supply chain of traditional and

digital advertising agencies

presented by: Benjamin de Leon

SUPPLY CHAIN MANAGEMENT

JULU 30, 2016

Advertisers are heralds of the brand.

They announce the brands coming, changes, improvements, their values

through the directive of the marketing department.

MARKETING
DEPARTMENTS
defines the brand
sets limitations
sets the budget
(dis)approves the
campaigns
provides agency
with a brief

-->

ADVERTISING
AGENCIES

develops campaign
big idea
develops campaign
strategy
develops materials
for production

ADVERTISING
CAMPAIGNS
[ OUTPUT ]

makes use of
traditional and/or
non-traditional
media
often identified
through their slogan

two kinds of advertising campaigns

that are commonly requested by brand or marketing managers.

TRADITIONAL
ADVERTISING

DIGITAL/INTERACTIVE
ADVERTISING

Uses TV, Radio and Print

as their main mediums of
communications.

Uses digital mediums such as social

media, youtube, banner ads, etc.

Used as the core of the

brand's communications

Used as support and often aligned

with a brand's traditional
campaign

Often very expensive but

with more restrictions

Immensely cheaper and has less

restrictions.
It has the ability to go viral.

TRADITIONAL ADVERTISING

1950's
sales and awareness
are the only KPIs

many opening, very few

applicants

certain taboos still

in place

global campaigns
didn't exist

time table is less

crampped. quality over
quantitiy

limited
channels/stations

very few
competition
only had few
brands

CLIENT
demanded more
scientific tools to
measure success
involved consumers in
their product
development
global and regional
campaigns are normal
introduction of
other KPIs

developed
campaigns that solely
relied on good design
and witty words.

AGENCY

limited
households
with access
only three mediums

MEDIA

developed more tools

and created more
departments (i.e. strat,
media buying)

the birth of
other mediums

toxic non-stop schedule

less social
restrictions (i.e. sexual,
competitive)

many applicants, very

few openings

more accessible now

more channels,
stations and
publications

2010's

consumers were not

directly engaged by
brand
consumers had no
way to express delight
to displeasure
consumers were simply
buyers and they don't
demand

CONSUMER
consumers became
part of the product
development process
demanded more
social responsibility
too distracted by
excessive content
more power to affect
brand change (i.e.
viral videos, lobbying,
etc.)

1950's

quick roll out to

three mediums

completes entire
campaign

provides brief to agency

CLIENT --> AGENCY --> PROD --> CONSUMER

agency and
media are one

approval for
production

approves media purchase

provides brief to agency

completes entire
campaign

approval for research

approval for strat
approval for creatives
approval from
Advertising Association
of the PH

approval for
production and
bidding

2010's

roll out to
countless other
mediums

-->

CLIENT --> AGENCY --> PROD

--> MEDIA

agency
standby
to make
possible
immediate
changes

CONSUMER

Concept Development: 2-3 Weeks Average

Production: 6 Weeks Average (if your media buys are ready)
1 Full Standard Campaign = 2 months
Agency Fee = 1 - 1.5M
Production Cost = 3 - 5M
Media Cost - media agency gets 15% commission

Client to Agency
(Accounts)

presentation
of agency brief

accounts
sets up a
team and
takes into
considerat
ion other
accounts

hire
research
agency

Accounts
(L) brief
Strategic
Planning
and
Creatives

PROJECT
BRIEFING

Strategic Planning (L)

briefs Creatives;
Accounts observe

CREATIVE
BRIEFING

Aligning creative
ideas with big idea
and strategic
direction

DEVELOPING CREATIVE
MATERIALS
Strategic Planning

DEVELOPING
STRATEGIC PLAN

VALIDATION if certain
information/paramet
ers were not brought
up during briefing

Creatives

PITCH PREP

Agency to Client

PITCH DAY
Creatives

Accounts
agency on alert in
case of emergency
changes

Accounts and Creatives

CAMPAIGN
LAUNCH

MEDIA BUYING
PRODUCTION

REVISIONS UNTIL
APPROVED BY ASC

normally happens 2-3

times per campaign
development

PRE-PRODUCTION
includes the following: bid for
direction, bid for production
house, casting, endorser,
location and shooting permits

includes the
following: pitch
deck, cost
estimate,
creative deck,
printed mockups

APPROVAL OF AD
STANDRDS COUNCIL
Accounts

INTEGRATION
There is a need for agencies to integrate into their businesses the media
and production even if it has to be three separate entities in strict
collaboration with each other.

cut down on project

development time

FINANCIAL GAINS FOR BOTH

AGENCY AND CLIENT

IMPROVED QUALITY OF
Campaigns

improved employee
work conditions

DIGITAL ADVERTISING

more Filipinos ARE becoming engaged in the

digital world
and the digital advertising industry is slowly becoming a staple
advertising platform among brands.

THREE MAJOR PROBLEM AREAS

There are three major problem areas that affect the digital advertising
industry's supply chain.

AD BLOCKING AND MALWARE

Many consumers install
ad blockers in an
attempt to prevent ads
from popping up which is
mostly because prior to
this malwares hitch rides
in these ads that
prompted the
precautions consumers
have taken.

INVALID TRAFFIC
Bots that generate
automatic visits and
click farms.
These non-human
traffic create losses for
clients as no one is hit
by the message of the
ads.

piracy
Some content are
embeded in many
content such as videos
and music and these
are not reaching their
targets.

Concept Development: 2-3 Weeks Average

Production: 1-2 Weeks Average
1 Full Standard Campaign = 3-4 weeks
Agency Fee - 500K (average)
Production Cost = 500K - 1M (for complicated apps)
Media Cost - n/a

Client to Agency
(Accounts)

presentation
of agency brief

accounts
sets up a
team and
takes into
considerat
ion other
accounts

Accounts
(L) brief
Strategic
Planning
and
Creatives

PROJECT
BRIEFING

DEVELOPING CREATIVE
MATERIALS

CREATIVE
BRIEFING

DEVELOPMENT

PITCH PREP

determine if creative ideas

are feasible given technology
restrictions

Agency to Client
Strategic Planning

PITCH DAY

DEVELOPING
STRATEGIC PLAN
develop
content plan

VALIDATION if certain
information/paramet
ers were not brought
up during briefing
Accounts

CREATIVE AND
DEVELOPMENT
agency standby for
changes to content
plan, etc.

CAMPAIGN
LAUNCH

social media
management

includes the
following: pitch deck,
cost estimate, media
plan, mock-ups

SUMMARY
TRADITIONAL
Improvement can be
achieved by fixing the
process and try to
integrate other factors in
the industry such as
media and production.
Due to the cost of a
campaign and the
nature of the industry a
process heavy is
necessary to assure
value for money.

DIGITAL
Improvement for digital
advertising can be
achieved if the industry
can counter external
attacks such as: piracy,
ad blockers and
malware and invalid
traffic.
Without proper
regulations, clients can
lose faith in the industry
because they are not
hitting their targets.

supply chain of traditional and

digital advertising agencies

SUPPLY CHAIN MANAGEMENT

JULU 30, 2016