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The Business Case for Digital Marketing
Production Outsourcing

Highlights from the latest
Deliver eBook
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.




The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|2
                                                        Del | 2
It’s that time of year…budget time




        and marketing budgets aren’t getting
                    any bigger.
The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|3
                                                        Del | 3
Did you know:
             Production costs typically
         represent 30-50% of a company’s
          annual digital marketing spend



The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|4
                                                        Del | 4
What if you could
                     Save 20-50% on your digital
                     marketing production costs?



The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|5
                                                        Del | 5
you could invest in
                      That’s $
                     reaching more customers

                                                                            Through: more channels


                                               with more Programs


                                                 or savings to put back
                                                 to the bottom line.
The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|6
                                                        Del | 6
Let’s start with the basics..




The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|7
                                                        Del | 7
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.

The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|8
                                                        Del | 8
Decoupling creative & production; why some things are
  better separate than together




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

The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|9
                                                        Del | 9
The business case for digital production decoupling &
  outsourcing rests on 5 key pillars

                                 Digital Marketing Production Outsourcing Business Case




 Cost-effective                           Team and                              Standard         Global        Templates
     staff                                 activity                            & optimized      delivery          and
                                        consolidation                           processes        model        automation
                                                                                             implementation




The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|10
                                                        Del | 10
Executing on the 5 pillars typically results in savings of
  20-50%
                                                                                                           Templates and
  Cost                                                                                                     automation
  Saving
                                                                                                           Global delivery model
                                                                                                           implementation

                                                                                                           Standard & optimized
                                                                                                           processes


                                                                                                           Team and activity
                                                                                                           consolidation


                                                                                                           Cost-effective staff




                                                                                       Production Volume




The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|11
                                                        Del | 11
Pillar One: Cost-effective staff




                                                         For example, WPP Deliver has:

                  10            Full service production hubs                           1,300+   Production and
                                                                                                technology experts

                          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 has scale to help clients
                          source the right skills & production locations to meet business needs
The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|12
                                                        Del | 12
Pillar Two: Team and activity consolidation




                          Uneven supply & demand of                                    Stable utilization of resources
                          resources                                                    Add staff quickly when
                          Skill duplication                                            needed
                          Investment in senior staff                                   More effective utilization of
                          across multiple agencies                                     senior staff: 3>1
The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|13
                                                        Del | 13
Pillar Three: 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

The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|14
                                                        Del | 14
Pillar Four: 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
The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|15
                                                        Del | 15
Pillar Five: 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
The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|16
                                                        Del | 16
What determines the level of savings
    The more times you reply yes, the greater your potential for savings

Cost-effective                 Do you have a moderate to high volume of digital production?
Staff                          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                  Do you not have templates?
Automation                     Do you not utilize a production automation tool?
                               Do you create multiple versions of similar deliverables?




 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|17
                                                         Del | 17
The business case in action
       Challenge:
               An automotive company used six                                          Step                                           Savings
               separate US-based creative                                              Decoupling and migration from US based
               agencies to support the digital                                         production staff to cost-effective location in
               marketing needs of nine brands                                          LATAM                                                25%
               Some standard tools and                                                 Consolidation from 6 agencies to 1                   15%
               processes are in place, but they                                          Reduction of senior management and
               are difficult to utilize and enforce                                      administrative staff
               across multiple agencies                                                  Improved annual utilization rate allowed
       Solution:                                                                         fewer total FTE
               Decouple and consolidate to a                                             Reduction in burden on internal support
               single production agency with                                             staff (IT, legal, procurement)
               staff in LATAM                                                          Standardization and optimization of
       Results:                                                                        processes resulted in increased productivity        7.5%
                                                                                       Templating of appropriate assets resulting
               By year two, the solution was
               delivering approximately 44%                                            in increased productivity and faster
               savings year over year                                                  turnaround times                                    5%
                                                                                                  TOTAL COMPOUND SAVINGS                  44%
               Standards compliance improved
               and IT staff had their agency
               support workload considerably
               decreased

The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|18
                                                        Del | 18
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




The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|19
                                                        Del | 19
Learn more at:
                                         www.deliveroffshoring.com

        Read about Digital Marketing Production best
                        practices at:
              www.deliveroffshoring.com/blog

                                             Ben Rolly, VP, Deliver
                                         brolly@deliveroffshoring.com
                                               +1 (212) 210-3057

The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|20
                                                        Del | 20

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Deliver e book_webinar 6-12

  • 1. The Business Case for Digital Marketing Production Outsourcing Highlights from the latest Deliver eBook
  • 2. 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. The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|2 Del | 2
  • 3. It’s that time of year…budget time and marketing budgets aren’t getting any bigger. The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|3 Del | 3
  • 4. Did you know: Production costs typically represent 30-50% of a company’s annual digital marketing spend The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|4 Del | 4
  • 5. What if you could Save 20-50% on your digital marketing production costs? The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|5 Del | 5
  • 6. you could invest in That’s $ reaching more customers Through: more channels with more Programs or savings to put back to the bottom line. The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|6 Del | 6
  • 7. Let’s start with the basics.. The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|7 Del | 7
  • 8. 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. The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|8 Del | 8
  • 9. Decoupling creative & production; why some things are better separate than together Decoupling allows creative & production teams to focus on what they do best The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|9 Del | 9
  • 10. The business case for digital production decoupling & outsourcing rests on 5 key pillars Digital Marketing Production Outsourcing Business Case Cost-effective Team and Standard Global Templates staff activity & optimized delivery and consolidation processes model automation implementation The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|10 Del | 10
  • 11. Executing on the 5 pillars typically results in savings of 20-50% Templates and Cost automation Saving Global delivery model implementation Standard & optimized processes Team and activity consolidation Cost-effective staff Production Volume The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|11 Del | 11
  • 12. Pillar One: Cost-effective staff For example, WPP Deliver has: 10 Full service production hubs 1,300+ Production and technology experts 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 has scale to help clients source the right skills & production locations to meet business needs The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|12 Del | 12
  • 13. Pillar Two: Team and activity consolidation Uneven supply & demand of Stable utilization of resources resources Add staff quickly when Skill duplication needed Investment in senior staff More effective utilization of across multiple agencies senior staff: 3>1 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|13 Del | 13
  • 14. Pillar Three: 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 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|14 Del | 14
  • 15. Pillar Four: 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 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|15 Del | 15
  • 16. Pillar Five: 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 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|16 Del | 16
  • 17. What determines the level of savings The more times you reply yes, the greater your potential for savings Cost-effective Do you have a moderate to high volume of digital production? Staff 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 Do you not have templates? Automation Do you not utilize a production automation tool? Do you create multiple versions of similar deliverables? The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|17 Del | 17
  • 18. The business case in action Challenge: An automotive company used six Step Savings separate US-based creative Decoupling and migration from US based agencies to support the digital production staff to cost-effective location in marketing needs of nine brands LATAM 25% Some standard tools and Consolidation from 6 agencies to 1 15% processes are in place, but they Reduction of senior management and are difficult to utilize and enforce administrative staff across multiple agencies Improved annual utilization rate allowed Solution: fewer total FTE Decouple and consolidate to a Reduction in burden on internal support single production agency with staff (IT, legal, procurement) staff in LATAM Standardization and optimization of Results: processes resulted in increased productivity 7.5% Templating of appropriate assets resulting By year two, the solution was delivering approximately 44% in increased productivity and faster savings year over year turnaround times 5% TOTAL COMPOUND SAVINGS 44% Standards compliance improved and IT staff had their agency support workload considerably decreased The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|18 Del | 18
  • 19. 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 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|19 Del | 19
  • 20. Learn more at: www.deliveroffshoring.com Read about Digital Marketing Production best practices at: www.deliveroffshoring.com/blog Ben Rolly, VP, Deliver brolly@deliveroffshoring.com +1 (212) 210-3057 The Business Case for Digital Production Outsourcing| 2012iverPresentation|3.5.11|20 Del | 20