On July 18, the 4As, Association of National Advertisers (ANA) and Advertiser Perceptions released “The Cost of the Pitch,” a joint, first-of-its-kind report surveying 300 marketing and agency executives.
While it was a bit surprising to see the average severity of those costs similar on both sides of the relationship, large brands and agencies or small ones, the conclusion has been felt for decades.
The pitch process is broken and a huge waste of money for marketer and agency alike.
Marketers enter a review with a long-term primary expectation of business impact, with increased revenue and improved brand perception. Agencies exist to deliver that. But in the end, cost-savings rises from fourth on the consideration list to numero uno.
Does the client marry the agency that best understands the brand’s business challenges and thus demonstrates the most ownable, effective, and actionable solutions?
If they did, relationships would last longer than their current average of 3.2 years for large brands and less for small-to-midsized brands where clients move fast, often without the patience to see evidence of success.*
Sad, when even the average drama-laden Hollywood marriage lasts 4.2 years longer than that.**
Yes, the review process is broken. But so is the criteria for a successful client-agency relationship.
We say dump them both.
The money that matters is derived from the growth of your brand. You and your agency should profit from that.
If it’s falling short of goals, review why. Do you have a relationship built on openness, collaboration, trust, and respect? Either way, if it appears the agency is falling short, tell them and give them reasonable time to perform to expectation.
Or if your needs are outgrowing their capabilities, tell them and arrive at a decision together. If they can’t or don’t, don’t ask them to defend. They’ve had that chance in a less costly way to you both.
Then select three agencies you and/or your consultant believe meet your expectations and date. Give them an assignment, pay them a real, mutually agreed upon fee and look at life together. Then propose to one, marry for the long-haul, grow together and enjoy the fruits of a true partnership.
Don’t make it about the least amount of dollars.
Make it about what makes the most sense.
*Mad Men To Sad Men
** Lloyd Pratt & Co, divorce attorneys