The Future of Digital Agency Compensation
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The Future of Digital Agency Compensation



Presentation to iMedia Conference, Phuket , Oct 2009

Presentation to iMedia Conference, Phuket , Oct 2009



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The Future of Digital Agency Compensation The Future of Digital Agency Compensation Presentation Transcript

  • The Future & Getting Paid for it R3
  • Who are we?
    • Asian based global consultancy
    • Helps marketers and agencies be more efficient and effective
    • A ‘coach’ , not a ‘policeman’
    • Equally hated and loved
  • Why are we here?
    • Our clients have no clue about Digital
    • Even the ones you think have a clue – don’t really have a clue
    • We don’t want to be equally clueless
  • Today
    • What Clients Want
    • The Future of Them Paying You
    • Secret Tips to Master Them (and R3..)
  • What Clients Want 1. What Clients Want
  • Ask them!
  • The biggest relationship issue
  • R3 REGIONAL STAKEHOLDER RESEARCH 170 Interviews Face to Face One Hour
    • 38% of advertisers cite creativity as the most positive aspect of the digital agencies currently engaged
    Part One Base: 102 clients IDEAS MATTER
    • 44% of advertisers cite lack of ROI as the biggest barrier to increasing budget for digital marketing
    HOW TO MEASURE? Part One Base: 102 clients
    • 60% of advertisers believe their own marketing teams’ understanding of digital is not strong enough
    Part One Base: 102 clients SKILLS
    • 84% of advertisers would welcome more training from their agencies on new media/ new digital platforms
    Part One Base: 102 clients EDUCATION
    • Only 23% of advertisers believe the current market instability has made them cautious about trying new media and digital formats
    Part One Base: 102 clients TIME IS RIGHT
  • WHY ?
    • 61% of advertisers themselves are using more than 2 forms of social media frequently (eg Facebook, Twitter)
    Part One Base: 102 clients SELF USE
  • WHO IS LEADING DIGITAL? % of advertisers Base: 220 China, 214 India China India
  • The Concubine Category…
    • adidas
    • - 21 Communications (CN)
      • One Xeno (CN/HK)
      • Isobar: wwwWins (CN), AgencyW (KR), OneDigital (AU), Digithais (TH)
    • Sony
      • i2K (SG)
      • Nokomai (SG)
      • Qais (SG)
      • Euro RSCG (AU)
      • The Upper Storey (SG)
      • Bascule (JP)
    • Coca Cola
      • 21 Communications (CN)
      • Arachnid (MY)
      • The White Agency (AU)
      • Euro RSCG (SG)
      • Clear Blue Day (AU)
      • Profero (CN)
      • Isobar: wwwWins, Digithais, Carat Interactive, AgenciaClick, Carat Fusion, Molecular, Marvelous
    • McDonald’s
      • Arc (CN, AU)
      • Tribal DDB
    • Motorola
      • 21 Communications (CN)
      • digitalDigm (KR)
    • Nokia
      • XM Asia/RMG Connect (SG, CN)
      • Formul8 (SG)
      • The Upper Storey (SG)
    • OCBC (Robinson’s card)
      • Formul8 (SG)
      • Proximity (SG)
      • Isobar (SG)
    • P&G
      • XM Asia (AU)
      • Saatchi & Saatchi
      • Digital Digm (KR)
      • Nurun (CN)
      • Proximity (AP)
      • G2 (AP)
      • Publicis Modem (AP)
    • Radico Khaitan
      • Proximity (IN)
      • Euro RSCG (IN)
      • G2 (IN)
    • Toyota/Lexus
      • Saatchi & Saatchi (regionally)
      • Arachnid (MY)
    • Visa
      • XM Asia (SG)
      • Blue Interactive
      • Proximity
    • HP
      • 21 Communications (CN)
      • Blue Interactive
      • XM Asia (SG, CN)
      • Digital Digm (KR)
      • Euro RSCG (KR)
    • eBay
      • Blue Interactive (SG)
      • One Xeno (HK)
    • J&J
      • One Xeno (CN/HK)
      • 21 Communcations (CN)
      • Agenda/i2K (HK)
      • Proximity
      • Blue Interactive (CN), (Acuvue)
      • Euro RSCG (KR)
  • 2. The Future
  • If you’ve been listening for two days… the old model is broken
  • Even last year’s model looks old
  • Clients are making moves
  • Even….crowdsourcing….
  • 19 million ways forward….
  • Sapient Wish List Study
    • Greater knowledge of the digital space.
    • 2. More use of “pull interactions.”
    • 3. Leverage virtual communities.
    • 4. Agency executives using the technology they are recommending.
    • 5. Chief Digital Officers make agencies more appealing.
    • 6. Web 2.0 and social media savvy.
    • 7. Agencies that understand consumer behavior.
    • 8. Demonstrate strategic thinking.
    • 9. Branding and creative capabilities.
    • 10. Ability to measure success.
    Sapient Wish List Study
  • Top 8 Creative Agencies
    • Source – Gunn Report
    TBWAChiatDay New York US Omnicom Saatchi & Saatchi New York, Los Angeles US Publicis DDB London UK Omnicom Dentsu Tokyo Japan Dentsu Fallon London UK Publicis TBWA Paris France Omnicom Ogilvy & Mather Singapore Singapore WPP BBDO New York US Omnicom
  • Top 8 Digital Agencies
    • Source – Gunn Report
    Far Far Sweden Aegis CP&B US Independent Forsman & Bodenfors Sweden Independent R/GA US Interpublic Goodby Silverstein US Omnicom FramFab Netherlands Independent Glue London UK Aegis Great Works Sweden TYO Group
  • The New Agency Model
    • A. Consultative
    • B. Collaborative
    • C. Creative
    • D. Cashed Up !
  • A. Consultative
    • We don’t think that the toilet bowl has any unpleasant meaning.  Human beings can live several days without food but toilet bowl even one day, other wise the world must turn into the mass. The deep culture of toilet bowl is a criterion of the civilization. Equanimity and imperturbability being able to stand pressure with enthusiasm are the toilet bowl’s characters. The combination of responsible, sacrificing and readiness is the spirit of toilet bowl. The toilet Bowl can release the pressure and make you comfortable. The beauty of toilet is willing to clean itself and fresh forever! So! for our client, unconditional offerings is Meikao’s spirit
    • CEO only
    • Flat fee
    • Sales Incentive
  • B. Collaborative
  • Red Lounge
  • Results
  • Spontaneous Awareness Top 10 Brands Q 7-1. Can you tell me what Olympic sponsors you know?(No prompted,Maximum:6)
  • Promotion that leave strong impressions Q 8-1. Please tell me which Olympic sponsor’s promotions have left a deep impression on you?
  • C. Creative
  • Snickers USA
  • D. Cashed Up!
  • Measure it. Move it. Make it
    • Differentiate based on results. Not price
    • New content relationships
    • New media relationships
  • “ Risk – Reward” Did he say “ Reward – Reward”?
  • Who’s Doing it Well?
  • A Confidential R3 Case Study……
  • What Clients Want 3. Secret Tips to Master Them!
  • “ 80% of agencies have the same point of difference”
  • “ We are an integrated, full service digital agency that believes in brand building solutions that are highly creative”
  • “ Please meet our CEO and our Regional Strategist. You will never ever see them again”
  • Market your brand as if it was your client
  • Write a MARKETING brief
  • Remember….
  • What is YOUR Advertising to Sales ratio?
  • Write a PRESENTATION brief
  • Identify, Diagnose and Cure the Business Pain
  • Be nice to (some of..) the consultants!