Tribble Ad Agency : The Advertising Agency of Record

It appears that the Agency of Record contract never has a chance for the ink to dry before they are drafting up another one with another firm.

“Clients aren’t afraid to make changes. in fact, many seem to enjoy it as more than 40 percent of respondents said they are either ‘look forward to it’ or ‘find it exciting’ when looking for a new agency,” Sneider says. “When reviewing, 68 percent of clients saw four or more agencies, so if the prospect is aware of your agency, you might have a shot to get on the preliminary review list.
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Then this shocker

nearly 50 percent of client/agency relationships continue to last less than two years.

Now that is hot.

50% of these press releases saying “We are their agency of record” lasts under less than 2 years. It takes a few months to even get the creative on track and approved.. it takes even longer to get the proper media spots… in short.. the actual visible work that potential customers see doesn’t actually happen until 6 months into the project. Then 6 months into the project the first ads are run.

This leaves us with 18 months.. generally the ad has to appear more than 1 time for it to sink in to the potential customer.. the old school rule of thumb is 3 times at least. For that to happen it could be up to a year into the relationship.

12 months left.

Now into the final year of the relationship, we are hoping that the ad was displayed a few times, that the message got across and the customer is ready to buy. The client is looking at last years data to compare to this years, you are hoping the recession isn’t as bad as you think.. otherwise this is your final year with the client.

The numbers start to pour in with historical accuracy 18 months into the relationship.

Your numbers are messed up, not because the ads are bad.. but because the whole first year, you are still measuring the former agency of record as their branding is still in the minds of the consumer.

You have about 180 days or so of your efforts to be judged on.

Now your account is up for review, but the numbers are not bad.. they are actually pretty good for the past 6 months… but not so hot for the whole 18 months.

The client then states “your efforts have failed, since we hired you sales have been flat over the past 18 months”

You retort “but the past 6 months”

They respond “it was like that with the last agency as well”

The client’s review comes down to 4 agencies.

The Ad agencies pitching are stating the same things you did 18 months ago. Management wants a change as their past 18 months figures are flat. They keep glossing over the past 6 months because though it’s an improvement, overall they are still flat.

You lose the account to another agency, their pitch was better than your results over 18 months.

The worst thing about it, their figures are hot from month zero to month 12… they will get the renewal, for your efforts.

Enjoy the Ad Agency space.