- IPG has launched a new consulting firm called Black Glass aimed at chief marketing officers trying to navigate the pandemic and evolving ad industry.
- Its pitch is that it can help clients make fast business decisions using IPG's data hub Acxiom and other data sources, financial modeling, and a network of internal and external experts.
- Visit Business Insider's homepage for more stories.
Ad holding company Interpublic Group has launched a new consulting firm called Black Glass to help chief marketing officers grow their businesses while fending off consulting firms that are encroaching on agencies' turf.
IPG said it's invested close to $5 million into the consulting group, whose pitch is that it can help clients like BMW make fast decisions using IPG's data hub Acxiom, other data sources, financial modeling, and a network of internal and external experts.
Black Glass is trying to capitalize on the rise of data's role in business, the expansion of the CMO role, and clients' shift to project-based work.
It charge using a tiered membership model and works on timelines lasting six to eight weeks as opposed to traditional consulting firms charging hourly rates for months-long projects, said former Deloitte Digital exec and Black Glass's founder and CEO Katie Klumper.
"The holding companies are really focused on advertising, which is only about 25% of a CMO's job," Klumper told Business Insider. "There's a whole 75% as it relates to distribution, pricing, product assortment and growth strategies that all then impact the advertising. The most questions we get from CMOs are around investment strategy and structure."
Here's how the firm is pitching itself to advertisers to help IPG compete with Accenture, Deloitte and other consultancies:
Black Glass sees opportunity in helping CMOs scrambling to navigate the pandemic and the evolving business landscape.
It says it can help CMOs increase growth, reduce costs, and deliver results.
Its process includes using data from IPG's data hub Acxiom and other sources and using financial modeling to develop frameworks.
It also promises to execute rapidly, and seeks to be compensated based on performance.
Black Glass says it can help with near-term goals like advertising and automation to longer-term ones like customer acquisition and loyalty.
Its main offering is optimizing marketing for efficient revenue growth and driving long-term value.
Specifically, Black Glass says it can help translate consumer data to help CMOs make key business decisions.
The pitch breaks down how Black Glass can help CMOs develop a lean marketing model that delivers on growth while cutting costs.
Its hypothesis is that marketers should identify areas of focus, as this is what increases growth while creating savings.
By focusing on certain areas, Black Glass can drive savings of up to 22% and efficiency by 1.5x, according to Klumper.
Black Glass works in 6-8 week sprints.
Black Glass summarizes its benefits as access to data and a network of experts.
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