This post is about the underpaid advertising agency. As in, your advertising agency is probably underpaid – or under managed. Or both. Believe me, they are connected.
To be cute, this post is about the three P’s…
Profit, Process and Podcast.
Don’t forget to scroll down and listen to the podcast. In the meantime…
I recently had the opportunity to meet with Michael Farmer, author of Madison Avenue Manslaughter. Michael’s is a disturbing must-read book on the business of advertising agencies. Michael covers the reasons for the advertising industry going from high profit to low profit. From being paid almost too well (as in the 15% commission on media) to underpaid for its value (as in cost-plus or fixed fees). Mega-point, agencies do not know how to manage SOW — scope of work. I urge you to read the book.
To further one of Michael’s major points, I recently got an email newsletter from him where he discusses the “agency of the future” – a subject I have written about. Michael points out, and titles his email, “The First Step for The Agency of the Future: Become a Well-Run Business”. His point:
Much has been written about the “Agency of the Future.” It is integrated, digital, efficient, agile, analytical, creative and effective. It is adaptive and reflective of clients’ needs. It is completely transformed. It walks on water. However, the Agency of the Future cannot be created unless it first becomes a well-run business that generates the necessary financial resources.
So, Is Your Advertising Agency Underpaid & Undermanaged?
You are undoubtedly underpaid. I am not going to belabor this unfortunate point. However, other than charging correctly for your work (a yikes if I ever heard one), I suggest that many agencies are simply undermanaged.
Or, poorly managed. Or, without a sound process. A process that goes from the master business plan to execution. [Read more…] about Is Your Advertising Agency Underpaid?