The Business Case for Digital Marketing Production Outsourcing

Highlights from the latest Deliver eBook

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Agenda

What is Digital Marketing Production anyway?

The benefits of breaking up – creative & production that is.

The business case – achieve savings & efficiency by rethinking how digital marketing gets done

Leading companies are reaping the benefits, how can you?

Getting started. Charting a roadmap for success.

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It’s that time of year…budget time

and marketing budgets aren’t getting any bigger.

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Did you know:

Production costs typically represent 30-50% of a company’s

annual digital marketing spend

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What if you could Save 20-50% on your digital marketing production costs?

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That’s $ you could invest in reaching more customers

Through: more channels

with more Programs

or savings to put back to the bottom line.

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Let’s start with the basics..

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What is Digital Marketing Production anyway?

The process by which creative ideas and assets are translated into an array of digital media so that the right messages are delivered via the right channel at the right time to the right users.

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Decoupling creative & production; why some things are better separate than together

Decoupling allows creative & production teams to focus on what they do best

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The business case for digital production decoupling & outsourcing rests on 5 key pillars

Team and activity

consolidation

Templates and

automation

Cost-effective staff

Standard & optimized

processes

Global delivery model

implementation

Digital Marketing Production Outsourcing Business Case

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Executing on the 5 pillars typically results in savings of 20-50%

Templates and automation

Standard & optimized processes

Team and activity consolidation

Cost-effective staff

Production Volume

Cost Saving

Global delivery model implementation

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Cost-effective staff

Cost-effective markets provide a 30-60% savings over US or Western rates

Highly-skilled teams offer a full range of skills, expertise & quality

A good digital production outsourcing partner helps clients source the right skills & production locations to meet business needs

NewYork

SanJose

Bogotá

London

Helsinki

Moscow

NewDelhi

Dhaka

Beijing

Singapore

Johannesburg

SãoPaulo

BuenosAires

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Team and activity consolidation

Uneven supply & demand of resources

Skill duplication

Investment in senior staff across multiple agencies

Stable utilization of resources

Add staff quickly when needed

More effective utilization of senior staff: 3>1

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Standard & optimized processes

Improves consistency and quality

Allows production and creative teams to transition seamlessly between different work streams, project teams, campaigns or online properties

Reduces total resource hours required for a job

Shortens turnaround time

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Global delivery model implementation

1. Central team creates concepts

2. Local clients select and customize

3. Centralized production team executes

Model Benefits:

Enforces brand standards

Ensures the most efficient reuse of creative, content and assets

Maximizes impact of local marketing budget

Drives buy-in and coordination of global and local clients

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Templates and automation

A good production template:

Minimizes the effort required per piece

Reduces costs and turnaround times

Maximizes creative flexibility

Helps ensure brand consistency

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What determines the level of savings

Cost-effective Staff

Do you have a moderate to high volume of digital production?

Are the staff costs for your current agency (or agencies) high?

Consolidation Do you have more than one agency (or team) doing production work for you today?

Standards Do you have inconsistent, inefficient or undocumented processes?

Do you have problems with process compliance?

Globalization Do you have multiple regions?

Is your product/brand similar globally?

Do you not have global campaigns – or are your global campaigns executed incorrectly in the local markets?

Templates and Automation

Do you not have templates?

Do you not utilize a production automation tool?

Do you create multiple versions of similar deliverables?

The more times you reply yes, the greater your potential for savings

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The business case in action

Challenge: An automotive company used six separate US-based creative agencies to support the digital marketing needs of nine brands

Some standard tools and processes are in place, but they are difficult to utilize and enforce across multiple agencies

Solution: Decouple and consolidate to a single production agency with staff in LATAM

Results: By year two, the solution was delivering approximately 44% savings year over year

Standards compliance improved and IT staff had their agency support workload considerably decreased

Step Savings Decoupling and migration from US based production staff to cost-effective location in LATAM 25%

Consolidation from 6 agencies to 1 15%

Reduction of senior management and administrative staff

Improved annual utilization rate allowed fewer total FTE

Reduction in burden on internal support staff (IT, legal, procurement)

Standardization and optimization of processes resulted in increased productivity 7.5%

Templating of appropriate assets resulting in increased productivity and faster turnaround times 5%

TOTAL COMPOUND SAVINGS 44%

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Leading companies are reaping the benefits

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Leading companies are reaping the benefits

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Beyond cost there are other business benefits of Digital

Production Outsourcing

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Marketing organization benefits

Stay focused on marketing objectives

vs. worrying about

production details

Know you have the right technical knowledge behind you to keep pace

with changing technology

requirements

Have access to the right skills

when you need them globally &

locally

Achieve savings to improve the

bottom line and fund other strategic initiatives

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Creative agency benefits

Focus on strategic thinking, creative

ideation vs.

worrying about production details

Design the right campaign with the

knowledge that you have the right

technical resources behind

you to execute

Better manage the peaks and

valleys of resource

utilization

Increase project margin or

generate client savings to fund other initiatives

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The roadmap for getting started

Understand your current needs

Find the right partner

Perform a complete assessment

Develop a phase and transition plan

Reward participation

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Learn more at: www.deliveroffshoring.com

Read about Digital Marketing Production best

practices at: www.deliveroffshoring.com/blog

Neal Prescott, CEO, Deliver nprescott@deliveroffshoring.com

+1 (212) 210-4297