaune Jordaan, CEO of Hoorah Digital, is passionate about delivering world-class results to brands and building a digital culture that drives change. He’s the former co-founder/CEO of an award-winning performance digital agency with an extensive global client list and has worked extensively across the globe, growing digital portfolios and leading digital transformation. He is one of Africa’s most-experienced digital leaders.

Personal, visual and always visible — these are the ingredients for connecting with customers in 2020.

Since long before we knew to call it “personalisation”, this form of marketing has worked to make customers feel seen, heard, understood and appreciated. Back in the day, if the person at the corner shop knew your name, or asked after your family, this was seen as good customer service, and ultimately made one feel part of a particular community. It’s thus fair to say that personalisation isn’t a new thing but, in the digital age, it’s certainly a necessary thing — giving those who employ it smartly, discreetly and efficiently an edge in an ever more crowded online space.

Personalisation uses the insights garnered from customer data to inform creative and communication plans that place the customer at the centre of the strategy.

Every touchpoint

Gone are the days when inserting an individual’s name into an emailer was the extent of the personalisation. Today, tomorrow, and every day in 2020, that will be the bare minimum that customers expect in communication from brands. Personalisation at the micro level, where it makes the most-significant impression, relies on mining and interpreting data to enhance the customer experience (CX) at every touchpoint in the digital journey.

A brilliant example of personalisation done right was the April 2019 Puppo campaign by Colenso BBDO Auckland, which saw a bespoke ad created for every registered dog in New York. An algorithm extracted information on each of the 100 729 dogs registered on the New York City Dog Licensing Dataset. This data was then linked to a Puppo health benefit which, through the use of modular copy and an art direction system, saw the creation of a unique ad for every dog. Dog owners were targeted, via their postal codes, in campaigns that included posters, digital display and digital out-of-home ads. The agency reported that, in just one week, website users increased by 68%, of which 28% visited as a result of the posters. A further result of the personalised ads was that organic search for “puppo” went up by 144%.

What’s clear here is that the combination of creative personalisation and media tech is a key attribute in helping to drive meaningful results in the online space. As such, first-party data, which refers to the information a brand has collected about its audience, is vital as it helps to inform strategies aimed at upselling and cross-selling. Brands that have multiple products, such as banks, insurers and retailers, in particular may benefit from an approach that personally targets the customer at various points in the sales lifecycle.

Micro-moments

Research suggests that customers today not only expect personalisation by brands but are often disappointed and frustrated by those who don’t customise their messaging down to the individual level. The brands most likely to thrive in the era of hyper-personalisation are those which leverage “micro-moments” as additional opportunities to deliver relevant, creative content personalised to the needs of the individual.

Micro-moments refer to the reflexive act of turning to a smart device in order to do something, know something, watch something, buy something or go somewhere. These moments are characterised by intent and it pays for brand to be visible at the moment of intent.

Being visible (and accessible) at the moment of intent is what matters most. Ensuring that each customer has the most-relevant experience is crucial to the success of the micro-moment experience. Nestlé Waters is a case in point. The brand’s challenge was that retailers owned the relationship with customers because it was in-store that customers tended to interact with the brand’s products. It realised that search is the digital marketing equivalent of prominent shelf space in store. Nestlé Waters worked to ensure it was visible at the moment of intent, and further cemented the burgeoning relationship with content that drives relevance.

Visual revolution

Visuals are one of the earliest ways humans used to communicate. They precede the written word and have the ability to convey context, content, emotion and more. Seen from that viewpoint, and considering the ubiquity of smartphones with cutting-edge visual capability, it’s little wonder that we find ourselves in what may be called a “visual revolution”.

We’ve known since the days of Ernest Hemmingway that showing matters more than telling. Though his advice was literary in nature, we know today that people want to see things. As we become ever more visually literate, we want to be reached with powerful visuals, quirky emojis, memorable videos and the like to communicate what we think, feel and want.

For brands, it’s crucial to understand visual storytelling and to know how to strategically leverage and apply it in a way that resonates with people at the right time, in the right place and for the right reason. While data offers the insights, visuals give the edge. Being visible, in the moment, matters greatly. At the end of the day, it’s important to remember that there’s a person at the receiving end.

See also

 

MarkLives logoLaunched in 2016, “The Big Q” is a regular column on MarkLives in which we ask key advertising and marketing industry execs for their thoughts on relevant issues facing the industry. If you’d like to be part of our pool of panellists, please contact editor Herman Manson via email (2mark at marklives dot com) or Twitter (@marklives). Suggestions for questions are also welcomed.

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#BigQ2020: Back to the future

by MarkLives (@marklives) What are the industry expectations for the marketing and advertising industry in 2020? Kicking off our “Big Q” column for the year, a panel of key agency and marketing executives discusses the macro environment, budgets, changes in messaging, movement in the industry and any consumer and communication trends they’ll be looking out for in the year ahead. First up is DUKE‘s Wayne Naidoo.

Wayne Naidoo

Wayne NaidooWayne Naidoo (@WNaidoo) is the founder and CEO of DUKE, which he founded after leaving his position as CMO at AFB (now JUMO), one of Africa’s fastest growing-consumer finance groups. He is currently chairperson once again of the Association of Communication and Advertising (ACA) of South Africa and was runner-up for MarkLives #AgencyLeaders2018 Most Admired Ad Agency Boss in Cape Town. Wayne is also the former CEO of Lowe & Partners SA, a former chairperson of Young Presidents Organisation (YPO), and a former director of the AAA School of Advertising.

Every new year comes with its trends and innovations, hip ways of doing things and that one new thing, process or tool that we never knew we couldn’t live without. We’ve tried all the ‘new’ things and clever ways of doing stuff; we’ve gone for all the latest crazes and tried new processes; followed the fakers and influencers; and streamlined, outsourced and handed our business over to consultants. And, yet, we are still sitting at one of the lowest points in advertising history.

Lost our way?

With all our future-forward thinking and planning for the next best thing, it seems we’ve lost our way in advertising — brands have become risk-averse; ads are safe and boring. The great admen who were once considered great business leaders and partners are now mere lackeys who tiptoe around clients as yes-men, instead of being respected and appreciated for adding value to their business. Marketing has forgotten how to engage with people’s soul and imagination; we’ve neglected creativity and innovation in our obsession with cost-cutting and saving money. We’ve lost the nuances of charm, engagement and empathy in our communications and have become a generation of implementers who’ve skipped the advertising basics.

So, just perhaps, in 2020 we should ditch all the cleverness and great new things and focus on the going back to the old ways of doing things, the ways that worked and created powerful, memorable advertising? Let’s get back to basics, to what the core of effective advertising has always been: delivering results to our clients and adding value to their businesses. No more shortcuts and knee-jerk responses, no more clever tricks and baffling with digital BS — it’s time to revert to the fundamentals of advertising.

I’m the first to admit that our digital era has been hugely beneficial and has certainly simplified and enriched so many aspects of our lives. But we’re all still grappling with so much ever-changing data and constant updates that, all too often, our responses are so reflexive and lacking in proper well-planned, methodical strategy that we miss the point. What we thought was urgent and a big strategic digital “opportunity” often never amounted to anything at all and our response was lacklustre, at best, and ultimately a waste of time. The immediacy of the digital age has us rushing to do stuff and forgetting why we are doing it. Just because digital allows us to react immediately doesn’t mean we need to. We don’t need digital communications to just fill a space; we need them to be impactful and meaningful.

Fundamentals

In 2019, Facebook and Google overtook all print and TV advertising globally. So, how about we take these fantastic tools and in 2020 we use them effectively? Let’s think about the fundamentals of advertising and apply them to enhance the great new ways of doing things. Before we throw an ad online, perhaps we should think about what we’re aiming to achieve with it — is it conversion? Is it about brand loyalty? Is it about sales? Is anyone even asking these questions? Are we considering the traditional brand-building exercises, winning trust, growing loyalty, and looking at pricing and customer experience?

The digital space is an incredible real-time space in which advertisers have been afforded to play, but we oftentimes get carried away with the medium and forget to apply the traditional tenets of advertising. We get so caught up in the tool that the art of communication is neglected. Every advertiser knows that their most-important tool with which to truly get their brand to shine is creativity and, even in this fast-paced digital age, creativity is the only thing that is truly sustainable. At the end of the day, with all the cleverness around us, it’s creativity that allows us to marry our brand with a consumer. No matter how niched and targeted our medium — it’s the creativity of our message that has to land their hearts. When we don’t keep our eye on the fundamentals of our advertising, things get messy and disjointed and the results (or lack thereof) speak for themselves. Our advertising has very little to show for all the wonderfulness of the advances we’ve taken on in the last 20 years.

I’ve no doubt that there will be new progresses in 2020 and enhanced ways of doing things and we should certainly embrace them — growth and development challenges us and prevents us from stagnating. What I know for sure, however, is that the winners of the future will be those who take those new innovations and still remember to apply the tools and thinking of the past.

See also

 

MarkLives logoLaunched in 2016, “The Big Q” is a regular column on MarkLives in which we ask key advertising and marketing industry execs for their thoughts on relevant issues facing the industry. If you’d like to be part of our pool of panellists, please contact editor Herman Manson via email (2mark at marklives dot com) or Twitter (@marklives). Suggestions for questions are also welcomed.

Sign up now for the MarkLives newsletter, including Ramify.biz headlines, emailed every Monday, Wednesday and Friday!

Extract: How to Tango with a Tiger — Ritchie on finding the right agency

MarkLives (@marklives) is running four extracts from New Zealand client and agency specialist Sarah Ritchie‘s second book, “How to Tango with a Tiger: a marketer’s guide to working with creative communications agencies“, over the next few weeks. Here’s the first, “Finding the right agency”.

Sarah Ritchie's How to Tango with a Tiger book coverFinding the right agency

by Sarah Ritchie. Trying to figure out which agency will be the right ‘fit’ for your company can be like trying to pick the right school for a child. You can physically go to the school and have a look around. You can meet the Principal and talk to other parents. But you won’t know if your child will be happy there until they start attending. You just have to make the best call you can at the time. Figuring out if you will like working with a particular agency is very much the same.

The best way to get intel on an agency is to talk to their current and past clients, and you can probably find the client list you are looking for on the agency’s website. An agency should also be prepared to give you contact people you could call (as referees), should you wish to check them out further.

Agencies are as different as they are numerous. If it’s not possible to get first-hand feedback, here are some tips to help decide whether an agency will be the right one for your company.

What are you looking for?

First and foremost, you are looking for a service provider. The output that an agency can supply is more important than how well you get on with the agency owner, account manager and creative team. However (and it’s a big “however”), if you don’t get on with the people you are doing business with, it’s likely to be an unpleasant arrangement, and life is too short for that! Therefore, when you are selecting an agency to work with, the services they supply are #1, with how well you gel with the team #2, following close behind.

Why are you looking for a new agency?

Are you looking to establish your first agency relationship? Has your marketing strategy changed, which means that your requirements for specific capabilities and skills have changed? Is senior management requesting that you find a new agency supplier? Does your procurement policy dictate you change agencies every few years? The reason you are looking for an agency will affect where you look, how you look, and the type of agency you need to target.

Where can you start looking?

There are various avenues that you can try to find agency suppliers within a particular speciality or field. You can approach your local marketing association for an agency list, or an association relating to areas of the creative communications industry (eg advertising, media, public relations, experiential, digital, social, etc).

You could ask colleagues in your company, or marketers within other companies, of the agencies they have used in the past, or are familiar with. Networking events could be useful in this regard as they can be an excellent place to canvass opinion.

Attending creative award events is another excellent place to get up close and personal to other marketers and their agencies. Not only are you able to talk to both marketers and agency representatives in person, but you can also see which agencies are nominated for the awards and assess the quality of their work.

Over time, you will build up an archive of agencies in your memory. You’ll pick this up from things like your personal experience, magazines that you’ve read, or industry news articles that you’ve received. It’s a good idea to keep a list of agencies and their capabilities and make a special note of any agencies that impress you or resonate with your marketing activities.

You could put the word out to the industry in the form of an RFI (request for interest) or RFP (request for proposal) to encourage interested parties to come to you. Before you do this, you need to understand what that process entails, the internal resources that you will consume from start to finish, and whether the outcome will be truly worth it.

Alternatively, you could save yourself the hassle of running an RFP and consider using a specialist third-party consultant to help you search for the right agency, such as TrinityP3 (trinityp3.com) [or Yardstick or IAS in South Africa — ed-at-large].

Factors that will influence your decision

Services

What short- and long-term services do you need an agency to supply; what do they excel in producing; and do the two align?

Are you looking for a ‘generalist’ agency that can work across a selection of channels with ease and provide a wide range of creative expertise under one roof? Or are you looking for a ‘specialist’ agency that has built its reputation on one or two key services?

Size

Size is an obvious difference. Working with an agency of six people will feel chalk-and-cheese to working with an agency of 200. The two agencies will operate differently, interact differently, plus the team output capability will be vastly different.

With a small team, you’ll get to know everyone. In a large agency, you’ll likely forge a relationship with your account management team but may only rarely meet with other agency team members, and you may prefer this arms-length type of business relationship.

Large agencies are often not interested in working with small clients. There may be too much effort required for not enough money; or their process-driven, people-heavy structure is not geared to offer a cost-effective solution for smaller budgets. The converse may also be true, whereby a small agency may not be able to (or wish to) work with larger clients, though it’s easier for a small agency to resource up if required and so may be more open to having that initial conversation.

It’s important to note that the size of an agency may help you with the quantity of output or the breadth of expertise, but it is no indicator of the quality of work that you could receive.

Ownership

Who owns the agency? An ‘independent’ (indie) agency is privately owned, and the founder/owner of the agency typically works in the business day-to-day. A small-to-medium sized team run by a managing director will have a different vibe to a network agency run by someone who may or may not be personally invested in the business outcomes of the agency.

A network agency is part of a wider ‘group’ of agencies. They are often large (although sometimes there are smaller agencies within the group) and the group will have multiple offices, both in your own country and internationally.

If your company is a multinational, it’s highly likely that you will be required to use specific agencies that your off-shore-based head office selected under a globally negotiated deal. These agencies will likely be part of a network group.

An owner-operator agency will be able to make decisions quickly, whilst a network (or board-controlled agency) will likely be bound by red tape, processes, and consultation requirements (but the results may be more robust).

Labels

‘Design agency’ vs ‘independent agency’ vs ‘advertising agency’ vs ‘1-to-1 agency’. Understanding labels, such as these, will help you to understand the services an agency offers. You’ll also get a feeling about the size of the company, and maybe also catch a glimpse of the ethos of the agency.

Clients

The culture of an agency will flow from the top down. The values, personalities and business decisions of the agency’s directors/owners will permeate throughout the whole company.

You will often be able to see the outworking of a company’s culture through their website. Have a look at the list of clients — are they corporates, SMEs, or startups? Are they sporting codes, events, high-profile retail or charities? Are they clients known for being edgy or predictable?

What type of work does the agency produce? Does it align with your values, or is the work pushing the boundaries of your ethical, moral or religious comfort zone? The clients and work produced will be a good reflection of those running the agency and the company culture.

Collaboration

You probably have more than one agency partner. If you require your agencies to collaborate together, will your new agency work well with other agencies in your roster? Is there any crossover of services that could create a competitive clash? Getting the chemistry right and defining boundaries across your agency roster is crucial in ensuring you are not just exchanging one problem for another.

Price and quality

Knowing for sure whether an agency’s pricing structure will fit within your budget will only happen after you have started dialoguing with them, and asking them to quote on projects. When you are in the phase of checking out possible agencies, you won’t know for sure whether an agency will be in your budget-ballpark or not, or whether you would receive good quality work, but there are ways to take an educated guess.

One way is to go back to the agency’s website. Are there clients listed that are of a similar size and type as yours? Is the type of work that they show similar to what you require? Do you like the quality of the work you see? Do they seem project-based or campaign-based? Does the agency seem large or small (the number of staff an agency has can sometimes be an indicator of pricing level)?

The price will ultimately determine whether or not you can afford to use a particular agency (or whether an agency can work within your budget), and so price becomes a pivotal part of the agency selection process.

Relationship type

Are you looking for an agency to be a real ‘business partner’ for your company — one that will treat your business and marketing objectives like their own? Or are you looking for a ‘production partner’ — one that is happy to work on an order-in-deliverable-out basis? Neither is right or wrong depending on your requirements and their service offering. You can usually find out an agency’s strengths by asking relevant questions and astutely interpreting the answers.

The emotional side of agency selection

Do you think you are remaining impartial, unbiased, and unemotional when you select your agency? Think again.

Choosing a production supplier — order in, product or service out — can be a clinical B2B (business-to-business) decision based on quality, price and reputation. However, choosing a business partner needs to go deeper and have a measure of emotion involved.

If you look around at a selection of creative communication suppliers and their clients, you may begin to notice something interesting. Whether the supplier is a one-man-band or a large group, the personality of the agency will most often align with the personality of the client. For example, if the client (as a whole, or the marketer specifically) is a conservative believer in traditional communication, then they will not (no matter how hard an agency tries to convince them otherwise) end up with a push-the-boundaries agency. Similarly, an excited, boot-strapping startup will feel constrained working with an agency that is not as nimble-minded as they are.

That is why you should base your choice of agency on more than just the size, charge-out rates, quality of work, or the channels that it offers — that’s the ‘procurement’ side of the process. You also need to gel with the people within the agency — especially the agency owner or manager, and the account manager with whom you’ll be working most closely. You need to understand an agency’s history and values to see if your client/agency synergy will work. If that doesn’t click, move on — dealing with ongoing clashes in personality or ethos isn’t worth the hassle.

See also

 

Sarah RitchieNew Zealander Sarah Ritchie, founder of AM-Insider.com and author of award-winning “How to Wrestle an Octopus”, shares her wealth of experience from a 25-year career in advertising and design agencies, as well as insights from over 1 100 interviews with marketing and advertising professionals from 30 different countries, in her second book, “How to Tango with a Tiger: a marketer’s guide to working with creative communications agencies“, available now on Amazon. “Extracts” is a MarkLives column featuring excerpts from books and research relevant to advertising, marketing and related industries.

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