Client Agency Industry Experience Not Essential

Written By Ted Grigg

A MENG member recently surveyed other members about what they were looking for when selecting an advertising agency. To become a MENG member, marketers must have a present or past experience as an executive making at least a $160,000+ base salary. They must also pass a selection committee member interview to be accepted as a member of the organization.

The information listed below was compiled in March 2008 and there were 110 completed surveys.  

Respondents came from virtually every industry type, but there was a slightly greater representation in Financial Products/Services (14%) and Consumer Packaged Goods (10%). In addition, 71% of respondents are primarily involved in Business to Consumer marketing/advertising and 72% indicated they were either a CMO (29%), VP Marketing (26%) or Director of Marketing (17%) in their present positions.  

Adding to the credibility of the responses, 12% had advertising budgets that exceeded $50MM. All budgets were fairly evenly divided in the lower budget ranges. 

Most respondents (53%) have looked for a new agency two times in the past 5 years; 97% have looked for a new agency at least once in the past 5 years; and  57% were looking for a full-service agency at the time the survey was conducted. 

On a scale of 1-5, respondents selected what they valued most when selecting an advertising agency.

High (scoring 4 or more)

-Works as part of team         

-Delivers strong sales results

-Reputation for getting sales results

-Ability to produce within tight budgets

-Reputation for high service

-Ability to uncover consumer insights

Low (scoring 1.99 to 2.4) 

-Part of large agency network

-Press reputation

-Creative awards

-Larger size 

-Search consultant recommendation

-"Hot" shop reputation

-Located in LA or NY

What surprised me the most is that client industry experience makes either no difference or is not likely to make a difference in 77% of the cases.

Not surprisingly, respondents identified these primary characteristics of outstanding agencies. 

 

  1. They get outstanding results with 45% of the vote

  2. And 35% said great creative separated the average from the leading agencies.

 

What other things make up outstanding agencies that I omitted from this list?

Ted Grigg

Ted Grigg is a direct response strategist who helps growth-focused companies reduce risk by identifying weak assumptions before they become costly mistakes.

Over the course of his career, Ted has evaluated several hundred million dollars in direct response testing across direct mail, digital, print, television, telephone, and other channels. His work combines direct response strategy, acquisition economics, customer analysis, creative evaluation, offer development, and disciplined testing.

Ted has worked on both the client and agency sides of the business. That experience gives him a practical understanding of the pressures facing executives, marketing teams, agencies, and service providers—and of the problems that arise when activity, media volume, or creative preference replaces a clear economic objective.

His consulting work helps organizations examine such questions as:

  • Are acquisition goals economically realistic?

  • Is the allowable Cost Per Sale supported by customer value?

  • Are targeting, offers, creative, media, and response paths working together?

  • Are tests structured to produce reliable business decisions?

  • Are unproven assumptions being treated as facts?

  • Is the organization measuring sales outcomes rather than convenient proxies?

Ted’s experience includes the development of direct mail and multichannel acquisition programs for insurance, healthcare, financial services, technology, nonprofit, manufacturing, retail, transportation, communications, government, and business-to-business organizations.

For a national direct-to-consumer insurance company, he developed a direct mail format that defeated established controls and helped expand the productive use of compiled prospect lists from less than 10 percent to more than 30 percent of total direct mail circulation within one year. He also planned Medicare lead-generation programs for more than 60 regional and national HMO and PPO organizations, with some programs exceeding sales projections by as much as 60 percent.

Ted founded Wyse Direct, a direct marketing division of Wyse Advertising in Cleveland, where he developed acquisition programs and helped launch a new technology product for Seiko Instruments by generating a predictable flow of qualified sales leads for its national sales organization. As vice president of new business development for the Grizzard Agency, he helped broaden the agency’s strategic capabilities and pursue new commercial and fundraising opportunities.

He is the author of The HMO/PPO Marketing Plan—A Step-by-Step Guide, published by Executive Enterprises, and has written numerous articles and conducted webinars on direct response strategy, testing, creative development, and marketing economics.

Ted earned a Bachelor of Arts degree from Abilene Christian University and completed two years of graduate study at Texas Tech University. He is the founder of DMCG, LLC.

http://www.dmcgresults.com
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