Why media agencies steal and how to stop it
As debate swirls globally around media agency transparency, the former regional boss of Starcom D Sriram points out that clients are not always innocent.
Let me say this right up front. I don’t think it’s right for agencies to make money in ways that they try to hide from their clients. I don’t condone that for even one micro-second.
However, if clients read that line and think “Yes, that’s our money and we should get it all back” that’s wrong too.
There are fundamental reasons why a lot of these shady practices started, and to stop them you have to fix both sides of the equation.
Agencies are not unscrupulous villains exploiting innocent clients and stealing money from them – clients can be pretty villainous too.
This headline is beyond absurd.
And this blog piece comes across in such a poor way – it feels like a piece defending ‘the agency’ by showing that their behavior is driven because of ‘the client’. “It’s not my fault, they were asking for it” is not good enough reason for any wrong doing. We’ve agreed this as a society and the author hasn’t understood this concept.
I have been the client and am now in an agency style role. You choose how you respond – acting in a way you’re not proud of or in which you have to hide information speaks volumes.
This opinion piece is low brow. I believe if you want transparency then you have to pay for it. Simple fact.
Secondly, all you seem to be talking about is negotiation. Maybe if you offered more than simple negotiation skills, clients would see the value and pay more. If your paid to negotiate and you lose it makes sense that you pay.
If you want your clients to pay, then stop offering a used car service of heavy handed negotiation and start adding a more strategic offering where your smarts are worth every cent the client is paying for.
Your simply a low brow, uneducated commodity.
Wake up media industry and start adding value beyond, how hard you can negotiate. That practice will only lead to a race to the bottom.
“Your simply a low brow, uneducated commodity”
It’s “You’re”. How deliciously ironic.
Apart from the ridiculous headline, a good article.
It’s cool to do whatever you want as long as you dont get caught.
And if you want me to behave ethically you better pay for it, or else..
“Stop wasting money on media auditors – use the money to reward your poor, hard-working agency for their efforts.”
Marketing is the largest discretionary part of any business’ budget. Some level of auditing is necessary to protect and keep agencies accountable.
@ Michael
Your – ownership of something
You’re – an abbreviation of “you are”
If YOU’RE going to call someone un-educated, I suggest you check YOUR grammar first
Bad headline, but well written article.
I particularly agree with the shift in to bench marking outcomes & not cost.
I sat in a meeting with an auditing firm, where were torn to shreds for a 3% TV CPM inflation compared to the previous agency…
meanwhile our buying strategy saw the product sell out on shelves & delivered ROI of 201%
We then went on to lose the business due to pricing.
Damned if you do damned if you don’t
The scale of this caper made some people rich. It’s not a minor issue, esp for smaller clients. One name in particular looms large. Very large.
“You want transparency? Fine, then don’t ask for price guarantees (conversely, you want a guaranteed price? Then don’t ask for transparency and plan on changing your media agency every year). Participate in the media buying process, be invested in the outcome, be a partner, not a pain in the ass.”
Here’s an idea – if you’re the media agency and this is what the client asks for, don’t sign the contract.
We have a proven, cost effective publishing and promotion business that delivers results time and time again. All of our clients are direct relationships; they value what we do, what we can deliver and how we measure campaign results against their business and marketing objectives.
From time-to-time a new client will ask us to meet with a media agency. When we do, we advise the agency that we don’t pay commissions. Strangely they don’t recommend working with us. Yup.
Clickbait?
I agree with Mark, a good article with valid points.
Don’t get stuck on the headline – it’s just to grab attention and works to that end, but more importantly take the point that ‘you get what you pay for’.
And if we’re on the subject of grammatical pedantry then you don’t need a comma after ‘beyond’ Michael.
As a client this doesn’t sit well.
Media agencies led the way to the bottom on price. By starting a price war.
I hear this kind of bleating. All the time.
Clients won’t pay enough.
The facts are simple. If you don’t want the work…. don’t sign the contract.
And certainly don’t blame the contract.
It’s your ink.
D