Multinational brands & startupsAd:tech London. November 2016

Singapore & Hong Kong

Mumbai & Shanghai London & NYC

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How do you get a speedboat and an ocean liner to co-exist?

63%

88%

60%80%

Source: WFA & ad:tech online survey. October 2016. Base: 35 companies (brands & startups combined)

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“We’ve found 95% of our deals have come from contacting brands directly. We have had countless conversations and meetings with agencies but deals rarely materialise.”Startup respondent

How have you engaged with brands/ startups?

Source: WFA & ad:tech online survey. October 2016. Base: 35 companies (brands & startups combined)

Via an independent interme-diary e.g. Hoxton Mix

Via an agency intermediary e.g. Ogilvy Labs

Via a client intermediary/program e.g. Unilever’s

Foundry

We seek them out directly

39%

46%

48%

78%

Yes, we do this No, but plan to startNo and no plans to

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wfanet.org @wfamarketersSource: WFA & ad:tech online survey. October 2016. Base: 35 companies (brands & startups combined)

Lack of speed and agility within the

(brand's) business

Working through (the brand's) procurement

processes

Extended payment terms

53%

35%

18%40%

10%

60%

Major barriers on the client-side?

wfanet.org @wfamarketersSource: WFA & ad:tech online survey. October 2016. Base: 35 companies (brands & startups combined)

Major barriers with startups?

24%

53%47%

10%30%

10%

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So?

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Alignment on how to fix it…

What have you found to be helpful or effective at improving outcomes from working with brands/ startups? Source: WFA & ad:tech online survey. October 2016. Base: 35 companies (brands & startups combined)

Being crystal clear on your objectives / the problem you are trying to solve

Common goals/metrics/KPI

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

“Brands who simply rush into hackathons with no objectives waste their money”

Startup respondent

“Effective start-up engagement is linked to specific business objectives”

Brand respondent

“Start from a business brief/need rather than from a technology opportunity”

Brand respondent

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How to fix it: clarity on process

Source: WFA & ad:tech online survey. October 2016. Base: 35 companies (brands & startups combined)

Clear R&R for all stakeholders from Compliance/Legal through to Marketing/Procurement and including AORs across divisions and func-

tions

Clearly defined timeline and deliverables or ‘gates’

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very effective Somewhat effective Not at all effective

“A big (client) barrier is having multiple processes that are run by different internal stakeholders in conjunction, rather than having one integrated approach.”Brand respondent

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Consider

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1. Be focused on your core strengths

2. But truly understand the brand’s business objectives and how you fit within those

3. Find a way to embrace process – perhaps by leveraging an intermediary

4. When working with global brands, define a means of demonstrating how your solution can be scaled

“…the largest mistake a startup can make is to dilute their resources so that everything is mediocre rather than being the best in their core offering.”Brand respondent

“We look for a clear road map for where their offering/service is headed towards and track record of progress/improvement of their company since foundation”Brand respondent

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1. Be open and embrace a culture of risk2. But for tech’s sake... Answer a specific

business need/ objective3. Create long term relationships. Start-ups will

be more reactive and progressive, in order to achieve your goals, but that needs time.

4. Integration is key: define role sort, not least between global, regional and local to avoid duplication

5. Get your ducks in a row first: communication, structure and budget

“Jump in and start kissing frogs: even the 15 minute call with a company that is not immediately relevant helps build a picture of what's happening and subject expertise.” Startup respondent

“Ineffectiveness comes from low staffing on [the brand] side to filter opportunities and maintain fast engagement with startups”.Brand respondent

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Biggest benefits derived from working with startups?

Multinational brands working with startupsAd:tech London. November 2016