Aviva’s marketing procurement team has introduced a scoring system for marketing agencies to experiment with ways of measuring their marketing spend.
Martin Hall, marketing procurement category manager at the insurance multinational, told a Supply Management roundtable debate that his team is asking different departments within Aviva who have worked on marketing campaigns how they would rate different agencies.
“It’s just a simple one to 10 score how likely they are to recommend that agency to another colleague or indeed another company,” he added. “It’s early days, but it’s quite an interesting way of doing it, and similar to how we would work with our customers.”
Other delegates at the roundtable – ‘How can procurement measure marketing effectiveness’, held in association with Paperhat Group - agreed marketing procurement professionals are not measuring their organisations’ spend on marketing. This is often a result of the speed and quantity of marketing buying occurring at some organisations.
Katherine Magee, interim marketing category manager with experience at Flybe and Nationwide Building Society, said suppliers change with such frequency that it is “difficult to get enough procurement resource to put agreements in place”.
“[Marketing] is commonly measured in terms of sales,” she added. “It’s then difficult to break apart what the sales team and what the marketing team has achieved against that target. [The procurement team’s] value in the procurement of marketing is not so recognisable because it often lacks a meaningful benchmark and I sometimes feel that marketing [teams] are changing their indices really quickly just to keep me away.”
Mark Davies, business development at Paperhat, added that the measurement of marketing, “ends up with an RFP and an RFQ, and that is what I am measured on”.
Howeverm, Tom Lewis, financial director at the Institute of Practitioners in Advertising said his organisation is looking at how marketing can be seen by procurement as an investment to be maximised rather than a cost to be minimised. “We see a role for procurement in maximising investment,” he added. “We are looking at things like key performance indicators, setting marketing objectives that are aligned with business goals and then sharing those with the agency at pitch stage.”
☛ A full report of the roundtable will be published in the December issue of Supply Management