4 ms·

It amazes me that P and G pays outside agencies huge heaps of money to agencies that sit between them and the advertisers. Seems like a slam dunk to move in Ho

It amazes me that P and G pays outside agencies huge heaps of money to agencies that sit between them and the advertisers. Seems like a slam dunk to move in House given the incentive issues.

draw_down 9y ago
Most businesses prefer not to hire, even when employees would be cheaper than contractors/vendors.
nopriorarrests 9y ago
in some cases agencies really add value and have competencies which are not that easy to insource back. some examples: for smallish advertisers (this is not P&G, I understand) agencies can negotiate much better terms, because agencies are buying in bulk. and if you are interested in performance marketing with clearly measurable results, building a good internal team could be a challenge as well. so, it's not a slam dunk.
- notyourday 9y ago
  Except that agencies do not pass those "much better terms" to the clients.
  - karljtaylor 9y ago
    WPP != agencies plenty of model innovations are out there, but P&G ain't that kind of brand.
- pawelk 9y ago
  > for smallish advertisers (this is not P&G, I understand) agencies can negotiate much better terms It's more than that. As a small business managing your own ads you can get your account suspended without explanation and any way of recourse just by raising some flags. But being a WPP subsidiary you get assigned an account manager that guides your team trough the process, shows up with presentations, gives early access to tools and ad formats not (yet) available to the general public and makes sure your doubts get resolved before the ad goes live. If you get flagged, they call you to help fix things. Keep in mind WPP spent $2B on Facebook in 2017, which is 5% of Fecebooks $40B revenue that year. Similar with Google, WPP brought in ~$5B out of $110B Alphabet's revenue.
nitwit005 9y ago
The big firms tend to have fairly involved campaigns that are a mix of mediums TV, radio, billboard, internet, and so on. Creating the art and media for those, and setting it all up isn't exactly trivial.

It amazes me that P and G pays outside agencies huge heaps of money to agencies that sit between them and the advertisers. Seems like a slam dunk to move in House given the incentive issues.

draw_down 9y ago

Most businesses prefer not to hire, even when employees would be cheaper than contractors/vendors.

nopriorarrests 9y ago

in some cases agencies really add value and have competencies which are not that easy to insource back. some examples: for smallish advertisers (this is not P&G, I understand) agencies can negotiate much better terms, because agencies are buying in bulk. and if you are interested in performance marketing with clearly measurable results, building a good internal team could be a challenge as well. so, it's not a slam dunk.

notyourday 9y ago
Except that agencies do not pass those "much better terms" to the clients.
- karljtaylor 9y ago
  WPP != agencies plenty of model innovations are out there, but P&G ain't that kind of brand.
pawelk 9y ago
> for smallish advertisers (this is not P&G, I understand) agencies can negotiate much better terms It's more than that. As a small business managing your own ads you can get your account suspended without explanation and any way of recourse just by raising some flags. But being a WPP subsidiary you get assigned an account manager that guides your team trough the process, shows up with presentations, gives early access to tools and ad formats not (yet) available to the general public and makes sure your doubts get resolved before the ad goes live. If you get flagged, they call you to help fix things. Keep in mind WPP spent $2B on Facebook in 2017, which is 5% of Fecebooks $40B revenue that year. Similar with Google, WPP brought in ~$5B out of $110B Alphabet's revenue.

nitwit005 9y ago

The big firms tend to have fairly involved campaigns that are a mix of mediums TV, radio, billboard, internet, and so on. Creating the art and media for those, and setting it all up isn't exactly trivial.