Presentation on theme: "In-House Outsourcing Interdirect April 19, 2013 Georges Van Nevel."— Presentation transcript:
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
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 cant 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 arent always technically strong in the details. And because the technical experienced people usually arent 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 dont 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 dont 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 dont fully understand the concept of usability. Web builders who dont know anything about DM. Creatives who dont know (anything about) the web techniques. Account people who dont know (anything about) the web techniques.
Budgetary remarks Outsourcing isnt necessarily cheaper. Your fixed costs diminish/decrease. Fixed costs become variable costs. In-house signifies a sufficient volume of work/jobs. Dont 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 agencys culture. Some people can handle outsourcing. Others cant. 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 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