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• I will try to solve the problem.
• Fact: it is a very old problem.
Unfortunately, there is no ready-made solution.
Introduction
Introduction
• You receive suggestions and experiences in order to make your own decisions.
• New suggestions are always welcome too.
Making a choice is a matter of the following business elements:
• Principles
• Budget
• Culture
• People
2 examples
General principle
• Well-defined parts of a job/campaign can be outsourced.
• These parts on themselves can’t be complex.
• Complex means constant adjustment.
• Difficult ≠ complex
An example of outsourcing
• Creation of a DM concept = yes.• Execution of the DM concept = much more complex/dangerous.• Why? Because the strong creatives aren’t always technically strong
in the details. And because the technical experienced people usually aren’t the most groundbreaking creatives. – Conceptual creatives focus on the idea/concept.– Technical creatives focus on the methodology/structure of the campaign.
Both are necessary.
• Please don’t forget the role of account management. Especially:– when briefing the conceptual creatives.– when adjusting the campaign.– for the final campaign proposal.– for the execution of the campaign.
In other words
• Conceptual creatives mainly think horizontally. They make connections that others don’t see.
• Technical creatives mainly think vertically. They optimize a campaign.
• In DM, Internet & “activation” are both more necessary than ever.
• After all, they need to understand how people react. Not only how they think.
• Attitude & Behavior
Pre-defined parts can be outsourced
• This certainly applies to a number of technical parts.
• Examples:– Desktop Publishing (DTP)– Photogravure/printing/personalization – Website HTML – Programming e-operations
Pre-defined parts are also:
• Creation of a DM-concept
• Creation of an advertizing concept
• Creation of an e-concept
Problems specifically linked to Internet
• Gap between the conceptual creation and the technical execution.
• Web builders who don’t fully understand the concept of
“usability”.
• Web builders who don’t know anything about DM.
• Creatives who don’t know (anything about) the web techniques.
• Account people who don’t know (anything about) the web
techniques.
Budgetary remarks
• Outsourcing isn’t necessarily cheaper.
• Your fixed costs diminish/decrease.
• Fixed costs become variable costs.
• In-house signifies a sufficient volume of work/jobs.
• Don’t underestimate the cost of coordination.
• Outsourcing signifies coordination by experienced professionals.
• Phenomenon: pressure on prices and margins.
• Procurement at the advertiser is playing a bigger and bigger role.
Culture
• The agency’s culture.
• Some people can handle outsourcing. Others can’t.
• Coordination is generally more easy in-house than with outsourcing.
• Competition in-house outsourcing.
• Perception by the advertiser.
• A number of advertisers do outsourcing and in-house themselves.
People
• Outsourcing demands experienced people.
• Miscommunication easily happens.
• This is certainly the case with e-operations/websites. As a result, the execution costs become too high.
• Perception of the jobs in-house outsourcing.
• “Chemistry” between people. Especially with outsourcing.
Example 1: BMW Case
• Spring campaign BMW Belgium / Luxemburg
• Goal of the campaign:
– Spring treatment / Traffic building to the official dealer
– Accessories sales
– Lifestyle sales
BMW Case
Campaign:
• Direct mailing
• POS material
• E-mail (iPhone, iPad, Samsung Galaxy, …)
• Website
• E-shop
BMW Case
• Creative theme: Cycling
• Linked to this theme:
– Accessories– Lifestyle– Spring treatment for your car / Traffic building to the official dealer
• Highly personalized:
– Client– Dealer– Car model– Male / Female – Language BE-Dutch / BE-French / BE-German / LUX-French / LUX-German– Loyal / Disloyal– …
BMW Case
What has been outsourced?• Creation and execution of cycling maps.• Programming CMS-system for e-mail. Not the implementation.• Programming CMS-system for website. Not the implementation.• Why? Product knowledge is an absolute requirement.• The reservation module (e-shop).• Database.• Printing.• Sending direct mail and e-mail; placing POS at the dealer.
GFG Case
• Elements of the campaign
• Logo
• Website & database
• POS material
• PR (press)
• Launch event for the travel sector
What has been outsourced?• Website:
– Creative concept/copy/graphic design: in-house
– Technical execution: outsourced
– Database: outsourced
• PR: outsourced
• Event:
– Invitations & presentations: in-house
– Organization: outsourced
GFG Case
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