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Martin Riley
Group CMO Pernod Ricard
President of the World
Federation of Advertisers
The Future of Effective
Partnerships
MARTIN RILEY
GROUP CMO - PERNOD RICARD
PRESIDENT – WFA
THE WORLD FEDERATION OF
ADVERTISERS
Who AM I?
Pernod Ricard
Who are we?
Pernod Ricard number 2 of the wine & spirits industry
BRAND COMPANY MARKET COMPANY
HOLDING
8,6 billion €
(annual turnover)...
Iconic brands
Prestigebrands
StrategicPremiumBrands
Where do we come from?
Paul Ricard
« make a friend a
day »
2008
2005
2001
1975
3 Big Bangs in 10 years
Growing through acquisitions
180
5
193
2
70 of the world’s biggest marketers
Membership doubled over the past 6 years
• Best-in-class forums meet regularly around the world.
• CMOFORUM
• IMCFORUM
• MEDIAFORUM
• DIGITALFORUM
• SOURCINGFORUM
...
Global Agency Remuneration 2014
Remuneration models in use across all agency types
Source: WFA online survey: ‘Global Agen...
Global Agency Remuneration
Remuneration models in use across different agency types
Source: WFA online survey: ‘Global Age...
Creative agency remuneration shifts away from paying for man hours, towards
paying for performance
Creative agency remuner...
The decline in paying for hours is even more pronounced with media agency
remuneration
Media agency remuneration models (2...
The 4 “C”s required by clients
- Creativity
- Challenge
- Connected (to business)
- Continuity
And … Culture / cultural fi...
The 4 “C”s for agencies
- Communication
- Creativity
- Craft
- Contribution (to business)
And … Committment
The Future of ...
What clients want from agencies
- Individuals with ideas
- Flexibility
- Can do attitude
- Output and outcomes
- Impact
- ...
What clients don’t want from agencies
- Inflexibility in structure and network
- Bottom line focus – endless remuneration ...
Let’s start again … ?
- Entrepeneurial approach
- Agencies - Names on the door
- Clients - Names on the label
The Future o...
The agency of the Future
How would I build the agency of the future
to meet my needs as a client ?
The Future of Effective...
The agency of the Future
What do I want ?
- Focus on output and outcome
- Planning connected to business
- A business part...
Conclusion
- Back to the core business relationship
- Trusted advisors
- Mutual respect – from business and creative chall...
The future of Effective Partnerships
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
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Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side

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Martin Riley, Pernod Ricard CMO and President of The World Federation of Advertisers (WFA) looks at the future of effective partnerships from the client's side. He believes Creativity, Challenge, Connected (to business), Continuity and Culture key for clients with Communication, Creativity, Craft, Contribution (to business) and Committment key for agencies. This presentation was shown at the IPA's Performance Adaptathon on 8th July 2014 in London. Find out more on our website www.ipa.co.uk/adapt/performance and join in the conversation on Twitter using #ipadapt.

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  • ? I will use examples from WFA on privacy / person data position and some quotes from a Millennial survey in US about percentage of Milennials. Willing to give personal data if for a good cause or to benefit them not for the benefit of the brand.
  • Transcript of "Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side"

    1. 1. Martin Riley Group CMO Pernod Ricard President of the World Federation of Advertisers The Future of Effective Partnerships
    2. 2. MARTIN RILEY GROUP CMO - PERNOD RICARD PRESIDENT – WFA THE WORLD FEDERATION OF ADVERTISERS Who AM I?
    3. 3. Pernod Ricard Who are we?
    4. 4. Pernod Ricard number 2 of the wine & spirits industry BRAND COMPANY MARKET COMPANY HOLDING 8,6 billion € (annual turnover) 19000 people around the world 100 production sites
    5. 5. Iconic brands
    6. 6. Prestigebrands
    7. 7. StrategicPremiumBrands
    8. 8. Where do we come from? Paul Ricard « make a friend a day »
    9. 9. 2008 2005 2001 1975 3 Big Bangs in 10 years Growing through acquisitions 180 5 193 2
    10. 10. 70 of the world’s biggest marketers Membership doubled over the past 6 years
    11. 11. • Best-in-class forums meet regularly around the world. • CMOFORUM • IMCFORUM • MEDIAFORUM • DIGITALFORUM • SOURCINGFORUM • Limited to 20-30 of your Marketing Professionals. No agencies or media owners. • Interactive format hosted by member companies. Peer-to-peer groups NYC London ParisSingapore
    12. 12. Global Agency Remuneration 2014 Remuneration models in use across all agency types Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014 8% 1% 3% 24% 49% 4% 11% Commission – fixed rate (fixed % of media billings) Commission – sliding scale (% varies based on media billings variation) Commission – variable (% varies by media used) Fixed or output-based fee (fixed for project/ period) Labour-based fee (labour time calculated by the hour/% of personnel time) Value-based fee (based on value of agency service provided - not time or cost based) Performance-based fee/bonus (based on outputs e.g sales/brand performance metrics)
    13. 13. Global Agency Remuneration Remuneration models in use across different agency types Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Performance-based fee/bonus Value-based fee Labour-based fee Fixed or output- based fee Commission – variable Commission – sliding scale Commission – fixed rate
    14. 14. Creative agency remuneration shifts away from paying for man hours, towards paying for performance Creative agency remuneration models (2011 vs 2014) Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014 10% 12% 15% 17% 59% 51% 4% 3% 15% 23% 2011 2014 Performance-based fee/bonus Value-based fee Labour-based fee Fixed or output-based fee Commission – variable Commission – sliding scale Commission – fixed rate
    15. 15. The decline in paying for hours is even more pronounced with media agency remuneration Media agency remuneration models (2011 vs 2014) Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014 40% 48% 0% 10% 44% 21% 16% 21% 2011 2014 Performance-based fee/bonus Value-based fee Labour-based fee Fixed or output-based fee Commission – variable Commission – sliding scale Commission – fixed rate
    16. 16. The 4 “C”s required by clients - Creativity - Challenge - Connected (to business) - Continuity And … Culture / cultural fit The Future of Effective Partnerships
    17. 17. The 4 “C”s for agencies - Communication - Creativity - Craft - Contribution (to business) And … Committment The Future of Effective Partnerships
    18. 18. What clients want from agencies - Individuals with ideas - Flexibility - Can do attitude - Output and outcomes - Impact - Fair remuneration The Future of EffectivePartnerships
    19. 19. What clients don’t want from agencies - Inflexibility in structure and network - Bottom line focus – endless remuneration discussions - Corporate approach - Counting the hours - ‘Supplier’ relationship The Future of EffectivePartnerships
    20. 20. Let’s start again … ? - Entrepeneurial approach - Agencies - Names on the door - Clients - Names on the label The Future of EffectivePartnerships
    21. 21. The agency of the Future How would I build the agency of the future to meet my needs as a client ? The Future of Effective Partnerships
    22. 22. The agency of the Future What do I want ? - Focus on output and outcome - Planning connected to business - A business partner (skin in the game) - Outstanding relevant creativity in all relevant media and touchpoints - Challenge and continuity The Future of Effective Partnerships
    23. 23. Conclusion - Back to the core business relationship - Trusted advisors - Mutual respect – from business and creative challenges - Entrepreneurial approach from both sides - Outstanding committed individuals - Work that makes a difference The Future of Effective Partnerships
    24. 24. The future of Effective Partnerships
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