uplifting offices
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uplifting offices
magazine of the year 19 MAR 2014 ® modern marketing £7.50 uplifting offices how space can nurture creativity TD_35_09_MAR19_COVER.indd 1 12 9 772046 063011 14/03/2014 14:42 Hi Supercharge your marketing communications with Outdoor to the Power of 5 Young, Urban, Mobile Audience The Active Space Impressions that Last The Amplification Medium Changing the Landscape Learn more at www.outdoor5.co.uk FullSinglePage.indd 1 Power_of_5_Drum_ad_H330mmxW240mm_Reveal.indd 1 14/03/2014 12:25 12:33 22/02/2014 inside03 THE DRUM 19.MAR.14 www.thedrum.com ® 19 March 2014 VOLUME #35 ISSUE #06 18 Cover courtesy of Boys and Girls (boysandgirls.ie) The Irish creative agency’s balloon suspended front desk features in our look at agency receptions. 12 25 Disruptive leadership Ian Pearman says ‘digital’ has little meaning in era of convergence. 18 Colourful spaces How important is it for agencies to get their receptions right? 15 Full steam ahead Rory Sutherland joins other voices from the worlds of advertising, design and media to look at how the electronic cigarette market is shaping up. 30 25 Creative Works The best new creative work from around the world. 30 Top performers A look at the latest happenings in performance-based marketing. 50 54 The Last Word Paul Kitcatt is not a fan of pitching, and he doesn’t care who knows it. Girl Guides Julie Dodd wants to harness digital’s power for the greater good. 52 The Drum Network Richard Draycott catches up with Boutique Media’s Simon Bollon. TD_35_09_MAR19_CONTENTS.indd 3 14/03/2014 14:43 Nobody ever achieved greatness with half measures. Synergist can give you all this – and because In business, or in life. So when you decide it’s time to step it’s completely scalable, it will grow as you do. up a gear and realise your agency’s true potential, you You can take your business from good to great. can’t let anything hold you back. And that means having Synergist can help you make it happen. a firm grip on the figures, a clear view of job profitability and a watertight project management system. Ensuring See our latest agency stories at synergist.co.uk your people have all the information to hand to make the right decisions, fast. For agencies with ambition FullSinglePage.indd 1 SYN001_The Drum ads_Catherine_AW.indd 1 14/03/2014 10/02/2014 12:35 16:18 LEADER05 THE DRUM 19.MAR.14 www.thedrum.com meet the team gordon young editor [email protected] we need to talk about privacy It is our industry’s guaranteed passion killer, a seven letter bombshell that causes otherwise forthright and loquacious marketing directors to clam up and lose their THOMAS O’NEILL MAGAZINE editor [email protected] tongues. But it’s an issue that, whether we like it or not, is going to become one of marketing’s biggest talking points of 2014. Yes, it’s time we talked about privacy. In marketing circles, privacy has felt like the elephant in the room for too long. It has stayed that way because marketers have been safe in the knowledge that consumers, indifferent to privacy worries themselves, have largely surrendered their data unquestioningly. Now we are starting to see that attitude change. KATIE MCQUATER FEATURES editor [email protected] The catalyst for that change is the Edward Snowden files, which have exposed government organisations like the US National Security Agency (NSA) for spying on their ordinary citizens’ web activity. Propelled by the campaigning of Wikileaks and the Guardian, the issues around privacy and personal data have exploded onto the mainstream agenda and become a subject of national debate. Suddenly, people are aware that their data, which Stephen Lepitak ONLINE editor [email protected] they have given away so freely, actually has a value – and a cost. As data enters the popular lexicon, there is a danger that it becomes a dirty word and a risk that marketers could be tarred with the NSA’s brush. A brand looking to target you with relevant advertising is a much less sinister proposition than a government watching you like Big Brother, however. But do people outside marketing services see the distinctions as JESSICA DAVIES NEWS editor [email protected] clearly as we do, or do they just see us all as seedy gatherers of their private details? The complexities of targeted advertising are not well understood beyond our industry, and therefore many people’s default setting, quite naturally, is to assume that anyone harvesting their data must have questionable motives. By not being clearer about why we want to know so much about our customers or website visitors, we are inviting suspicion upon ourselves. The days of the acquiescent consumer are numbered. Angela Haggerty reporter [email protected] To combat these concerns, we have to be more transparent as an industry. It is the least our consumers deserve. On page 11 we quote the Internet Advertising Bureau chairman, Richard Eyre, who admits our industry is “undercooking it on privacy policies”. No longer is the “legal bollocks” small print good enough, he says. “We need to go further than we have ever gone before as advertisers to relax people with what we’re doing with data.” PPA: • Business Magazine of the Year 2013 PPA Independent Publishers Network: • Media Brand of the Year 2013 • Editor of the Year 2013 PPA Scotland: • Scottish Magazine of the Year 2013 • Business & Professional Magazine of the Year 2013 • Business & Professional Magazine Design 2013 • Business & Professional Magazine Editor of the Year 2013 Simply by telling customers what we won’t do with their data we can put their minds at rest and eliminate many doubts. We need to better communicate why we need their data, and if we’re not capable of that, perhaps we ought to question whether we should really be collecting it at all. We may be able to use data to predict consumers’ behaviour, but no database will ever tell you their mood. It’s time we started to be more sensitive to their feelings around data, and talk openly and honestly about privacy. If we don’t, it could be many brands’ silent killer. Editor: Gordon Young Associate Editor & MD of The Drum Network: Richard Draycott Editor-at-Large: Dave Birss Magazine Editor: Thomas O’Neill Features Editor: Katie McQuater Online Editor: Stephen Lepitak Commissioning Editor: Cameron Clarke News Editor: Jessica Davies Reporters: Gillian West, Jen Faull, Angela Haggerty, John Glenday Research Journalist: Sam Scott Staff Writer: Natalie Mortimer Social Media Manager: Ishbel Macleod Design & Production Director: Nick Creed Design/Production: Amanda Dewar, Ross Lesley-Bayne Group Commercial Director: Liz Hamilton Business Development Manager: James McGowan Directory Sales: Stephen Young Recruitment Sales: Tehmeena Latif Subscription Sales: Laura Bradley Events Director: Lynn Lester Events Manager: Katy Thomson Managing Director: Diane Young Head of Content Solutions: Andy Oakes Printed by: Stephens & George Magazines Head Office: 4th Floor, Mercat Building, 26 Gallowgate, Glasgow G1 5AB London Office: Lower Gound Floor, Victoria House, 64 Paul Street, London EC2A 4NG Tel: +44 (0)141 552 5858 Fax: +44 (0)141 559 6050 THE DRUM is published by Carnyx Group Limited. The publishers, authors and printers cannot accept liability for any errors or omissions. Any artwork will be accepted at owner’s risk. All rights reserved. On no account may any part of this publication be reproduced in any form without the written permission of the copyright holder and publisher, application for which should be made to the publisher. © carnyx group limited 2014 ISSN 2046-0635 TD_35_09_MAR19_LEADER.indd 5 14/03/2014 15:00 06AGENDA www.thedrum.com 19.MAR.14 THE DRUM Digital Convergence Marketers must take responsibility for customer experience or risk being overtaken by IT departments Thomas Cook marketing director Mike Hoban tells The Drum’s Digital Convergence conference that marketers face becoming redundant if they focus too much on “the colour and size of logos” and abdicate responsibility for customer experience to IT departments. Marketers must embrace technology and ‘take responsibilty’ for the customer experience or face becoming “redundant” and letting IT departments overtake them, according to Thomas Cook marketing director Mike Hoban. Hoban said the rise of the chief experience officer role within businesses reflects an “abdication” of the responsibility of the marketing department. “A marketing department must put itself in place where it has an accurate understanding of the consumer, and champions that in the organisation; aligning all its activity behind the commercial objectives of the organisation, and ensuring that every part of that business contributes to delivering that customer experience. Too many businesses treat brand management as “worrying over logo colour and font size”, when the reality is that it is about managing the promise that organisation makes, according to Hoban. “But if marketers allow themselves to be boxed in by worrying about the colour and size of logos they will be redundant, as they will be overtaken by IT departments who will be responsible for customer experience,” he added. Hoban said that the first role of a marketer is to champion the customer and to do that they must embrace technology, and in doing so they can reinvent and future-proof their businesses. “But you must be able to talk to your IT department – you will not succeed in the future as TD_35_09_MAR19_AGENDA_01.indd 6 a marketer is you can’t.” He stressed that the fact marketing and IT departments speak “different languages” is what can ensure a business really thrives. “The most important relationship that exists in business today is the relationship between marketing and technology and the ability to get them to talk together is absolutely fundamental. But this doesn’t mean that you want them to talk the same language, because it’s in that conflict that emerges in their different languages that answers will emerge to problems.” Also on the Digital Convergence panel was Andy Mihalop, Google’s head of industry for insurance, who agreed with Hoban that the siloes between organisations’ marketing and IT departments must be broken down for companies to move forward. “Traditionally the creative piece has sat within marketing, and some of the science side which includes the platforms and data on technology side in the IT department – that silo must be broken down – it’s about marketing and technology coming together with a common agenda to drive a customer-driven experience,” he said. Hoban agreed, but reinforced the point that marketing is not synonymous with art alone, and likewise science with technology. “We shouldn’t fall into the trap of thinking art equals marketing and science equals technology, because the platforms that will determine the success of business in the future will arguably be created by the creatives within the technology departments.” Fellow panellist Graeme Douglas, interactive creative director at Wieden+Kennedy, challenged the term “creative” when applied to specific individuals, reinforcing that all people have the potential to be creative. “The word creative as a noun is unhelpful – it’s about creativity not creatives – it should reflect a way of doing things and an approach rather than a job title. We are guilty of enforcing that – the whole industry is guilty of reinforcing it – creativity is a cultural thing, not something to be siloed into a corner or even outsourced,” he said. Meanwhile, Nishma Robb, chief client services and marketing officer at Dentsu Aegis Network-owned iProspect, added that one of the biggest challenges for agencies is working with clients who have not embraced change and become integrated themselves but are “totally disconnected”. “They look to the agency to act as a kind of band aid between the two, and we end up spending more time helping businesses restructure themselves.” She also said that the fundamental way in which agencies earn money hasn’t changed, but that it must in order to reflect the changing media landscape. “The way we earn money isn’t relevant now in terms of the metrics we are trying to deliver. “It’s about recognising that value – it may be a sale, but it may be another measure of success that needs to be determined. But unless we get true alignment between brands and agencies that will always be a challenge,” she said. 14/03/2014 15:12 AGENDA07 THE DRUM 19.MAR.14 www.thedrum.com Digital Convergence Digital Convergence Notonthehighstreet.com has power to ‘disrupt any consumer sector’ Tracking consumers who aren’t signed in is ‘the golden bullet’ Shop Direct’s head of user experience, Sam Barton, has said that cross-device tracking consumers who aren’t signed into an account is “the golden bullet” for businesses. Online retailer Notonthehighstreet is in a position to “disrupt any consumer sector” through its ability to offer personalised products that “talk to people on their terms”, according to marketing director Ben Carter. Speaking at The Drum’s Digital Convergence event, Notonthehighstreet’s Ben Carter said the brand is aiming to become famous in the next three years and despite the business growing 150 per cent year-onyear, there is still a huge branding job to be done. “Our prompted awareness among females is very high but among blokes that prompted awareness is not,” commented Carter. “So our mission is to make sure we are relevant to anyone who wants to buy something on the internet. That’s a big mission and we have big competitors like Amazon, but we have the ambition and determination to make it a success.” Currently, 80 per cent of the products on the website are sold by females and the retailer is channelling efforts to make the brand more relevant to men. One of the ways it is doing this is by “investing in the right channels TD_35_09_MAR19_AGENDA_01.indd 7 above the line”, creating an ongoing conversation and pushing a constant reminder of the brand through media partnerships. Carter also said that the brand is increasing its marketing investment to drive home the message that it is more than just a ‘gifting’ retailer and a place to go for personalised products for yourself. “Notonthehighstreet has become an established gifting destination, but we sell so much more than gifts,” he said. “Our mission is to make you realise that you don’t have to have the same doormat or bed sheet as your neighbour. Our priority is to work out how we become known as more than that and to further grow the site around self-purchase”. As part of this push, the site last week ran its first ‘reactive’ advert after seeing the opportunity to engage in current events and news. It used a conversation around prenuptial agreements and in two hours created the advert and ran it in print the next day. It also pushed the content through core social media sites. Creating advertising and social media engagement through current events is something Notonthehighstreet is heavily investing time in. Carter said the marketing team is “almost like a news team” with news gathering calls taking place three times a week. However, he added that reactive “isn’t really reactive” and needs to be more of a planned process, with the team forward planning key events such as pancake day throughout the year. Talking about targeting customers at the right time, Carter said the brand is “cutting through the clutter” and from a commercial point of view still “working out the balance for Pinterest”. Notonthehighstreet currently has a 180,000 strong Facebook fan base, with CPAs through the site described as “phenomenal”. Shop Direct’s Sam Barton has said that the online retail brand is currently only able to track consumers who are signed into their accounts, making it difficult to fully understand big data collected about their habits. “Customers who shop with us across different devices are 15 times more valuable than those who shop on one device, so we understand the importance of cross device. From that insight we started retargeting on mobile and looking at the data behind that. “At the moment we just track people who are signed in. We design user journeys based on the profile of the customers we are seeing and within UX we create personas by the way people are using cross devices. That influences the interface and how we target them, and it influences everything we do,” he said. Barton was speaking at The Drum’s Digital Convergence. Also on the bill was Steve Forde of Channel 4, who said the broadcaster uses big data to learn more about the “human being” that is the viewer. “We believe by 2020 two thirds of viewers will come through connected devices which creates an interesting strategy for broadcasters. We have introduced lots of MBTs to nudge customers into deciding what to watch. “We have terabytes and terabytes of data to understand what customers are watching and how we can use that data to influence decisions on TV. The next thing to see is how and if data can influence which programmes we can make in the future”. 14/03/2014 15:12 08AGENDA marketing Burning a hole in our pockets? Almost 50 years since cigarette advertising was banned from British TV, the world’s biggest tobacco firms are returning to our screens as they pour millions of pounds into the flourishing e-cigarette market. On page 15 we take a look at the opportunities the new market offers advertisers, but first, how much is the sector currently worth? www.thedrum.com 19.MAR.14 THE DRUM digital convergence Digital has helped shift F1 image away from ‘moving tobacco ads’ Formula One cars have traditionally been seen as “empty vessels” for tobacco sponsorship – an image racing teams can now shed thanks to digital engagement strategies, according to McLaren’s Rob Bloom. Formula One has previously “had a label” for being predominantly associated with tobacco sponsorships, with the racing cars seen as “empty vessels” for conveying commercial messages, according to Rob Bloom, group online manager at McLaren. Speaking at Digital Convergence, Bloom said: “The cars have been seen almost like moving billboards driving round with tobacco sponsorship.” Now though teams have realised the importance of building brand equity and affinity, which was the reason behind McLaren’s Tooned branded content series, and its creation of fun content on digital channels in the run up to and post racing events. Bloom said the pressure for Formula One teams like McLaren to perform is not isolated to the race track alone, but equally applies to the digital arena. “It’s about the power of context and being relevant to the moment. We are riding on the crest of demand at all times, and brands must adapt from inside-out to be right for social. “The story of relevance isn’t between 2 and 4 o’clock on a Sunday afternoon. It is Wednesday to Wednesday of a Grand Prix week. We acknowledge and understand that people want more, and there are loads of micro stories that can be told along the way,” he added. Bloom said the future road map will centre on diversifying its fan base to appeal to more 15 to 25-year-olds and growing its international audiences in the US and China. TD_35_09_MAR19_AGENDA_02.indd 8 14/03/2014 15:13 AGENDA09 THE DRUM 19.MAR.14 www.thedrum.com sxsw awards Should brands be real-time? Time fries when you’re having fun... The Chip Shop Awards entry deadline has now passed, but if you still want to enter, don’t worry. The deadline has been extended, so we are still accepting your killer ideas. Email katy.thomson@thedrum. com to arrange your extension. A panel of US brand marketers from McDonald’s, Dell, Capital One and Whole Foods Markets was assembled at this year’s SXSW festival in Austin to discuss their differing social strategies in achieving audience and consumer engagement. Stephen Lepitak reports. The rise of real-time marketing through the adoption of social media by brands has been evident over the last few years, with many companies increasing their spend in an effort to achieve viral success through single creative messages or longer-term engagement strategies. And while much of the talk in the industry has highlighted major one-off success stories, with the much hyped Oreos ‘Dunk in the Dark’ Super Bowl tweet still held up as the example to beat, it was clear from the discussion that such achievements are rare and that chasing that success can prove fruitless and costly. Instead the panel was united in the belief that brands should see social as a customer service tool to communicate on a meaningful, granular level. “What’s lost in the real-time marketing discussion is the customer service stuff,” claims McDonald’s director of social media Rick Wion. “When we got started on Twitter we were very particular in making sure that we had a customer service team as part of our original launch team because we knew we would have things that people would complain about and we wanted to make sure we were able to take care of those customers. For us, real-time is about one-to-one interactions everyday as those customers TD_35_09_MAR19_AGENDA_02.indd 9 that come in and are upset, we need to speak to them too.” Natanya Anderson, director of social media for Whole Foods Market, was in agreement, calling on marketers to view the potential to communicate with customers 365 days a year, rather than attempting stunts around major events. “The maturity that we have seen in the social listening tool space means we’re no long just getting big blobs of data back. We have pretty sophisticated ways to filter them, and because social is a more mature space for businesses, not every single tweet needs to go through 10 layers of approval. We’re really at a place where real-time marketing can become a reality.” Noha Abdalla of Capital One, underlined the need to understand relevance should a brand wish to activate around a major event, admitting that the bank chose not to focus any activity around the recent Oscars for instance. “Real-time doesn’t necessarily mean being a part of that culture-jacking moment. We don’t have to be part of the Super Bowl, it’s more about having the right conversation with consumers around something they are passionate about and something they want to engage on,” she explained. Meanwhile, Dell’s Bryan Jones revealed his social team encompasses 280 people and that every one of his marketing people is part of the conversation: “Every person within the organisation needs to have an active role in social media and connecting to our customers,” he said. “Real-time marketing is similar to the conversations we have already had. I’m not looking for the lightning strike, I’m looking for the constant connection with customers. If something funny or unique comes out of that interaction then that’s great, but its not the driving factor in how I deliver a marketing campaign. I want that connection every day to be relevant and empowering to the end user.” All agreed that social should be used for listening and responding to customer needs but that responses should only be made when appropriate. Anderson advised that social interaction be viewed as community management, saying: “Real-time marketing happens at the intersection of customer conversations or your business opportunities or business stories and I really believe in the idea of holding conversations that customers would invite you to join. But by listening to customers, listening to what they need and what is important to them, and then by joining in with what is important to them, that can be useful to them.” The Dadis (The Drum Awards for the Digital Industries), in association with Synergist, is the UK’s premier digital awards, celebrating digital effectiveness and excellence. Now in its eighth year, entries for the awards are now being accepted, with a deadline of 30 May. Register and enter at dadiawards.com. The Drum Marketing Awards take place on Thursday 8 May at the London Marriott Grosvenor Square Hotel. For more information about the awards or to book your tickets for the ceremony, visit thedrummarketingawards.com. 2014 The Online Media Awards is now offering an extended deadline. Rewarding the best in online journalism and sales, the awards are open to online editors, publishers and media sales professionals and the entry pack, along with all other information about the awards, can be found at onlinemediaawards. net. Contact Caity Ryan on 0141 559 6063 for more details. 14/03/2014 15:13 Take once a day to relieve the symptoms of mobile planning and buying M Y Y Y The world’s first dedicated mobile demand side platform For many media agencies, planning and buying on mobile can be a painful experience which is why we built StrikeAd Fusion™; a single platform through which you can plan, execute, evaluate and optimise all your mobile campaigns, in real-time and on a global basis. StrikeAd Fusion™: Makes the process of running mobile campaigns across multiple devices and geographies much easier. Our Real Time Bidding Engine ensures you are buying only the inventory that works for your clients and optimises automatically. London New York Chicago Singapore FullSinglePage.indd 1 +44 207 290 0380 +1 646 581 9300 +1 312 5601571 +65 9611 7669 StrikeAd Engage™: If you’d like to test the effectiveness of our platform but are not in a position to license technology yet, we also offer a fully managed service. Send us your RFP and we will respond with prices and case studies to illustrate how we can add tangible efficiencies to your mobile plans. StrikeAd TM contact @ strikead.com www.strikead.com Powering mobile advertising 14/03/2014 12:35 AGENDA11 THE DRUM 19.MAR.14 www.thedrum.com marketing “We’re undercooking it on privacy policies,” IAB chairman tells marketers Richard Eyre recently spoke out about the importance of marketers working harder to ease consumer concern over data and privacy – one of the pillars in his template on the future of marketing. Internet Advertising Bureau (IAB) chairman Richard Eyre has told marketers that they must go further and work harder to relax people about data, saying that the “legal bollocks” on websites’ privacy tabs no longer cuts it. Speaking at ISBA’s annual conference in London, Richard Eyre said: “The activities of Bradley Manning and Edward Snowden have brought state breaches of data to the fore, but it hasn’t taken the heat off advertisers and brands. The IAB has offered some best practice approaches, but I can’t help but feel that we’re undercooking it on privacy policies.” “It’s about security of data and despite our efforts their remains some very serious concerns about the collection of data.” Eyre added that right now, what marketers must to do to ease consumer concerns is to get the ‘privacy’ tab, often found hidden at the bottom of the page, up to the top. “And when we click on it we should get something that isn’t legal bollocks but that says here is what we will never ever do with your data,” he said. “We need to go further than we have ever gone before as advertisers to relax people with what we’re doing with data.” This respect toward the consumer is one of the pillars in his ‘future of marketing template’, which Eyre urged marketers to take heed of. Commenting on the importance of openness for a brand – another pillar – Eyre said that while brands are pulling up their privacy tab, they should also be overhauling how they enable consumers to contact them. He applauded the likes of Virgin Atlantic for its real-time responses to customer queries on social media, but on a more basic level said that right now brands should axe the FAQs panel from the contact section on their websites and invest properly in offering consumers genuine contact points. “Under-resourcing of contact points is pathetic. It’s what big businesses do when they think they are bigger than the consumer,” he said. In the same vein, Eyre explained that for brands it’s no longer about defining a persona and keeping it up because in this “always on” world that simply isn’t possible. “Brand values have to be for real, they cannot be an overlay. Under the constant scrutiny and discussion available to our customers, carefully crafted overlays can’t exist. They must not express what research says people want from the brand, but the truth about what that brand actually is and what it means,” he said, explaining that Nike and Apple are two brands who at one time have been tarnished by the inconsistency in what they say to consumers and what they do as companies. He continued: “CSR is a dreary term if ever I heard one, but it absolutely should be a division of marketing. It should not exist anywhere else in your organisation.” New research into behavioural marketing has found that 62 per cent of marketers avoid it due to privacy concerns from customers. Behavioural marketing is the practice of capturing data generated by visiting websites, or responding to social media comments, and using it to increase the effectiveness of campaigns. The vast majority of respondents to the study understood the benefits, with 57 per cent forecasting more than 10 per cent improvement in customer satisfaction; 61 per cent forecasting more than 10 per cent improvement in marketing attributed revenue; and 58 per cent anticipating more than 10 per cent improvement in ROMI. Yet only 33 per cent of the 151 marketers surveyed said they considered themselves “mature practitioners”. “When prospective customers interact with companies they expect more – more personal, more relevant and more timely communications,” said Lori Wizdo, principal analyst with Forrester Research. “Marketers need to constantly and automatically evolve their programs based on how their buyers react to their marketing messages. Behavioural marketing is no longer an option – it’s table stakes.” Looking at why there is a discrepancy, 78 per cent of respondents agreed with the statement ‘we are held back in our adoption of behavioural marketing because of our marketing technology’, and 62 per cent agreed with the statement ‘we avoid behavioural marketing because of our customers’ privacy concerns’. However, B2B and B2C marketers have accepted multichannel marketing as a best practice, with 52 per cent stating that they are already in transition to adopting these processes. Only one per cent said they had no interest in doing so. marketing 62% of marketers avoid behavioural marketing Two thirds of marketers avoid behavioural marketing because of the privacy concerns of customers, according to a new study by Forrester commissioned by Silverpop. TD_35_09_MAR19_AGENDA_03.indd 11 14/03/2014 15:14 12disruption www.thedrum.com 19.MAR.14 THE DRUM DROP THE Digital is the communications equivalent of air, Ian Pearman of AMV BBDO tells Stephen Lepitak, and attempts to keep the ‘D-word’ alive within agencies merely hampers innovation. The advertising industry has witnessed more change in the last five years than in the preceding 50 according to Ian Pearman, CEO of AMV BBDO, who says the advent of digital favours strong agencies and client teams who “know what they stand for”. In a period of rapid change, three characteristics of successful agencies have emerged, Pearman points out, explaining that success is embodied by “organisational character”, an ability to “distinguish between means and ends” and teams who don’t confuse activity with progress. Pearman is speaking to The Drum as part of a series of interviews with agency chiefs around the disruptive effect digital has had on the marketing communications industry. Yet, when it comes to the terminology, he doesn't believe “the D-word” holds much meaning in the current era of convergence, describing it as "a false currency" and adding that it is “the communications equivalent of air, so trying to demarcate specific executions, channels, ideas or budgets as ‘digital’ is a pointless exercise”. Yet budgets are still being siloed into disciplines that include digital in a separate pot, says Pearman, adding that clients’ existing business structures have evolved at a slower pace than those of marketing agencies, mainly due to the size of their organisations. Pearman believes that siloing budgets creates confusion over how money should be spent, and with whom. “It creates a perverse incentive for agencies to keep the ‘D-word’ alive in their own business, simply to improve their chances of laying claim to those budgets. The result is a drag effect on the innovation needed within agencies and marketing departments alike.” While the ‘D-word’ is an “oversimplification” that has created two types of agency, as the term becomes redundant clients will be able to focus on the overall offering of agencies from varying creative backgrounds, says Pearman. This of course throws up a limitless set of competitors in an already cut-throat market. “Theoretically, every agency is a potential competitor, as every agency has the right to extend its capabilities into new areas – broadcast advertising, social, content, TD_35_09_MAR19_DISRUPTION.indd 12 web development – but whether they are actual competitors depends on the maturity of those offerings. “And as ever, most agencies have a centre of gravity; the likes of AKQA and SapientNitro are likely to continue with business models centred on building large web development projects, just as our business model is unlikely to veer away from big strategic and creative ideas.” Therefore, the main competitive battle facing AMV BBDO, according to Pearman, is centred around who retains the right to execute ideas across an increasingly wide media mix. “Specialist disciplinary agencies will always compete hard for those specific opportunities, and we have to earn our right to execute by showing our capability and evidence of previous success in those disciplines. Fortunately, we have lots of both,” he says. Coming from a more traditional creative background doesn't mean that Pearman sees his own agency as having a better positioning in the modern era when it comes to agency offerings, instead that it is simply “easier” to find technology partners to execute an idea rather than vice versa. "It’s always easier to find the means if you have an end in mind, and ideas first, technology second, fits that more easily than the reverse." The evolution has meant a change in hiring priorities for the business, while also creating more opportunity for internal working partnerships across varying disciplines: technology, strategy and creative production. “It’s the constant interplay of these inputs that creates ambitious ideas that can still be actually made – ideas that have never been done before, but that are strategically bang on for a brand’s business challenge. If you miss anyone of these inputs, you end up with ideas that are brilliant but can’t be made, ideas that are exciting but strategically bereft, or ideas that are right but workmanlike,” he adds. When it comes to ensuring agencies meet the capabilities sought by current and prospective clients, Pearman argues partnerships have become all the more vital. In a time of multiple specialisms, this need has become all the more pressing, he explains. 14/03/2014 12:57 THE DRUM 19.MAR.14 www.thedrum.com disruption13 "No agency has every single capability in all of the shapes and sizes, and there will always be occasions when agencies need to call on best-in-class partners – particularly production experts – to execute best-inclass work. Clients increasingly recognise that reality and I’ve heard more and more talk of “ability to partner” as one of the metrics by which they judge agencies, knowing that it will significantly influence the final outputs.” Agency culture has a part to play in determining how collaborative companies are. “Agencies that have creative departments with a ‘black box’ attitude to creative development – with briefs pushed under the doors of creative offices – will do badly by this metric,” suggests Pearman. “Agencies that attract people who have ‘zero-sum’ attitudes – the sense that sharing ideas means giving away power – will also fail. Great production companies only partner with people who treat them properly, and if clients increasingly recognise this, the nice guys in the agency sector will come first not last,” he adds. While clients’ own structures have been slower to develop, they are at the same time no longer likely to be fazed by the emergence of new languages, as technological development continues to evolve and “It’s always easier to find the means if you have an end in mind, and ideas first, technology second, fits that more easily than the reverse.” their understanding of that and the opportunities it creates continues to be imperative. However, more understanding does mean that agencies will now be judged on their capability and competency to deliver their clients’ needs more in future. Pearman adds that in recent years, he has yet to meet a client who has not had an eye in wider agency capability, describing integrated capability as having become “a hygiene factor”. It’s not just disciplines that are converging. Vertical differentiation between agencies has also faded as client needs have blurred, however that has in turn driven organic growth within businesses such as AMV BBDO. “Clients simply can’t manage or pay for huge rosters of specialist agencies any more,” he says. “They’d rather consolidate more business into one lead agency who can either provide those services in-house or subcontract to specialist partners where necessary.” He suggests that agencies are now emerging from a “Wild West period” where he describes each campaign built on a new discipline as “a bit of a leap of faith”. Marketers now have the benefit of clear patterns of effectiveness to establish what works, and what doesn’t. “That is very reassuring for marketers, and will be the catalyst for a new wave of investment in highly integrated campaigns,” adds Pearman. “As ever, if you can measure it, you feel better equipped to manage it, and the risks of increased investments start to fall dramatically.” TD_35_09_MAR19_DISRUPTION.indd 13 14/03/2014 12:58 WANT TO BE THE MASTER OF ORGANIC SEARCH? C L I C K C O N S U LT C A N H E L P Y O U MAKE THE RIGHT MOVE. Get in touch today for a free organic search consultation. More traffic, higher conversion rates, increased ROI... C H E C K M AT E ! www.click.co.uk FullSinglePage.indd 1 | 0845 366 7586 | L @ClickConsultLtd | F facebook.com/ClickConsult 14/03/2014 12:37 THE DRUM 19.MAR.14 www.thedrum.com e-cigarettes15 The electronic cigarette industry is one of the world’s fastest growing markets, and with the big tobacco firms now involved it shows no signs of slowing down. We hear voices from the worlds of advertising, media and design discuss the opportunities the new category offers. TD_35_09_MAR19_ECIGS.indd 15 14/03/2014 13:17 16e-cigarettes www.thedrum.com 19.MAR.14 THE DRUM It’s almost 50 years since cigarette advertising was banned from British TV, and two decades since loose tobacco and cigar ads faced a similar fate. Last month however British American Tobacco returned to our screens as we start to see the world’s biggest tobacco firms pour millions of pounds into electronic cigarette advertising. According to market research company Nielsen, £60m has been spent advertising electronic cigarettes in the UK since 2009, including a massive £11.5m in the first two months of 2014 alone. And with a reported 1.3 million Britons now ‘vaping’, the category is moving beyond a mere cessation tool to represent its very own scene, with a multitude of devices and flavours flooding the market. We turned to the industry for some insider opinion on the opportunities electronic cigarettes present, and how we’re likely to see the market develop. Getting us started is Ogilvy Group’s Rory Sutherland who, coincidentally, recently spent 24 hours in a Qatari prison after unthinkingly having a puff onboard a plane out of Doha. Despite his e-cig induced incarceration, the vice chairman is optimistic about the future of the market. Rory Sutherland, vice chairman, Ogilvy & Mather UK E-cigarettes are a disruptive innovation. Like many disruptive innovations, they emerge unexpectedly from the bottom up, not from the top down – and are pioneered not by large companies but by small start-ups. As such they are always rather annoying to a number of vested interests and large organisations. You might assume I am referring to the tobacco industry here, and in part I am. But this natural resistance also extends to other interest groups – pharmaceutical companies who are heavily invested in patches and gums, and even anti-smoking groups who have made an enormous emotional investment in other solutions to the problem, and who may resent the idea that their problem is being solved in other ways by someone else entirely. Purists may also be naturally hostile to the idea of harm-reduction as opposed to outright abstinence. But e-cigs are important in that they seem to satisfy cravings in a way that other substitutes may not. Addiction is highly complicated. Regular drinkers will become effectively drunk if they consume large quantities of tonic water from glasses of which the rims have been merely dipped in gin. A large part of addiction may lie not only in a chemical dependency but in the rituals and sensations attached to smoking – which e-cigs mimic in a way other replacement therapies don’t. That’s why, for the moment, we should give this technology the benefit of the doubt. None of this is to say that e-cigs are harmless. It is simply too early to say. There are almost certainly as-yet undiscovered risks attached to them. Some of the the appeal of e-cigarettes, let’s be candid, is that you can use them in places where you can’t smoke normal cigarettes (though this does not include aeroplanes, as I recently learned). But some arguments are probably a bit desperate. I am instinctively suspicious of claims that they are ‘gateway drugs’ – that children will TD_35_09_MAR19_ECIGS.indd 16 automatically progress from e-cigs to the real thing. First of all, appeals which rely on urges to ‘think of the children’ are quite often little more than emotional blackmail. Besides, the whole ‘gateway’ argument is a little fatuous: I am sure I could make the case that Lapsang Souchong is a gateway-drug to crack-cocaine if I chose my statistics selectively enough. And, to me, the magic of e-cigarettes is that, after using them for a while, the urge to use real cigarettes has disappeared almost completely – something I never thought would happen. Looking at it now, the e-cigarette market is at an interesting stage. It appears to be much like the car market in its early phases – an enormous number of players and a noisy plethora of competing brands. One effect of regulation may be to reduce this market to a much smaller number of competing brands – which ironically (through simpler choice) may have the effect of making the category more appealing to consumers, not less. (Good agencies might do well to try to spot the two or three contenders who stand to survive and flourish when the category is winnowed down). There is an interesting question marketers need to address in relation to the packaging and branding of e-cigarettes, as well as how they should be treated in advertising terms. This is an area I myself am conflicted about. If they’re not that harmful (and nicotine on its own probably isn’t), then marketing them as some form of entertainment is no worse than advertising coffee. My puritanical instincts would perhaps prefer that 14/03/2014 13:18 e-cigarettes17 THE DRUM 19.MAR.14 www.thedrum.com industry insights Richard Sunderland, CEO, Heavenly E-cigarettes are a product of our time: the coming together of technological innovation, consumer behaviour and social responsibility. A product truly designed to respond to a market need, to enable smokers to enjoy nicotine without it compromising their health or their social life. What we are witnessing now is this market maturing rapidly as e-cigarettes become a credible and commonplace alternative to cigarettes. ‘Vapers’ are growing in numbers and in respectability. Social proof is an important factor in any new market, as early adopters look to others to legitimise their brand choices and to provide reassurance that they are not alone in going against the grain and trying new products. We are also seeing the market segment, as the players accelerate the association of their brands with different lifestyle themes. Welcome to Smoking 2.0. “the e-cigarette market is at an interesting stage, much like the car market in its early phases – an enormous number of players and a noisy plethora of competing brands.” not to happen. Would I want to see a novelty brand with cartoon characters on the pack? No. However, regulators, at this early stage, should probably err on the side of slight indulgence: in any case human psychology is so perverse that overly harsh regulation may make the category cooler than it was before. (By contrast, I was intrigued to be told by my Dutch colleagues that no true Amsterdamer would dream of smoking dope in a coffee house, as decriminalisation has made these place unspeakably naff – fit only for German and English tourists). When the first e-cigarette TV ad aired, no-one was more surprised than me. Ogilvy had been approached by e-cigarette brands and led to expect that TV advertising would not be allowed. In its current form, I would argue that marketers need to TD_35_09_MAR19_ECIGS.indd 17 figure out if the category needs advertising; I suspect it does, because marketing will have a crucial role in normalising the activity and making the category more credible. I also believe dedicated e-cigarette shops will help smokers with the face-to-face advice they need to make the switch. More controversially, I would favour an indulgent approach towards flavours – since if you get hooked on bubblegum-flavoured e-cigs, you’re less likely to relapse back to standard tobacco. Incidentally the benefits of nicotine need to be explored along with the costs: it is, after all, an appetite suppressant. There is a bit of a witch hunt against smokers which is as much motivated by snobbery and malice as altruism: there are plenty of other behaviours (drinking, gambling or talking about football) where the external harm is equally immense. Andrew Bloch, founder, Frank PR The e-cigarette industry has become the world’s fastest growing market, with sales up 340 per cent from an estimated £44m in 2012 to £193m last year, making it an incredibly exciting space to be working in. Today we find ourselves in the enviable position of entering at the early stage of an entirely new market, and as a result have a fantastic opportunity to help shape and develop the entire category. Bobby Hui, chief strategic officer, Arena As a credible alternative to smoking, the e-cigarette market is set to explode. Hitherto these products have been marketed as smoking cessation aids but as their penetration grows and we become more familiar with the sight of people vaping it’s likely that the category will go mainstream with its distribution. The battle will be one of share of mind and share of wallet. Several of the big tobacco players are launching into the market and they have deep wallets and big brand thinking. Smaller players will need to look at creating niche audiences and growing that way. 14/03/2014 13:18 18agency receptions www.thedrum.com 19.MAR.14 THE DRUM colourful spaces TD_35_09_MAR19_RECEPTIONS2.indd 18 14/03/2014 13:13 agency receptions19 THE DRUM 19.MAR.14 www.thedrum.com The reception desk at Dublin creative agency Boys and Girls is supported at one end by giant Jenga blocks and suspended from balloons at the other ‘You never get a second chance to make a good first impression,’ goes the old saying, and while there is uncertainty over who actually coined this bit of wit, its guidance resonates to this day and seems to be a driving force behind a slew of quirky agency reception designs, as Gillian West finds out. “After the people and the product that you produce, the reception is the most important aspect of any business, full stop,” says Dave Buonaguidi, chief creative officer at Karmarama, whose office boasts a disco tunnel, a huge red Buddha, a VW camper van and a life-size plastic llama. An agency’s reception area is often viewed as a reflection of the creative talent who choose to work there, meaning the area has to work 10 times harder than the same space within a lawyers’ or doctor’s office. Just like the brands they work on, agencies increasingly have to consider the TD_35_09_MAR19_RECEPTIONS2.indd 19 impression their workspace creates because right from the moment someone walks through the door they are building a picture in their mind of the business. And if that person walking in the door happens to be a client with a multi-million pound brief, you’d better hope it’s the picture you want them to see. With numerous potential clients passing though agency receptions on a daily basis, FCB Inferno’s Tim Doust explains how “every agency is trying to distinguish itself from the next, and the reception area is where all of this comes to life”. The reception has to convey “everything an agency stands for; its 14/03/2014 13:14 20agency receptions www.thedrum.com 19.MAR.14 THE DRUM values and the image it wants to project”. Décor is one way for an agency to make its mark on visitors, and from Karmarama’s off-beat additions to Elmwood’s ping-pong table and BBH’s coffee bar, each item is there to engage potential clients and reflect the agency’s ethos. For example, creative agency FST uses its reception area to showcase the two things it feels are most important to its business – its clients and its people – by displaying portraits of its staff and an ever-changing collage of live clients on its walls. Wieden+Kennedy Amsterdam, on the other hand, celebrates its creative edge by promoting work from emerging and established creators, artists and troublemakers in its foyer, and in Leeds the centrepiece of Elmwood’s reception is a timeline of its history. However, no amount of style will make up for lack of substance with many companies crediting their ‘front of house’ staff for creating the ultimate first impression. BBH London has gone as far as bringing in top London restaurant maître d’s to impart their wisdom on how to make people feel welcome and serve “every agency is trying to distinguish itself from the next, and the reception area is where all of this comes to life. it conveys everything an agency stands for; its values and the image it wants to project.” ‘customers’, whereas FCB Inferno employs jobbing actors as its front of house staff to make use of their energy and artistic mindsets. “User experience is an increasingly important thing in our business and we’re trying to recreate the content we create for clients in the experience they get from our building,” BBH London’s deputy chairman Jon Peppiatt tells The Drum. “In the past we’ve had a few absolute pros from the restaurant business come in and talk to us about how to serve customers and how to make people feel welcome,” he says, explaining that the agency’s receptionists walk with clients to meeting rooms or the coffee bar, and offer to take bags. “It’s the little things that stop you from thinking ‘oh God, they don’t want me here’ and shrinking into a corner.” Peppiatt goes on to explain that this is not just for the sake of being nice. Or not purely anyway. “There is a strategy behind it,” he reveals. “We’re doing it because we know if we give the right impression it will make the clients feel good and respect us more. That leads to better relationships, which leads to better work and more new business, which becomes revenue and pay rises. It’s that circle which is really, really important.” Outwith impressing clients and visitors, an TD_35_09_MAR19_RECEPTIONS2.indd 20 The reception at Mother has a wall dedicated 14/03/2014 13:14 THE DRUM 19.MAR.14 www.thedrum.com agency receptions21 Timelines and table tennis in Elmwood’s reception area s a wall dedicated to the staff’s mums TD_35_09_MAR19_RECEPTIONS2.indd 21 Wieden+Kennedy Amsterdam hangs work from emerging and established artists in its foyer 14/03/2014 13:15 22agency receptions US firms like Ticketmaster have led the way in playful interiors TD_35_09_MAR19_RECEPTIONS2.indd 22 www.thedrum.com 19.MAR.14 THE DRUM The Bio Agency has embraced nature with an abundance of wood and greenery, and even the odd woodland creature 14/03/2014 13:15 agency receptions23 THE DRUM 19.MAR.14 www.thedrum.com Google is renowned for its quirky headquarters, which have provided inspiration for many agencies BBH London brings in maître d’s from top London restaurants to impart their wisdom on making people feel welcome agency’s reception area sets the tone for the rest of the office space, and the University of Minnesota’s Carlson School of Management suggests that creative office design leads to increased creative output in a recent study. “If an environment is clean and professional, we feel we should act that way. And if it’s more relaxed and carefree, we can let ourselves go a little bit,” comments assistant professor and one of the report’s authors Joe Redden. Thought to have begun in the US in firms like Google, Ticketmaster and Apple, changes to the way we work have been the catalyst behind playful interiors, argues Karmarama’s Buonaguidi, who tells us that the office space, and what it says about an agency, has shifted from being a “temple showroom” to a more relaxed and open place to work. “I prefer working in interesting, stimulating TD_35_09_MAR19_RECEPTIONS2.indd 23 Karmarama’s disco tunnel “more modern ways of working mean that we have moved from ‘office-based’ offices to open plan environments, and that means more opportunity to have fun and create interest and stimulation.” spaces,” he explains, “and more modern ways of working mean that we have moved from ‘officebased’ offices to open plan environments, and that means more opportunity to have fun and create interest and stimulation.” This is an insight shared by FCB Inferno’s Doust, who believes it’s more than just “quirkiness”, but because making the working environment fun is a “tried and tested branding tool”. The founding partner adds that “businesses like Google, Facebook and Bloomberg have demonstrated the effectiveness of interior design in recent years in attracting attention, talent and business.” So whether you decide to transform your office into a giant treehouse à la Mind Candy, or keep it slick and sophisticated, the trick, according to W+K Amsterdam’s managing director Clay Mills, is to “convey the values of the organisation rather than falling prey to gimmickry”. It’s advice we could all take heed of. 14/03/2014 13:16 After another sell-out year, the Dadis are back and will open for entry this month. Bringing together individuals and companies at the forefront of the digital industry, these awards are your chance to prove just how good you are. Register now dadiawards.com Deadline: 30th May Organised by: In association with: Sponsored by: recommendedagencies.com Make your brand famous by sponsoring the Dadis, contact [email protected] for your bespoke package FullSinglePage.indd 1 14/03/2014 12:37 THE DRUM 19.MAR.14 www.thedrum.com creative WORKS25 CREATIVE A round-up of the best new creative work as voted by readers of thedrum.com. For the chance to see your work in the next edition of The Drum email [email protected] or follow us on Twitter @thedrumcreative. works Miss Piggy stars in Adam&EveDDB’s campaign for Lipton TD_35_09_MAR19_WORKS.indd 25 14/03/2014 13:09 26creative WORKS www.thedrum.com 19.MAR.14 THE DRUM Lipton ‘Be More Tea’ by Adam&EveDDB Kermit and Miss Piggy lend their star quality to this global campaign for Lipton from Adam&EveDDB. Though Kermit finds New York to be filled with animals he is able to navigate a more peaceful path as Lipton has enabled him to ‘Be More Tea’. Set to the soundtrack of ‘Everybody’s Talkin’, the promotion aims to inspire people to look up and take in all life has to offer. Art director: Feargal Ballance Copywriter: Patrick McClelland Planner: David Golding Media agency: Mindshare Production company: Biscuit Filmworks Director: Noam Murro Editor: Neil Smith @ Work Post-production: Framestore Audio post-production: Clearcut Sound Studios Sport Relief ‘Make Every Mile Count’ app by Hi Mum! Said Dad Hi Mum! Said Dad has created an app for Sport Relief aiming to unite the nation and foster participation in a mass effort to log a collective one million miles across various sporting disciplines. Users can log miles using iOS or Android apps or through the responsive web experience. Users are rewarded for achieving distance goals with medals and access to exclusive content. The app also enables users to donate to the cause and share their efforts via social media. Creative director: Raimondo Taibi Art director: Leigh Hall Producer: Pete Ross TD_35_09_MAR19_WORKS.indd 26 14/03/2014 13:09 THE DRUM 19.MAR.14 www.thedrum.com creative WORKS27 Andy’s Candy Apothecary brand identity and packaging by Emcee Design Emcee Design created a new logo and packaging for recently opened candy store Andy’s Candy Apothecary. The agency set out to modernise the nostalgic feel of drug store candy by fusing quality and craftsmanship with modern typography. Emcee Design also delivered store front and interior design. Design director: Michael Leonardini Designer: Tamara Lawrence Copywriter: Kirby Bittner Illustrator: Aris Bajar TD_35_09_MAR19_WORKS.indd 27 14/03/2014 13:10 28creative WORKS www.thedrum.com 19.MAR.14 THE DRUM Giant Owl Productions identity by Alphabetical Independent production company Giant Owl approached London-based Alphabetical to bring the brand to life and create a distinct and memorable brand identity which would achieve necessary stand out and give the brand a character. As part of the identity campaign Alphabetical created a website spanning the production company’s latest project, a flying bag, a small business card with a big presence and a digital tape label you can see in the dark. Creative director: Bob Young and Tommy Taylor TD_35_09_MAR19_WORKS.indd 28 14/03/2014 13:11 THE DRUM 19.MAR.14 www.thedrum.com creative WORKS29 Very.co.uk ‘Bring the Colour’ by St Luke’s St Luke’s latest work for online retailer Very.co.uk shows that you can ‘Bring the Colour’ to even the most dreary of situations. Set to a backdrop of a grey, lifeless world representing winter drabness, the idea behind the spring campaign is that you can brighten up every day mundane scenarios with Very. co.uk’s colour pop trend. Creative director: Al Young Art director: David Wigglesworth Copywriter: Ed Redgrave Planner: Rose Van Orden Business lead: Jonathan Dale Account director: Lara Poole Agency producer: Caroline Angell Production company: Partizan Director: AB/CD/CD Freeview ‘Cat and Budgie’ by Leo Burnett Leo Burnett’s new campaign for Freeview gained momentum thanks to a week-long teaser trail ‘What happened next?’ which introduced the nation to the advert’s stars. As Leo the cat eyed his feathered friend from afar, most predicted that the budgie was set to meet an untimely demise so when the ad finally broke and the unlikely duo sang the classic motown duet ‘You’re all I need to get by’ audiences were surprised and delighted in equal measures. The crux of the campaign is to show how great free entertainment can be. Executive creative director: Justin Tindall Creative director: Richard Robinson, Graham Lakeland Art director: Phillip Meyler, Darren Keff TD_35_09_MAR19_WORKS.indd 29 14/03/2014 13:11 30performance TD_35_09_MAR19_INTRO.indd 30 www.thedrum.com 19.MAR.14 THE DRUM 14/03/2014 14:12 Performance31 THE DRUM 19.MAR.14 www.thedrum.com how well is your marketing performing? Performance marketing is moving up the value chain, as we explore over the next few pages. Here, sponsor Affiliate Window explains why compliance and transparency is key to its future growth. The performance channel is a complex network of different online strands bound by a common commercial metric: cost per acquisition. Because of the range of traffic sources and promotional methods available, together with the number of sales delivered (30m transactions and £2bn in revenue across 1,600 retailers last year for Affiliate Window alone), affiliate networks are faced with ongoing quality challenges that require constant vigilance. They also have a duty of care to ensure that traffic is delivered ethically and within the spirit of the industry. This is where the network’s compliance function comes to the fore and must be at the heart of any decisions when choosing who to partner with. Performance marketing compliance isn’t just about weeding out occasional rogue publishers engaged in unethical or non-compliant activity, it also helps assimilate new technologies within the channel to ensure existing publishers are treated fairly (as in the setting of cookie hierarchies when dealing with retargeting traffic). It is imperative compliance should be at the heart of a performance campaign rather than a TD_35_09_MAR19_INTRO.indd 31 bolt-on or afterthought, especially in an era of evergrowing brand vigilance when publisher partners need to always be ‘on message’. Performance marketers should offer confidence to advertisers that any residual fears they have are tackled by suites of proprietary and third party tools. Brands should also take heart from the UK’s position as the most ethical performance marketplace in the world. Every digital discipline, be it display, SEO, paid search or email has its own challenges regarding standards and ethics. That they may be less understood could be part of a lack of willingness to expose them. Performance marketing doesn’t have a bigger problem than other channels, more we recognise the need to tackle transparency and control head on, knowing this ultimately builds trust and secures future budgets. Kevin Edwards strategy director, Affiliate Window 14/03/2014 14:12 FullSinglePage.indd 1 14/03/2014 12:38 THE DRUM 19.MAR.14 www.thedrum.com performance33 high-class performance Luxury brands have been notoriously shy when it comes to performance marketing, but diversification in publisher types, new technologies and the rise of content is bringing confidence to the sector, as Gina Lovett finds out. TD_35_09_MAR19_PERFORMANCE_1.indd 33 14/03/2014 14:07 34performance www.thedrum.com 19.MAR.14 THE DRUM It would be hard to not acknowledge the prevalence of affiliate marketing. More than a third of the UK internet population is now using price comparison or coupon sites according to the latest IAB/PwC Online Performance Marketing survey, while last year saw UK consumers make 150m purchases via affiliate websites totalling £13bn according to ComScore data. And with comparing prices, reviewing products or signing up to a loyalty programme now inherent in national shopping habits, it’s little surprise that luxury brands – historically shy of performance marketing – are now getting in on the act. According to digital marketing professionals, the last year has seen an influx of completely new brands from the luxury sector. Consumers are now as likely to see Tommy Hilfiger, Ralph Lauren, Net-a-Porter, Matches, Burberry, Gucci, Michael Kors, Jimmy Choo, Emporio Armani, Moschino, Valentino and Selfridges on price comparison sites as they are on city centre billboards. According to Diane Canady, marketing and e-commerce director of luxury tailoring brand Savile Row, it makes good business sense. To eschew affiliate marketing would be to not There is still hesitancy among luxury brands towards incentivisation. recognise how integral a part of the ‘multi-faceted’ the customer journey it is. The growth of premium, content-rich environments is helping fuel interest. Fashion portals are captivating consumers with a rich luxury experience, immersing them in the brand by enabling them to follow certain runway collections or curate individual outfits from a range of brands or collections. According to iCrossing’s head of media, Sam Fenton-Elstone, ‘super affiliates’ work well in fashion and retail as consumers tend to search for specific types of designer goods. Portals such as Shopstyle, Polyvore and Lyst have grown in prominence, network and reach over the last few years to achieve maturity. “Luxury brands are in good company; the experience is great; there’s good design and images, and great social interaction. It’s a strong brand-led environment. They are now being taken seriously,” says Fenton-Elstone. Tom Woodhouse, senior affiliate executive at iProspect, agrees: “Fashion aggregators such as Shopstyle, Polyvore and Lyst are able to place even the most premium brand in a luxury environment. There is definite opportunity for high TD_35_09_MAR19_PERFORMANCE_1.indd 34 end brands who would have traditionally never entered a space dominated by incentivised sites, which could damage brand credibility.” As Woodhouse points out, there is still hesitancy among luxury brands towards incentivisation. Vouchercodes, cashback and other such activity is likely to be perceived as discounting and can ‘distress the brand’. He adds: “The pitfall for luxury brands is most certainly brand protection, and how to maintain control of assets and the policing of the network on how they are promoted. This can be easily resolved with full creative control resting with the brand and all assets and marketing tools delivered via the affiliate networks.” The benefits and scaling out opportunities gained outweigh the risks to the brand, according to Fenton-Elstone. The brand risks are more of a “perception challenge”, he says, which is often the hardest bit. “If you’re restricted by brand, you’re not going to be able to scale out.” Canady sums up the challenge for luxury brands: “It’s a constant challenge balancing a very price sensitive market with protecting the brand credentials. You have to be strategic about things.” Coggles is one such luxury brand to have implemented a broader affiliate programme in the last nine months, according to Affiliate Window account director, Nicola Clare, who oversees the programme. The brand works with most affiliate types but has a policy never to discount the brands on site by offering codes. According to Clare, sales work “incredibly well and deliver increases”, 14/03/2014 14:07 performance35 THE DRUM 19.MAR.14 www.thedrum.com Affiliate marketing can now be much more closely aligned to how brands wish to their products to be marketed. which the voucher sites can promote. However, there are never discounts outside this. The largest contribution to revenue has come from fashion publishers including ShopStyle, Polyvore and ASOS. Clare puts the success down to Affiliate Window engaging directly with publishers to understand exactly what their requirements and technical setups are. This involves standardising product feeds so that systems can process and replicate them as closely as possible to the shopping experience. “Some advertiser feeds are incredibly poor with missing content, broken links or no images. Affiliates like ShopStyle spend a massive amount of time sorting that out. Equally the format of every networks’ feeds are different so they have to make those fit too. We just wouldn’t have achieved TD_35_09_MAR19_PERFORMANCE_1.indd 35 such successes without investing in the face-toface time learning about each other’s business needs and building the all-important personal relationship,” says Clare. Despite the hesitancy of some luxury brands, there are a number showing even more confidence in the affiliate space, venturing beyond content and aggregation into tactical loyalty, cashback and discount programmes. The level of data insight that can be harnessed from these for targeting or personalisation can be particularly useful in customer acquisition and assessing customer lifetime value. Such is the motivation for luxury brands Hugo Boss, Armani and Diane Von Furstenberg all working with Quidco, offering online cashback between five per cent and 9.2 per cent. Hugo Boss offers eight per cent exclusively to Quidco shoppers, helping boost its five-star customer rating on the site. According to Quidco commercial director Andreas Andreou, while luxury names should be brand protective it’s important they do not miss out on opportunities that can help them drive more sales and bring in new customers. He adds: “We do a lot of Net Promoter Score analysis and more than often we find that customers using Quidco have a higher NPS than those that shop direct meaning they are more likely to purchase again. Our most recent NPS analysis showed 100 per cent uplift for one retailer.” Andreou emphasises the importance of working strategically with brands to ensure long-term success. Blanket offers and vouchers are best avoided, he says, especially if they can’t be controlled. Ed Fleming, head of PR and partnerships at Savoo, echoes the rich rewards of data insight, which guide incentive strategy and deal seasonality. Benchmarking the data, he says, will help work out the optimum time to implement. He points to Selfridges’ 20 per cent vouchercode offer, which ran across a number of sites including Savoo in the run up to Christmas 2013 as a ‘canny’ example. Fitting with its democratic fashion-for-all mantra, the luxury department store’s vouchercode offer catalysed a spending surge in the critical retail Christmas weeks – boosting revenue at the time of year when retailers are under pressure to make the bulk of their yearly revenue. “Selfridges probably wouldn’t do a deal like that again for the rest of the year but they gained a huge number of new customers and got a great deal of insight,” Fleming says. The diversification in publisher types, new technologies and the rise of content means that as a channel, affiliate marketing can now be much more closely aligned to how brands wish to their products to be marketed. While it might mean spending more time building relationships, in the long-term, it can only mean reaping the rewards from prevalence. 14/03/2014 14:08 36performance www.thedrum.com 19.MAR.14 THE DRUM Playing your cards right TD_35_09_MAR19_PERFORMANCE_2.indd 36 14/03/2014 14:10 performance37 THE DRUM 19.MAR.14 www.thedrum.com Card-linked technologies are changing the cashback and retail landscape as new means of offering seamless consumer discounts emerge. Sean Hargrave takes a look at how new partnerships in the card cashback space are presenting exciting opportunities for retailers. ur Recent developments in cashback and affiliate marketing have made in-store the new huge opportunity, and no doubt battleground, for performance marketing publishers and advertisers. In the latter half of last year, two of the big four banks (Lloyds Banking Group and RBS Group) launched in-store cashback services, introducing the masses to the notion of promotion and loyalty schemes returning money to their wallet. They joined the million shoppers at the country’s leading online cashback service, Quidco, who have registered a debit or credit card so they can take advantage of long running and shorter terms deals by simply using their everyday card to make the purchase. Cashback is now moving in-store from the banks on the one hand, and affiliate marketers on the other, to tap in to the nine in 10 sales that still happen face-to-face on the high street. Banking loyalty So, how have these new developments come to be? Cardlytics launched Everyday Offers in Q4 last year with Lloyds Banking Group (which includes Halifax and Bank of Scotland) and has a very simple premise. The majority of its customers will bank online nine times per month and around 40 per cent of its 11 million customers bank through a mobile app nearly daily, offering a vast, frequently engaged audience which the bank has detailed spending data on. “The beauty of what we’re doing is people don’t have to do anything new, they don’t have to go off finding sites with deals, they don’t have to sign up to schemes,” says Charlie Humphreys, Cardlytics managing director. “We bring the deals to them and they’re offered based around detailed data analysis because we can look at what an advertiser is trying to achieve and then present those people to them. For example, one of our clients, Gourmet Burger Kitchen opened a restaurant in Norwich recently. Through the banking data we knew which customers in the area were interested in casual dining and could offer them a targeted offer next time they checked their account online or through their mobile phone.” As with all the major players in the area, a similar looking control group is never shown a particular offer so the incremental sales can be proven by comparing identical types of customer who are only differentiated by those who have seen the offer and those who haven’t. It is a very similar situation with Reward Insight, which powers Natwest and RBS Cashback Plus. The initiative expects to add several new retail partners to its current roster of seventeen before Easter. “We’re all about allowing the banks to offer their customers little thank yous,” says Penny Shaw, marketing director at Reward Insight. “Nobody’s going to rich off them but they’re a great way of getting, typically, one per cent cashback all the time through selected partners People don’t have to do anything new, they don’t have to go off finding sites with deals or sign up to schemes. TD_35_09_MAR19_PERFORMANCE_2.indd 37 without customers having to even think about it. It’s effectively cashback as a loyalty scheme.” Online reaction So, what do the online giants in the area make of the banks taking on the charge of introducing cashback to in-store? Quidco, the country’s large cashback site, soon expects to hit four million members and already has a million cards registered for in-store redemption? Its commercial director, Andreas Andreou claims that rather than being worried about the move, he welcomes it. “It’s actually really good news for cashback because it introduces it to a much wider audience and helps us to then make the link between offers on a smartphone or our web site and in-store redemption,” he says. “We don’t need to be worried because the banks just have a handful of shopping partners but we have more than 4,000 and so that’s why 14/03/2014 14:10 FullSinglePage.indd 1 14/03/2014 12:38 performance39 THE DRUM 19.MAR.14 www.thedrum.com The real battleground was always going to move on to where the majority of purchases take place – in-store. people see us as a shopping partner, they just don’t have that same relationship with their bank.” Birdback, the company providing the technology which can take affiliates’ offers and track the card registered with them, so the customer gets paid and their shopping habits tracked for marketing purposes, is similarly optimistic. And with good reason – Birdback is expected to announce a deal with an affiliate network this month to link publishers’ vouchers and deals to a card for in-store redemption. “We’re still rolling out the network but our strategy is that people want access to the widest range of deals possible without having to remember to print out coupons or belong to a particular bank,” he says. “With us they just register for the deal from just about any of the big voucher or cashback sites and the cashback is automatically processed. It’s not like a deal with a single bank or a single cashback site where you only get one set of offers. With our technology you get the whole lot but without having to remember to carry vouchers around with you.” What is clear, then, is that while much has TD_35_09_MAR19_PERFORMANCE_2.indd 39 been made of the phenomenal success of cashback online, the real battleground was always going to move on to where the majority of purchases take place – in-store. With the banks offering either long term loyalty cashback orientated or short term deals with a small number of large retailers, there is definitely a great deal of exposure being given to what was previously an online offering. The online companies that have been offering cashback for the past few years are poised to ride the coat tails of this drive and take their offers in-store. Given that the latest moves are opening up 90 per cent of retail (ie in-store) it is true to say that there is room for everyone as the banks work mainly with a dozen or two dozen partners and the affiliates work with thousands. An interesting part of these developments is going to be not only online cashback sites proving how they can drive footfall in-store and capture data to shape future offers around, it is going to be good old-fashioned de-duping. This has not been an issue for the online pureplays before because people would either type in a code or online or show up at a shop with a printed out voucher. However, with that need taken away, Quidco is encouraging its retail partners to work through accepting offers that have to be activated by the customer, even though, in theory, they could actually just register their card once and then have all transactions linked to their card. “We’re certainly working under the assumption of last-click wins, should someone have come across two offers for a retailer from different sources which they’ve linked their card to,” says Andreou. “That’s why we’re encouraging retailers to take up our service of asking shoppers to activate offers so we not only show intent to the retailer but we can demonstrate the last click. We don’t see it as a big issue, because it’s nothing new to affiliate marketing but it’s going to be a very new issue for in-store attribution because these issues just haven’t arisen before.” The other obvious development is that the banks are likely to focus more on loyalty with some tactical campaigns thrown in by a small selection of large, well-known mainly high street brands. While the same is also true of online performance marketing publishers, they will be looking to seek an advantage through their wide reach so thousands, rather than dozens, of advertiser retailers. Two very different strategies that are now running alongside each other for the first time. 14/03/2014 14:11 40performance www.thedrum.com 19.MAR.14 THE DRUM Educating brands Is more effort needed to educate advertisers on the power of performance-based marketing? The Drum speaks to a few key players to investigate. Performance marketing continues to move up the value chain, with the sector generating £14bn in sales from £1bn ad spend in 2013. Yet despite commitment to education and transparency from key industry players, a lack of awareness persists around this type of digital marketing activity. For example, according to research from Paid on Results, 20 per cent of online retailers (of 975 surveyed) don’t fully understand performance marketing. The Drum spoke to some players in the performance market to discuss whether more education is needed to provide clarity for advertisers, and which stakeholders are responsible for this. Ben Sutherland, head of performance, Vizeum UK The dirty truth is that every agency is in the business of making money and the art of selling what we do remains out of the grasp for far too many. The simple solution is to prove the impact that the work has on a client’s bottom line. Performance marketing is critical to achieving this, but has perhaps suffered due to an image akin to a pencil pushing geek that limits creativity and inhibits the big idea. The reality is very different. All marketing activity should be driven by performance to showcase the tangible results from what we do. Unfortunately, too many agencies isolate their performance offering, treating it is a merely as an add-on. Obviously, better education is an important first step in demonstrating the value of your marketing activity but there remains a fundamental flaw in the structure of many agencies. Too many keep performance marketing separate when it should act horizontally across all clients in all sectors from FMCG through to retail. By doing this, all personnel within the agency will have more experience TD_35_09_MAR19_Q&A.indd 40 working with performance disciplines like CPC, SEO etc. This in turn will increase understanding, help agencies communicate the tangible benefits of their work to clients and, most importantly, open up the potential to upsell. Ben Wood, global president, iProspect We don’t help ourselves. It’s not necessarily about education, more importantly I think as an industry there is still far too much jargon and nonsense spoken around the different facets of digital marketing, and too often agencies hide behind complexity rather than striving to make things simple. More simplicity would help clients to embrace the powerful opportunity that exists through fully integrated performance marketing. The other sad truth is that whilst data and technology should drive transparency and value – in many instances they don’t. Margins are often cloaked and in many instances the strategies employed to drive performance in and cross channel are unsophisticated at best (many agencies for example are still not offering their clients a properly attributed view of success for optimisation purposes). It is this complexity, lack of transparency and poor implementational practice that is creating confusion – which of course is a huge shame given the great business transformation these channels can drive. Kevin Edwards, strategy director, Affiliate Window It’s a well-worn statement to make that more education is the key to better performance marketing and whilst there is an element of truth in the assumption, we need to assess the situation more widely. I think one of the major challenges we face is there is a credence that because a certain channel exists it’s fit for purpose for all advertisers: mistake 14/03/2014 14:18 THE DRUM 19.MAR.14 www.thedrum.com performance41 number one, performance marketing isn’t right for everyone. It certainly can work for SMEs (and should work for almost all brands) but it’s a hard slog and that’s the second challenge: resource investment. Performance marketing isn’t plug and play. You don’t flick a few switches and watch the sales roll in forevermore. It’s a relationships as well as a bread and butter channel that requires perseverance, toil, dedication and tenacity. This can switch off advertisers who see more instant (and maybe less ROI focused) returns elsewhere. Finally the third challenge is we’re a sales channel and whilst this is our greatest strength (it makes us leaner, hungrier and more determined), it also means there will always be people who want to do something more creative within their businesses, the irony being that performance marketers often bring some of the most innovative solutions to the table. One of the major challenges we face is there is a credence that because a certain channel exists it’s fit for purpose for all advertisers: mistake number one, performance marketing isn’t right for everyone. Andy Oldham, managing director, Quidco Advertisers cannot fail to notice the impact performance marketing can have on their brand and bottom line. A channel that experiences a 15 per cent increase in investment returning an ROI of 14:1 is critical in any marketing mix. The ‘paid on results’ model is something that any lean company should know about. Especially in online retail as the recovery of consumer confidence has not been as fast as some would have wanted. The figure mentioned is testament to the education needed that will provide clarity for advertisers around this opportunity. Here at Quidco we work with our partners, devising marketing campaigns that provide the most cost effective results, all based on tailored objectives. Driven by our data insights, it is this approach that will see retailers execute on the most cost effective campaigns. This will see a further increase in the channel as more traditional marketing avenues fall out of favour. TD_35_09_MAR19_Q&A.indd 41 14/03/2014 14:18 Digital Growth It’s all that really matters, right? Growth is the bottom line, so for us at Greenlight we make no excuses when delivering it to you. Our unique analytical capabilities enable us to deliver integrated digital solutions for brands around the world and our people are industry experts in SEO, Paid Media, Creative and Design, Social, Web Development and eCommerce. Winner of The Drum Census Elite Poll 2013 (51-100 Staff) If you’re ready to grow then call us on +44 (0)20 7253 7000 or check out www.greenlightdigital.com FullSinglePage.indd 1 14/03/2014 12:39 THE DRUM 19.MAR.14 www.thedrum.com performance43 Rather than focusing on what we do as a channel, we need to talk about what we can deliver in a language that advertisers understand. Helen Southgate, managing director, Affilinet In my view to help advertisers get on board with performance marketing, we need to stop talking channels and instead start thinking like them. Advertisers are customer-centric in their thinking. They want to understand the customer journey and the points at which they can be influenced to purchase their goods or service. And so that is what we, as an industry, need to do to. Performance is a microcosm of different digital disciplines that can be optimised to drive more traffic, grow sales and enhance brand awareness. Insight into the consumer path to purchase enables us to deploy this arsenal of tools in order to positively affect an advertiser’s objectives. Rather than focusing on what we do as a channel, we need to talk about what we can deliver in a language that advertisers understand. If we do this, we’ll carve out a more distinct proposition that is better aligned with advertiser’s marketing objectives. Matt Bailey, commercial director, Performance Horizon Group I disagree that brands don’t understand performance marketing. Every single one of the IMRG’s Top 100 Online Retailers spends significant amounts of money in the performance marketing arena and it would be naïve to intimate that marketers of this quality don’t know where their money is going. However it is a dynamic area and therefore there is a need for continuous knowledge sharing. In my opinion, this will be achieved through two methods. Firstly by brands cutting out middle men and building stronger relationships with top partners directly to understand better how to achieve success together. Secondly, and I know it’s a cliché, but access and interrogation of data. Performance marketing can no longer be seen as a one size fits all solution and brands need to be able to access real time views on the impact that different initiatives are having on their sales. TD_35_09_MAR19_Q&A.indd 43 14/03/2014 14:19 44knowledge bank knowledge bank TD_35_09_MAR19_KB_INTRO.indd 44 www.thedrum.com 19.MAR.14 THE DRUM This section of The Drum showcases marketing industry insights. For the opportunity to share your knowledge, contact James McGowan at james. [email protected] or call 0141 559 6072. 14/03/2014 15:01 THE DRUM 19.MAR.14 www.thedrum.com PERFORMANCE FOCUS Increase acquisition, not cashback For some advertisers, offering cash rewards to gain customers has been so effective that they’ve almost become victims of their own success, relying too much on cashback at the expense of other channels. Redressing the balance is a key priority for many brands – but what does it take to really achieve this? Over the last 12 months, we’ve launched a number of new brands on the OMG network, all of which had one thing in common: their existing campaigns primarily relied on cashback affiliates to drive volume. There’s no doubt that cashback sites deserve their place in the performance marketing mix based on the value they add - their reach is impressive and their ability to engage with specific demographics is continually improving. But perhaps advertisers and networks have become hesitant to invest the time and effort to unlock the acquisition potential of other affiliate segments. The real drivers of performance-marketing success Ultimately, the measure of a successful performance campaign is ROI, so customer acquisition and lifetime value – not necessarily just short-term sales, is key. And knowing which customer types engage with which types of affiliates is key to generating value as well as volume. That’s why we put the affiliate mix at the heart of the strategies we develop for clients, and this approach has helped us create powerful performance campaigns where cashback plays an important role alongside a broad mix of other affiliate types, to deliver the right customers, the right value and, ultimately, the right level of ROI. Technologies and teams Engaging affiliate segments beyond cashback does require more resource, technical innovation and smart strategic thinking. We’ve developed a suite of technological tools that makes the whole process a lot simpler and easier, combined with the investment in creating an experienced Publisher Development team, who are dedicated to developing new publishers. For example, they helped extend the affiliate reach of a travel client by engaging publishers with users known to be interested in specific high-value destinations, achieving a campaign mix where more than 80 per cent of total sales are driven by non-cashback affiliates. Building a relationship with content affiliates is the key, it’s only the first step. We also have to give them the tools they need to deliver maximum value, such as integrated and interactive content to drive conversions. We’ve put time into our technical and creative offering, developing and hosting an interactive “Book Quick” widget with deep links to purchase pages. This puts a relevant call to action right into affiliates’ copy, with a user journey that’s 30 per cent shorter than standard. Affiliate mix after optimisation “BUILDING A RELATIONSHIP WITH CONTENT AFFILIATES IS THE KEY, IT’S ONLY THE FIRST STEP. WE ALSO HAVE TO GIVE THEM THE TOOLS THEY NEED TO DELIVER MAXIMUM VALUE” The key is to find the right call to action and combine it with the right approach for the user, their behaviour and the device they’re using, whether the content is a tailored or exclusive offer, while the format could be anything from CPCall to an HTML email. Powerful partnerships Recently, we took over the affiliate campaign of a leading brand in the utilities market where top content sites hadn’t been engaged. In our first two months, we used our existing partnerships to capitalise on a switching peak in the market, driving exposure with email sends and onsite placements. The result was 69 per cent more sales compared to the best month achieved by the previous network – and a reduction in the volume contribution from cashback sites from 95 per cent to 64 per cent. The recent Ofgem RMR guidelines have made it even more crucial to adopt intelligent strategies and broaden the affiliate base. We see major acquisition potential in peer-to-peer referrals as an incremental acquisition channel. We’ve developed and hosted a referral platform for a challenger brand in the vertical, enabling them to reward existing customers for successful referrals. This has driven substantial volumes over the last six months, and accounts for an average of 17 per cent of their total direct sales. Value from neglected publishers An insurance client joined us from another network where 99 per cent of their volume was driven by cashback sites. We identified three key publisher segments that they weren’t engaged with – price comparison, voucher codes and paid search. We used tactical CPC deals to establish key metrics with price-comparison sites, gaining prominence within comparison tables, and then reverting to a CPA model once performance MI was established. We also launched a paid-search strategy that sat alongside the client’s existing campaign, focusing on complementary USPs, capturing and converting more of their own search traffic on brand and generic terms for highervalue policies. Overall, we doubled sales volumes and reduced the contribution from cashback by 10 per cent. Vouchers drive value The next step is to launch tactical voucher-code campaigns, using tailored offers to engage with vouchercode sites. Our in-house OMG Rewards technology encompasses the entire user journey, including data capture, tracking, reward fulfilment and contact management for completed acquisitions. Through this platform we’re able to engage brands with sites where they don’t have the internal capability to do so themselves. Vouchercode, email and portal affiliates have already helped us deliver some exceptional results, such as a 5 per cent month-on-month jump in sales for a brand in the insurance vertical. More importantly, though, the campaign also achieved an increase of around 30 per cent in policy value compared to cashback, with voucher-code customers twice as likely to purchase a more valuable add-on product. Increasing customer acquisition is a bit like saving for a rainy day: the wisest investments are those that deliver sustainable value over the long term. Instead of simply increasing cashback to drive sales, brands should focus on offers, content and formats that are tailored to both publishers and customers. Ultimately, that will bring them acquisitions that are sustainable, relevant and, above all, valuable. OMG Tel: 01603 697713 Email:[email protected] Web:www.omgpm.com Twitter:@omgpm KB.indd 45 Carla Arrindell Client Services Director OMG 14/03/2014 15:26 46KNOWLEDGE BANK www.thedrum.com 19.MAR.14 THE DRUM The future of mobile in performance marketing Mobile has changed the way people perceive performance marketing, however, the industry has yet to fully understand how the commercial model can adapt to the new landscape, and marketers still have a way to go to ensure mobile effectiveness. Kevin Edwards takes a look at how to successfully engage with the mobile performance opportunity. Mobile’s swift elevation to online darling is probably unprecedented. In less than three years, Affiliate Window has seen mobile clicks grow from one in a hundred to more than 40 per cent of the network’s traffic. Whilst conversions for handsets may still lag, concerted efforts to optimise mobile propositions have seen the gap close. We no longer have to prove that mobile is an important part of the performance mix, instead shifting the focus from highlighting the growth in numbers into actual strategy: what does mobile mean within the channel? Where are the opportunities? Who are the advertisers and publishers driving the mobile agenda and pushing innovation? What are the business models that are succeeding and how should we accommodate them within the current performance marketing landscape? It’s important to focus the discussion on smartphones rather than the wider ‘mobile’ piece that incorporates tablets. The distinction between handset and tablet is pronounced. Smartphones are used casually, in periods of downtime, often on the move when we need quick access to certain information, speculatively and when we’re impatient or impulsive. Their role as a ‘bridging’ device will transform how we interpret purchase paths. Apple has driven adoption and engagement, and despite Android accounting for greater take-up, we don’t see this translate into sales and traffic recorded through the network. Looking at smartphones from a performance marketing perspective, the focus has to remain on the m-commerce piece. We need to ensure we’re doing the fundamentals well: capturing the clicks and sales. In many respects the industry has done so inadequately to date with sizeable retailers still not capturing sales due to a lack of affiliate tracking on m-commerce sites. Affiliate Window is 95 per cent tracked: market leading but still with work to do. Our technical fix launched in early 2013 that redirected traffic from advertisers who were leaking affiliate commissions is part of a wider initiative. Visibility on clicks and sales driven by handsets and (crucially) which publishers are driving them should help raise the profile of smartphone opportunities. As a retailer, this should be the number one priority: track and then optimise. Beyond m-commerce the industry has yet to clearly define products and services that are a natural fit for the channel. Networks are starting to evolve app download campaigns, but this presents a further dilemma: advertisers create apps to engage with consumers and in doing so build a walled garden often shutting publishers out of repeat purchase, a customer retention tool rather than acquisition function. Should we expand the world of affiliate marketing to offer campaigns based around customer engagement via ‘value add’ (rather than transactional) apps or FMCG companies that traditionally haven’t spent money within the performance channel? Regarding affiliate traffic, it’s not enough to simply import existing publisher databases and expect the sales to follow suit. Much mobile marketing remains unsophisticated and is heavily skewed towards the Display model or incentivised downloads (gaming rewards in return for interacting with a brand). Publishers generating higher percentages of smartphone sales to date are very different from the incentive heavy lists that dominate traditional programmes. Content built around travel is succeeding as are email publishers and those who are brokering Display deals. Networks need to carry out some hard graft to discover and cultivate new and innovative ‘mobile’ publisher partners. Focusing on our traditional affiliate success AFFILIATE WINDOW Tel: +44 (0) 844 557 9240 Email:[email protected] Web:www.affiliatewindow.com Twitter:@AffWin KB.indd 46 14/03/2014 12:48 THE DRUM 19.MAR.14 www.thedrum.com PERFORMANCE FOCUS stories for a moment, they clearly see mobile as an exceptionally important conduit. The geo-targeted functions that smartphones offer have been paying dividends for voucher code publishers who can flag offers and discounts to consumers by location. With the emergence of Apple’s iBeacon technology, we can expect this significant opportunity to become better optimised with pinpoint distribution of information, deals and incentives. Being able to serve ads, suggested complementary products, deals and discounts based on someone being in touching distance of a specific product is compelling. Beyond this, what is to stop aggressive, guerrilla tactics from competitor brands, especially those without a high-street presence? The online to offline opportunity is also one that offers traditional performance models a significant shot in the arm, as well as driving sophistication within the channel. For publishers, it’s now possible to target consumers at various stages in the purchasing cycle, with mobile a natural conduit for doing so. In time, our understanding of this will broaden as we begin to appreciate the cross-device picture. A single publisher can now target a consumer via their “FOR PUBLISHERS, IT’S NOW POSSIBLE TO TARGET CONSUMERS AT VARIOUS STAGES IN THE PURCHASING CYCLE, WITH MOBILE A NATURAL CONDUIT FOR DOING SO.” mobile with a push notification email on a Monday, and then re-target that consumer a few days later when they may be ready to purchase on a desktop. Publishers now have multiple routes to market and can support a consumer through the various iterations of a purchase cycle. Elsewhere, mobile price comparison has caused ripples rather than waves. For email publishers, mobile provides a real opportunity given more consumers are accessing their emails on their smartphones and tablets than their desktops and any lead generation campaigns not offering mobile optimised templates are missing a fundamental shift in how people are picking up their personal communications. Affiliate Window’s data has also seen certain sectors significantly over index for mobile sales. Group buying and anything that has a sale’s urgency about it inevitably converts better. Commoditised products with lower basket values such as DVDs and CDs are classic mobile purchases. Email publishers promoting these types of products are getting the double hit of their traffic being more readily accessible. For companies like Groupon, email publishers can comfortably see half of their sales flow through handsets. Other sectors, such as travel and telecoms are seeing huge traffic ramps via mobile even if the conversions are not there. Indeed publishers are well placed to evolve their commercial models to take account of this, click deals and call tracking both lend themselves well to mobile and advertisers should be looking beyond classic CPA payments to take account of how publishers are driving consumers’ interest via smartphones. Kevin Edwards Strategy Director Affiliate Window KB.indd 47 14/03/2014 12:48 48KNOWLEDGE BANK www.thedrum.com 19.MAR.14 THE DRUM Crowdsourced testing: liberating the creativity of digital agencies ‘Technical issues’ are a well known source of anxiety and frustration to many recording artists. When a musician goes on stage, they want to put everything into the song they’re about to play – not wrestle with squealing feedback every time they approach the mic stand. So it is with creative and digital agencies. When an agency designs a new website for a client, it wants to put all its energies into making that site as good as it possibly can be. It doesn’t want to spend the last few days before the deadline franticly trying to test the software, or the first few days after release fixing bugs for a displeased client. Creativity should be an agency’s main focus. But traditional methods of software testing don’t always enable this. Testing internally can draw an agency’s resources, developers and PMs away from creative work for days at a time. What’s more, looming deadlines can mean that internal testing isn’t as thorough as it should be and is often completed without using professionals. And if testing isn’t thorough, it can also hinder creativity later on. A need for post-go live fixes can burden developers with extra work, resulting in ‘developer burn’ and compromising quality on subsequent projects. Crowdsourced software testing liberates digital agencies from these fundamental limitations of the in-house approach. It does this by bringing together thousands of professional software testers from across the world to comprehensively test apps and websites. This approach frees up designers and developers to focus on what they do best – creativity – without lengthening the normal test period of a few days set aside at the end of a project. The scale and efficiency of the crowdsourced model also heads off the risk of post-go live fixes burning out developers. The vast number of testers not only increases the number of devices that can be tested on, but also means that the concentration of each tester remains high – on average, each individual will test on just 2 or 3 devices. This eliminates the ‘browser blindness’ experienced by members of a small, internal test team – a gradual depletion of concentration with each new device that’s being tested on. Consequently, the threat of bugs wreaking havoc after a site’s release is minimised, and that site is more likely to function and display correctly on a much wider range of devices. Development costs are “CREATIVITY SHOULD BE AN AGENCY’S MAIN FOCUS. BUT TRADITIONAL METHODS OF SOFTWARE TESTING DON’T ALWAYS ENABLE THIS.” lowered as a result, and the positive impact on an agency’s bottom line can go back into building up its creative capacities. BugFinders have developed a crowdsourced testing service that is tailor-made for digital and creative agencies. We have a worldwide community of over 54,000 professional software testers in 99 countries, which can be utilised at a moment’s notice to perform comprehensive testing on a large ecommerce site in just 1-3 days. The scale of BugFinders’ community means that we can test software on thousands of combinations of devices, browsers and operating systems, simultaneously. To increase efficiency, we ‘gameify’ testing, turning it into a competition in which testers compete with one another to find the most valuable bugs. Our testers are paid per bug, and the rates we pay are variable depending on the stage a project has reached – towards the end we may raise rates, incentivising testers to dig deep to find any remaining business-critical bugs. Almost every defect on a website will be identified. There is also another way in which internal testing can compromise creativity – a need for post-go live fixes can damage relationships with clients and prevent an agency’s creative resources from being deployed at all. Not only does BugFinders’ approach eliminate the risk of creative brilliance being tainted in the eyes of clients, we also provide agencies with enterpriselevel test exit documentation. This can be used to demonstrate quality to clients, strengthening relationships and differentiating agencies from their competitors. Our community’s international nature means that, if required, BugFinders could launch a project on a Saturday night. This flexibility is combined with a fixed price, offered at the outset of a project, so agencies don’t have to worry about unforeseen problems raising testing costs. This way, agencies can confidently stride on stage and give their audience something spectacular that actually works as well. BUGFINDERS Tel: 0844 870 8710 Email:[email protected] Web:www.bugfinders.com Twitter:@BugFinders KB.indd 48 Martin Mudge Technical Director BugFinders 14/03/2014 12:47 book review49 THE DRUM 19.MAR.14 www.thedrum.com Analytics and excel Data analysis expert Wayne L Winston’s new book helps tech-savvy marketers and data analysts solve real-world business problems with Microsoft Excel. Natalie Mortimer takes a look. Billed as a way of “helping tech-savvy marketers and data analysts solve real-world business problems”, Marketing Analytics is a Microsoft Excel-based book, which gives a comprehensive look at all aspects of marketing analytics, from how to create data spreadsheets to measuring social marketing. Written by Wayne L Winston, a professor at Indiana University, the book was created from Winston’s course notes while teaching at the Kelley School of Business, and the idea behind Marketing Analytics is to show the reader how to utilise Excel to improve their marketing results and techniques instead of investing time and money into more expensive analytical tools. With a step-by-step approach, the book consists of 11 topics including customer value and market research tools, and is then broken down into 45 chapters. Each chapter comes with a downloadable Excel file containing data and solutions and is helpfully illustrated with screenshots of the various steps and sections of the Excel file so that you don’t get lost in a sea of functions and formulas. How easy it is to follow depends on your existing knowledge level of Excel. Winston says the only prior knowledge you need is “how to use the Copy command”, however novices may struggle at first to get their heads around some of the more technical language – I had to re-read a couple of paragraphs to fully understand the steps and the jargon which features heavily throughout. That said, the tone and language is extremely readable and the book is written in a modular fashion meaning you can skip back and forth or even cut out the parts that you don’t feel are relevant to you. There’s also a handy guide in the introduction that shows if you do need to read a different chapter before diving into another. Throughout the book Winston uses a set of scenarios as examples and this makes some of the more dry topics, such as ‘using Excel charts to summarise marketing data’, a little easier to digest and process. For example he uses a fictional cafe called Le Petit Bakery to demonstrate how you would tackle analysing sales and trends of its cakes, coffees TD_35_09_MAR19_WILEY.indd 49 and smoothies. By making use of these scenarios it really helps you to put the Excel steps into context if you are not navigating around the downloadable files at the time. One of the most interesting sections of the book is the final section on internet and social marketing. Drawing on topical and current events such as the ‘Gangnam Style’ viral YouTube video and Miley Cyrus’ controversial 2013 VMA performance, the topic covers networks, viral marketing and text mining. In particular the viral marketing chapter was extremely insightful and showed how mathematical models of viral marketing can attempt to show if a video will either go viral or fall into the internet abyss. If you don’t have a head for figures and aren’t working within social marketing it might be best to skip this section though – you could easily end up cross-eyed and confused with the amount of complex “an extremely detailed guide that is useful for anyone working in the marketing world.” equations that pepper the pages. The wealth and breadth of information in Marketing Analytics means that you get an extremely detailed guide that is useful for anyone working in the marketing world. However, it is not a light read and unless you are working on the accompanying files at the same time, the book can be quite difficult to make sense of in parts. Overall though the content is clear, well demonstrated with good examples and backed up by suggested exercises to test out your newly acquired Excel skills. Marketing Analytics: Data-Driven Techniques with Microsoft Excel by Wayne L Winston is out now and available in paperback and e-book. To purchase, visit bit.ly/1ikQD7A. 14/03/2014 13:20 50girl guides www.thedrum.com 19.MAR.14 THE DRUM doing good with digital As The Drum continues to champion the digital leaders blazing a trail for young women to follow, Angela Haggerty catches up with Zone’s UX design director Julie Dodd, who was behind the original iPlayer and who now looks to harness the power of digital for the greater good. In January this year, BBC iPlayer broke through the 300 million monthly users barrier and reported an average of 10.2 million daily requests. For Julie Dodd, UX design director at Zone, it’s pretty impressive to have on her CV that she was one of two people to design the original face of the iPlayer for its launch in 2007. Maybe surprisingly though, she doesn’t consider it her most favoured project. Rather, Dodd is these days applying her user design skills in a sector she feels more naturally drawn to – the third sector – and it’s a project for a major charity currently under wraps that Dodd is most excited about. “I’m particularly interested in how digital can support social good,” she says. “I find the commercial challenges very interesting in what we do, but really I think digital has enormous power to do good, and I’d like to be somebody who really champions that. “Being in an organisation like the BBC, which is publicly funded, I always felt a strong sense of responsibility to the people paying for the work we were doing. But my family are all a bunch of do-gooders, so I think it probably comes a lot from there too,” she laughs. Dodd has been at Zone for five and a half years, having begun her time at Public Zone before it merged with its sister agency in 2011. At the agency, she engages her interest in harnessing digital for social good, but prior to her time there she was involved in building the foundation of the BBC iPlayer, which transformed the broadcaster’s digital relationship with viewers. “In those days, most households had only one computer,” she reflects, explaining how the evolution of services such as iPlayer required ambitious foresight to drive them forward. “It didn’t live in a social space, it usually lived in a study and it didn’t really belong in the heart of the home in the way computers do now. “We could already see it changing. We could see the early adopters who had laptops watching TD_35_09_MAR19_GIRLGUIDES.indd 50 YouTube videos in the kitchen, so short-form video was already working, and if that was working it had to be possible to make long form video work. “It was a really interesting point in time in digital because we had a real sense that there was something in it. Initially, all of the audience feedback was telling us that there wasn’t,” she laughs. “I’m a great user advocate. I really believe in listening to people, but sometimes you have to really watch what they’re doing, not what they’re saying.” Dodd moved into the user design discipline after an initial interest in graphic design following her departure from university. She gained a degree in cross media design at Bournemouth, but is a great believer in design and digital disciplines such as coding as a craft, and is irked by an “insistence” in barrier, but I’ve always been surrounded by people who are very liberally minded. “That said, there have been times in my career, and I’m not particularly proud of it, but I have put on heels and lipstick in order to get things agreed when more traditional senior men were involved. I had one boss who was very like that – I’m not sure if he was aware he was like that – but when I needed things signed off I wore a shorter skirt. I’m not sure if that’s printable,” she laughs, “but it’s true. “Marketing seems to have really diversified,” she adds, “but technology wise it’s still massively male dominated. We joke about the fact we’ve got three or four female developers because that’s very unusual in a team of nearly 30.” Dodd says that the visual design sector has seen a better balance in gender over the last “I have serious diversity concerns about social economic background. It really bugs me when I see job specs that say ‘must have a degree’.” the industry that a degree is essential, pointing out that such restrictions have led to a lack of social diversity. “I have serious diversity concerns about social economic background,” she explains. “It really bugs me when I see job specs that say ‘must have a degree’. I think that’s completely inappropriate and it’s led to a real lack of social diversity in the digital world generally. Design is a craft profession. So is coding. It doesn’t require a degree.” While Dodd has real concerns over the lack of social diversity in the trade, she believes that changes in the gender imbalance are moving in the right direction, but in some sectors there is still a way to go. “I’m certainly conscious of the difference between genders but I think I’ve been quite lucky,” she says. “I personally have never found it to be a couple of years, and she sees a relatively 50/50 split in applications when recruiting. However, there are still notable differences higher up the ladder. “In terms of a senior level, certainly I found when I first became a creative director that I was in a bit of a minority – not a complete minority because the BBC has very fair standards of employment, but I wasn’t surrounded by that many women in the discipline,” she says. “It’s quite a new discipline overall, but it was certainly male weighted.” She adds, however, that it has “changed a bit” since she left the BBC after nine years at the broadcaster and during her stint at Zone. For Dodd, she has proven her credentials in her chosen field and is firmly settled in an area of her industry that combines her personal ambition of using digital to make a bigger difference. 14/03/2014 13:01 THE DRUM 19.MAR.14 www.thedrum.com TD_35_09_MAR19_GIRLGUIDES.indd 51 girl guides51 14/03/2014 13:01 52agency q&a www.thedrum.com 19.MAR.14 THE DRUM small agency, big ambitions Simon Bollon heads up growing Leeds media independent Boutique Media and the recently launched Boutique Digital. He has big plans for the next five years, aiming to build Boutique into the largest media independent based outside London. Here he shares his vision for the future with The Drum Network’s Richard Draycott. Where did the Boutique Media business come from and how has it evolved over the years? David Byrne set up the business in 1985 and it was pretty much the first media independent in the north. I joined 10 years ago and we rebranded as Boutique Media two years ago to refresh the business and bring it into a modern environment. The key thing was to give ourselves a stronger position in the market. It was apparent to us that the big media agencies were only interested in the bigger pieces of media business and the smaller agencies were picking up the business they weren’t interested in. So, with that in mind we needed to give ourselves a position in the marketplace that said to clients: ‘We’re not on the scale of the big media agencies, but that’s a good thing. We don’t want to be the scale of those agencies, we can offer you a point of difference.’ We’re never going to try and deal with the huge multi-million pound media accounts. We are never going to want to pitch against the big agencies. We are for clients who are trying to find an agency that is going to be a better fit for them in terms of people, experience and culture because that isn’t always going to be the big media agencies. The challenge to us was not being seen as just another small media agency so we created a relationship with Mediacom, which means as and when required, or is relevant to a client, we can trade through Mediacom, accessing its group rates and so on. That relationship gives us a scale and resources that the other, let’s say smaller, media agencies can’t compete with, so we literally have all the resources that you would associate with the UK’s biggest agency. How is Boutique Media structured as a business? There are now three directors – myself, Steve Smithson and Elliot Jones. Elliot recently joined as digital director and the business is actually split into two – Boutique Media and Boutique Digital. I have an overseeing role as a managing partner if you like, although we don’t really do titles. I generally oversee the running of the business, which covers client acquisition and any kind of pitching, client relationships etc. I am also active in terms of managing accounts and client relations. A key selling point for us is that if you work with us you will have a director working on your account at all times, they will be your lead point of contact throughout the relationship. You recently launched Boutique Digital – how long had that development been in the pipeline? We were doing some digital and we were leveraging TD_35_09_MAR19_NETWORK.indd 52 the resource in Mediacom, but we’ve got a very clear idea in terms of what our agency is going to look like in five years’ time and we will be positioning ourselves more as an all-round communications agency. Historically we’ve been a media buying and planning agency, but we do more than that now. We know looking forward that clients are going to be looking for communications agencies able work across the full plethora of communication platforms, be that search or television or social media, whatever is relevant to them. I think the landscape will change somewhat. I think what we see at the moment in terms of pure digital agencies, they are probably going to find that they need to be doing more. It’s happening in PR agencies because traditional PR is becoming less important. The logical step for us was to improve our digital offer and offer a more integrated approach to clients. We realised that we needed a head of digital so we appointed Elliot. Does being a smaller agency mean you can move the agency on and make changes happen quickly compared with some of the bigger media players? There’s no question that flexibility is a key part of how We simply resigned the account in as professional manner as possible, saying to them that we picked up the business on the basis of our service offering, our people, our culture, but in practice their culture doesn’t fit ours, so it wasn’t a relationship we wanted to pursue anymore. It’s very difficult to do, particularly if it is a profitable piece of business, but essentially if I didn’t want to come into work and I didn’t want to deal with somebody, I wouldn’t want anybody else in the business to be doing it, otherwise they are not going to want to come into work on a Monday morning, and if we are put in that position, then we are buggered. As media buyers I’m sure you are pretty hands on with the finances, but how do you keep a close eye on the cash? Cash flow is vital in a small agency business and the profitability that you achieve on a client is absolutely key. Again as a smaller business we can control our lot better. We’re not going to pick up a client because it’s nice turnover, but terrible profit. That suits a big agency perfectly, but it’s not our bag, we will pick up a client if we think we can service them appropriately and they “We’re not going to pick up a client because it’s nice turnover, but terrible profit. That suits a big agency perfectly, but it’s not our bag.” we will be able to grow. If a client needs something in a certain way then we can do it. We can shape our business in accordance to client demands. We’ve all done the big agency network thing and we know flexibility is a difficult thing for the big agencies. The big network agencies tend to be large beasts, so small sized flexibility is key for us. When things go wrong or a client isn’t working out for you, how do you deal with those issues, and how regularly do you review clients? Reviewing clients, again because we are small, we are able to do that on an ongoing basis, because a director works on every account. That means that at least one director will have a really good understanding of every client. Recently we had a case where after about a month the guys who worked on one of the client accounts didn’t want to answer the phone when they called. are going to benefit from us working with them, but if it wasn’t profitable we wouldn’t do it. If we were to have this conversation in 2018, what would you want your agency to look like? I suppose the first answer to that is, doesn’t everybody go into business to make money? I went into the business to work for myself, to grow a business using my entrepreneurial streak, but you’ve got to have a long-term progression plan for the business. Our aim is to be the biggest independent media agency outside London by 2015, with billings of around £20m-25m. We are on target for that, with our growth in double digits every year. 2012 was triple digit growth, so we are progressing. I think we would also like to be in different geographical territories too. I think the Boutique brand could work successfully in different territories, be that Newcastle or Manchester, for example. 14/03/2014 13:00 THE DRUM 19.MAR.14 www.thedrum.com agency q&a53 Boutique Media is a member of The Drum Network. If you would like to find out more about The Drum Network and how it can help support you and your growing agency visit www.thedrum.com/network TD_35_09_MAR19_NETWORK.indd 53 14/03/2014 13:00 54the lAST WORD www.thedrum.com 19.MAR.14 THE DRUM A better way to find an agency Paul Kitcatt, chief creative officer at Kitcatt Nohr, has the last word this issue and uses his soapbox to rant against the absurdity that is pitching. But it’s not just ranting for the sake of it. He even provides a novel solution. Let’s just hope someone’s taking note. My agency is good at pitching. It is, however, the most ridiculous, wasteful, time-consuming and fatuous way for clients to find an agency, and vice versa. It costs a large amount of money, and wastes weeks of time. All of which agencies must recoup from their only source of revenue – their clients. If we bought a car in a similar fashion, we’d ask six manufacturers to show ideas for a range of cars they’ve never made, to do things no car has ever been asked to do, from materials that don’t exist, designed like no car known to man, at a cost no car could ever be made for. Not only to show the ideas, but to make the cars, at least as prototypes. Then we’d choose one manufacturer, but buy none of the cars they’ve shown, but something completely different. And the rest would get thrown away. How often does the work created for the pitch actually run? Rarely. The client, on appointing you, will explain why they couldn’t possibly approve the ideas you’ve shown – too brave by far – and then reveal their most pressing need. It won’t be much like the one in the pitch brief. So agencies spend thousands of pounds answering made-up or heavily doctored questions. The losing agencies waste their money. The winner does too, since none of the work can be used, but they can try to make it back over the next few years. At least the client meets a team of people they want to work with. Except they don’t. Though the client often asks to see the people who will work on the business, no agency ever fields more than one or two of them. Why? Because all agencies know the client wants a good show at the pitch. And the people who are best at pitching are those who’ve done it most often, and they can’t possibly work on all the business they pitch for. It doesn’t matter that much, however, since the client team is also largely composed of senior people you will rarely see again. So what pitching amounts to is this. A number of agencies spend a vast amount of money, and one wins. The winning team meets the client team at the pitch, and thereafter twice a year at The Ivy. The winning work, and the losing work, goes to landfill. A group of minions who have never set eyes on each other then meet and work out how to do whatever it is that actually needs doing. Is there a better way? As a client, you could start by looking at agencies’ work properly. Ask to meet the people who do the work, not for a formal presentation, but to talk to them. Ask to talk to the clients whose work you are shown. It will take forever if you see 16 agencies, as can happen now. So don’t. Shorten the shortlist. All agencies have websites. Go window shopping first, and save time later. And don’t ask your incumbent agency to re-pitch. It’s cruel. You’ve called a review because you don’t love them anymore. Take them out and shoot them, right away. How often does an incumbent win a re-pitch? Six per cent of the time. They always try, because agencies are full of relentless optimists. But 94 per cent of the time it ends in tears. See four agencies, and choose two for a live brief. The one who does the best job gets the business. You run the work. Agencies will still get the thrill of the chase, but with less wastage and better odds. Clients see the agency in action. The people who will work together get to try it out. And the first campaign goes out of the door within days. Paul Kitcatt is the chief creative officer and co-founder of Kitcatt Nohr. With over 25 years in the business, Kitcatt started off as a trainee copywriter, and worked his way up to executive creative director in three and a half years. In 2002, he founded Kitcatt Nohr, along with Marc Nohr, Vonnie Alexander, and Jeremy Shaw. Kitcatt and Alexander continue to run the agency today. For more blogs go to thedrum.com/opinion TD_35_09_MAR19_LAST_WORD.indd 54 14/03/2014 13:03 DIRECTORY55 THE DRUM 19.MAR.14 www.thedrum.com THEDRUM.COM/DIRECTORY EMAIL MARKETING SOLUTIONS THE DRUM DIRECTORY Here you will find a selection of our online directory advertisers. 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