Vonage : TBWA\Chiat\Day sucks
August 5, 2009
This is a direct quote from their Q2 Financial Transcript: IN essence they are stating they went with TBWA\Chiat\Day because they are cheap… then they go on to say that their marketing is horrific now as the cost per new client moved up $73 dollars to $363 dollars.
That’s a massive increase in cost per new client, it flatly means that their advertising agency is doing a horrific job.
On slide nine, marketing expense for the second quarter was $52 million. That’s down from $66 million in the first quarter and $65 million a year ago. We reduced marketing spend as we transitioned to our new advertising agency, while eliminating redundant spending.
Our cost of acquisition increased $73 sequentially to $363 in the quarter, as our gross line add efficiency fell. Read the full transcript yourself
Maybe Vonage not choosing Enfatico was a mistake?
Seriously if your ad agency jacks your CPA out the roof, that means they are pissing your money out the window… this is the sole reason companies hire advertising agencies.. to send that number down… not up..
This is bad… expect a review …
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I don’t know that Chiat is THE problem. You’ve got an ex-Cingular CMO trying to become a CEO while hiring a Branding agency to produce crappy Direct Response Television Commercials while spinning Wall Street that he’s getting rid of the previous bait & switch promotions for a “higher value message”? This is confused leadership. http://www.youtube.com/watch?v=US_cMN4XCPM