A recent study confirmed once again the low opinion that Americans have of politicians: just 6% trust Congress to act with integrity. Only one other institution ranked lower: advertisers and marketers. They scored 4%. Ask any business owner or CEO their opinion of ad agencies, and you’re likely to get an earful: horror stories of wasted money, ridiculous egos, missed deadlines and poor results.
So with annual U.S. ad spending at nearly $200 billion, and with advertising becoming pretty much an art form (think Super Bowl ad), why do so many people dislike and distrust ad agencies so much?
There are a lot of reasons, but here are four of the most common ones:
1. Ad Agencies Are More Interested in Winning Awards Than Helping the Client’s Bottom Line
The creatives at the heart of most agencies are talented artists who seek to push their limits and prove how creative they can be. Up to a point, that’s a good thing. But there can also come a point at which creatives lose focus on the client’s objectives and become obsessed with the creative itself. They forget that applied creativity exists—and is paid for—in service to a higher goal: the client’s bottom line.
“Art for art’s sake” is just fine in the gallery world or in art school. But in the competitive, ROI-driven real world that company leaders live in, creativity and design had better yield measurable results. According to one study, 72% of CEOs think marketers “are always asking for more money, but can rarely explain how much incremental business this money will generate.” There’s an unfortunate disconnect between the creativity and the ROI. And here’s another secret of the advertising business: sometimes the most effective marketing solution is actually the least creative.
2. Ad Agencies Don’t Understand Their Clients’ Businesses
Agency creatives can be so impatient to get started on “the work” that they don’t fully understand what it is that they are promoting. The result is expensive creative that misses the mark. It takes a significant investment of time to slow down and listen, immerse oneself in the client’s culture, learn their industry, study their competitors and then come away with a deep and nuanced understanding of their business.
The agencies that do this always produce superior work that, while still highly creative, is also relevant and authentic. Sure, it takes some trial and error; but an agency that truly understands the client’s business and its customers will produce superior, more effective creative.
3. Ad Agencies Aren’t Open to Critique
Too often, an agency can seem to be defensive of its work. They are the experts after all. The client has come to them—as to a doctor or a CPA—for expert advice, and they should just accept the advice they get. Designers are quick to tell the story of iconic designer Paul Rand who in 1986 told Steve Jobs that when creating the new logo for NEXT computers, he would only provide one look—no options. $100,000. End of negotiation. Note to agency designers: you’re not Paul Rand.
Instead, the best agency relationships thrive when the client’s perspective is respected, and where their ideas are allowed to flourish. It’s amazing to see how working with a good agency can bring out the creative side of a CEO, and often they will have ideas and instincts that the agency needs to listen to.
Good agencies don’t fall too much in love with their own work. They are willing to ask for client feedback and test different creative executions. They invite critique. This only works, of course, if the client is willing to pay for some of that extra time. Clients can sometimes be unrealistic, demanding that an agency nail it on the first try. Even when channeling their inner Paul Rand, most creatives need to be free to make a few mistakes before getting it right.
4. Ad Agencies are Unresponsive and Disorganized
Many agencies and design firms apparently have “we’re-so-creative-we-can’t-be-bothered-with-details” syndrome. Deadlines are missed without warning. Budgets appear to be immaterial. Designers and coders “go dark” for weeks at a time until they emerge from their espresso-infused vision quest with the finished product, with little or no progress reporting along the way.
When it comes to billing for services, many CEOs are frustrated that they aren’t really sure exactly what they paid their agency for. Detailed reports on activity can go a long way to building a bridge of trust and confidence over this unnecessary chasm. It also helps the agency justify the true value it has delivered. Clarity and transparency are in both parties’ best interests.
The Way Forward: A Value-Driven Partnership
There is an growing trend toward viewing the client/agency relationship as a partnership, not merely a work-for-hire arrangement. Seasoned business owners can tell in the first five minutes of a new agency pitch whether the chemistry for a good partnership is there or not. If it is, a long-lasting, loyal partnership can ensue. Both parties continue to invest in the relationship and to respect each others’ ideas. The agency doesn’t mind being held accountable for results; and the client is open to advice. Together, they find that perfect balance between advocating for ideas and a healthy dose of humility.
And the proof of success? Everyone is working together for results, some great creative emerges from the process…and both client and agency are having fun doing it.