Rupert Day discusses how GroupM approaches client and agency relationships. He outlines 4 key questions: 1) What business are we in? 2) How do we structure ourselves? 3) How and what is measured? 4) How do we align reward with performance? For each question, he provides details on GroupM's focus on media investment management, optimizing audience outcomes, when to consolidate vs separate offerings, keeping measurements simple unless objectives are clear, and ensuring rewards drive desired behaviors.

1. Re-examining Value
and Values in Media
London, 3rd November, 2010
Rupert Day – Chief Operating Office, GroupM Worldwide

2. Driver Necessary
Competitive GuaranteesDeciderPrice
Necessary
Evolution of Client/Agency Relationships
Strategy

3. The GroupM Approach – 4 Questions
– What business are we in?
– How do we structure ourselves to maximize effectiveness?
– How and what is measured?
– How do we align reward with performance?

4. What Business Are We In?
– In the business of Media Investment Management
– Audiences which drive Outcomes
– Optimize between Higher Reach/Wastage and Lower Reach/Wastage
– Price v Value
– Strategy v Implementation
– Delivering Value through New Trading Models

5. How do we Structure Ourselves?
– When to Consolidate; When to Separate Offering
– Trading
– GroupM Consolidation Benefit
– Expertise v Integration
– Core vs non-Core
– Flexibility
– To build interfaces with “Complementors”

6. How and What is Measured?
– Is Everything Measurable?
– When do we stop Measuring?
– How to define the Measurement criteria?

7. A little less of.........

8. and a little more of .........

9. When and What do we Measure?
d
Circumference = d

10. History of Decimalization
3rd Century AD – Lin Hui – 5 digits
1596 – Ludolph van Ceulen – 35 digits
1702 – Abraham Sharp – 72 digits
1874 – William Shanks – 707 digits
1947 – ENIAC – 2,037 digits
1981 – Yasumasa Kanada – 2 million digits
1988 – Yasamusa Kanada - 201 million digits
1991 - Chudovsky Brothers - 2 billion digits
2009 – Fabrice Bellard – 2.7 trillion digits

11. History of Decimalization
– 3rd Century – Lin Hui – 5 digits
– 1596 – Ludolph van Ceulen – 35 digits
– 1702 – Abraham Sharp – 72 digits
– 1874 – William Shanks – 707 digits
– 1947 – ENIAC – 2,037 digits
– 1981 – Yasumasa Kanada – 2 million digits
– 1988 – Yasamusa Kanada - 201 million digits
– 1991 - Chudovsky Brothers - 2 billion digits
– 2009 – Fabrice Bellard – 2.7 trillion digits
to 39 digits– Circumference of assumed universe to accuracy of one Hydrogen Atom

12. Are we making the right decisions?

13. Are we making the right decisions?

14. Are we making the right decisions?

15. How and What is Measured?
– All measurement has degree of subjectivity/assumption
– Keep simple, unless:
– Clear Client Business Objectives
– Realistic given brand/category
– Pre-agreed
– Sufficient relevant data
– Measure based on objectives – not channel

16. How Agency’s get rewarded
– Soft and Hard
– Drives behaviour
– Simple vs Complex
– How structured
– Ability to measure clear objectives accurately
– Downside risk matches gain
– “Comfort factor”

17. Summary Message
– Flexibility over delivery – driven by requirements
– Measure what you should vs what you can
– Remuneration should reflect desired behaviour