We recently talked about how using the Creative Services Exchange is the ideal solution for getting out of a marketing fix. It’s certainly why many brands use it first, even if they come back for more under, shall we say, less pressured circumstances. And while we stress the additional benefits of greater efficiency and greater value, it’s often the creative choice and reach that has particular appeal – this week we passed the 11,500 mark of creatives and agencies on the Exchange.

So embracing Crowdsourcing 2.0 as a new way to search and source creative and marketing campaigns is a strong factor in the decision-making process. But in doing this the CMO is actually endorsing and adopting a new marketing purchasing model. Taking this approach isn’t just about sourcing, it’s about rethinking the model for creative services. And while we’ve discussed this at length with respect to the Exchange itself as a new model for advertising, now it’s time to consider the significant facts affecting how marketing budgets for services and the impact on the marketing procurement.

1)Reliance on Single Supplier. In no other function is quite as much emotional investment made to one supplier as in the marketing team. Many marketing heads will put as much reliance on their agency as on fellow executives. While the Exchange doesn’t prevent this relationship, it does mean a much more open approach where the 1:1 supplier relationship may be a thing of the past.

2)Reinventing the Agency Roster. The step up from lead agency is often a roster of agencies, sometimes to cover specific niche skills not provided by the main agency, and sometimes just to deal with the overspill. The agency that will work for you when your budget is running out, or when your lead wants you to do something a step too far.

3)Why am I paying a retainer? The retainer remains the thorniest of issues. It is particularly questionable as to whether the client is retaining the agency, or the agency retaining the client by locking them in. Whatever, it’s often difficult to justify retainer expense. When defending your retainer strategy put yourself in your CFO’s shoes and see if you can explain exactly what you get for it.

4)New budgeting standards. The power returns to the CMO. Budgets are created based on what you want to do and how much you are willing to pay for it. This changes hugely from asking a provider what something you want is going to cost. It changes the makeup of the budget spreadsheet: removing the retainer as above and looking at element by element based costings. Break that campaign down into best value components. Don’t pay for someone to do something in two countries and then have to rework it. Again, the new model is about what you really need and then demanding that.

5)Preferred supplier. Using an Exchange means that the Exchange can become your preferred supplier and the creatives on the Exchange are provided via this relationship. No longer are you thwarted by not having an agreement in place with someone you’d love to use.

6)Invoicing. Imagine having eight different agencies contributing to your campaigns but only needing to invoice one supplier. That efficiency is the hallmark of the Exchange and becomes a more streamlined process for the briefing company. The marketing director is no longer a PO raiser, but can concentrate on creative briefing and development.

7)Divide and Conquer. When using the Exchange it’s not just about more creative options: it’s about the right creative option for the right piece. When sourcing traditionally you leave the secondary decisions to one provider – they’ll find you the best designer, the best writer.  All of these decisions come at a cost. Now you can break that campaign out, make your own choices, make your own pricing decisions. Or you can choose to centralise a campaign and let the creatives on the Exchange source. But it’s within your budget still. The flexibility is immense, but there is no compromise.

8)Courage. The last rule is ‘be brave’. We’ve seen that people briefing the Exchange, or businesses stepping into any sort of Crowdsourcing project, tend to be innovation drivers. Of course it’s easy to stay with the status quo. But is it better?

Just as Crowdsourcing  and Crowdsourcing 2.0 in particular has made creatives adjust their business to providing new services to a different spectrum, the CMO now has the chance to change their procurement models. And in doing so, get a more streamlined process where they access as many creative options as they want, without increasing the budget. Later this week we’ll be looking at how this is just part of the changing marketing department. But meanwhile why not make your change and submit a brief?