In-House Outsourcing

1. In-House Outsourcing Interdirect April 19, 2013 Georges Van Nevel

2. Introduction • I will try to solve the problem. • Fact: it is a very old problem. Unfortunately, there is no ready-made solution.

3. Introduction • You receive suggestions and experiences in order to make your own decisions. • New suggestions are always welcome too.

4. Making a choice is a matter of the following business elements: • Principles • Budget • Culture • People  2 examples

5. General principle • Well-defined parts of a job/campaign can be outsourced. • These parts on themselves can’t be complex. • Complex means constant adjustment. • Difficult ≠ complex

6. An example of outsourcing • Creation of a DM concept = yes. • Execution of the DM concept = much more complex/dangerous. • Why? Because the strong creatives aren’t always technically strong in the details. And because the technical experienced people usually aren’t the most groundbreaking creatives. • Conceptual creatives focus on the idea/concept. • Technical creatives focus on the methodology/structure of the campaign.  Both are necessary. • Please don’t forget the role of account management. Especially: • when briefing the conceptual creatives. • when adjusting the campaign. • for the final campaign proposal. • for the execution of the campaign.

7. In other words • Conceptual creatives mainly think horizontally. They make connections that others don’t see. • Technical creatives mainly think vertically. They optimize a campaign. • In DM,Internet & “activation” are both more necessary than ever. • After all, they need to understand how people react. Not only how they think. • Attitude & Behavior

8. Pre-defined parts can be outsourced • This certainly applies to a number of technical parts. • Examples: • Desktop Publishing (DTP) • Photogravure/printing/personalization • Website HTML • Programming e-operations

9. Pre-definedpartsarealso: • Creation of a DM-concept • Creation of an advertizing concept • Creation of an e-concept

10. Problems specifically linked to Internet • Gap between the conceptual creation and the technical execution. • Web builders who don’t fully understand the concept of “usability”. • Web builders who don’t know anything about DM. • Creatives who don’t know (anything about) the web techniques. • Account people who don’t know (anything about) the web techniques.

11. Budgetary remarks • Outsourcing isn’t necessarily cheaper. • Your fixed costs diminish/decrease. • Fixed costs become variable costs. • In-house signifies a sufficient volume of work/jobs. • Don’t underestimate the cost of coordination. • Outsourcing signifies coordination by experienced professionals. • Phenomenon: pressure on prices and margins. • Procurement at the advertiser is playing a bigger and bigger role.

12. Culture • The agency’s culture. • Some people can handle outsourcing. Others can’t. • Coordination is generally more easy in-house than with outsourcing. • Competition in-house outsourcing. • Perception by the advertiser. • A number of advertisers do outsourcing and in-house themselves.

13. People • Outsourcing demands experienced people. • Miscommunication easily happens. • This is certainly the case with e-operations/websites. As a result, the execution costs become too high. • Perception of the jobs in-house outsourcing. • “Chemistry” between people. Especially with outsourcing.

14. Example 1: BMW Case • Spring campaign BMW Belgium / Luxemburg • Goal of the campaign: • Spring treatment / Traffic building to the official dealer • Accessories sales • Lifestyle sales

15. BMW Case Campaign: • Direct mailing • POS material • E-mail (iPhone, iPad, Samsung Galaxy, …) • Website • E-shop

16. BMW Case • Creative theme: Cycling • Linked to this theme: • Accessories • Lifestyle • Spring treatment for your car / Traffic building to the official dealer • Highly personalized: • Client • Dealer • Car model • Male / Female • Language BE-Dutch / BE-French / BE-German / LUX-French / LUX-German • Loyal / Disloyal • …

17. BMW Case Direct mailing • Envelope • Letter • Cycling routes • Liftletter(only M Performance)

18. BMW Case

19. BMW Case

20. BMW Case E-mailing Responsivedesign

21. BMW Case E-mailing: pre-filled website forms

22. BMW Case Website: personalized routes per dealer

23. BMW Case Website: personalized routes

24. BMW Case Website: personalized routes

25. BMW Case Ads: www.routeyou.com

26. BMW Case E-shop / Online orders

27. BMW Case E-shop / Online orders

28. BMW Case E-shop / Online orders

29. BMW Case iPhone / iPad

30. BMW Case POS Material: banners

31. BMW Case POS Material: poster

32. BMW Case POS Material: floor stickers

33. BMW Case POS Material: front desk ribbon

34. BMW Case POS Material: “spring kit” bags

35. BMW Case POS Material: canvas

36. BMW Case What has been outsourced? • Creation and execution of cycling maps. • Programming CMS-system for e-mail. Not the implementation. • Programming CMS-system for website. Not the implementation. • Why? Product knowledge is an absolute requirement. • The reservation module (e-shop). • Database. • Printing. • Sending direct mail and e-mail; placing POS at the dealer.

37. Example 2: GFG Case • Goal of the campaign:rebranding of the Travel Guarantee Fund for travelers.

38. GFG Case • Elements of the campaign • Logo • Website & database • POS material • PR (press) • Launch event for the travel sector

39. GFG Case Logo

40. GFG Case Window sticker

41. GFG Case Wobbler

42. GFG Case Template for leaflets/websites/catalogues …

43. GFG Case Website

44. GFG Case Website

45. GFG Case Website

46. GFG Case Website

47. GFG Case Website: aid for travel agency employees

48. GFG Case Website – database members / travel agencies

49. GFG Case Website

50. GFG Case Website