Tuesday, October 12, 2010

84% Of Procurement Executives Say They View Marketing As An Investment To Be Optimized.

The word is optimized, right? Not penalized, which is what it feels like.

What's interesting is that when most people make an investment, say in stocks, they make the investment to deliver a return on that investment. Buy low, sell high, that sort of thing.

So what type of return do procurement execs want to see from a production budget?


Personally, I don’t think procurement execs are thinking that far ahead. What they’re looking at is a thirty-second spot. The question they have to answer is, how can they get that thirty-second spot produced for less?

Producing it for less is their way of optimizing the investment. Paying less, in and of itself, is the return.

Could there be another way to look at it? What if procurement execs looked at a production budget as an investment in a viewer’s involvement? After all, a produced second that is consumed (watched) by the viewer, offers a better return on production dollars spent than a produced second that isn’t watched.

The objective of any commercial, before it can persuade anyone of anything, is to be watched. Being watched is a necessary precursor to persuasion.

Whether a commercial is watched or not, and how much of it is, or is not watched, is now measurable.

So, what if the procurement executive actually measured the return on the production investment in terms of viewer involvement? And then, paid the agency and production company accordingly.

In other words, instead of cutting dollars before the production, wait until after the spot runs and pay less to the agency and production company if the viewer involvement isn’t there.

Instead of procurement, maybe we call it “after-curement.”

It seems like it would deliver a win/win. Advertisers still get to hold their agencies accountable. The only difference is that they get to hold them accountable for outcome rather than effort.

After the fact, rather than before the fact.

But that’s not even the best part. The best part is that it would allow agencies the chance to do what they do well without having their hands tied.

If they don’t deliver, they don’t make money.

After all, they shouldn’t.

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