Campaign Development Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Advertising as well as Campaign Development procurement trends are poised to change the business practices and procurement thumb rules. Buyers are moving towards longer contract durations and strategic partnerships with suppliers to benefit from value-based discounts, integrated services, low renewal cost and lesser expenses on contracting activities.

An intense competition in the supply market owing to new entrants is expected to provide more procurement options to buyers for Campaign Development and offer significant negotiation leverage.

In recent years, the market has witnessed a significant number of strategic collaborations, mergers, and acquisitions. Such developments have enabled the suppliers to expand their portfolio of offerings, geographic presence, and value chain. Moreover, suppliers have also gained access to new technologies and resources.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

Campaign Development procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with Campaign Development procurement strategy.

For example, Buyers should engage in long-term contracts with service providers to gain value additions and other benefits. Engaging in long-term contracts reduces the total cost of ownership, for buyers, for the service delivered.

It is customary for service provider to charge buyers on a project basis. The project costs are often based on payroll costs incurred by service providers on the various levels of personnel involved in the project. In a bid to derive higher profits, service providers may allocate more senior staff than required. Therefore, buyers must scrutinize the staffing needs of the project and limit the presence of senior staff to not more than 30% of the total allocated staff. This, in turn, providers buyers' advantages such as enhanced cost savings, streamlined execution, and faster delivery time.

Buyers must ensure that service providers cater to their requirements by implementing centralization of content to maintain the project objective.

Campaign Development procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Campaign Development procurement. Some examples include: