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It’s Time To Reevaluate Your Digital Advertising Agency: A Guide for Middle-Market Digital Advertisers

Sean Sweeney





I’m obsessed with this topic, so much so I discussed the idea of the embracing the modern agency in a previous post here.  Look, I get it. Changing your digital advertising agency isn't a decision you make lightly. It's like switching your favorite coffee shop - you've got a routine, you know what to expect, and change can be... well, uncomfortable. But just like that coffee shop, sometimes you need to ask yourself: "Am I getting the best brew for my buck?"


My team and I have seen our fair share of brand-agency relationships, both the good and the not-so-good. In today's rapidly evolving digital landscape, settling for mediocrity isn't just unwise - it's downright dangerous for your brand's growth. So, let's cut through the fluff and talk about what to look for to determine if it’s time to consider a change.


Performance Assessment: The Proof is in the Pudding

First things first, let's talk numbers. You're not running a charity here - you're investing in your brand's growth. Take a hard look at your KPIs. ROI, conversion rates, customer acquisition costs (CAC) - these aren't just fancy acronyms, they're the lifeblood of your digital strategy. Assuming you refresh your creative regularly to avoid stagnant or declining results, if these numbers aren't singing, it might be time to change the tune.


Recommendations:

  • Compare your Cost Per Acquisition (CPA) across campaigns and platforms. If you're seeing wildly different numbers without clear justification, it's time to ask why.

  • Look at your click-through rates (CTR) over time. If they're stagnant or declining, your agency might be resting on its laurels.

  • Check your conversion rates against industry benchmarks. If you're consistently underperforming, your agency should have a solid explanation and a plan to improve.


Changing Market Dynamics: Keeping Up with the Digital Joneses

The digital world moves faster than a New York minute. One day you're on top of the world with your TikTok strategy, the next you're scratching your head wondering what the heck "BeReal" is. Your agency should be your guide through this digital jungle. If they're still stuck in the Facebook-only era while your competitors are killing it on emerging platforms, it's time for a serious chat.


Recommendations:

  • Ask your agency about their experience with newer platforms like TikTok, Pinterest, or Snapchat. If they can't provide case studies or seem hesitant, they might be behind the curve.

  • Review their proposed media mix. Is it diversified and optimized for success, or are they putting all your eggs in one or two familiar baskets?

  • Inquire about their approach to utilizing A.I.  Are they utilizing it for operational efficiency, reporting or to improve campaign results?  A forward-thinking agency should be evaluating and, where it makes sense, implementing A.I. to improve your business outcomes.

  • New Opportunities - Ask your agency how they evaluate and research new ad tech or solutions that could improve your brand’s outcomes from digital advertising.  Do they consistently investigate new technology and partners, and do they present new opportunities for your brand to test on a regular basis?

     

Cost Efficiency and Value: Getting Bang for Your Buck

Let's talk money. Cheaper is not always better - we're not shopping for bargain bin strategies here. But if you're shelling out top dollar and getting bargain bin results, something's has to give. Take a look at what your competitors are achieving. If they're getting caviar results on a tuna fish budget, it might be time to reassess your agency relationship.


Recommendations:

  • Performance Tracking and Attribution – Overall, digital advertising attribution is a headache thanks to the walled gardens like Google, Amazon and Meta and Apple with their iOS 14 update years ago.  Review current tracking and conversion pixel implementations regularly with your agency, to ensure it is firing properly and the pixels are places in the right spots to optimize performance and reporting.

  • Analyze your Return on Ad Spend (ROAS) across different digital ad campaigns and platforms. If it's consistently low, your agency should be proactively addressing this.

  • Compare your agency's fees to industry standards. The 4A's publishes an annual survey on agency compensation you can reference here.  


Transparency: Peeling Back the Layers

Now, let's address the elephant in the room - agency kickbacks and rebates. It's the dirty little secret of the advertising world, and you need to be aware of it. Some agencies claim to be transparent, but they're about as clear as mud when it comes to their financial arrangements with media vendors.

Here's the deal; many agencies receive rebates or kickbacks from media companies and/or media buying platforms for placing a certain volume of ads. They might get cash, free ad space, or other perks. The problem? These benefits often don't make their way back to you, the client. Instead, they pad the agency's bottom line.


Recommendations:

  • Ask your agency point-blank about their rebate policies. Do they receive any? If so, how are these handled?  Be bold!  Request that your company receives a piece of this cash if they do.

  • Request a detailed breakdown of media costs versus agency fees. The numbers should add up.

  • Check your contract for any clauses about "volume discounts" or "agency benefits". These could be euphemisms for kickbacks.

  • Consider hiring an independent auditor/agency to review your current agency's results and fee practices. Sometimes, an outside perspective can reveal hidden issues.


Platform Integration and Collaboration: Playing Well with Others

Here's a pet peeve of mine; Agencies that treat your ad accounts like their personal playground. Your Google Ads and Meta accounts? They're yours. Period. A good agency should be willing and able to work within your instances of these platforms. It's about transparency, data control, and the ability to make real-time tweaks. If your agency is treating your accounts like a black box, it's time to pry that box open or find a new partner.


Recommendations:

  • As your agency if they would be willing to work within your media buying platforms like Google Ads, Meta, Snap, etc.  If they decline, it’s time for a new partner.

  • Ensure you have admin access to all your digital advertising accounts. You should be able to log in and see everything at any time.

  • Ask for regular screen-sharing sessions where your agency walks you through the accounts. They should be comfortable showing you the nitty-gritty details.

  • Request that your agency sets up and shares custom dashboards in platforms like Tapclicks or Google Data Studio. This allows you to monitor performance in real-time.


Ease of Collaboration: Making Your Life Easier, Not Harder

At the end of the day, your agency should be making your job easier, not harder. They should be an extension of your team, not a thorn in your side. Clear communication, straightforward reporting, proactive problem-solving - these shouldn't be luxuries, they should be the bare minimum. If working with your agency feels like pulling teeth, it might be time to look for a partner who understands that collaboration is key.


Recommendations:

  • Evaluate your agency's reporting. Are the reports clear, actionable, and tailored to your KPIs? Or are you drowning in unnecessary data?

  • Look at their response times. A good agency should respond to urgent matters within hours, not days.

  • Assess their proactivity. Are they bringing new ideas to the table, or are you always the one pushing for innovation?

  • Every agency makes mistakes. They key is how they handle it. Does yours own up to errors and provide solutions, or do they get defensive?


Remember, reevaluating your agency isn't about finding fault - it's about ensuring you have the best partner to navigate the ever-changing digital landscape. It's about making sure your brand isn't just surviving, but thriving.

So, take a step back. Look at the big picture. Are you getting the results you need? Is your agency keeping pace with the digital world? Are they truly making your life easier? And most importantly, are they being fully transparent about costs and potential conflicts of interest? If the answer to any of these is "no," well... you know what to do.


What's your take? Have you had to reevaluate your agency relationship recently? Have you ever questioned the transparency of your agency's practices? Drop a comment below - I'd love to hear your thoughts.


Sean Sweeney

Founder/CEO

First Position Digital

 

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