R3 Roundtable - Idea Generation Through Collaboration

transcript

Nov 28, 2014 Singapore Post event deck

Agenda

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

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

Sharing Thoughts And Unwinding On A Nice Friday Afternoon

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

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

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

Holistic investment in digital- channels, technology and talent

“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.”

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

Discussion 1

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?

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

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)

FREE AGENT

ONE-STOP SHOP

Commonly used by discipline

BRANDING

CREATIVE

RESEARCH QUANT.

CRM - PLATFORM

DIGITAL

RESEARCH QUAL.

CRM – PROGRAM

SHOPPER

MULTI-DISCIPLINARYDIGITAL SUB-DISCIPLINE

(EG. SOCIAL / WOM)

MULTI-DISCIPLINAR

Trending Agency Models

53.037.0

Agency selection Integrated vs. Specialized

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

3.183.60

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

SINGAPORE

Common reasons for changing agencies- Effectiveness over Creativity

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

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

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

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?

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

How are companies tracking spend on social media?

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?

Social is becoming a media buying game

And where is all this marketing spend on social

going?

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.

Social Media Metrics- more than just

Linking agency performance to remuneration

Impact of Incentives on Performance

Incentive Compensation: Best Practices

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

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

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

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?

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

What’s the one thing that provided you with food for

thought?

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

Thank You!

Seema Punwani seema@rthree.com

+65 9674 0619