Businessmodel of VaynerMedia

Customer Segments

VaynerMedia has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms of all industries and sizes.

Value Proposition

VaynerMedia offers four primary value propositions: convenience, accessibility, performance, and brand/status.

The company offers convenience by making operations simpler for clients. It provides a full-service solution that advises clients on everything from content creation to production to publishing to analytics. It conducts a top-to-bottom evaluation of all of a client’s social channels, an evaluation that addresses customers’ true preferences, competitors’ statuses, and areas of opportunity.

The company creates accessibility by making it easy for clients to work with prominent social platforms. It works hard to develop and maintain close relationships with sites such as Facebook Twitter, and YouTube, which enables it to optimize every new update that is rolled out.

The company has demonstrated strong performance through tangible results for its clients. For example, it worked with Twitter to build tailored tools to increase positive conversation around the campaign of one of its customers, Dove. The effort resulted in a 25% decrease in negative tweets.

The company has established a strong brand due to its success. It maintains offices in Los Angeles, New York, San Francisco, and Chattanooga, and has over 450 employees. It works with 90 brands, ranging from sports teams to consumer packaged goods firms to TV networks. These include many Fortune 500 companies such as PepsiCo, General Electric, Anheuser-Busch, JP Morgan Chase, and Mondelez. Lastly, it has won a number of honors, including a Shorty Award for Best Large Agency (2014), Webby Awards for Best Use of Native Advertising and Best Use of Video, and recognition as one of Advertising Age’s Agencies to Watch, Agency Standouts, and A-List Agencies.

Channels

VaynerMedia’s main channels are its website and its business development team. The company promotes its offering through its social media pages and participation in conferences.

Customer Relationships

VaynerMedia’s customer relationship is primarily of a dedicated personal assistance nature. The company works closely with clients to design and implement strategy.

Key Activities

VaynerMedia’s business model entails designing and developing services for its clients.

Key Partners

VaynerMedia forms strategic alliances with other media companies in order to enhance offerings for its clients. For example, it acts as an Ads Partner and Creative Partner for Snapchat, helping brands drive business results on the app through paid distribution and creating content for its ad products.

Key Resources

VaynerMedia’s main resources are its human resources, who include everyone from the creative professionals such as writers and art directors that design its content, to the technology professionals that shepherd digital production. It also has a full-fledged photo studio.

Cost Structure

VaynerMedia has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent enhancements.

Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and customer support/operations, both fixed costs.

Revenue Streams

VaynerMedia has one revenue stream: fees it charges for its various services. They fall into the following categories:

• Retainer fees (time-based pricing)
• Campaign fees (campaign-based pricing)
• Media fees (based on a percentage of media spent on digital channels)