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Tracy Tuten

Marketing's Next Five Years: How to Get From Here to There | News - Advertising Age - 0 views

adage.com/...237616

advertising Marketing adage 2012 predictions ECUAdvertising

shared by Tracy Tuten on 22 Oct 12 - No Cached
  • By 2017, 85% of the world will be covered by 3G mobile internet and half will have 4G coverage, according to Sony Ericsson. Three billion smartphone users will contribute to data traffic that's 15 times heavier than today's. For more and more consumers, the most important screen will be the tiny one in their pocket.
  • To put it bluntly, there needs to be more ad spending on mobile, which now comprises only about 1% of budgets, according to a recent study from the consultancy Marketing Evolution. Based on ROI analyses of smartphone penetration, that figure will be about 7%. In five years' time, that number will need to be in excess of 10%.
  • USER EXPERIENCE IS THE NEW 30-SECOND SPOT User-experience design is too often thought of as a digital-marketing task, ensuring that website and app development meet and ideally exceed usability standards.
  • ...4 more annotations...
  • The proliferation of digital interfaces when we interact with brands offers a perfect metaphor for how the industry should be thinking about brands. Agencies of all stripes need to think about how they can integrate big-thinking experience designers into their creative and strategy offerings. Inspirations include startups such as Uber, whose brilliantly designed mobile app and fleet of friendly drivers, is taking the pain out of ordering and paying for car service in urban environments.
  • Experience Design practice uses nontraditional, interdisciplinary teams whose shape depend on the brand in question. "This hyper-bundled approach helps us disseminate experience design and other thinking throughout all kinds of projects."
  • A recent Association of National Advertisers study delivered a grim finding on how agencies get paid: "New methods of compensation like value-based remuneration that rewards performance have not taken hold globally. Only 4% [of respondents] reported utilizing them." That's a depressing stat. Now here's a ridiculous one from a 4A's study: Agencies bill mobile developers at a rate less than half what account-services directors receive. The compensation crisis has been on the industry's radar screen for years. The decline of the cushy, reliable 15% commission, coupled with the rise of procurement, has led to downward pressure on agency margins and widespread complaints about agencies losing their status as partners to become lowly vendors. Assuming we're not going to ditch the very flawed charging-for-time model, the fix is clear: a shift to performance-based compensation agreements that reward effectiveness and not time sheet completion. Underwear purveyor Jockey International and its ag
  • ency, TPN, offer an excellent model based on, as Jockey CMO-exec VP Dustin Cohn described it, "earned profits and payment on work output." Agency and client work together to determine the scope of work and metrics that determine the entire profit markup. Said Mr. Cohn: "Putting all of their profits on the line validates that the agency really believes in the client-brand and what they can do to move it forward." Steve Blamer, former big agency CEO and compensation consultant, said it's up to agencies to become honest about profit margins and income levels. "I'm astonished at how reluctant agencies are to provide transparency around their costs." At the same time, client marketers need to be willing to pony up for deserving work. And some are not.
  • Tracy Tuten on 22 Oct 12
     
    Imagine five years out. It won't hurt, we promise. Even the worst-case forecasts have our economic malaise nearing an end by then, a dreaded lost decade coming to a blessed conclusion and a true recovery taking shape with low unemployment and revitalized consumers. Once again the ad business will be growing. But a new media and marketing order will be taking hold. In measured-media terms, in 2016, the furthest year forecast by eMarketer, TV will still own the biggest piece of the marketing pie (36%), but just barely. Online advertising, at 31%, is sure to be hot on its heels. Further behind but growing fast will be mobile, whose share will have jumped from about 1% today to 5% as marketers chase a wholly mobile consumer reveling in constantly improving gadgets and services (see chart below). The rise of mobile, coupled with an evolving, more web-like TV market will present a vastly different communications landscape. Rising to the challenge will entail many changes in old processes, from compensation to measurement. Whether you're ready depends in part on what you do now.
Tracy Tuten

Guide to Agency Compensation - 0 views

www.aaaa.org/...default.aspx

ECUadvertising agency compensation AAAA

shared by Tracy Tuten on 17 Sep 13 - No Cached
  • Tracy Tuten on 17 Sep 13
     
    List of reports from AAAA on agency compensation and client recruitment
Tracy Tuten

The choice for clients: Price vs value, vendors vs partners, delivery versus excellence... - 0 views

martinweigel.org/...ers-delivery-versus-excellence

compensation ECUadvertising agency budgeting

shared by Tracy Tuten on 01 Aug 13 - No Cached
  • Tracy Tuten on 01 Aug 13
     
    On agency compensation
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