Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
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Martin Riley Group CMO Pernod Ricard President of the World Federation of Advertisers The Future of Effec Partnerships
description
Martin Riley, Pernod Ricard CMO and President of The World Federation of Advertisers (WFA) looks at the future of effective partnerships from the client's side. He believes Creativity, Challenge, Connected (to business), Continuity and Culture key for clients with Communication, Creativity, Craft, Contribution (to business) and Committment key for agencies. This presentation was shown at the IPA's Performance Adaptathon on 8th July 2014 in London. Find out more on our website www.ipa.co.uk/adapt/performance and join in the conversation on Twitter using #ipadapt.
Transcript of Pernod Ricard CMO Martin Riley on the future of effective partnerships from the client side
Martin RileyGroup CMO Pernod RicardPresident of the World Federation of Advertisers
The Future of Effective Partnerships
MARTIN RILEY
GROUP CMO - PERNOD RICARD
PRESIDENT – WFATHE WORLD FEDERATION OF ADVERTISERS
Who AM I?
Pernod RicardWho are we?
Pernod Ricard number 2 of the wine & spirits industry
BRAND COMPANY MARKET COMPANY
HOLDING
8,6 billion € (annual turnover)
19000 people around the world
100 production sites
Iconic brands
Prestige brands
Strategic Premium Brands
Where do we come from?Paul Ricard« make a friend a day »
2008
2005
2001
1975
3 Big Bangs in 10 years
Growing through acquisitions
1805
1932
70 of the world’s biggest marketers
Membership doubled over the past 6 years
• Best-in-class forums meet regularly around the world.• CMOFORUM• IMCFORUM• MEDIAFORUM• DIGITALFORUM• SOURCINGFORUM
• Limited to 20-30 of your Marketing Professionals. No agencies or media owners.
• Interactive format hosted by member companies.
Peer-to-peer groups
NYC London ParisSingapore
Global Agency Remuneration 2014Remuneration models in use across all agency types
Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014
8%
1%
3%
24%
49%
4% 11%Commission – fixed rate (fixed % of media billings)
Commission – sliding scale (% varies based on media billings variation)
Commission – variable (% varies by media used)
Fixed or output-based fee (fixed for project/ period)
Labour-based fee (labour time calculated by the hour/% of personnel time)
Value-based fee (based on value of agency service provided - not time or cost based)
Performance-based fee/bonus (based on outputs e.g sales/brand performance met-rics)
Global Agency RemunerationRemuneration models in use across different agency types
Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Performance-based fee/bonus
Value-based fee
Labour-based fee
Fixed or output-based fee
Commission – variable
Commission – slid-ing scale
Commission – fixed rate
Creative agency remuneration shifts away from paying for man hours, towards paying for performanceCreative agency remuneration models (2011 vs 2014)
Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014
2011 2014
10% 12%
15% 17%
59%51%
4%
3%
15%23%
Performance-based fee/bonus
Value-based fee
Labour-based fee
Fixed or output-based fee
Commission – variable
Commission – sliding scale
Commission – fixed rate
The decline in paying for hours is even more pronounced with media agency remuneration Media agency remuneration models (2011 vs 2014)
Source: WFA online survey: ‘Global Agency Remuneration Trends’; Base: 43. Date: Jan 2014
2011 2014
40%
48%
0%
10%
44%
21%
16%21%
Performance-based fee/bonus
Value-based fee
Labour-based fee
Fixed or output-based fee
Commission – variable
Commission – sliding scale
Commission – fixed rate
The 4 “C”s required by clients
- Creativity
- Challenge
- Connected (to business)
- Continuity
And … Culture / cultural fit
The Future of Effective Partnerships
The 4 “C”s for agencies
- Communication
- Creativity
- Craft
- Contribution (to business)
And … Committment
The Future of Effective Partnerships
What clients want from agencies
- Individuals with ideas
- Flexibility
- Can do attitude
- Output and outcomes
- Impact
- Fair remuneration
The Future of Effective Partnerships
What clients don’t want from
agencies
- Inflexibility in structure and network
- Bottom line focus – endless remuneration discussions
- Corporate approach
- Counting the hours
- ‘Supplier’ relationship
The Future of Effective Partnerships
Let’s start again … ?
- Entrepeneurial approach
- Agencies - Names on the door
- Clients - Names on the
label
The Future of Effective Partnerships
The agency of the Future
How would I build the agency of the future
to meet my needs as a client ?
The Future of Effective Partnerships
The agency of the Future
What do I want ?
- Focus on output and outcome
- Planning connected to business
- A business partner (skin in the game)
- Outstanding relevant creativity in all relevant media and touchpoints
- Challenge and continuity
The Future of Effective Partnerships
Conclusion
- Back to the core business relationship
- Trusted advisors
- Mutual respect – from business and creative challenges
- Entrepreneurial approach from both sides
- Outstanding committed individuals
- Work that makes a difference
The Future of Effective Partnerships
The future of Effective Partnerships
