Issue 116, 25/09/09

In this Issue

In Other News

Calculate your agency’s salaries, head hour rates, billable hours and mark-up multiple with TrinityP3's Remuneration Calculators.

Find out more about Evalu8ing Surveys at evalu8ing.com 

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Retainers have become the most popular type of remuneration model for all types of advertising agencies including media, creative and increasingly digital and other marketing services. These retainers are based on resources being supplied by the agency to deliver the needs of the Client. But what is your retainer based on?
In this edition of TrintyP3 e-news we look at what your retainer is really paying for.

What is your retainer really paying for?

What is your retainer based on? What is the level of resources? What is the mix of resources? What is the cost base of the retained resources? And is the level and mix of resources at the right level?

Many marketers would say that this is irrelevant if the agency is delivering the outcomes required. But without these fundamental remuneration principles in place it is impossible to know if you are getting value for money.  And these are the questions currently being asked of Marketing by CEOs. And in our recent experience, if they don't get an answer they are satisfied with, the CEO is increasingly turning to Procurement for the answer.

To read more on this industry hot topic, click here...

If you want greater transparency into the efficiency and ultimate effectiveness of your agency remuneration the first step is to get a benchmark view of how your remuneration arrangements are currently performing before implementing the measures to track and manage this value performance going forward.

TrinityP3 can benchmark the value and performance of your current remuneration arrangements and then advise you on the metric required to manage this more effectively. To find out more contact TrinityP3 on Melbourne 03 9682 6800 or Sydney 02 8399 0922 or email us today.

Calculators

Ever been baffled by how your agency calculates head hour rates? Or wondered how the overhead and profit multiple is worked out? Curious what salary the Creative Director is getting when billed out at $595 per hour?

Industry Best Practice Calculators

There are many different ways to calculate these charges, and TrinityP3 has developed a set of on-line calculators using industry best practise methodology.

So now you can calculate your agency’s salaries, head hour rates, billable hours and mark-up multiple using best practise methodology with TrinityP3's Remuneration Calculators. Bookmark this page for future reference.

You can also download our Top 10 Ways to Prepare for an Agency Remuneration Negotiation.

Remuneration feedback from the agency

"We have reviewed the TrinityP3 remuneration review document and based on this have restructured our proposal, which we believe reflects TrinityP3's advice and commentary. By comparison to their competitors (named) their knowledge of the market is more realistic and current."

Creative Agency, May 2009

Evalu8ing Case Study

Category - Financial Services
Department - Marketing Services, Supplier Management

Situation
The Marketing team is managing a number of service providers; Creative, Media, Digital, PR, Design and Direct agencies. After the appointment of a Channel Planner, the relationship between Media and Creative noticeably deteriorated with the Client managing many complaints about the Media agency from the Creative agency.

Evaluation
It was decided to undertake an evaluation of all the marketing service providers to determine the status of the relationships using Evalu8ing.com
The question panel used was the 'Relationship 2' panel, which mapped and evaluated the relationships between Marketing and all service providers.
Green indicated the relationship was “working well”. Yellow indicated “needs attention”. Red indicated “urgent attention required”. Black indicated no relationship was evaluated.

Results

Looking at the “urgent attention required” there are clearly:

1. Issues between the Creative Agency and the Media Agency.
2. The Creative and Design Agency have issues with the Digital Agency.
3. The Media and Digital Agency have issues with the Channel Planner.

Drilling down through various statements and comments made by the participants, it became apparent that there was poor communication between Media, Creative, Digital and the Channel Planner. The introduction of the independent Channel Planner has lead to a breakdown of communication and therefore collaboration between Creative and both the Media and Digital agency.

Action
Once the Client could see where “urgent attention" was required, this lead to a series of discussions to clearly define the way the Channel Planner engaged all parties. Digital and Media, who felt they were being undermined by the Channel Planner, had their opinions heard. And this led to an improved working relationship between the Digital and Media agency with all other suppliers.

Cost to Client
8 x USD$250 per group = USD$2,000 total.