In-House Outsourcing

Interdirect April 19, 2013

Georges Van Nevel

• 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

Direct mailing– Envelope– Letter– Cycling routes– Liftletter

(only M Performance)

BMW Case

BMW Case

BMW Case

E-mailing

Responsive design

BMW CaseE-mailing: pre-filled website forms

BMW CaseWebsite: personalized routes per dealer

BMW CaseWebsite: personalized routes

BMW CaseWebsite: personalized routes

BMW CaseAds: www.routeyou.com

BMW CaseE-shop / Online orders

BMW CaseE-shop / Online orders

BMW CaseE-shop / Online orders

BMW CaseiPhone / iPad

BMW CasePOS Material: banners

BMW CasePOS Material: poster

BMW CasePOS Material: floor stickers

BMW CasePOS Material: front desk ribbon

BMW CasePOS Material: “spring kit” bags

BMW CasePOS Material: canvas

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.

Example 2: GFG Case

• Goal of the campaign:rebranding of the Travel Guarantee Fund for travelers.

GFG Case

• Elements of the campaign

• Logo

• Website & database

• POS material

• PR (press)

• Launch event for the travel sector

GFG CaseLogo

GFG CaseWindow sticker

GFG CaseWobbler

GFG CaseTemplate for leaflets/websites/catalogues …

Website

GFG Case

Website

GFG Case

Website

GFG Case

Website

GFG Case

Website:aid fortravel agencyemployees

GFG Case

Website – database members / travel agencies

GFG Case

Website

GFG Case

Website

GFG Case

GFG CaseDatabase: up-to-date info

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

Conclusion

• It’s never simple!

• I hope I gave you food for thought.

Good luck!