How not to waste communications spend

Written by Opinion desk on July 14, 2010 – 5:28 pm -

 By John Little

SA marketers will this year spend R20bn-R25bn on communications campaigns in measured media (TV, newspapers, radio, internet etc) and at least as much on unmeasured channels such as sponsorship, public relations, customer relationship management and experiential. But what sort of investment will be made in time and effort to make sure that only the best ideas and executions are deployed? Not nearly enough.

There`s a trend towards shorter client-agency relationships. The global average is estimated to be no more than three years. But across the economy, short-termism is increasingly regarded as flawed, particularly in the light of the financial crisis, where “quarter-itis” has proved to be a fatal ingredient. I am convinced that enduring relationships produce better work and better results.

The 30-year-plus global campaign for Absolut Vodka, by TBWA/Chiat Day, is widely recognised as an international classic, having driven massive sales and market-share growth. In SA look no further than two of our leading carmakers – Toyota and Volkswagen – which enjoy long-standing relationships with their ad agencies and corresponding market success.

John Little

 The Gunn Report, based on global studies to track results for the most awarded campaigns, is recognised as the global currency for measuring creative achievement by agencies. Donald Gunn`s 1996 report, “Do award-winning commercials sell?” proved conclusively that in over 80% of cases, award-winning campaigns produce above-average business results. It’s something creatives have known for years!

A new research study from the UK`s Institute of Practioners in Advertising and Thinkbox (the TV marketing body), in conjunction with The Gunn Report, has revealed the direct correlation between strong advertising creativity and business success. The study shows that the most creatively-awarded advertising campaigns are 11 times more efficient at delivering business success. The message to marketers must be: partner with your communication agencies to create the kind of processes and environments that encourage creative excellence. Let`s explore how to achieve this.
 

A “relationship warrior” recognises the value of enduring relationships designed to achieve outstanding results through outstanding work. Warriors also understand that the exceptional work they seek is best produced in a positive and supportive partnership between client and agency. An example of this would be Scott Bedbury, credited with developing the relationship between Nike and its agency, Wieden Kennedy, that brought us the enduring “Just Do It “ campaign. This helped grow Nike annual sales from under $1bn to $5bn on his marketing watch.

So how does one become a relationship warrior? There is no magic bullet. Each individual or team must decide what works best for them and their communications agency partners. But there are learnable techniques. Based on my 40 years in the industry, and The Observatory International`s worldwide experience, here are a few suggestions to start you girding your Warrior loins.

Ensure true alignment: put effort in from the start of a new relationship or an important new project, to ensure a clear, common understanding of goals, expectations of each other, and the process to get there. Write it down.
Put as much effort into producing a great brief as you expect the agency to put into producing a brilliant campaign. Make sure all the necessary information is provided but  don`t clutter with mountains of facts. Try to be single-minded about the outcome you are seeking. Is it brand awareness? Is it attitude shift? Is it frequency of purchase?   Be clear what you want, and communicate it. As the late, creative luminary Norman Berry once said: “Give me the freedom of a tightly-defined strategy.”

For major projects, present your brief with some “theatre” to inspire the creative team. If you are about to launch a new beer brand why not do your briefing in a pub or at the brewery? And drink some of the stuff while you are about it!

Create a strong partnership with your agency. Agencies are creative hothouses stocked with bright, ambitious people. They bridle at the notion of being considered “suppliers”. It demeans what they do. Think of your own business: don`t the best results always come from true partnerships?

 It takes a special talent to manage, motivate and inspire those “crazies” that inhabit agencies. Make sure your marketing team knows how to work with agencies. Training can help but starting with people with natural talent for getting the best out of their agency is a massive advantage.

Most marketers believe they pay their agencies too much. And – surprise, surprise – most agencies believe that they are not paid enough. Tough market conditions right now are making it even more difficult to find a fair balance. Most reputable agencies are prepared to put profit (and even some overheads) at risk if the performance-based rewards are fair and clearly defined. The skill is in coming up with appropriate performance measurement.

Also, look beyond monetary rewards. Creative people have big egos, so recognition is a powerful motivator. Like the rest of us, agencies (and creative people in particular) thrive on recognition. Celebrate their award-winning exploits with them. The odd letter of congratulations and thanks, or a celebratory dinner or function, can work wonders.

It all comes back to that magic word: “partnership”. The modern, connected and transparent world is all about relationships and you can only profit if you use the same techniques for your ad agency (or any other important partner) that you do for your best customers.

John Little is regional managing partner, Africa, for The Observatory International, an agency search-and-selection and client/agency relationship management practice. He is a former MD  of the Ogilvy and Leo Burnett advertising agencies in SA.


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