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, ...

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.

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 Presentation Transcript

  • 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) 19000 people around the world 100 production sites
  • 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 • 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
  • 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)
  • 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
  • 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
  • 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
  • The 4 “C”s required by clients - Creativity - Challenge - Connected (to business) - Continuity And … Culture / cultural fit The Future of Effective Partnerships
  • The 4 “C”s for agencies - Communication - Creativity - Craft - Contribution (to business) And … Committment The Future of Effective Partnerships
  • What clients want from agencies - Individuals with ideas - Flexibility - Can do attitude - Output and outcomes - Impact - Fair remuneration The Future of EffectivePartnerships
  • 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
  • Let’s start again … ? - Entrepeneurial approach - Agencies - Names on the door - Clients - Names on the label The Future of EffectivePartnerships
  • 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
  • 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
  • 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
  • The future of Effective Partnerships