Why Ad Agencies Get Fired

If you pay attention to ad industry magazines or blogs, you’ll read news about ad agencies losing major accounts fairly regularly.

We’re talking big names here, both on the client and agency side.

BBDO, Ogilvy, Leo Burnett etc. on the agency side.

Coca Cola, Heinz, GM etc. on the client side.

It’s never called ‘firing’, these corporate giants are masters at employing euphemistic terms to describe what you or I would call ‘getting canned’.

You’ll read about how it’s ‘time for a new direction’ or how there were ‘creative differences’ or ‘we felt it appropriate to try something new’.

But at the end of the day, the marketing braintrust at a multimillion, or in some cases multibillion dollar company got fed up with a lack of results. Let’s remember that large corporations spend tens of millions of dollars on advertising every year and taking a new direction would only happen if ad agencies weren’t bringing in ROI. Which happens repeatedly and on a regular basis.

It seems as if these prestigious accounts last for a couple of years before ‘it’s time for a new direction’.

Why is that?

I think it’s pretty simple and easy to explain.

I’ve seen firsthand how ad agencies work. Often, the creative process isn’t really about using measurable techniques to generate consumer action and get more sales. The creative is all about developing something that will generate awards from others in the ad world. Unfortunately, ad agencies judge their success based on how many awards they’re able to brag about and put up on their wall.

I would love to see how most agency creative types would answer if they were asked the question, “Yes. I see the ad is hilarious, uses amazing special effects and has a great soundtrack… but how exactly will it drive someone to buy what we’re selling?”

I believe they wouldn’t have a solid explanation except… “But Lady Gaga music is playing and we have a talking baby! If that doesn’t move life insurance I don’t know what will!”

When a company spends a fortune on advertising, they should expect the people getting paid are focused on moving product. Even if that means they end up with a hard-working ad that lacks glamor of any sort.

But that isn’t what happens. Don’t believe me? Just turn on your TV and ask the following question: Does this ad actually make me want to buy anything?

I think for 95% of ads, the answer is no.

So, ad agencies get fired. I will say that in some cases, corporate execs don’t sit back and trust their agency so a ton of powerful ideas end up on the cutting room floor. BUT, most of the time the ad folks don’t live up to their promise.

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