I attended the Kingston Smith W1 seminar last night where I was presenting my view on 'Is the price right?'. The other presenters were Esther and Mandy from Kingston Smith W1 - superb as ever, plus Mark Lund with his perspective of the COI and Payment by Results, and Paul Graham from Anomaly on the way that they work with clients in terms of their fees. Despite feeling under the weather, I really enjoyed the event and found the other presentations really interesting. Worth attending next year if you are interested in the financial study that Kingston Smith W1 produce every year.
Just seen this about the new initiative that the IPA ans ISBA are working on - in looking at the process of ‘reforming’ pitching to save time and money. It is good to see them working together but wonder if they will make contact with CIPS (the Purchasing body) to see if they want a procurement perspective. Click here for more details on the IPA website - The-need-for-a-new-pitch-process
Showing posts with label COI. Show all posts
Showing posts with label COI. Show all posts
01 December 2010
29 November 2010
The future of public sector
I thought that it was interesting last week that John Collington has unveiled a plan that will see a quarter cut from £13 billion-a-year spending in nine areas. John is the head of procurement for the Cabinet Office’s Efficiency and Reform Group (ERG), and at a conference he revealed nine spend categories that will be transformed over nine months.
The one that is of interest to us is advertising and media which will be tackled by next September 2011. But as it is not clear the future of the COI, I wonder how they are thinking that they are going to tackle it. Will they look at bringing in consultants that know this area as to date I have seen little procurement experience in public sector organisations of knowledge of the marketing category. Be interesting to watch this space on this one.
The one that is of interest to us is advertising and media which will be tackled by next September 2011. But as it is not clear the future of the COI, I wonder how they are thinking that they are going to tackle it. Will they look at bringing in consultants that know this area as to date I have seen little procurement experience in public sector organisations of knowledge of the marketing category. Be interesting to watch this space on this one.
20 November 2010
It must be that time of the year again
Is it me or does it seem that once a year the old debate of Payment by results come out ? It has been around as a form of incentivised payment for many years. The reason that it is in the news this time is that the COI is looking at it. Short answer....about time too.
I like PBR and agree with the comment from David Wethey, that a few clients agree a PBR and then don't have the money to pay it. A PBR should reward against the pre set agree targets and should be paid in full.
To be the question is not PBR good or bad but rather should and could PBR be applied to other sectors more than just advertising ? I have recently tried to look at it for a DM and a Digital contract and neither agencies could get their head round it. So let's see if the value of a good PBR can extend to other disciplines.
I like PBR and agree with the comment from David Wethey, that a few clients agree a PBR and then don't have the money to pay it. A PBR should reward against the pre set agree targets and should be paid in full.
To be the question is not PBR good or bad but rather should and could PBR be applied to other sectors more than just advertising ? I have recently tried to look at it for a DM and a Digital contract and neither agencies could get their head round it. So let's see if the value of a good PBR can extend to other disciplines.
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 December 2009
Stars and Stripes
Back from my trip to New York New York!. I had a meeting with a global network agency to kick off a clients' 2010 fee negotiations and also met up with a TV Post Production company.
The scale of the clients spend in the US is absolutely massive - you are talking total COI spend multiplied a few times. I also get the impression (and forgive me if I am wrong) that as a market they are less developed in the way that they deal with procurement. The chaps at the TV Post Production company said that as the scale is so huge the agency heads are calling the shots, and in one agency that could be the Head of Account Management, Head of Creative and Head of TV - three Heads for one account. What chance do Procurement have?
But of course, there is the view of the agency - earlier this month, Ogilvy’s Head of Northern America, John Seifirt, in a memo to staff announcing 90 redundancies blamed client cost-cutting and the role of procurement departments for the structural changes being forced on agencies, including his own. No responsibility back on the agency then to cut their cloth in terms of economic hardship then!
The scale of the clients spend in the US is absolutely massive - you are talking total COI spend multiplied a few times. I also get the impression (and forgive me if I am wrong) that as a market they are less developed in the way that they deal with procurement. The chaps at the TV Post Production company said that as the scale is so huge the agency heads are calling the shots, and in one agency that could be the Head of Account Management, Head of Creative and Head of TV - three Heads for one account. What chance do Procurement have?
But of course, there is the view of the agency - earlier this month, Ogilvy’s Head of Northern America, John Seifirt, in a memo to staff announcing 90 redundancies blamed client cost-cutting and the role of procurement departments for the structural changes being forced on agencies, including his own. No responsibility back on the agency then to cut their cloth in terms of economic hardship then!
02 December 2009
Is this answer to the ' can we measure ROI' question?
Mike from CIPS has forwarded me this press release from the COI on how they are looking to put a common approach in place to calculate the financial effectiveness and efficiency of public sector marketing.
The paper shows that the 1998-2005 Teacher Recruitment campaign not only paid for itself; but should provide returns of another £85 for every £1 spent. While the Tobacco Control campaign, is estimated to have saved the economy £7.1bn; against an advertising spend of £49.3m between 1999-2004.
The paper proposes a series of universal definitions to ensure practitioners adopt the same terminology and outlines a 10-step process to help government communicators determine sensible and robust estimates of Payback - the absolute financial benefit delivered by marketing - and Return on Marketing Investment (ROMI) - the number of pounds of Payback delivered, less the cost of the marketing - for every pound spent. It also provides six key principles that should underpin this.
Here is a link to the PDF on the COI website - click here.
The paper shows that the 1998-2005 Teacher Recruitment campaign not only paid for itself; but should provide returns of another £85 for every £1 spent. While the Tobacco Control campaign, is estimated to have saved the economy £7.1bn; against an advertising spend of £49.3m between 1999-2004.
The paper proposes a series of universal definitions to ensure practitioners adopt the same terminology and outlines a 10-step process to help government communicators determine sensible and robust estimates of Payback - the absolute financial benefit delivered by marketing - and Return on Marketing Investment (ROMI) - the number of pounds of Payback delivered, less the cost of the marketing - for every pound spent. It also provides six key principles that should underpin this.
Here is a link to the PDF on the COI website - click here.
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