Cyber Monday Case Study
According to CNBC, Cyber Monday 2017 is expected to produce more than $6 Billion in sales, and RetailMeNot reports that 95% of employed consumers plan to surf for deals while at work. Having the right strategy to capture the attention of consumers on Cyber Monday is critical for advertisers; yet, you may be paying a premium to reach your target consumers this year.
I recently had the pleasure of interviewing Angela Saferite of Saferite Consulting, and in this 10-minute conversation, she highlights a recent consulting engagement where she helped her client optimize their Cyber Monday digital campaign — and generate $175,000 in savings by asking one key question.
What is Integrated Marketing Communications?
The definition of Integrated Marketing Communications (IMC), according to the American Marketing Association is the “Planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” This includes but is not limited to:
- Social media
- Sales promotions
- Public relations
- Direct marketing
- Point of purchase
The game changed with regard to IMC when the internet came in to play in two big ways. First, instead of marketing campaigns being a “push” strategy, it became more “pull” with consumers searching information and becoming “push and pull” interactive. Second, with traditional media the same information is received by all consumers, and with internet media content can be tailored for specific groups or individuals.
IMC not only focuses on consistent messaging for the customer but also provides an efficient and cost effective way for advertisers to communicate. The idea is to harness the power of each channel to have a more effective impact than working each channel individually. The message remains consistent, but the delivery method varies across the platforms.
This ties nicely into advertising production strategic planning. A well defined content production strategy with optimized work flows is a powerful tool to work an IMC process and manage a budget efficiently.
Additional Types of Integration to Consider
- Horizontal – across the marketing mix and business functions – production, finance, distribution and communications working together
- Data – sharing relevant marketing data across different departments within a company and with agencies
- Vertical – ensuring marketing and communications support the higher level business and company objectives and mission
- Internal – keeping all staff informed and educated regarding brand and company identities, standards, partners, etc.
- External – coordinating with all external partners (advertising, PR, media, and digital agencies) to work together in a cohesive manner with messaging and campaigns
IMC: Where do you stack up?
One of the biggest pitfalls of integrating marketing communications (especially for large advertisers) is to be able to effectively and efficiently work across multiple departments that are each producing their own marketing communications. According to Smart Insights, only 6% of companies report that their marketing integration processes are fully optimized while 32% report that integration is a key area of focus for their organization. Regardless where you fall on the spectrum, there are several ways to drive efficiency with IMC including reducing agency fees, streamlining work flows, and leveraging consistent assets across all channels.
Have questions on how to build a production strategy to fit within IMC? Contact us to learn more.
Written in collaboration with Angela Saferite.
This month, we’ve spent time discussing budget planning, successful budget management, and how to find more money within your budget. Now, let’s take a moment to review some key tips to help you avoid common budgeting pitfalls.
Common Pitfall: Instead of starting with project or campaign level budgeting, pull out and think big picture. Are there certain ground rules or strategies to align all the teams on before jumping in to the detail build?
Helpful Tip: When reviewing the annual budget, do a detail review for any spending not tied to a specific plan or campaign, often this can identify spend that can be trimmed without impacting brand objectives and KPI’s.
Common Pitfall: Instead of asking your agency what the production budget should be, consider using models to build your own budgets and set guidelines. The budgets and models can be further refined as the detail planning and creative idea is finalized.
Helpful Tip: When building out models for production budgets, it may be helpful to have a ranges of standard costs for components. For example, animation costs will vary widely depending on the complexity of what is required. A :30 spot with heavy CGI will have a very different budget than one with very little. Music costs will vary depending on whether you’re using stock, original, or licensed music. No two :30 spots are exactly the same, and buying production is not like buying widgets. Setting an appropriate budget is a critical first step to managing costs.
Need a production budgeting tool for your organization or benchmarks for different components of production? Contact us — we’ve had the pleasure of helping hundreds of brands with budgeting, and we’d be glad to help you, too.
Common Pitfall: Failure to obtain written approval for scope changes, overages, or changes in direction during the project can lead to agency disputes and financial management issues down the road. Standardizing and formalizing this process relieve this pressure on projects, teams and relationships.
Helpful Tip: Use a standard form for routing and documenting change requests and approvals. Also consider using a management report to show project budget, revisions, and final spend. Having a dedicated resource (internal or external) who actively manages the budget during all stages may seem like an additional step, resource or cost, but this pays for itself quickly (usually multiple times over).
Need a fresh perspective on a budget issue/opportunity? Click here to submit questions to our team, and one of our experts will get back to you right away.
Written in collaboration with Angela Saferite.
Budgeting can be like going to the dentist — not high on your list of favorite activities. However, if you go often and do the recommended preventative maintenance, you are much less likely to end up in a painful and costly situation!
The key to successful budget management is “early and often.” Below, we’ve identified three steps to take in building the annual budget, setting project budgets, and managing budgets on an ongoing basis:
- Select methods that fit your company culture such as zero based budgeting, standard costing models, top-down target driven, inflation factors, prior year base, stop/start/continue, etc.
- Lay the groundwork up front so everyone in marketing consistently applies the budget methodology. Set the standards for level of detail required, standard costing and modeling, and ratios requirements (working versus non-working, media versus production, fee versus creative, etc.)
- Train the team and review the budgets during the process versus after the budget is submitted. Giving a list of review tips, frequent errors, and issues to avoid can be very helpful for your marketing team.
- Consider a model approach with standard cost ranges for various components of production.
- Define the components and potential costs up front with agreement from all stakeholders.
- Explain variations to the standard costs and obtain senior management approval to operate outside the standard, as needed.
Ongoing Budget Management
- Recruit a champion to manage project budgets and implement process enhancements.
- Analyze, understand, and agree upon detailed budgets prior to the start of any project.
- Wrap-up and reconciliation are just as important as the planning phase and can help your team learn from issues and collect remaining funds for re-investment.
In summary, here are 5 additional things to keep in mind:
- Clarify expectations with the team up front before budgets are prepared and submitted.
- Have a formal review process for variances to standard costing models used in budgeting.
- Have a formal approval process for changes to project scope.
- Assign responsibility for ongoing budget management.
- Be the team that gets more money due to your track record for effectively and efficiently managing your budget!
Being involved early and often are the keys to success in budget management. Check out our upcoming post for tips and key watch-outs for implementing improved budget processes in your company.
Written in collaboration with Angela Saferite.
With today’s consumers digesting content at a rate like never before, organizations are struggling to keep up. Marketers are challenged to create more content, more often — yet have stagnant (or decreasing) budgets. So, how do you overcome the challenge of doing more with less? During this “budgeting season” we wanted to share a few ways you can approach “finding” more money in your budget. Check out three real-life examples:
Refine Your Content Production Strategy
This can help drive creative synergies, increase speed to market, and lead to significant cost efficiencies — especially for advertisers looking to globalize advertising development and production. So, where do you begin?
- Tap an internal or external production expert to analyze current processes, creative outputs, staffing, technology tools, content needs, and spending across brands and geographies to identify opportunities, barriers, and challenges.
- Develop an annual planning protocol — and stick to it
- Determine the optimal production approach(es) based on your content needs for the next year
- Analyze historical benchmarks and develop a methodology for tracking success
MRA was tapped to lead this process for a global advertiser. The results? 44% savings in production costs versus historical benchmarks for comparable scopes. Click here to request the full case study.
Establish Targeted Production Investment Levels
Whether you’re investing broadcast and digital video, creating target investment levels based on deliverable type and complexity can have a significant and positive impact for your organization.
Start by building standard cost ranges (based on historical benchmarks) for the various components of production. A few examples of these “components” include:
- Video style (presenter, single storyline, testimonial, vignette, etc.)
- Testing (boardomatic, 2D animatic, 3D cinematic, etc.)
- Number of locations
- Number of shoot days
- Music (licensed, stock, custom, etc.)
Once all components have been considered, develop categorizations based complexity and deliverable type to be used as “building blocks” for budgeting.
Next, create a budgeting tool which factors in additional elements which may increase/decrease the investment level. A few examples of these additional elements include:
- Heavy CGI or special effects
- Multiple casts
- Shooting in a low-cost location
- Repurposing existing assets
By right-sizing your budgets based on historical benchmarks, deliverable type, and complexity you have the opportunity to drive efficiencies all year long. In fact, one of our clients tapped us for help and captured $1.5M in efficiencies within the first year alone!
Create a Strategy for Scaling Social Media
These days, marketers are struggling with the need to produce more and more content for social channels — with flat budgets. Many organizations are finding themselves with unsustainable year-over-year expenditures in social media and are looking for new approaches to be able to scale their program. If you find yourself in this situation, here’s something to consider:
- Leverage an internal or external expert to evaluate optimal content for driving the best interaction across channels
- Look at social media posts over the last 12 months and analyze interaction rates
- Identify trends in interaction rates by content types and posting cadence
MRA was recently tapped by a global advertiser who needed help in scaling their social media program. By partnering with our client’s marketing team and agency, MRA was able to analyze engagement trends and identify multiple opportunities to stretch budgets and drive efficiency. The results? Our client stretched their social content production budget by more than 35%. Click here to request the full case study.
As you can see, falling into more money comes in all shapes and sizes. Understand the strategies currently accepted by your company and what strategies might improve your approach based on the culture and tolerance for change.
Check out our upcoming article as we’ll provide steps on enhancing your 2018 budgeting processes.
Written in collaboration with Angela Saferite.
It’s Fall and most everyone is working on budgets. And over the last 37 years, we’ve NEVER heard a marketing professional say, “I have enough to execute all the plans and build my brands. No thank you, I don’t need any more budget money.” Seriously, through all the years, with all the brands, in all the circumstances — never have those words been spoken.
So, as an Operations Team member, Procurement Specialist, Accounting or Finance professional, Strategic Planner, or Budget Analyst, here’s what you need to do to be successful: FIND MORE MONEY!
The business environment of today is a picture of:
- Doing more with less
- Holding budgets flat in spite of inflation
- Negotiating incremental deliverables out of existing contracts
- Introducing new brands without incremental budget
- Squeezing payment terms, hourly rates, and fees
- Working with an approved budget only to later receive cuts to that amount
- Reducing total spend but providing the same or better business outcomes
- Reaching consumers in a complex, always-on communication stream
- Complexities with technology and the digital space
So, the task of finding more money in this environment can seem daunting, but there are ways of analyzing existing budgets, building plans for the next year, utilizing tools, and managing processes that can make this a reality. It is reasonable to find money and identify savings that can make you look like a hero, and that money can be dropped to the bottom line or even re-invested in incremental marketing programs to drive improved revenue!
Success in budgeting and smart ongoing budget management looks like this:
- You become the “go to” person for the executives
- Marketing and brand teams respect you and seek advice
- Teams come to you early when there’s a problem
- Teams are honest with you when there’s money remaining in projects or available to solve problems or drop to the bottom line
- You become known for solving problems and helping the marketing team and your company deliver financial goals
- Senior management begins coming to you saying, “If we have incremental money to spend, what can we do to drive incremental sales and revenue?”
So over the next few weeks, let’s roll up those sleeves, sharpen the pencil, and get after this budget in a new way with results that drive new thinking and help you find money!
Join us next week as we explore some actual case studies and tools that deliver this type of success in budget season and throughout the year with ongoing budget management.
With the recent release of the ANA Production Transparency, now is the perfect time to review and refresh your practices.
Identify someone or a team who is responsible for managing production. This can be accomplished in three ways:
- Tap into in-house resources with deep production knowledge (these team members may reside in marketing operations, procurement or finance)
- Train and develop internal team members to manage the production process and expenses
- Hire production experts to supplement your internal team
Assigning this responsibility is a critical first step to success!
Implement solid policies, procedures and guidelines governing production spend. These usually start with your company policies and procedures that need to be adhered to. However, this alone is not enough; more specific production guidelines require clarification and communication. Production guidelines are best when in writing, updated often, and both employees and agency personnel receive training. (The training is best delivered by the individuals responsible for the management of production costs.)
Avoid surprises and issues with your agencies up front in the process by conducting a thorough pre-bid meeting, including leveraging an objective party to ensure 100% alignment among agency personnel and brand teams on all elements of the production, including (but not limited to):
- Recommended bidders
- Shoot location options
- Types and number of assets to be included in production
- Talent requirements, residuals, and buyout considerations
- State incentives
- Special effects
Input and clarity around these topics early in the process facilitates transparency, effective management of budgets, and — yes, even results in savings.
Have a smooth invoicing process which includes a detailed review of invoices before payment is made. This also is helpful in eliminating the painful process of recouping funds if there are discrepancies or disputes with the billing.
Experts that specialize in reviewing production invoices and back-up documentation, monitoring compliance, ensuring verification of all costs can provide a thorough analysis. (Up-to-date, best-practice guidelines are a key element to have in-place prior to implementing the invoice review process.)
Regardless if these 4 steps are supported by internal or external resources, there’s never been a better time to take a look in the mirror and identify areas for improvement. Find yourself wondering how you’re stacking up to other organizations, or need help identifying areas that you might be at risk? Call 513-354-3833 to schedule a free transparency assessment.
Join us next week as we provide tips and tricks for implementing change to production management practices in your operations.
Keep An Eye On These Hot Ad Agencies
We live in one of the most interesting and challenging business environments the world has ever seen. New trends and technologies are emerging overnight, making it difficult for brands to keep pace with the rapid changes. Finding the right partner(s) to support the changing needs and preferences of customers is paramount. That’s where a list of the best ad agencies comes in handy.
In today’s marketing world, working with the right ad agency can make the difference between rapid growth and the slow decline of your business. Top ad agencies today offer a fresh approach and new ideas to companies to help them get a competitive edge.
If you’re searching for an ad agency, or you just want to keep a watchful eye on the market, you’ve come to the right spot. Day-in and day-out, MRA has the pleasure of working with hundreds of agencies around the world. And we consider it a privilege to collaborate with many of the brightest minds in marketing and advertising. Some of the agencies featured in our lists are ones we work with — and some we simply admire from afar.
We decided to publish our first Hot Agencies list in April — which featured were rock stars like Sparks & Honey, Droga5, TDA_Boulder, Huge, and gyro…just to name a few. And now, we’re continuing to showcase some of the best and brightest ad agencies to watch. Download our latest edition of MRA’s Hot Agencies list, and you’ll find 15 top shops in the following categories:
- New Breed Agencies
- Independent and Proud of it
- Small(er) with a Fresh Approach
- Digital Roots
The ad agencies in this list are pushing boundaries, coming up with innovative approaches that blur the line between marketing, strategy, creativity, and technology. Ready to find out who these hot agencies are? Download your copy now!
And What Exactly IS “Production Trouble?”
Let’s face it — you may or may not know if you’re in “Production Trouble,” and that’s okay! Heck, you may or may not even know what “Production Trouble’ is. We’ll tackle that in a minute…
You know, when you I was a teenager, being “in trouble” meant I was either sent to my room, grounded from going out with friends, or…heaven forbid…had my car keys taken away. (We didn’t have cell phones back then. If we had, I’m sure that would’ve been first on my parents’ list.)
But what is “Production Trouble?” Well, it’s when you’re wasting precious time and/or money on production — and you may not even know it!
Things You May Be Experiencing When You’re In Production Trouble
- The production process feels too complex — and rushed
- You aren’t happy with the quality of your advertising
- You’re not sure if you’re getting the best value for your production spending
- You’re producing content for social media and want to ensure you’re getting the best ROI possible
- You don’t have a central repository for asset management
- You need to find creative ways to spend less on production so you can reinvest into other things
- You’re not sure if you’re following best practices when creative is being produced
- You’re not benchmarking production costs
- You don’t have clarity on how production partners are selected
- You work with multiple agencies, and they all seem to work in “silos”
- You don’t know what different types of deliverable should (or shouldn’t) cost
Did you know there’s an expert resource at your fingertips that can help you with each of these? (Yep, that’s us). We can help you anytime and anywhere — MRA works with clients all over the globe. We’re here anytime…
Tell-Tale Signs You Need Production Help. Right Here. Right Now.
In addition to the list above, you may be in serious trouble (without even knowing it). Check out 6 Things You Might Say When You Need MRA (and shouldn’t go another day without calling us):
Excedrin® Migraine, Congrats on the Recent Wins!
It’s thrilling to see a Silver and two Bronze medals in honor of the creative associated with this campaign, and we’re honored to have played a part in making it come to life.
After more than a year of planning, the Excedrin® Migraine campaign went live in April 2016, and the entire campaign wrapped itself around various real stories of people who suffer from migraines. Four individuals who suffer from migraines tell their story in four different videos. These stories are told in a truly unique manner whereby their partner or family member wears an augmented reality migraine simulator.
The production of this campaign kicked off many months ahead of the launch, since there was so much to plan in advance of video shoot. MRA was involved from the very beginning when we helped capture the best people for this project — from casting to directors to editors, etc.
In addition to the four videos being shot, a long format video showing what a migraine feels like, science expert videos, preroll deliverables, and print stills were a part of this project. MRA recommended a genuine real people casting agent for the project and also recommended a production company, editorial company, and a talent payroll company to help with talent payments, which proved to be extremely successful.
Throughout the production process, which involved many layers of agency personnel (creative, digital, account, and even some freelance), MRA provided support well-beyond cost control. Many deliverables were produced for various regions around the world, and we were delighted to be part of the team, co-produce, and serve in an advisory role to ensure everyone could do their very best work — at the very best price.
MRA is so very proud to have the opportunity to serve more than 500 brands around the world, and we want to give special thanks to Excedrin® Migraine for allowing us to serve you on this amazing project!
Haven’t seen the campaign yet? Check out the videos here.