Tailoring Procurement for Experiential
Client procurement departments have been involved in managing indirect spend for the past decade, and in doing so, they’ve made tremendous advancements within the worlds of advertising and marketing. And yet, in the experiential arena, little progress has been made. A large gap remains in procurement’s understanding of this weird, and often complex, element of the marketing mix.
Why? Because of that very complexity and “weirdness.” Because of the wide array of platforms and disciplines that combine to be called experiential.
Unlike traditional types of marketing, experiential involves far more variables than constants. Applied to experiential, classic procurement models can inadvertently drive costs upward. A successful approach requires seeing and understanding the many variables and shifting strategies accordingly.
Experiential marketing is not just a fancy word for meetings and events. Certainly, meetings and events are among the many tactics that experiential marketing involves. But all too often, client procurement professionals fail to understand the extent of the opportunities to generate value for their audience.
Most client organizations are not properly set up to track and analyze their experiential spend. They don’t know exactly how much they’re spending on experiential, because so many disciplines are involved, and when data is available, it’s often fragmented and lacking in detail. Because of this lack of thorough and accurate data, client procurement departments are often operating with one hand, or both, tied behind their backs.
Over the past two years, GOXD has been working to solve for these challenges. Indeed, it was the impetus for creating one of the industry’s first in-agency strategic sourcing departments. The mission of this department? To generate the greatest value for our clients.
Now contrary to popular belief, the objective here is not necessarily to reduce the amount of money spent. Instead, procurement’s aims are to generate the maximum effectiveness for the money spent. That’s real value.
One step toward this goal is the separation of agency fees and pass-through third-party costs. And it’s an important step. But in order to fully see, understand, and strategically leverage a client’s spend, many more steps are needed.
These next steps require new advancements in procurement designed specifically for the experiential space. And they require an intense dedication to transparency on all levels. GOXD is indeed fully dedicated to both of those things. Stay tuned to labs.goxd.com for details and best practices, as we continue to blaze this new procurement trail.