The average agency review today does not seem to produce what advertisers are looking for. The American Association of Advertising Agencies and the Association of National Advertisers agree that the average relationship between advertisers and their agencies lasts less than 4 years.
What advertisers say they want most from their agencies are value and accountability. And they don’t seem to be getting it. Drexler/Fajen & Partners knows how value should be defined and how it can be measured. We also know that specific criteria for accountability must be incorporated into the performance of the agency. Not only at the outset but also on a regularly monitored basis. That’s the only way to satisfy the business relationship and produce a successfully enduring result.
Value has several meaningful benchmarks.
- Wasted media investments occur because of mis-targeted or misguided media placements. (The ANA acknowledges that one-third of all media investments are wasted because of poor briefing).
- Inequitable agency staffing in relation to specific client requirements creates additional financial waste. (It is not efficient to compensate for senior expertise by increasing the number of less experienced people).
- Agency compensation can be misleading and sometimes lacks transparency. (Benchmarking salaries, overhead and profit against appropriate norms can often save a considerable amount of money).
- Agency resources are plentiful at most good agencies, but not all are used for every client the same way. (Resources should be amortized according to their application to particular client solutions).
Accountability is equally critical to engender trust and confidence in the agency.
- Establishing proper metrics to achieve specific goals should be agreed upon at the outset of the relationship.
- These metrics not only serve to measure media objectives, but marketing outcomes as well. In the final analysis, an expected return on investment can be assessed.
In conducting the review, it is also important to produce a customized planning assignment that can demonstrate how the agency thinks. How it applies innovation and strategic leadership to help solve the client’s problem and how the agency team works together among themselves and with the client.
Drexler/Fajen & Partners also believes that an ongoing system for monitoring and evaluating the agency on a periodic basis will enhance agency performance and deliver significant process improvement.
You may learn more about us by visiting our website at <http://www.drexlerfajen.com> or by calling us at 646-459-2325. Let us know if we can show you how we work with clients and if we might help you with a potential review now or in the future. All of our discussions are in strictest confidence and we look forward to hearing from you.