• WTW@hyperproduction

The Marketing Procurement model is broken

Marketing procurement, like talking to a brick wall

We live in a 24/7, 365 world, where we need to produce 10 times the content we used to, for 5 times the number of channels we used to deliver in.

The industry is awash with creative agency & network criticism and the need for them to ‘change’. But little has been said about marketing production agencies, their old school methods used to make huge margins and procurement’s inability to understand the new marketplace.

So why is the Marketing Procurement model broken?

1. The vast majority of procurement teams do not have the knowledge needed to make informed decisions to buy marketing production services, in a programmatic, marketing automated, social media noisy and hyper production world.

2. Marketing production procurement was born 25 years ago to decouple print, all based on unit costs. But if you need to produce 10,000 digital assets for a truly effective campaign (across global markets), then your methodologies for costs & effectiveness need to change, and fast.

3. Sitting in an 8 hour procurement meeting with 6 of your highest paid employees, analysing a thousand cell spreadsheet just to start bidding wars with industry competitors isn’t the best way to bring the most effective, motivated, productive means and tools to your business.

4. Budgets are based on last years spend, not on the total number of assets, ads and pieces of content your brand needs to deliver successful and effective campaigns. Sure, you’ll get a pat on the back for driving unit costs down again, but that is just a lazy way of approaching things.

5. The procurement team 99 times out of 100 never come to the table with facts, figures, local market totals and empirical evidence about the annual needs of their business. So how can accurate costs or the best ‘production offering’ be given? It can’t, it is left to how big your reputation is, if you have off-shoring capabilities and how competitive your unit costs are.

This isn’t to say procurement is not needed, it just needs to be realigned with the 21st century demands marketing places on big business. Specialists are needed alongside business procurement leaders, who have relevant industry experience (at creative, media and technology agencies) to help define marketing production scopes, needs and changing requirements.

This way, true marketing success, true business savings and truly effective measurements and continual improvements can be made.

So the question is this: Are you ready for real change or is it just talk?

#procurement #hyperproduction #marketingproduction #advertising #cfo

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