Interactive Agency IMC2 has put $500,000 into what it calls “The Social Media Innovation Fund.” Talk about putting your money where your mouth is! Not only does this demonstrate how serious they are about the social-media space, it also will allow them to attract additional business from both new and existing clients. Not to mention build an enviable agency social media portfolio at the same time.
All agencies spend a significant amount of money trying to develop new business opportunities. In a pitch environment it is not unusual for an agency to invest anything from $100,000 to $500,000 in agency time and effort in a single pitch, with only a 1/5 chance of winning it. As I have said before, new business strain is one of the largest cost overheads for any agency.
IMC2 has cleverly set up this fund in the amount of $500, 000. In reality, no more than their normal investment in single pitch for a marquee client. When you take into consideration that by far the largest costs associated with social media are internal billable agency hours, and you have a very low cost low risk offer from the agencies perspective
Even more ingenious is the way they are allocating the funds – by matching up to $50,000 against what a marketer spends on a social media project that “creates brand impact and showcases our thought leadership and offerings”. In other words, it will only be allocated against projects that the agency considers worth of supporting, and that will help build their portfolio.
Wow, now the agency is a partner and enjoys joint decision making responsibility on the project alongside the client. If IMC2 allocate all $500,000 of their fund, that will have generated a minimum of $1 million dollars in innovative showcase work for them. And if all that’s not enough, IMC2 have also made it a condition that the client agree to allow the work to be promoted via case studies and agency PR efforts.
In an environment where all you read about is clients cutting back on their budgets, this is a great idea to give clients like that a reason to approach IMC2 and in the process not only hire a great agency but also double their social media project budget.
I know I am sitting here thinking that I wish I had done that.