Is an RFP Processing Platform Right for Your Agency?

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1 Is an RFP Processing Platform Right for Your Agency?

2 The Goal of Automated RFP Processing Tools It s a goal of all agencies to remove as much of the friction from media planning, buying and execution as possible. There are many worthwhile investments that can be made to remove this friction from OOH, ultimately resulting in a lower overall cost to agencies and the end advertiser. However, all of the technology and capital investment in the world will never change the fact that OOH is a highly localized media format. For example, Chicago has no less than 30 OOH vendors, all representing different formats, with different avails, pricing models, and sizes. OOH media varies town to town and market to market. Because of its localized nature, extensive local market knowledge is needed to strategically plan OOH media. An OOH specialist adds value to every step of the process that an automated tool cannot provide. In this white paper we will explore each stage of planning and executing an OOH program and the relevance of an automated processing tool as a solution for your agency. Send out RFPs After vendors are identified, local relationships are the key to getting the best rates and inventory. This is because percent of OOH media is sold locally to local clients who are consistent OOH buyers. The best inventory, best rates, and best service is supplied to those advertisers and buyers with long-term relationships and a consistent track record of buying. Someone with 25 years of buying history can leverage this relationship and experience to press the vendor for the best rate. However, an automated alert from a system which asks the vendor to fill out a pricing grid in a portal does not have this same influence. The difference in pricing can be significant. OOH Processing tools typically send out availability requests electronically through an automated system. Of course this cuts down the time spent by the agency. However, it takes work for vendors to gather avails, put together thoughtful recommendations, and provide best rates. Who is going to be served first, an automated alert from a system or a personal connection with an experienced buyer with a 25 year track record? 2/6

3 Put Together the Plan Once all of the avails are in house, the technology to automatically place all of the inventory into a system and one single PPT presentation is inexpensive and easy to build out. OOH media specialists utilize similar RFP processing tools to eliminate wasted time for media planners. However, the value is not added by compiling information into one concise PowerPoint; it is in leveraging local, OOH market knowledge to put together a thoughtful and strategic plan. For example, Boston has many great units on the Mass Pike, but others are blocked by trees in the Summer. Boston also offers great street furniture; however, commuter rail may not provide as much reach as in a market like Fairfield County that is a heavy Metro North user. Automated systems cannot provide this insight. It takes decades of local OOH knowledge to hone this instinct. An experienced OOH specialist has the market knowledge to put together media plans for any media market in the U.S. without even reaching out to vendors for proposals. Negotiate Rates Once the plan is in place, it s time for the heavy lifting of negotiating rates. This is where a seasoned OOH executive, with experience on the vendor sales side can add tremendous value. An RFP processing tool is simply going to generate a list of rates. However, the OOH industry is non-transparent. There is no standard rate card. This means that the rate is not the rate. One can only effectively negotiate with OOH media vendors with decades of local market experience. Even a media planner/ buyer with 10 years of integrated (TV, radio, Digital, OOH) experience is not going to have the clout to drive real savings. Negotiating strategically for best rates in OOH is such an art and science that the media buyers at the best OOH specialists are going to go through consistent negotiating training, specifically relevant to OOH. This is an important question to ask your OOH specialist. Do they have a standard negotiating framework? Do they work with a professional negotiating trainer? They should be regularly retraining their staff in the art & science of negotiating OOH. 3/6

4 Put Inventory on Hold, and Keep It On Hold The plan is in the now client s hands. But they might need two weeks to decide. If you need to hold the inventory while your client makes a decision, who do you want on your side? Automated technology cannot influence a vendor to hold inventory that they want to sell. The decision to extend favors and holds is a human one, driven by relationships. An executive who has been working with the vendor for two to three decades has this human influence. Contract the Inventory (and secure more discounts and added value!) If the inventory was held and the plan is approved, is time to contract the plan. At this point, a seasoned OOH executive can strategically negotiate more discounts and added value. This can be done by simply being creative with flighting units or by flat out knowing the cost of leases on certain billboards. This is another valuable step that an automated tool cannot achieve. This is a big opportunity for an advertising agency to look like a hero to its client by delivering additional savings and added value. Contracting: Protecting Your Client Contracting is an important step that requires persistence to get sufficient terms to protect your client. An RFP processor will not have the clout and volume to demand 60 day cancellation terms, no matter what. What about creative copy rejection protections? Are they going to fight for you if something doesn t go as planned? These are crucial questions to consider before using an automated system. 4/6

5 Execute the Program! Your program is contracted and it is time to execute. Is your lead time 24 hours or 4 weeks? Most vendors when working direct will tell you that they need minimum of 10 business days lead time on artwork approval for posting. Then they may charge you install fees and /or outrageous printing fees. The right OOH specialist can reduce this lead time significantly. For example, the entire business model at Out of Home America Wilkins Media is designed for agile execution, which often reduces lead time to two days or less. Specs and Artwork A big hurdle in the OOH space is making sure that the correct specs are supplied for each exact unit. Posters in the same market could have different specs. An OOH specialist works diligently to ensure that cleanly formatted spec sheets are provided to agency partners to ensure that no mistakes are made. They will remind you of due dates and help you stay on track so that everything is submitted on time. They will also resize artwork to ensure that everything is done correctly to make your agency look perfect. An RFP automation tool will leave you on your own to sort out multiple specs and due dates to submit for each piece of inventory. There is no support to make sure everything is done correctly and on time. Printing & Shipping After artwork is completed, it s time to handle printing, shipping, and installation. An OOH specialist can help you with details that are not addressed by an RFP processing tool. Do you have a printer that you know will always deliver? Do they deliver high quality materials? Do you trust that they have the capacity to hit tight turnarounds? Are they able to print & ship same day? Can they even proof the same day? If you don t have positive answers to these questions, the value of all of your previous work can unravel. 5/6

6 Posting: Speed and Verification What is the likelihood that the automated processing tool always posts on day 1 of the five day posting window? Do they have the buying clout to demand this? If they don t do they have the media dollars to demand this? Will a tool verify that everything is done according to contract? The truth is that media gets posted early when a person is persistently asking and reminding the vendor that it needs to be done. A reputable OOH specialist will keep pressure on the vendors until the posting of your ads have been verified. They will also make sure the media is correct and on the right unit by demanding PoP photos from vendors on day 1 of the program and reviewing the photos to ensure that they match the OOH unit that was contracted. After verification, they will provide PoP reports that are ready for your client to review. Summary OOH is a hands on media that requires human touchpoints at every critical juncture. RFP Processing Platforms are great tools to drive efficiency into the OOH process. However, the Platform is only a tool to collect and organize avails. Things are going to go wrong; problems will occur. When this happens, you need to have a team on your side whose only mission is to make you look good. A team of individuals who have decades of outdoor sales experience in the local market brings relationships to the table that can t be accessed with automation. 6/6 Out of Home America Wilkins Media is an out-of-home media specialist firm that helps companies and advertising agencies execute multi-market, multi-format out-of-home media campaigns. Out-of-home is all we do, and we ve been serving the nationwide advertising community for over 50 years. To see how we can help you with your next outdoor advertising campaign, call us at or click here to send us an .