For Interactive Marketing Professionals

May 11, 2011

Finding The Right Agency Model To Support your Global Search Marketing Programs
by lucilla De Sarlo with Nate Elliott and James McDavid

ExECUT I v E S U M MA Ry
With more marketers running global search programs, more are asking what type of global search agency relationship works best. Marketers can choose from three relationship models: centralized models that offer marketers a single point of contact; decentralized models that balance a central network with local support; and localized models that allow local marketing teams to create one-toone agency relationships. The best model is typically the one that mirrors a marketers organizational structure but some marketers must look beyond a mirror model to meet their unique needs. MARKETERS cAn cHooSE bETwEEn THREE globAl SEARcH AgEncY RElATIonSHIPS As interactive marketers increasingly target different countries and markets around the world, many are focused on how agencies can help them get the most out of their biggest online channel: search marketing. Forrester talked to marketers and agencies about how agencies can support global search marketing programs and has identified three primary models:

Centralized to provide one single point of contact. In this model, marketers work with a single

search agency capable of covering their key markets from a single office, either globally or regionally (see Figure 1). Centralized agency relationships can be cheaper than other global agency models and help marketers create a global one company approach for consistent programs across markets.1 Local marketing teams might worry, though, that these benefits come at the expense of local needs because local search behavior, customs, and language nuances arent always best served from afar.

Decentralized to balance central resources with local support. In this model, marketers local

teams work with the local offices of a single agency most often a global agency network like Publicis or Aegis (see Figure 2). Decentralized relationships allow marketers to efficiently use bidding and reporting technology worldwide while also benefitting from local knowledge and support. However, marketers can find it challenging to identify an agency with offices in each of their markets and sometimes find agency quality varies from country to country.

Localized for an independent one-to-one relationship. In this model, marketers choose separate

agencies for each country (see Figure 3). Localized relationships offer marketers the flexibility of picking the leading search agency in each market. But this type of relationship can require a marketer to work with several unrelated technologies and often fails to generate the cost efficiencies marketers would expect of a global program.

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Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

Of course, agency relationships dont always follow perfect structures; in reality, we often see hybrid models develop as companies strategies evolve and change, or when a marketers preferred agency is unable to cover all the marketers key geographies.
Figure 1 Centralized Agency Models
1-1 Global centralized agency model

Global agency hub Strategy and execution support

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Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

Figure 1 Centralized Agency Models (Cont.)

1-2 Regionally centralized agency model

Regional agency hub Agency network Strategy and execution support

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2011, Forrester Research, Inc. Reproduction Prohibited

Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

Figure 2 Distributed Agency Model

Local agency ofce Agency network

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2011, Forrester Research, Inc. Reproduction Prohibited

Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

Figure 3 Localized Agency Model

Independent local agency ofces

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Source: Forrester Research, Inc.

START wITH A MoDEl THAT MIRRoRS YouR oRgAnIZATIon Many companies select a type of search agency relationship based on their own marketing organization structure decentralized or centralized which is adequate when search marketing is fully recognized as part of the marketing plan and part of the web development process from the very beginning. To find which agency relationship best matches your organization, consider (see Figure 4):

Where your search strategy is defined. A good search marketing agency is a strategic partner
so youll need agency support at the level where strategy-setting takes place.

Where search execution happens. Proper search marketing execution can be tricky, especially
if youre working with an agencys tools. The teams that define your terms, make bids, and optimize sites can also benefit from close agency relationships and support.

Who controls your search budget. Budget holders will want to keep a close eye on how their
money is spent and your agency can help explain spending and secure support. For this reason, youll need a search agency at the level where your budget holders are.

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2011, Forrester Research, Inc. Reproduction Prohibited

Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

How your search staff is distributed. If your search staff and your search knowledge

reside centrally, a centralized agency relationship can improve communications and help with training and knowledge retention. Likewise, localized staff are likely to work better with decentralized or localized agency teams.

What your other agency relationships look like. If your search agency relationship mirrors
how you work with your branding agency, your social media agency, or your other agencies, youll have a better chance of creating cross-channel collaboration.

We recommend using the diagnostic tool below as a first step to identifying which agency relationship will work for your company structure.
Figure 4 What Is The Right Agency Model To Support My Organization?
Use the diagnostic tool to assess your organization structure. The answers will help you to determine the type of search agency relationship model that suits your organization. Your Your local central team team

Search strategy Where is your search strategy developed? Search execution Where do your search initiatives get executed? Budget control Where does your search investment come from? Search resources Where is your search sta located? Other agency relationships How are your other agency relationships structured? Total

Key : If you answered your central team to 3 to 5 questions, centralized is the right model for you. If you answered your local team to 3 to 5 questions and search strategy is not one of those, decentralized is the right model for you. If you also answered your local team to search strategy, then localized is the right model for you.
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May 11, 2011

2011, Forrester Research, Inc. Reproduction Prohibited

Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

Make Exceptions To Meet Your unique needs Although the organizational structure often dictates the best type of agency relationship for your business, some marketers also have specific needs that require a tailored agency relationship. You should break the mirror model approach if:

You have specific local challenges. Marketers who face widely differing market conditions from

country to country like varying competitive landscapes or local regulations may have trouble addressing these differences with a centralized agency relationship. Decentralized or localized relationships can help. For instance, this is particularly relevant for the pharmaceutical and financial services industries, especially when in tandem with languages and cultural nuances.

You need to drive cross-market collaboration. Localized agency relationships dont always

facilitate communication flow or search knowledge sharing between your marketing teams in different countries. Partnering with a centralized or decentralized agency can fill the gaps and help you spread knowledge. For instance, Johnson & Johnson Vision Care is centralizing its Western European search agency relationship to ensure a proper collaboration.

You need to secure IT support for search. Agencies can be useful tools in showing the value

of search marketing programs and securing support from inside your company; a decentralized or localized agency relationship can make it hard to create a central point of contact to obtain buy-in from IT especially if your sites rely on a centralized infrastructure. Thats one reason BlackBerry-maker RIM centralized its European SEO activities to ensure good communication between the agency and all key internal stakeholders.

R E C O M M E N D AT I O N S

START bY ASSESSIng YouR coMPAnYS nEEDS

Global interactive marketers must first assess their own organizations including communication pitfalls and any other needs that are not fulfilled by the current management and structure before choosing the right type of global agency relationship. In particular, marketers should:

Talk to their markets and identify their local needs and challenges. Dont underestimate
the needs of your local teams. While global relationships can offer the enterprise scalable technology and consistent strategies and metrics, they dont always give each country office the support theyre looking for. you must talk to local marketers to understand what each local office needs from your search agency relationship.

consider a pick-and-mix approach for different parts of the company. Dont be afraid
to use different models for different parts of the company, as different brands and products can have different needs and challenges. For instance, PC manufacturer Lenovo uses a centralized relationship for its brand-focused search initiatives because budget, resources,
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Finding The Right Agency Model To Support your Global Search Marketing Programs
For Interactive Marketing Professionals

and execution are situated at the headquarters and a decentralized search partner relationship for its eCommerce business because ROI is owned by the market with local investment, staff, and execution.

Involve your IT department in the decision. IT plays a key role in search marketing success,
especially for SEO initiatives. Getting its feedback before deciding on your agency model and the shortlist of candidates can solve upfront some of the challenges that organizations face in deploying SEO programs. Asking your IT team what resources it has available, in terms of people and technology, and what type of support it needs can help clarify the type of agency relationship you need.

SuPPlEMEnTAl MATERIAl companies Interviewed For This Document 360i Covario iCrossing iProspect Johnson & Johnson EnDnoTES
1

Lenovo Performics Razorfish Research In Motion Rosetta

Companies struggle to balance global consistency with local diversity. Some companies strive to enforce a global one company approach that dictates look, feel, and content across all of their sites. See the March 19, 2004, Managing International Sites report.

Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 27 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@forrester.com. For additional reproduction and usage information, see Forresters Citation Policy located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. 58876