Category Archives: Marketing

Shortlist.co Should Be On Your ShortList for Agency & Services Management

In our last post, we noted that most Sourcing and (e-) Procurement platforms are not appropriate for Marketing and Services Management. We gave a number of reasons for this, but the big ones can be summarized as:

lack of a creative, digital, or advertising suppliers in a supplier network
lack of an appropriate project definition for marketing projects
lack of an appropriate workflow for marketing or services projects
lack of appropriate collaboration for internal and external partners

Marketing, unlike Procurement, needs to be as focussed on the relationship and the creative as Procurement needs to be focussed on the cost and the deliverable. It’s all about the message, the delivery, and the brand. That’s more than just a DVD with 30 seconds of a TV spot, a zipped download of a new website, or a document outlining a new brand building campaign.

That’s why marketing needs a solution that allows it to:

identify new suppliers it would not find otherwise that might be able to serve its creative, digital, or advertising needs to help it increase returns while keeping costs in line
define marketing projects in a way that allows for meaningful RFPs, evaluations, and workflows
allow Marketing to collaborate with Procurement, Engineering, and other internal stakeholders in a manner that is conscious of organizational strategy and budgets
allows Marketing to collaborate with suppliers and track progress, deliverables, milestone, and overall supplier relationship with marketing suppliers

Shortlist.co, which will be doing a major North American launch early next year, is a new web-based platform that will allow a Marketing organization to do all of this. This platform has three major elements:

Vetted, Indexed, Supplier Network

The platform contains thousands of global suppliers in the advertising, creative, and digital space that are vetted by Shortlist.co as real and capable of performing the advertised service offerings. They are indexed by location (from region down to city level), size, and offering.

Services Project Management

Everything in the platform revolves around a project. Project creation is quite simple, as all a user has to do is enter a name (which can be changed later), and optionally assign it to a campaign (which can be done later) and a category for budgetary purposes (which can be done later and changed later as well). Once a project is created, a user provides a description, creates and / or attaches an RFX, selects suppliers to distribute the request to, defines a response due date, and the project is launched. Alternatively, if this is a project that is undertaken on a regular basis, the user might just select a template, make a few alterations, update the supplier list, define the response dates, and launch. Then, the user defines a review team, sends out the review invitations, and when the responses come back, the review team can independently and collectively review and comment on the proposals. Once one has been accepted, the budget can be revised and recategorized, and at all times the team can see how much of the budget has been allocated year to date and how it breaks down into campaigns and categories (such as UX design, web site development, tv spots, internet video, social media campaigns, etc.).

Collaborative RFX Capability

While RFX is not unique to the platform, it is extremely well integrated into the project and has all of the functionality one would expect in the creation of a detailed RFX for services. In addition, the tool supports side by side comparison of multiple responses to make evaluation by each team member easy, and can aggregate the scorings from multiple team members to allow for organizational ranking, allowing each team member’s input to be taken into account during agency selection. Furthermore, the weighting adjusts to the actual number of reviewers who have commented on an item, so that if only one of three reviewers has an opinion, a 9 (out of 10) does not become a weighted 3.

Reporting

The insights capability is still being built out, but right now the platform also supports an initial set of project and partner comparison reports that allow an organization to answer, at a minimum:

how award allocations compare to budgets
how spend breaks down by category and campaign
which suppliers have the most projects
which suppliers have the most spend (by category)
the success rate of each supplier

The platform, which is being designed to be the marketing and service award, management, and collaboration tool between stakeholders and suppliers, fills a big need in many mid-size organizations today which have nothing to appropriately manage marketing and service spend, and even less that Marketing and Service Management can use. As a 100% multi-tenant SaaS solution, this allows a marketing organization to start immediately with no IT, or Procurement, support but yet involve IT and Procurement in all of their projects. Shortlist.co is definitely a solution that should be on your organization’s shortlist for agency & services management

Does Your Organization Have What It Needs for Agency & Services Management?

SI might be focussed primarily on (Strategic) Sourcing and (e-) Procurement and associated solutions for spend reduction, cost control, and value generation, but every now and again likes to focus on solutions for Marketing, Contingent Labour & Outsourced Services, Legal, and other departments who believe their spend categories are sacred cows that will not be treated with the reverence they deserve by Procurement (and, as such, refuse to hand over control of those categories to a Procurement professional).

Marketing is one of the departments that needs a solution for cost control, and not just because it won’t turn over it’s sacred cow spend, but because the nature of the spend requires good, collaborative, services management. Traditional (e-) Procurement does not address the particular needs of an indirect services category like marketing where:

agency identification requires a vetted, indexed, database
agency selection requires stakeholder engagement and agreement
budget management requires award tracking by project and category
project management requires agency involvement
issue resolution requires real-time online collaboration

These needs can only be served by a platform that provides:

a supplier network of creative, digital, and advertising agencies
an online collaboration portal with survey capability and multi-user ranking and aggregate weighting
the ability to capture award amounts by project and work category (creative, digital, equipment rentals, etc.)
an online project management portal to track progress, milestones, and deliverables
an online collaboration portal where stakeholders can connect in real-time

But if you consider these needs, you find that:

few e-Procurement platforms have networks, and fewer still have any creative, digital, or advertising agencies as they tend to focus on direct material providers
the vast majority of e-Procurement and Sourcing platforms have RFX, most allow multi-user aggregate rankings, but most are not configured for users outside of Procurement
most e-Procurement platforms with CLM support allow for detailed project definitions and costing by line item, but the built in categorizations are not designed for marketing
most e-Procurement platforms have Procurement driven workflows, not agency project management workflows
online collaboration is generally only well supported in SRM (Supplier Relationship Management) platforms

As a result, as has been discussed on SI in the past, most Sourcing and (e-) Procurement platforms are not appropriate for Marketing and Services Management. Other solutions are needed.

Navigating & Keeping Up with Digital Agency Landscape: Part III

In this three-part series of articles, Kathleen Jordan, Associate Director at Source One Management Services takes a look at the complex digital agency landscape and provides insight on the process of agency sourcing: considerations when sourcing, vast digital agency options, and the need for bridging the gap between marketing and procurement departments. Kathleen Jordan is a strategic sourcing subject matter expert with a wide range of experience in the marketing category who works closely with marketing professionals and helps alleviate challenges encountered when overseeing agency relationships.

In Part I of this series we reviewed common considerations for sourcing digital agencies. Then, In Part II, we took a look at the vast types of digital agency options and what they mean for a company’s sourcing strategy. Today, in this third and final part, we discuss the importance of aligning Procurement and Marketing for Digital Agency success.

Marketing and Procurement teams may not always see eye-to-eye. Both teams have different goals, measures for success, and serve as unique functions in an organization. However, the digital space is a fast-paced environment with various options and the alliance of these two departments when sourcing digital agencies can have substantial strategic benefits for the company overall.

Procurement can help Marketing identify current trends and potential risks.
Marketing strategies are constantly changing, altering what services agencies provide. A thorough RFP process will bring to light an agency’s service portfolio (or lack thereof) not only for current marketing campaign initiatives but also with respect to future strategic options. This process also highlights pricing options and helps provide insights into industry standards.

Procurement can identify areas of improvement in compensation structures and contractual terms and conditions.
This helps Marketing optimize their budgets. Procurement teams have a deep understanding of company budgets and possess a whole slew of strategies to stay within them. Aligning these two departments helps ensure that the Marketing budget is used wisely while ensuring that contracts are put in place that drive further value from the products/services purchased.

Procurement can also carry out a proper end-to-end agency search.
This ensures that the selection criteria are met and that only an agency that can deliver what they pitched with full transparency and strong execution is onboarded. Beyond pricing, properly defined RFPs can provide marketing with a full view of how agencies compare in their offerings. Sourcing an agency that is a creative fit is also important; Procurement teams can facilitate the process for identifying agencies that are not only budget friendly, but also suit marketing’s creative vision.

Procurement can also help Marketing enhance contracts to include KPIs based on metrics that can be tracked on a regular basis.
This ensures that Marketing is able to effectively measure performance. As mentioned in part one of this series, there is the potential for scope creep, missed deadlines, and poor communication when seeking outside help from an agency. Procurement’s involvement in the sourcing process can help prevent these challenges by putting performance metrics in place from the start. This vendor management structure can help boost productivity but also foster a strategic relationship between the Marketing organization and the digital agency.

In some cases, bringing in a procurement consulting firm may be helpful in bridging the gaps between Marketing and Procurement teams. The right Procurement consulting firm will have the needed category and relationship-building expertise to align the two different departments. They can act as a mediating force that remains close to the goals of each team with the objectivity needed to maximize success.

Options for digital agencies are aplenty. Full-service digital agencies, handling all work from strategic and creative to media and production, can serve as a good fit if you are seeking out a one-stop shop and are looking for the ability to ramp up and down quickly and easily with a dedicated account team. Smaller shops give you greater visibility into their processes and your account may be considered a key one in which you have the attention of agency executives. More niche agencies can also provide you with access to greater expertise given they have a focus on one core competency and do it really well. Overall, there are benefits to both agency models and Marketing and Procurement must collaborate to determine the benefits that will meet their company’s objectives and pursue those opportunities further.

Navigating & Keeping Up with Digital Agency Landscape: Part II

In Part I of this series we reviewed common considerations for sourcing digital agencies. Continuing on, today we take a look at the vast types of digital agency options and what they mean for a company’s sourcing strategy.

The Many Agencies

One of the most challenging phases during an agency search is building the initial list of agency candidates and ensuring the list meets the basic criteria. Some vetting will be required through an RFI process or onsite capabilities presentations prior to the RFP phase and pitches. When a marketing professional casts a wide net into the digital agency pool, they will find a combination of large full-service digital agencies and smaller, more specialized agencies.

There are agencies that define themselves as primarily social media agencies, whereas other shops are comprised of digital developers — agencies that develop mobile apps, websites, etc. Other agencies are focused on search engine marketing — the leading required service and foundation of digital marketing, in which SEO and paid search campaigns are managed. There are also suppliers that offer analytic services where consultants study the results of a digital campaign and advise where tweaks should be made, tracking against key performance indicators and indicating ROI results. The list goes on to capture various other forms of digital marketing services such as the full-service model, website design and user experience, display advertising, e-mail campaign management, CRM platforms, etc. Todd Wasserman of Mashable wrote an article calling out a few additional agencies on the rise, including:

Viral video factories
Agencies specializing in the development of GIFs, referred to as “the animated billboard for the digital age”
Agencies focused on creating digital IDs for products; for example, ask yourself: What if my washing machine could recommend a trusted local service agent to perform maintenance or address issues when needed? These agencies are looking to make physical things smart, allowing a product to have its own digital profile.

Referring to the ever-changing digital marketing world, Wasserman writes, “this state of flux has swung open the doors for entrepreneurs, usual refugees from big agencies looking to capitalize on new opportunities while their counterparts are riding the TV gravy train to the last stop“. Overall, the digital landscape is continuously shifting, and some brands are already beginning to think about post-digital. Digital Marketing Depot’s whitepaper also notes that “dozens of specialty agencies have launched over the past five years” and the number continues to grow. In addition to Wasserman’s remarks about this trend, Digital Marketing Depot believes that the rise in specialty agencies was “prompted by the mid-market opportunity created by holding company agencies with huge minimum spends, and wireless technologies that have made it easier to start up small businesses“.

There is no right or wrong way to allocate your digital requirements across an agency network. The optimal model will depend on a company’s overarching marketing strategy and internal resources. A marketer may find that their current creative agency that supports their traditional advertising tactics is best suited to handle their digital channels as well. After all, the account management structure already exists and price breaks may be applied if the scope increases.

Regardless of the digital requirement that needs to be fulfilled, marketing professionals should keep in mind that their procurement counterparts can serve as decision support to help identify the agencies best suited to meet the advertiser’s needs. In the final part of this blog series, we’ll explore the need to bridge the gap between marketing and procurement.

Thanks Kathleen!

Navigating & Keeping Up with Digital Agency Landscape: Part I

In this three-part series of articles, Kathleen Jordan, Associate Director at Source One Management Services will take a look at the complex digital agency landscape and provide insights on the process of agency sourcing: considerations when sourcing, vast digital agency options, and the need for bridging the gap between marketing and procurement departments. Kathleen Jordan is a strategic sourcing subject matter expert with a wide range of experience in the marketing category who works closely with marketing professionals and helps alleviate challenges encountered when overseeing agency relationships.

Defining Your Requirements

The marketplace for marketing services is anything but easy to navigate. It is complex, and crowded with a wide range of agency options available to fulfill any marketing support requirement. Niche and full-service players exist, some agencies operate independently, and remaining ones are owned by a holding company. Sister agencies compete against one another or may team up to offer a comprehensive service offering. Mergers and acquisition are relatively frequent and can consequently lead to conflicts of interest. Overall, there are a number of considerations when you are seeking out an agency to support a new marketing channel or upcoming product launch. And these considerations should be known even if there is no forthcoming agency search or new marketing tactic on the horizon to support. Marketing professionals and their sourcing colleagues must always be aware of the current state of the marketplace for marketing services to remain competitive and innovative, especially when it comes to the digital space.

Digital Marketing continues to evolve due in part to the various technologies that apply to digital tactics. Advanced technology and digital marketing as a whole have reshaped the way consumers interact with brands, and digital agencies have emerged to support the various digital channels and technologies that exist. It is vital for marketing professionals and their sourcing counterparts to recognize this and determine what type of expertise they wish to obtain to supplement their internal marketing team and fulfill a specific scope of work. Digital Marketing Depot’s whitepaper titled Digital Advertising Agencies 2014: A Buyer’s Guide (download required) serves as a great resource for marketing professionals, defining various types of digital agencies and how and when they should be engaged. Overall, the report provides an accurate snapshot of the current digital landscape and guidelines on how to effectively work with digital agencies across the various service types.

The initial starting point is validating the need to conduct a digital search. Consider:

Is the marketer unsatisfied with their current digital shop and looking to transition?
Review and consider the performance of the current agency. Common reasons for dissatisfaction include: missing deadlines, under-delivering, and poor communication, especially when several agencies work together on a project.
Is a new digital channel under consideration that would lead to an increase in scope, impacting the current retainer model?
When looking to implement a new digital tactic, consider the potential for scope creep. This can occur when a project is poorly defined and can end up consuming allocated budgets.
Is there an upcoming product launch in which the consumer base has a strong digital presence?
Review the campaign you plan to implement. Are the tactics you plan to use offered at your current agency? Is it something a specialty agency would be better suited handling?

Once the objectives are clearly outlined and the scope details are ironed out, the agency selection criteria should be established. This criteria will dictate the search in its entirety and should tie directly to the scope requirements. For example, if the scope is strictly website development, a social media monitoring agency is not nearly the right fit.

With these activities complete, you can move on to agency selection. We’ll explore this topic in-depth in Part II of this three-part series.