Does a Full-Service Ad Agency Provide More Value or Simply Increase Costs?
This is an interesting question and the answer may vary based on whom the responder is. I may be skewed in my perspective, because I am an agency fellow, but there may be a lot happening behind the scenes that you’re not aware of. Allow me to put this into perspective for you. If one of your service customers asked you if it was better to service their vehicle with your dealership as opposed to a small mom-and-pop repair shop, what would you tell them?
You have certified technicians, right?…approved factory parts…repair guarantees, etc.
Now it may be true that your customers may save a few dollars by cutting you out of the equation, but at what cost? Is that really what’s best for the vehicle? What it really comes down to is this…You pay for what you get.
If you are running an ad agency it costs a great deal of money to hire and employ talented creative people. If you want to develop media strategies, then you need a high-level media buyer. The same goes for your digital prowess…if you’re cutting costs and hiring kids right out of college then you will need to sustain the inevitable bumps and bruises that occur through growing pains.
Allow me to pose another question. If you hire an upstart agency, do you want to pay the costs of helping them develop their talent? Ironically this is not only an issue at smaller agencies. I’ve found through friendly competition, a major loophole in the way that larger agencies handle clients as well. The “set-it-and-forget-it” strategy that neither challenges the staff to be innovative nor rewards them for their efforts just doesn’t result in increased sales. They may help you sustain your current business, but they will not conquest new customers or increase your market share. This creates an atmosphere of mediocrity which is the last thing you want in your advertising agency. What you want is seasoned professionals that understand your business and are willing to go the extra mile to help you achieve your goals.
It really comes down to a few simple principles.
1. It’s not about what it costs, it’s about what you get in return.
2. Bigger is not always better.
3. The recipe for success has never changed, it’s still all about reach and frequency.
Industry trends are not something that should be taken lightly. They are the spark that lights the flame of the next big movement and sometimes it’s your ability to evolve that sets your level of accomplishment in the future. However, be cautious, latching on to trends without understanding how it affects your current business can cause more harm than good.
The fact of the matter is that full service ad agencies have been an integral part of consumer retail success for decades. Perhaps the only thing that’s changed is your perspective.
What it really comes down to, at the risk of sounding cliché is this…If it isn’t broke, why fix it?