“Advertising Financial Management (Cost Containment)” by MorganAnderson

We want to keep you posted on the work we’ve done over the past few months. We are proud to work with each of these marketers and to help them reach their Advertising Financial Management goals. These may give you ideas on how MorganAnderson can add value to your efforts.

Major Retail Marketer

  • Brokered agency search finalist staffing, compensation, and contract
  • Conducted “on-boarding” of the new agency to achieve “best value” to jump start the substantial work needed within the first several months of the relationship
  • Achieved cost containment of 22% ($2.5M) in Year 1

Global Automotive Marketer
For an existing, highly-creative agency where the proposed fee was 28% above new budget, we…

  • Evaluated and benchmarked the agency staffing plan and FTEs
  • Facilitated “brokering” of the agency’s new contract and compensation terms
  • Achieved cost containment of 24% ($8.0M) before adjusting for incentive compensation without diminution of agency staffing quality and scope of work

Global Consumer Marketer
For the client’s existing long-term agency we…

  • Assessed the global multiplier for the agency’s contract and compensation
  • Improved it through benchmarking
  • Provided an Opinion Letter for the client that would be persuasive to, and lay the groundwork for, negotiating the new global compensation arrangement with the agency including the U.S.
  • Achieved reinvestment (cost containment) of 18% ($2.7M) phased over a three-year period.

Global IT/Services Marketer
This client-agency relationship was over 10 years old as was their contract.

  • It was time to re-assess the contract/staffing/compensation
  • We conducted this study for the U.S. plus 12 other global markets
  • Utilizing updated contract methodology, full disclosure, and benchmarking, resulted in a $13 million cost containment

YUM! Brands/Pizza Hut Agency Search
Our sister company, Lee Anne Morgan & Partners (LAMP), handles agency reviews:

  • Currently advising Pizza Hut and YUM! Brands management on their advertising agency search process
  • Completed analyses of related staffing and compensation assessment aspects of their 4 finalist agencies
  • MorganAnderson advised on evaluating and structuring agency compensation.

We are glad to speak anytime on a confidential basis to answer questions you may have and to brainstorm issues and needs with you. Reach Arthur Anderson at 212.741.0805 or aanderson@morgananderson.com, Lee Anne Morgan at 212.741.0804 or lamorgan@morgananderson.com, or explore our Case Histories and other background about What We Do by clicking on the links.

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