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How Our Client Saved >$5M in Advertising Spend

How Our Client Saved >$5M in Advertising Spend

The Right Data For the Right Decisions. Using the Right Technology.

Our client, DANA SMALL – otherwise known as Ms Category Management saved $5M in her multi-year implementation of RightSpend as an Advertising Agency Management tool. In her words, ‘"RightSpend revolutionised the services procurement marketplace".

Here we share an edited extract of her article, first published on mscategorymanagement.com in January 2019.

"I enjoy being an early adopter of platforms. So the fact I implemented RightSpend over five years ago boggles my mind.

I had built an internal database of all creative and digital advertising, medical communications and promotional/event agencies, which wasn't easy. I had to get the brand's buy-in and then the data from the Agencies. After a couple of requests, I found I had to go directly to the CFO, or I would never get the data. Even then, it was a battle.

Which is where I found RightSpend were able to help", Dana explains.

Dana engaged us to help get the information she needed by requesting during RFPs, individual projects or yearly SOW negotiations.

"I used RightSpend as a tool to provide easily ~10% hard savings. We had yearly reconciliations that helped drive transparency in SOWs and tactics" Dana states.

RightSpend also helped her to identify a fundamental issue – "[we] were being charged for managing invoices and accruals."

"Due to our internal approval thresholds, we had hundreds of invoices and SOWs instead of managing them at an agency level. RightSpend highlighted the amount of money wasted was in the millions," Dana reveals. 

RightSpend also assisted Dana in explaining to the broader Marketing Procurement team why some of the costs were so high - including discussing overhead and profit margins.

"Our brands would drive agencies into the ground with ridiculous deadlines and requests, driving up rates. In turn, it would lead us to agencies 'firing us' during pitches and even telling me we were 'on a break' from our relationship due to ridiculous expectations."

Dana used RightSpend as a Marketing Procurement tool to shine a light on internal issues and shine a light on the external profit margin gouging. Ultimately, it made her role in supporting agency management so much easier.

Since achieving millions in savings and rolling out better processes, RightSpend became more than just an advertising agency tool. As Dana tells us, "[we] upped our game, so if you had an agency who likes to reduce hours to increase rate, we could adjust the analysis for it in reporting within seconds." 

"An essential part of any partnership is the people. No matter who you work with at RightSpend, you know you have someone willing to listen and implement changes if needed. Things like this can be invaluable for a category manager trying to gain insight in a short amount of time."

Dana concludes, "In my opinion, it's the right people, the right technology and the right changes that will move the agency management product into the future. It's not every day you find partners like RightSpend, and this is only the second time I feel lucky enough to stumble upon a supplier so unique."