R3 Roundtable - Idea Generation Through Collaboration
Transcript of R3 Roundtable - Idea Generation Through Collaboration
Nov 28, 2014 Singapore Post event deck
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Agenda
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o Meet the marketers
o The evolving marketing landscape and how it affects innovation
o Innovation through agency collaboration
o Measuring effectiveness and ROI
o Summary
Meet and Greet
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SamanthaBanyan Tree Hotels & Resorts
RahulKimberly Clark
PeteMondelez
MichelleGardens by the Bay
RobertWalt Disney Studios Sony Pictures
GeoffreyEnergizer
ReynoldUnilever
PriyankaDell
SophiaOCBC Bank
ParticipantsSingapore, Nov 2014
Exchanging Valuable Ideas, Insights And Experiences
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Sharing Thoughts And Unwinding On A Nice Friday Afternoon
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Challenges faced when it comes to innovationMarketers from diverse industries and different
organizations had similar challenges1. Differing levels of markets: across Asia Pacific e.g. Japan vs.
India vs. Australia
2. Demonstrating results is key: Surprising budget was less of a challenge, but it was important to show ROI
3. Proving a business case: which at the onset is not easy for long term projects
4. Risk appetite of senior management: can be a stumbling block
5. Process oriented organizations: which may lead to lesser mistakes, but also reduced opportunities to innovate
6. Pace of change vs. adoption: Making senior leadership realize how quickly the landscape is changing
7. Where are my GRPs: fixation on tried and tested traditional media
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Favorite Partner in Crime
Everyone needs an ally. Here are some key ones that the participants highlighted:
1) Surprise entry was procurement as one marketer explained how its important to engage procurement to drive value
2) Product and R&D teams who think different than marketing
3) Country heads especially the smaller markets who are more willing to experiment
4) Public feedback which can help shape ideas
5) Agency partners who help with driving change within the organization
The Evolving Marketing Landscape
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The marketing industry has changed more in 2 years than in the past 50 years
Results:
• Only 44% say their marketing departments have influence over business strategy
• Only 40% think their company’s marketing is effective.
Digital Know-how:
• Less than half of digital marketers feel highly proficient in digital marketing.
• 82% report never having received formal digital training
2014 Adobe Study
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Holistic investment in digital- channels, technology and talent
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“The days when marketing could do stuff on its own are gone. It is critical marketing people have a solid business perspective. If you are not moving the needle for the business, you will lose the job.”
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Raja, MasterCard
Keith, Unilever
“The way people have integrated social media into their lives has put us on the edge of a shift of power…If marketer are not ready to deal with this shift in power, our industry will be one of those that become obsolete.
Business world and Social world collide
All of the above require a fundamental rethink of the way we do marketing and how we
innovate
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Discussion 1
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How does such innovation take place?
Great marketing ideas include:1) Product Innovation2) Leveraging technology3) Looking at new media4) Or existing media in a new way 5) Thinking differently
• How can Marketing integrate better with R&D and Product Innovation?
• What is the process of bringing internal stakeholders together?
• How can the silos be dropped in favor of collaboration?
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Navigating the internal waters
Interesting exchange on how internal process need to be leveraged or changed
1) Informal Networks- Finding like-minded people from different teams/departments/functions
2) Encouraging a ‘start-up culture’- for teams to think differently and speed up pace of adoption
3) Collaboration with sales- co-own sales targets so sales is wiling to work together with marketing
4) Redefining innovation- to not only mean product innovation, but inculcate an innovation culture across the board- communications, media, insights, processes, etc
5) Test and Learn approach- use small budgets for ease of approval and get proof of concept
Innovation through Agency Collaboration
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Lead Agency
MultipleBest-in-Class
Holding Compan
y (Sibling
Agencies)
Holding Compan
y (CustomAgencies
)
Globally aligned agency
Global framework
w/local independent
agency
Local framework
w/ local independent
agency
Agency Models are also evolving1) Alignment Models
2) Client-Agency Models
Free Agent
One-Stop Shop
LEAD AGENCY
MULTIPLEBEST-IN-CLASS
HOLDING COMPANY
(SIBLING AGENCIES)
HOLDING COMPANY
(CUSTOM AGENCIES)
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FREE AGENT
ONE-STOP SHOP
Commonly used by discipline
BRANDING
CREATIVE
MEDIA
RESEARCH QUANT.
CRM - PLATFORM
DIGITAL
RESEARCH QUAL.
CRM – PROGRAM
SHOPPER
MULTI-DISCIPLINARYDIGITAL SUB-DISCIPLINE
(EG. SOCIAL / WOM)
MULTI-DISCIPLINAR
Y
Trending Agency Models
53.037.0
10.0
38.0
50.0
12.0
Agency selection Integrated vs. Specialized
28.5
58.7
12.8
Integrated Agency 整合服务代理商Specialized Agencies 专项服务代理商DK/NA 不知道 / 不适用 (Both)
Integrated AgencySpecialized AgenciesDon’t Know/Not Applicable
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4.87
6.60
3.183.60
4.85
6.10
BENCHMARK BRAZIL CHINA INDIA MEXICO UK
Agency-Advertiser average duration of relationships globally
China has shorter relationships than any other market, while clients in the UK and Brazil work with their agencies for more than 6 years
3.0
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SINGAPORE
Common reasons for changing agencies- Effectiveness over Creativity
25.5
21.3
19.1
12.8
6.4
4.3
4.3
4.3
2.1
Base: 261 interviewees in 2014, 215 in 2012 and 188 in 2010
Lack of effectiveness
Lack of creativity
Bad service
High costs / Poor value for money
Lack of market knowledge
Lack of integrated services
Bad agency evaluation
Lack of strategic thinking
Administration mandatory
20122014
2010
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PR firms quicker to adapt to changing social media landscape
Content is king, but delivery is queen: PR firms understand the publishing business.
PR agency expanding services: Recent study found that 90% of public relations firms reported selling mobile strategy, community management, digital video production and distribution.
Encroaching on paid media: 80% of PR agencies are starting to offer online media buying
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Edelman’s idea for Samsung- A PR idea? A social idea? A stunt?
• The Super Selfie has been retweeted more than 3 million times – compared to President Barack Obama’s 2012 campaign at 780,000 times
• Samsung was mentioned 900 times per minute on social media at one point
• Ellen DeGeneres agreed to make a donation for every retweet at US$1
Discussion 2
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How and when do you involve your various agencies?
1) Who is involved in the ideation process?
2) When do these agencies get involved?
3) Do you have a lead creative agency who manages other agencies? Or is it the matter of the best idea wins?
4) Do you work with start-ups or consumers directly through crowdsourcing?
5) How is all this impacting the agency model and ways of working?
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Changing roles, ways of working between marketers and agenciesWays of working are undergoing major
overhauls and bigger agencies are not as quick to adapt
1) One brief works- Joint briefings with all agencies in one room including PR, Research and Social agency is working wonders for the bigger projects
2) Lead Agency model not working as well- as that agency tends to become gate-keeper for work of other agencies and good ideas can be lost
3) Reducing lead times- to as low as 90 days for test projects
4) Involving social media owners directly- Direct access to Facebook, Google has changed the dynamics
5) Rethinking partnerships- extends beyond agencies to include film companies, open sourcing through consumers, etc
Measuring effectiveness and ROI
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How are companies tracking spend on social media?
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Nestle revealed that its teams produce more than 1,500 pieces of marketing content each day for its 800+ Facebook pages.
How much does social marketing really cost?
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Social is becoming a media buying game
And where is all this marketing spend on social
going?
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One-third of marketers are not really sure!
66.5% of corporate executives worldwide felt unable to measure the ROI of platforms such as Twitter, Facebook, Instagram and Google+. That’s a figure that hasn’t shifted much in the last four years.
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Social Media Metrics- more than just
Linking agency performance to remuneration
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Impact of Incentives on Performance
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Incentive Compensation: Best Practices
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PERFORMANCE CRITERIA METRICS RATIONALE
AGENCY QualitativeTotally within agency’s controlTightly customized to client needs
ADVERTISING
QuantitativeE.g.: tracking of awareness, brand perceptions, copy testing, cost/lead, buying efficiency, etc.
Ties to desired marketing performance that is primarily affected by agency’s work
ADVERTISERQuantitativeE.g.: sales increase vs. target, share of market, etc.
Although influenced by many factors outside of agency control, aligns client and agency on a “shared agenda”
Combination of quantitative and qualitative criteria
Changing fees and processes to become truly outcome focused
Innovation needs to be embedded in the
organization culture
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Innovation that matters to people
• To incorporate the innovation culture, setting marketing foundations right are important- Balance of logic and magic.
• Marketing as a science and marketing as an art e.g. Dove sketches, an innovative approach which also provided reach
• The Foundry will offer Unilever marketers opportunities to experiment and pilot new technologies more efficiently, effectively and frequently
Marc, Unilever
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Immediate revenue and KPIs vs. Innovation
Google engineers encouraged to spend 20% of their time on their own projects. Gmail and Google Maps started life as such 20% projects.
What is needed?
• Specific budget to support innovation
• Learning-based KPIs vs. revenue-based
• Removing layers of approval
• Small and nimble team
• Process for turning initiatives into live products
Discussion 3
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How do you measure impact of innovation?
1) How can impact for innovation be measured?
2) What kind of KPIs are set for innovation? How are they tracked?
3) Is innovation part of agency KPIs? How is it tracked?
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ROI on innovation needs to be beyond dollars and cents
ROI on innovation is not easy to measure
1) Fear of failure- does not create a conducive environment for innovation. Important to start small, test, learn and even celebrate failures to apply learnings
2) Not just about business results- better process, deeper insights, closer engagement, new ways of working should all be treated as KPIs for innovation
3) Joint responsibility- of marketers and agencies. No one party can do it alone
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What’s the one thing that provided you with food for
thought?
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Top 3 things to summarize
1) Innovation is a culture that needs to embedded- leaders must pave the way for their teams
2) Paying agencies on performance is the way to go– this ensures agency accountability
3) New partners constantly come in- whether its media owners, R&D teams, start-ups or bloggers, marketers needs to embrace this new breed of partners