Traditional Agencies Reap the Benefit of Digital Outsourcing
Goodway Group Combines Efficiency, Targeting and Cost-Savings for Small and Mid-Size Agencies
Jenkintown, PA - February 25, 2010 - In today's economy, small and mid-size ad agencies are scaling back, but are still under pressure to meet client demands for the latest digital platforms. Many lack the resources to deliver these capabilities and the cost to obtain those resources, or bring the resources in-house, is inevitably passed along to the client. How can agencies provide best-in-class digital media expertise without taking a large P&L hit by hiring or potentially steering recommendations away from digital media?
Needing a solution that lends both efficiency and cost-savings, traditional agencies are increasingly outsourcing digital work. According to the 2009 Digital Marketing Outlook Survey, the economic crisis will accelerate the shift of focus and importance from traditional media to digital media. Traditional and digital agencies are at the same time hiring digital staffers, potentially indicating a move by brands to outsource more digital work. "The best part of outsourcing digital is the flexibility to offer my clients expertise from the people with the best capabilities. My internal team's strategic thinking combined with the up-to-date marketplace knowledge that outsourcing provides, results in the best offering to my clients when they need it," said Ray Ruzicka, Senior Vice President of Schupp Company.
Goodway Group is a third-generation, 80-year-old marketing services company that owns and operates two ad networks, Beep! Automotive and IvyPixel and has provided significant reach, cost-effectiveness and flexibility for small and mid-size agencies. "In working with Goodway Group, we appreciate the quality of their personalized service. They become true partners - your success, and your clients' success, is their success," said Ruzicka.
Goodway Group recently compiled an in-depth analysis on cost comparisons for Outsourcing with Goodway Group vs. In-House Deployment, which resulted in a savings of over $200k for its agency partners. The key findings include:
Research
Agencies purchasing just two of the tools Goodway Group uses require annual subscriptions of $25,000 each. Goodway Group has access to all major research tools including a preferred partnership arrangement with Compete, Inc.
Ad Serving
Goodway Group is a valuable DoubleClick DFA client and has negotiated aggressive rates due to its size and volume. Average agency cost for ad serving is $21,500 - based on just 100MM impressions a year, Goodway's low CPM eliminates set-up fees and equals sizable overall savings.
Media
According to the National Salary Trend survey from Indeed.com, a digital media planner/buyer with strong experience has a salary of $90k. Utilizing Goodway Group's media team brings decades of combined digital media buying experience to agencies minus the salary.
Traffic
According to Indeed.com, the average traffic coordinator's salary is $60k without any digital trafficking experience. Goodway Group traffics all creative, resolves publisher discrepancies and ensures correct billing at no charge.
"Setting up an internal digital media department is often seen by ad agencies as the 'only way to go', and just a few months later the financial reality settles in", says Jay Friedman, COO of Goodway Group. "Our infrastructure provides small and mid-size agencies with such dramatic cost savings and instant expertise so they can be heroes to their current clients and new business pitches."
