How do you measure the value of marketing procurement?

Will Green is news editor of Supply Management
5 June 2014

6 June 2014 | Will Green

Will GreenIt may be something that has been repeated many times in the past, but it appears the message has not yet got through.

Judging from the debate at ProcureCon Marketing, the central conundrum of marketing procurement remains the challenge of measuring creative output and putting a value on it.

Time and again speakers made the point that the role of procurement was not to nitpick over rate cards and costs, but to add value to the whole marketing enterprise.

But still questioners from the floor seemed wedded to their rate cards and ensuring they knew the value of the agency people working on their accounts. There was still talk about cutting costs and driving efficiencies.

Each time speakers from big name brands were asked about cost, they answered this was not their primary focus. Sophia Weir, head of media and advertising at Sainsbury’s, summed it up when she replied: “In my world price is second to finding the right people to work with.”

The answer seems to be that the best-known brands in the world did not get where they are today scrimping on their marketing budgets.

There is clearly a role for procurement in the marketing function in ensuring value for money, but that value must encompass what marketing offers in its entirety.

Problematically, this still seems to raise questions around exactly how you measure that value.

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