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Putting a value on creative

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Procurement wants accountability, but marketing wants creativity. Is it possible to give them both what they want at the same time? It is, argues Andrew Woodger (pictured).

The traditional agency model is changing. That’s an opening sentence likely to put off more than a few readers. After all, haven’t we all heard it all before? The fragmentation of traditional media, the arrival of digital, the latest recession or downturn . . . whatever the catalyst happens to be, the refrain is the same – the agency model either is, or has, to change to reflect the new circumstances, the new skills sets required, the new pressures being imposed by external forces and clients alike.Purple – Andrew Woodger

Agencies are like chameleons. As the pressures shift and slide, they adapt, exploiting new opportunities and developing new ways to part clients from their budgets. So it’s no surprise that with most large businesses now involving procurement departments in the appointment of marketing suppliers, the spotlight is once again on the way that creative agencies service their clients.

On one level, this sounds like a recipe for conflict. The agency wants to generate big ideas and show the client new ways to develop their brand and attract more customers. They achieve those Big Ideas by employing the best and brightest creative talent – and the very best talents don’t come cheap.

On the other side is the procurement department. They also want to see more customers coming on board and staying on board – but to do this by squeezing every last pip of value out of every penny spent. The agency wants to be bold and increase the client’s marketing investment – procurement wants to minimise that spend.

However, the clever agency chameleons are more likely to see the opportunity in all this. Equally, procurement departments will also understand that by finding ways to engage with agencies collaboratively, the end results will be better for both parties. Smart agencies will also see this as an opportunity to improve their own working practices – while still being able to get the most out of the client-agency relationship. By embracing change and looking for the opportunities to drive it forward, both sides stand to gain.

So what of that all important ‘creative’ edge? Those vital brand assets which agencies create and marketing departments encourage? I would argue that this does not change one little bit. Creativity is something brands want and good agencies deliver. Good agencies are full of brilliant, talented creative people – that’s what draws the clients to them. They love those creative bright sparks, because they are the people who ultimately turn the base metal of ideas into marketing gold.

But the translation of that creativity into marketing assets is where greater efficiencies are most likely to be found. Every Big Idea has to be turned into something practical – from a new website to a hard-hitting advertising campaign – and it’s here that procurement and agency can come together for the mutual benefit of both parties.

Art work is a commodity – and a measurable and manageable one at that. Both sides can gain by each taking steps to improve and streamline this aspect of the creative process. Take Purple’s work for Mitchells & Butlers. M&B have more than 1,600 pubs and restaurants serving 130 million meals and 420 million drinks every year. Working closely together, Purple and M&B created an in house studio for the company. M&B can quickly and efficiently develop a new campaign or idea – and Purple provides the people and the facilities to deliver this as efficiently as possible by ensuring that the studio is fully utilized. There are major wins for both parties – and everyone gains something important from the relationship.

The catalyst on this occasion is the drive for greater efficiency. The solution is one which benefits both parties without either side having to make uncomfortable compromises. The agency is encouraged to continue providing its creative input, the client has a way to optimise the value of the creative output. The ‘traditional model’ is changing yet again. This time it’s changing for the better – and who – client and agency together – wouldn’t want to be a part of that?

Andrew Woodger is data and planning director at the Purple Agency.

 

 

 

 

 

Sally Hooton
Author: Sally Hooton
Editor at The GMA | www.the-gma.com

Trained as a journalist from the age of 18 and enjoying a long career in regional newspaper reporting and editing, Sally Hooton joined DMI (Direct Marketing International) magazine as editor in 2001. DMI then morphed into The GMA, taking her with it!

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