Food for Thought
Do you have the vision to survive in today's marketplace? That's the question the fledgling P3 association (Partnership in Print Production, a result of the September merger of the APPM and WIP) posed to nearly 200 members and guests at one of the organization's first luncheons, held at the Yale Club, in New York.
The guest speakers dispensing the answers: Victor Basile, senior VP and director of print graphic services for Publicis; Barry Meinerth, senior VP of production and fulfillment for Time Inc.; and John Campanelli, president of R.R. Donnelley Print Solutions.
The trio served up easy-to-implement advice rooted in the different yet symbiotic perspectives of advertising agency, magazine publisher, and print service provider.
On advertising agency trends, Basile says points to a growing list of influential agencies that dissolved or were taken over by one of the industry's four largest players, Interpublic, Omnicom, Publicis, and WPP. Between them, they control 82% of the market, Basile says.
Ad agencies continue to cut their budgets and change their pricing structures. For example, ad agencies used to easily get 17.65% of the ad spend as commission.
That provided no incentive to contain or shave production costs. "The more they spent, the more they made," Basile says. "Now agencies are using a fee-based structure, or experimenting with pay levels based on the success of a campaign."
To win business, sales executives at some agencies are promoting their firm's production capabilities, working with the production team to determine the best way to present their talents to clients.
One agency's production team, for example, determined the best way to produce a client piece was as a run-of-book ad, rather than an insert with a special ink. This type of internal partnering between production, sales, and creative can give advertising agencies a competitive edge, Basile says.