by Simon Steel
Brands are increasingly looking for specialist strategic partners from whom to buy efficient, low-cost, multi-channel marketing production, delivery and asset creation. This is a continuation of a trend, which has seen first media and then print decoupled from the original full-service agency proposition of the fifties.
We spoke with Simon Steel of Gutenberg Networks recently to learn more about this phenomenon and to learn how client firms can reap the best rewards from a decoupled approach. From this conversation and further research, it would seem that there are a few critical aspects to consider:
- The decoupling spectrum: Contrary to convention, decoupling offers a spectrum of solutions for clients and is not simply a binary – decoupled or coupled – approach. Client firms need to consider how best to work with their production partner, what elements of their existing services they wish to decouple, which media they want to do this in and critically, how they determine the handover points from origination into production.
- Internal change: In order to make the most of the capabilities of marketing production firms, like Gutenberg Networks, client-side marketing teams must be open to changes to their internal processes. As working with a production company will result in efficiencies and release client-side marketers from administering the day-to-day communications with multiple production firms and agencies, this may mean retraining of client-side marketers to undertake more complex and strategic tasks.
- Clarity on spending: Ideally, production management firms will wish to have complete visibility to their prospective client firm’s current marketing spend (to a finite level of detail) before providing guidance regarding how much could be saved by adopting a decoupled approach. A detailed view of the client firm’s current media spend and media schedule should typically accompany the initial brief at the time of tender.
- Setting boundaries and rules of play: A decoupled approach will upset the boundaries in existing agencies’ interactions. Client firms must be clear regarding the role of each agency and open in setting expectations in order to minimise agencies’ insecurity in the face of change, allowing everyone to stay focused on doing the best work possible for the client firm rather than standing their ground. Remember, this is an opportunity to refocus spend and resource on strategic creative and/or new channels, not a threat.
- Realistic expectations: Client firms will reap the rewards they sow. Client firms, which address the points above and undertake a wider change management initiative in order to integrate a production management firm, typically save a minimum of 25% of their budgets, and frequently 50% plus when accounting for both third party spend and internal resourcing. However, firms which appoint a production partner without doing the hard work to support their appointment, may fail to realise any benefits due to multiple reworks when key stakeholders aren’t identified, buy-in is lacking or processes aren’t maintained.
As the stellar performance of a production partner is dependent upon their having adequate scale to achieve significant discounts and efficiencies, leading firms are large, international players—most frequently owned by the global networks. Such is the case for Gutenberg Networks, a part of Omnicom Group.
Simon has worked across the ATL, BTL and production sectors for over 20 years and is currently Managing Director of Gutenberg Networks UK, an integrated marketing production management business.
