What Sparks An Ad Agency Review?

August 14, 2009

Ad Agency review

The most feared event for every ad agency leader is that dreaded call from a key client, informing you that they have decided to put their advertising account into review. Behind the decision are normally numerous factors, some controllable from an agency perspective and some not.

If you have been following my blog, by now you will have heard me go on about minimizing client churn ad nauseam. That’s because I consider it, without doubt, one of the most important pillars in my “Five Pillar Agency Growth Strategy” approach. Churn has to be proactively managed and supported by robust “Key Account Strategies”.

Some of the causes that lead to a review are beyond the agency’s control. In such cases there is really nothing you can do to prevent it from happening. There are others though, that fall into the controllable category and can therefore be minimized or at least influenced by agency management.

Let’s start with some examples of the uncontrollable.

  • New CMO comes on Board
  • Client company merger or acquisition (change in control)
  • Global ad agency realignment
  • Disappointing business results
  • Geographic relocation
  • Term of contract expires and regulations require it to go out to tender
  • Unprofessional behavior on the part of a client or agency staff member.

Now let’s focus on some of those that are controllable.

  • Lack of pro-active thinking and fresh ideas
  • Lack of integration of ideas. The agency works in silos versus working for the greater benefit of the client/brand.
  • Lack luster work that fails to deliver the expected results.
  • Client driven by ROI, analytics and measurement, while the agency remains focused on creative, gut feel and fails to embrace metrics and measurement.
  • Excessive turnover within the account service team leading to client dissatisfaction.
  • The need for new or additional capabilities, channels or media that the agency is perceived to or does not have.
  • Disconnect between the brand strategy and the creative execution.
  • Perceived gap in the client/agency relationship from a price/value perspective.
  • Noticeable lack of innovation and innovative thinking around the brand.
  • Agency perceived as not flexible or agile enough.

Every one of the causes listed above can help trigger the decision to put the account up for review. The biggest contributor however, (although not always stated directly), is the clients perception that the agency does not share their worries and ultimately does not care if they succeed or not.

Leslie Winthrop from AAR Partners tells this amazing story about a client company that approached her about conducting an agency review for their advertising account. On further questioning the client told Leslie that they were happy with the work and results, liked the people and enjoyed working with them. Surprised by the answers Leslie asked why then did they want to hold a review? The clients answer was simply, “Because I do not think they share my worries and it does not appear to matter to them if I succeed or not. I feel that I am out there on my own.”

Makes you think doesn’t it?  

 

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Words of Wisdom from The Ad Agency Pitch Consultants

August 12, 2009

words of wisdom 2

The other day, I came across a collection of notes I had taken during various presentations, given by some of the top names amongst pitch consultants. The tips contained in them are as pertinent today as they were then, so I decided to aggregate a selection of them in one post and share them with all of you.

  • Think very carefully before deciding to defend when your client decides to put their account up for review. On average you have only a 1/18 chance of winning, so the odds are heavily weighted against you. (Dave Beals – Jones, Lundin, Beals)
  • If you believe that the client RFP is requesting excessive information, go ahead and push back, and submit what you are comfortable with. The most important thing you can do is look at the issues within the questions and adequately address them. ( Ann Billock – Ark Advisors)
  • Does size matter? It all depends. If the business being awarded is likely to overwhelm your agency, then yes it does. If the client needs an international network, yes. It’s about horses for courses. In some instances smaller can compete with big if they are able to leverage strategic partnerships. (Hasan Ramusevic – Hasan & Co.)
  • Every agency claims to have a proprietary process or philosophy. Bottom line is that there is just too much BS out there, as the agency world drinks its own Kool-Aid. Show them ideas backed by research and validate how you intend to produce results. (Lisa Colantuono – AAR Partners)
  • Do clients who ask for it really want and buy cutting edge work? Seldom does a counter a culture approach prevail. Ask more questions and try to validate their requests. If you are still unsure, then give them one of each so you are covered. (Ann Billock – Ark Advisors)
  •  Never stretch the truth when answering an RFP. If you feel that you have to in order to be competitive then pull out. Define what you cannot answer truthfully and ask the client or consultant why you were included on the list. It might be something specific you have that interests them, in which case focus there and leave out answers where you have to. (Lorraine Rojek – RCG Consulting)
  • How do we crack the clutter with our new business prospecting? The letter should address a specific challenge or opportunity. The supporting materials should do exactly that. Support the letter with a clear and consistent message based on actionable insights. The materials should also effectively differentiate your agency brand. Simple, easy to read and direct. No coffee table books, gimmicks or tchotchke! (Leslie Winthrop – AAR Partners)
  • Never include the prospects title in your new business materials unless you know it to be accurate. Titles change all the time and often many of the compiled lists are already out of date when you use them. (Cleve Langton – New Business 3.0)

Rocket science…No. Worth remembering…Yes

 

 

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