The Fear and Loathing of Advertising (Part 3 of 3)

In Parts 1 & 2, (Fear and Loathing of Advertising (Part 1) (Fear and Loathing of Advertising (Part 2), I talked about fear that resulted from changes in the economy and the media. In Part 3, I'm going to discuss the failures of my own industry. Sad to say, after 45 years in this business, it doesn't surprise me that advertising agencies are often loathed. (Why Advertising Doesn't Work) Let's start with a problem that's become prevalent in today's economy:

The Proliferation of Advertising Agencies

The downsizing of larger agencies has often led employees who were let go to start their own "agencies". They may be talented graphic designers, IT people or even copywriters, but does that make them an advertising agency? Do these ambitious new "agency heads" possess a thorough understanding of marketing - or do they offer only their own, limited perspectives? Can they show you resumes of successful campaigns and explain the strategic rationales that went into them, or are their portfolios merely "cool stuff that won awards for creativity" (but not necessarily business for the clients)? (Can a Grease Monkey Build a Spaceship?)

Poor performance here can sour the most forgiving client. Is this caused by a lack of knowledge of proven advertising principles, as might be the case of a start-up agency, or is it pure laziness, sometimes displayed even by larger agencies? Good Advertising takes work.

There are agencies that prefer to dive right into developing clever creative rather than taking the time to explore the benefits of the client's offerings and how they align with their customer's needs and wants.  (Forget Madmen, Hire the Corleone Family)

Which brings me to poor performance. It would be like hiring an architect to design you a house, and rather than listening to your needs, he designs what he likes because "he's the expert." Then you come to realize, after spending lots of cash, that the house doesn't function like you wanted it to.

The same sort of thing has happened, unfortunately, to companies I've interviewed. They've hired pompous ad people who promised more than they delivered. I can't tell you how often potential clients tell me that they spent $$$ on advertising and can't tell me what they got from it. Please! No matter whom you're working with, demand a return on investment. If You Can't Measure It, Don't Buy it.

The most loathsome of all of  ad agency sins is overcharging.  I'm not sure when or why it's happened, but it is a reality. Greed certainly has played a role. Because they could get away with it, many agencies have charged exorbitant rates. They found they could charge outrageous markups and that retainers didn't have to correlate with time and materials. And their clients didn't challenge them. Then the recession hit. I think every business should be accountable for their charges and fees. Sure, surgeons don't charge by the hour, but for their knowledge and skill. Ad agencies rarely save lives. Hell, most don't even save companies! I wish that at advertising award ceremonies, the campaigns that win would be judged by what they accomplished rather that the cleverness of the approach. There, I've said it. Please don't get me wrong. There are some great agencies and ad people out there. The ones worth their salt are truly special and should be rewarded accordingly. You can find them. It means doing your homework. It's too bad there's not an Angie's List for ad people.

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