6 Warning Signs It May Be Time to Review Your Marketing Agency

In the wake of AMC network airing the last episode of “Mad Men,” I reflect on the perpetual struggle between advertising agencies and their clients. The ever-jaded character Roger Sterling declared in Season One: “The day you sign a client is the day you start losing it.” Unfortunately, this is an all-too-familiar situation in the advertising business. Turnover in agency-client relationships has always been high, but never more so than in the current landscape, driven by technological innovation, cost-cutting and a stubborn resistance on the part of some of the largest agency networks to adapt. According to Thomas Stringham of Ad Age, “The average client-agency relationship now lasts approximately two years, an incredibly short period of time when you consider the resources and effort required to go through an agency search.” In many ways, these agency wounds are self-inflicted. A marketing executive at the typical Fortune 500 brand, let’s call him “Charlie,” has a lot on his plate. Charlie is pulled into six to eight meetings each day; has countless progress reports and status trackers to fill out weekly; staff to train, mentor and evaluate; a superior who is most likely demanding of progress and tangible business results; and the need to navigate what is most likely a complex internal bureaucracy. That last thing Charlie needs? An agency that makes his life more complicated and less productive. Here are six warning signs it might be a good time to take a closer look at your agency relationship: 1. It’s All About Them — If your agency is more interested in winning awards than growing your business, this should be a red flag. Some agencies are motivated and excited by winning recognition from industry peers at awards shows. There’s nothing inherently wrong with being proud of one’s creative output. The problem is there are only so many hours in the day and companies can’t afford to engage firms that focus on the greatness of their OWN work rather than tangible business results for their clients. 2. Bait and Switch — It’s one of the oldest tricks in the book when an agency sends its best team to pitch the business and almost immediately after winning it, they introduce the group who will actually run the account. The best agencies take fewer clients, and foster deeper relationships by putting their best and brightest on client work. 3. Price Complexity — Ask any of the CMOs if they understand and feel completely comfortable with how their agencies make money. My guess is you won’t get many encouraging responses. There’s just too much murkiness in the industry, which can foster distrust and lead to rancorous negotiations. It’s important to work with an agency that establishes a clear fee structure from the beginning and a mutually agreed-upon commission for any media planning/buying. After that, everything should be 100 percent transparent. If that seems like it should be a foregone conclusion, you don’t work in this industry. 4. No Proactivity — One of the most consistent complaints clients make about their agencies is not getting creative recommendations often enough. Some firms are masters at competent reactions to requests, but lack a sense of ownership to keep the ball rolling and truly drive the process. Demand a constant stream of creative ideas and seek out an agency that always requests feedback in the pursuit of improvement. 5. No Skin in the Game — Some firms are comfortable extolling the benefits of their special sauce, right up until the point where you ask them to bet on themselves. Although many external factors beyond an agency’s control can impact a client’s business, there are some performance metrics that can be structured to measure the true impact of a campaign. Clients should put aside a portion of the budget at the onset of a relationship which will only be paid if key performance indicators are met. A success fee with real bite puts client and agency in a place of mutual interest. 6. Too Old-School — Some firms may be scared to stray from their comfort zones, which have paid the bills and led to their current level of success. An agency of the future has to start by looking in the mirror and admitting that things are moving at a blazing speed. Once you’re an expert at something, it’s probably old news. Companies should consider seeking firms willing to cannibalize their own business by adopting the latest technologies, spotting future trends and evolving at the speed of the marketplace. All of these items are easier said than done. No firm is perfect and clients understandably have enough on their plates without constantly undergoing painful RFP processes. However, the aim should be to find a bold agency that sticks to its guns and doesn’t make your life more difficult. Who knows? You may even prove Roger Sterling wrong in the process.

Performance Marketing

6 Warning Signs It May Be Time to Review Your Marketing Agency

Mike Valdes-Fauli

Mike Valdés-Fauli

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Mike Valdes-Fauli

Mike Valdés-Fauli