Agency Challenge

Advertising Age featured an article detailing a new pay-for-performance method that Coca-Cola has recently adopted. Coca-Cola established a new model where marketers are only rewarded if they meet their initial campaign goals. The bonus for marketers is that if they reach the goals set forth, they can receive up to 30% of profit margins. If the agency doesn’t reach their goals they simply recoup their costs. Another important factor is that instead of paying an agency hourly rate, each project will now be assigned a flat rate.

This new method was established to create a model where performance is rewarded and mediocre results reap no benefits. The issue that really seems to be causing some concern amongst marketers is that traditionally agencies determine what the goals are and then report those goals and expectations to their clients. With this new model, Coca-Cola will establish the goals of each project or campaign.

Another tricky aspect lies with measuring the value of a project. There are a few factors considered when determining the value of a project: the talent working on project, the work’s strategic importance and whether other agencies can duplicate the work.

The hourly fees can really pile up when modifications are made and when modifications are needed. It would be interesting to see how the results are measured. Evaluating the success of a campaign can be subjective. The goals have to be extremely poignant to ensure that they are measurable. What is not clear is if an agency can receive some compensation if some of the goals are met but not all. If Coca-Cola is establishing these goals, who is to say that they will be measurable.

The results of this new method could benefit both the marketers and the client. The client may see better results and the agency could receive compensation for their success.

There could be some negative affects that are incurred for utilizing a pay-for-performance method. Perhaps the best agencies won’t want to take a gamble that they will only receive compensation if their campaigns work. Additionally, Arguments may arise amongst clients and agencies when determining whether goals are met.

It will be interesting to take a comparison of traditional hourly rates verses this new pay-for-performance method. Will the marketers end up making more money? Will the client end up saving money?

Chicago Tribune Charities

Chicago Tribune Charities

Landing Page:

First, we need to create a mandatory landing page that collects information from anyone who visits the site. We really need to start building our database. If someone is visiting their site they are already interested and we can target them in our campaigns.

Facebook:

I think we should set up a facebook page/interst group - an e-mail blast can notify the people already in their database about the new page/group so that they can "become a fan". This has been extremely helpful with a the charities I have been involved with. Once these people "become fans" their friends receive news feed alerts about it. It can be a great way to get more people involved.

Donation Page:

I think we should remove the donate without logging in option. People will enter their information if asked. Once people register, a page should pop up that says make my donation. We could also set it up so that each person that registers can track their donations and keep a log. When people return to visit the site a second or third time it can say things like..."your last donation was...contribute $X today. We should also have a few lines that allow people to invite their friends to visit the page or register.The concept of tracking can be helpful to remind people if it has been a while since they donated. It will also be helpful for them for their taxes. I also think it would be a good idea to add the monetary amount that people can donate. By suggesting an amount they would be more likely to receive donations.

Get Involved/Interest Groups:

We can set up a separate page that allows people to get involved with Chicago Tribune Charities. For example we can set up a program where people can sign up to host a coffee/fundraiser. They will be given a packet with print materials on the organization, a video that shows success stories and how Chicago Tribune Charities has helped their community. The party host will have a sign in sheet to collect information and potentially donations. The print materials and video help keep the message consistent. The page can also have an area where it lists fundraisers and events for Chicago Tribune Charities in their area.

Success Stories:

I think a great way to convince people to donate would be to have
success stories that highlight how Chicago the Chicago Tribune
Charities have helped and made such a huge impact. People like
to know that their money is making a difference. Thats why those
feed the hungry/adopt a child infomercials were so successful.

More to come...

Meet the CTP

I am currently employed as the Director of Marketing for the Chicago Technology Park. Here is a picture of our trade show booth from Bio International hosted in San Diego, California. We came up with a Route 66 theme - this concept originated from our desire to promote a new development within our district located on the historic Route 66. Our giveaways were little remote control branded cars. Right now we are prepping for Bio International 2009 - in Atlanta (next month).