Issue 102, 20/10/08

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The total life cycle of an A4 sheet of printed laser paper will add approximately 1.5 grams of greenhouse gases into the atmosphere.

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The worsening economic climate is likely to be a catalyst for downward pressure or “cuts” to marketing budgets. To this end marketers will either be cutting activity or looking for ways to achieve better value from every dollar they spend. In the coming editions of TrinityP3 e-news we are going to provide insights which will assist marketers to “do more with less”. In this addition, Stephen Wright looks at the opportunities within media negotiations and leveraging the market to obtain maximum value.

If you don't ask, you don't get

It's a simple principle and commonsense, but a practice that some media agencies aren't currently pursuing on their client's behalf. Every media agency loudly proclaims it's expertise in delivering clients the best rates and buying value. Some extol the virtues of annual group and client deals, others the benefits of campaign by campaign trading. So, in uncertain times, and in softer market conditions which approach works best?

What is the best strategy?

Those who trade campaign by campaign are currently very vocal about the advantages of still having funds to commit. And on the surface, they would appear to have a strong case. But any media agency working with annual deals should be bartering an equivalent level of additional value on behalf of their clients. So in truth, what's important is not the arrangements themselves but the quality of the team operating on your behalf. And we've seen evidence of this in recent reviews and benchmarking.

Short-term trading

Just because your agency has a strategy of trading short term, you shouldn't assume they're getting the best deal possible, even if they are putting up discounts that are considerably higher than in the past. This is a time when clients need to be particularly vigilant in the area of media buying. The difference in value between good and bad buying has widened considerably and the potential gains (or losses) are much greater.

Longer-term negotiations

The next few months are a critical time. Should you be committing to longer term arrangements and if so, what sort of deals should you be looking for?
Can an annual deal be sufficiently flexible to ensure you don’t lose out to the short term traders? Is the advice of your media agency sound?

For most clients there are more questions than answers. This is hardly ideal when the key to negotiations is being well informed.  It's not just about asking for more. You need to know the right questions to ask to get the best result.

Get the information you need

So with rates and value in such a state of flux, how can you tell if you're doing well? There has never been a better time to get independent expert advice. TrinityP3 has an extensive pool of long term data and the short term deals on offer. With this information we are perfectly placed to advise clients on how effectively they are buying for the last quarter of 2008 and what they should be looking for from 2009 deals. If you want to take full advantage of the economic downturn, contact Stephen Wright to discuss your needs on 02 8399 0922 or 03 9682 6800.

media market crosscheck

The TrinityP3 Media Market Crosscheck is a fast turn around, independent report on media buying value.
The report:
1. Examines longer term deals in light of the softer market conditions,
2. Assesses shorter term negotiations for the last quarter, and
3. Provides guidance on what to look for in 2009 negotiations.

Contact Stephen Wright to discuss how the Media Market Crosscheck can help keep you informed for the rest of 2008 and plan ahead for 2009.

FGC Conference, Queenstown

Darren Woolley is speaking at New Zealand's Food & Grocery Council's Annual Conference to be held at the Millennium Hotel Queenstown on 5 - 7 November.
ALIGNING YOUR MARKETING SERVICES SUPPLIERS IN A COLLABORATIVE ENVIRONMENT TO REDUCE COST AND INCREASE EFFECTIVENESS

With greater media fragmentation and the increased difficulty in engaging consumers, marketers are using a wider selection of marketing communications and engaging a greater number of specialist service providers than ever before. No longer is it just a matter of managing a media and advertising agency. Today, marketers will also be managing a digital agency, channel planners, events companies, public relations, direct marketing, sales activation, experiential marketers and more.

Darren's workshop will look at the strengths and weaknesses of the various models, strategies for managing the growing number of suppliers and methods for fostering a collaborative environment to deliver maximum value to advertisers and marketers.

For more information, contact the FGC at http://www.fgc.org.nz