Issue 122, 22/7/10

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Welcome to the July edition of TrinityP3's e-newsletter. Here we bring you updates on the people, purpose and processes that are important to the marketing industry.

Have a question? Just ask us, we'd be happy to help.

What is value based remuneration?

What is value based remuneration for advertising and media agencies?

Retainers are still the most common form of remuneration for advertising agencies in the major markets. These retainers are based on resources multiplied by direct salary costs by overhead factor and then multiplied by profit margin.

But how do you value your remuneration / compensation model?

Value has many definitions.
Basically value can be defined as V = Q / $ which is VALUE is QUALITY and/or QUANTITY divided by COST.

So lets look at 3 different types of agency remuneration and how value is calculated:

1. Retainer / payment based on resource alone
This is the most common and is effectively the outsourced agency resource.

Continue reading What is value based remuneration for advertising and media agencies?

Do you remunerate or compensate?

At the ANA Marketing Financial Management conference in April this year, I was struck by the fact that the Americans' were referring to Agency Compensation and not Agency Remuneration .

I was sitting with Debbie Morrison from ISBA and she said that in the UK they too refer to agency payment as Agency Remuneration.

Okay - so what is the difference between compensation and remuneration? And why is it important?

Continue reading 'Do you remunerate or compensate your agency?

The 3 Great Lies....

In the last week we have had several procurement 'professionals' try and negotiate fees using the 3 most common lies in their industry.

Don't get me wrong, I am a champion of negotiation. I just don't rely on little white lies. All three are from large multinational companies and all three spun their lie like they believed it. Which is sad and not very professional.

Here they are:

1. I / we don't have the money / budget.

I'm sorry, does the CEO and CFO of your company know you have no money? Do the shareholders know that your multinational company who reported a pre-tax profit of many billions of dollars now has no money?

Continue reading The 3 Great Lies Procurement Tell.

AANA Client Agency Hothouse

AANA's Client-Agency Relationship Hothouse
Thursday, 19 August 2010
L’Aqua, The Terrace Level,
Cockle Bay Wharf, Sydney

Hear from a panel of industry leaders on critical aspects of the Client-Agency relationship, including:
• David Thomason, Meat & Livestock Australia
• Ian Alwill, Nestle Australia Ltd
• Amanda Johnston-Pell, Telstra Corporation Limited
• Mark Green, Managing Director, Three Drunk Monkeys
• Craig Galvin, Director, The White Agency

The panel will address such questions as:
1. Is the Agency model obsolete?
2. How should Clients assess Agency value?
3. What are the factors for a successful/productive Client-Agency relationship?

Click here for more information or email admin@aana.com.au to reserve your place.

Most In Demand this Month

In the past month at TrinityP3 we have:
• Reviewed the agency retainer and rate card for a Health Care client
• Negotiated a creative agency retainer for an FMCG client
• Benchmarked TV production costs for an FMCG client
• Reviewed the agency roster for a global Beverages client
• Reviewed the media strategy for a Financial Services client
• Manged a media agency tender process for an Education client
• Supplied media remuneration advice to a global Insurance client

If you would like assistance or advice on any aspect of your marketing spend, contact us today for a confidential discussion.