Showing posts with label Ad Age. Show all posts
Showing posts with label Ad Age. Show all posts
06 November 2010
Some great ideas from across the pond
Mentoring - Education and Branding and PR of Marketing Procurement - great food for thought in this Ad Age article - adage.com
22 June 2010
ANA survey
Ad Age have published an article this week about a study that the ANA has conducted in the US re agencies view of Procurement. The headline being that unfortunately agencies are still sceptical about the role and the value that Procurement can play in their relationship with their client organisations. Here is a link to the article - Ad Age Survey.
What do you think ? Have perhaps the relationship in the UK market got better ? Do more than 14% of us know the marketing category ? All comments welcome.
What do you think ? Have perhaps the relationship in the UK market got better ? Do more than 14% of us know the marketing category ? All comments welcome.
26 April 2010
WPP and Ad Age again
There is a story on today's Brand Republic re WPP targeting clients technology budgets - intriguing. Is this on repro, asset management, work flow?. Be good to understand more about the offering and also the rationale behind it which is linked to a client's increasing digital requirements. Click here to see the article - WPP technology.
There is an article in today's Ad Age entitled ' Procurement - We're about Value, Not Price'. They have interviews with the Purchasing people at Pfizer and Intel. It seems to cover the same ground that the numerous other articles have covered - the role of procurement, are they trained, should they make decisions on agencies etc. Whilst it is good that they are getting that view, it does not seem to move the relationships and this category on. I do have the article if any one is interested in reading it.
I am more interested to see the output of the ANA Conference as it is covering some really good topic areas and is about looking to the future. The future is bright as my old company used to say.
There is an article in today's Ad Age entitled ' Procurement - We're about Value, Not Price'. They have interviews with the Purchasing people at Pfizer and Intel. It seems to cover the same ground that the numerous other articles have covered - the role of procurement, are they trained, should they make decisions on agencies etc. Whilst it is good that they are getting that view, it does not seem to move the relationships and this category on. I do have the article if any one is interested in reading it.
I am more interested to see the output of the ANA Conference as it is covering some really good topic areas and is about looking to the future. The future is bright as my old company used to say.
11 April 2010
Drinkers unite
There is a good article in the current issue of AdAge about a a landmark deal that mega-marketers PepsiCo and Anheuser-Busch InBev have done. Together they spent more than $1.15 billion on U.S. measured media last year and are now pooling their scale to get savings out of media companies.
The arrangement is an evolution of a "joint-purchasing agreement" the two marketers signed in October. That pact was originally supposed to save the partners money on items such as travel, computers and office supplies. In fact, a PepsiCo spokeswoman at the time said that "the consortium is not related to media costs or marketing."
But less than three months later, A-B and PepsiCo have moved beyond scoring cheaper paperclips and onto network, cable, print and outdoor media buys. A-B and PepsiCo are believed to have already made joint approaches to media concerns such as NBC Universal, Turner and Condé Nast.
As the article then goes into say who will be next to decide to launch their own consolidated buying agreements in an effort to get more costs out of ad time. Then who could be next in line for this "joint-purchasing agreement": agencies ?
What about in the UK ? Could we see Morrisons and the COI team up perhaps ? Interesting area to debate through and let's see what happens in the US and if it spreads ?
The arrangement is an evolution of a "joint-purchasing agreement" the two marketers signed in October. That pact was originally supposed to save the partners money on items such as travel, computers and office supplies. In fact, a PepsiCo spokeswoman at the time said that "the consortium is not related to media costs or marketing."
But less than three months later, A-B and PepsiCo have moved beyond scoring cheaper paperclips and onto network, cable, print and outdoor media buys. A-B and PepsiCo are believed to have already made joint approaches to media concerns such as NBC Universal, Turner and Condé Nast.
As the article then goes into say who will be next to decide to launch their own consolidated buying agreements in an effort to get more costs out of ad time. Then who could be next in line for this "joint-purchasing agreement": agencies ?
What about in the UK ? Could we see Morrisons and the COI team up perhaps ? Interesting area to debate through and let's see what happens in the US and if it spreads ?
17 February 2010
The video to go with the article
I have just come across this video of the Ad Age view on Procurement that was all in the press last November. It is only 3 minutes long and it is interesting to hear their view of the procurement with no real suggestion on how to develop and improve the relationships that they feel are damaging to the ad industry. Click here to see the video.
09 February 2010
Dealing with Procurement is chic!
As one of my clients said to me when I sent him the headline 'Procurement Pain: TBWA Anoints a Chief Compensation Officer '.
As Ad Age reported :
Rising tensions between agencies and marketing procurement have birthed a new role in the agency C-suite: the chief compensation officer.
Omnicom Group's TBWA/Chiat/Day has appointed Neal Grossman, as its first global chief compensation officer.
The role -- which is distinct from TBWA's chief financial officer -- means Mr. Grossman will be the one leading contract renegotiations with clients and procurement officers, and overseeing fee discussions during new-business pitches. He'll also be tasked with developing value-based compensation models that are mutually beneficial to the agency and its clients.
But as my client said when he was appointed 5.5 years ago there was not this type of headline, but these days is it trendy ? or is it a necessity ? Certainly in the UK market, since I worked at Grey and Lowe, and Emma Nussey at AMV, there has been no significant agency appointments to be that focal point in dealing with procurement.
So I think it is a good sign, as long as they understand both sides and are collaborative in their approach. A defensive stance will not help the commercial relationship to work.
As Ad Age reported :
Rising tensions between agencies and marketing procurement have birthed a new role in the agency C-suite: the chief compensation officer.
Omnicom Group's TBWA/Chiat/Day has appointed Neal Grossman, as its first global chief compensation officer.
The role -- which is distinct from TBWA's chief financial officer -- means Mr. Grossman will be the one leading contract renegotiations with clients and procurement officers, and overseeing fee discussions during new-business pitches. He'll also be tasked with developing value-based compensation models that are mutually beneficial to the agency and its clients.
But as my client said when he was appointed 5.5 years ago there was not this type of headline, but these days is it trendy ? or is it a necessity ? Certainly in the UK market, since I worked at Grey and Lowe, and Emma Nussey at AMV, there has been no significant agency appointments to be that focal point in dealing with procurement.
So I think it is a good sign, as long as they understand both sides and are collaborative in their approach. A defensive stance will not help the commercial relationship to work.
09 December 2009
Let’s Play Ball!
I am just about to fly over the water and came across this blog by an agency in the US. They are called Mad 4 Marketing - what a great name. They have posted a blog following the infamous Ad Age article and the summary of it is "Let’s Play Ball!”. They agree with some comments that people have raised in this blog - "it’s an educational process. Business development people should be including procurement leaders in their outreach. As previously mentioned, 90% do not have marketing backgrounds and would benefit from being part of ongoing dialogue".
Click here for the whole blog. It is nice to see a positive and proactive view of the way forward.
P.S. not sure about the 90% stat!
Click here for the whole blog. It is nice to see a positive and proactive view of the way forward.
P.S. not sure about the 90% stat!
02 December 2009
First blog article revisited
There is an article on the Procurement Leaders website blog about that Ad Age article that I mentioned in my first blog and the influence of procurement, States side. Click here for the article.
What is interesting is that Jonah Bloom, the Editor of Advertising Age hits back and explains the rationale behind his view on the impact of procurement on agencies revenue.
The best quote in the article is 'The squeeze in fees that the advertising industry is experiencing is as a result of better communication between marketing and procurement, not worse'. I think that this is true as the relationship between marketing and procurement is constantly improving.
The sector that I see that 'gets' procurement is Media. I am often asked to do training for the media agencies and support on key tenders. As buyers themselves, I think that they get it and understand and appreciate their role in a tender/pitch situation. The sector that really doesn't get procurement is Design. They really struggle to see how Procurement can put a value on creativity. My advice to any design agency that approaches me - is to help then, help educate the value of your output and work with procurement to get a solution in place that all three parties (including the Brand / Design person) are happy with.
What is interesting is that Jonah Bloom, the Editor of Advertising Age hits back and explains the rationale behind his view on the impact of procurement on agencies revenue.
The best quote in the article is 'The squeeze in fees that the advertising industry is experiencing is as a result of better communication between marketing and procurement, not worse'. I think that this is true as the relationship between marketing and procurement is constantly improving.
The sector that I see that 'gets' procurement is Media. I am often asked to do training for the media agencies and support on key tenders. As buyers themselves, I think that they get it and understand and appreciate their role in a tender/pitch situation. The sector that really doesn't get procurement is Design. They really struggle to see how Procurement can put a value on creativity. My advice to any design agency that approaches me - is to help then, help educate the value of your output and work with procurement to get a solution in place that all three parties (including the Brand / Design person) are happy with.
21 November 2009
Here we go - first ever blog!
"As I hurtled through space, one thought kept crossing my mind: Every part of this capsule was supplied by the lowest bidder." John Glenn, Astronaut
“The question remains whether the procurement process can successfully purchase creative services in the way door handles or raw materials are bought. The emphasis on procurement seemed to have started in the pharmaceutical industry and then moved elsewhere.” Martin Sorrell – CEO WPP
I thought it was appropriate to start off my first blog with a few quotes about procurement - the latter from Sir Martin on the wonderful world of marketing procurement that I work in.
The question that has been bugging me this week is why is there so much negative press about marketing procurement. There has been the recent article in Ad Age bemoaning the experience or the perceived lack of marketing experience of procurement folk. Do other industries and their trade mags see the involvement of procurement be it in the buying of travel or raw materials as negative ?
As with every role there are good people and there are some that perhaps may need some further training (happy to help of course!)- but it would be good to stop the negative comments and get the role and value that marketing procurement bring to agency relationships as positive and as natural in the marketing procurement sphere as the search and selection and media auditing companies. All suggestions welcome!.
“The question remains whether the procurement process can successfully purchase creative services in the way door handles or raw materials are bought. The emphasis on procurement seemed to have started in the pharmaceutical industry and then moved elsewhere.” Martin Sorrell – CEO WPP
I thought it was appropriate to start off my first blog with a few quotes about procurement - the latter from Sir Martin on the wonderful world of marketing procurement that I work in.
The question that has been bugging me this week is why is there so much negative press about marketing procurement. There has been the recent article in Ad Age bemoaning the experience or the perceived lack of marketing experience of procurement folk. Do other industries and their trade mags see the involvement of procurement be it in the buying of travel or raw materials as negative ?
As with every role there are good people and there are some that perhaps may need some further training (happy to help of course!)- but it would be good to stop the negative comments and get the role and value that marketing procurement bring to agency relationships as positive and as natural in the marketing procurement sphere as the search and selection and media auditing companies. All suggestions welcome!.
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