Your marketing agency does business to receive a profit. No surprise there. But make sure that their goals are aligned with your goals while doing your business.
Ever wonder why, with so much evidence for on-line marketing and social media, your marketing agency tells you that your business “requires a different mix”? Across the country, we see example after example of builders and developers being guided into a marketing mix that yields the most profit for the agency, but not the most traffic for the client. Their profit goals are not aligned with your marketing return goals.
You’re likely aware that traditional media outlets offer major kickbacks to the agency who places ‘the spend’. What you may not know is, when you spend $10,000 on an advertisement in the newspaper, your agency is typically getting a $1,500 to $2k kickback. In radio and television, the kickback percentage may be more in the 30% range. Online marketing is typically more transparent and does not afford the same opportunities for kickbacks of equal amounts.
It’s not a bad thing for an agency to earn a profit or win a creative award. It becomes bad for the client when the agency’s “professional opinion” is based on things other than the client’s success. Sure, the agency has to achieve some success in order to keep the account, but that’s a far way from an optimized marketing program.
How do you get better visibility and better alignment? Demand unbundled services. Pay the media channels directly and ensure that you are getting the agency discount. Then, pay the agency for their creative and administrative work separately. This strategy is not intended to take money away from the agency, though it certainly will. It is intended to position them to prioritize your success and marketing ROI.
