'Math And Magic' Define Target/GroupM Agency Team Arrow

Agencies today have increasingly diverse and evolving skill sets that often crash into the reality of legacy client-organization structures. Last year, Target and GroupM launched Team Arrow Partners, a bespoke media agency model that is designed to both adapt to the realities of today’s market and to keep adapting, based on data, as the landscape evolves.

Target's Kristi Argyilan and GroupM's Kelly Clark joined moderator, Fortune’s Michal Lev-Ram, at the 4As Transformation Conference earlier this week to discuss how they developed this new agency framework.

"Target's needs are unique," says Clark.

Target nicknames this new model “Math and Magic” to oversee its $500 million advertising account. “We combine the math of the brand with the magic of creative to bring real results," says Argyilan.

In the past, Target's advertising strategy would sell specific categories over a given time frame connected to set sales goals. Now, thanks to 'Math,' Target relies on analytics to provide more effective recommendations the retailer uses to create advertising that enables more conversations with customers.  

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GroupM's data and analysis help to formulate the approach to engage in that conversation.

Agency and client entered into the new partnership with no preconceived notions.

"Once you start there, everything plays out differently," says Argyilan. The lead account director, for example, is from the analytics and technology side of the business. Both parties "handpicked" capabilities and talent to bring together a team of 85 pulled from eight different companies within GroupM.

Based in Minneapolis, the shop is connected to offices in NYC and San Francisco. "They have access to resources and data in these other offices," says Clark. "It really is co-creation. It isn't that she gave us this challenge and we came back to her with it."

"Neither of us is precious about who does what," says Argyilan. "What does the client do and what does the agency do? There is plenty to do. We each pick our lane. And then just get the work done. Sometimes Team Arrow develops things knowing they are going to toss it over to us. We aren't fighting over who does what. It makes for a really strong partnership."

Analytics is a core foundation for this agency. Target has evolved its on-going sponsorship of the Grammy's based on analytics to understand whether these big brand moments drive sales. "GroupM's data can understand how the mechanics engage in that conversation," says Argyilan.

The big challenge for Team Arrow is "cracking TV" by applying first-party data for addressability and putting that information towards improving the performance of its media spend. As Argyilan points out to GroupM's Clark, three in four people shop at Target. "Your task is to keep them coming."

 

 

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