Philippe Dominois’ Post

💡 Did you know that only 1/3 of Performance Related Fee (PRF) schemes in media agency contracts are truly effective? Don't settle for mediocre results. Learn how to design a PRF model that rewards exceptional performance and boosts your advertising ROI in our latest article. We share the secrets to creating a win-win partnership with your media agency that drives innovation, transparency, and shared success. #advertising #media #mediaagency #abintus #prf https://lnkd.in/erNwWif6

Another common advertiser complaint is that the account is staffed with too many junior people. This is very often true. It is the result of the relentless price pressure applied to the agency. Just as marketers do, agencies have profit objectives, and will reassign resources to make their numbers. Lowering the fee may seem like a victory but it just makes hitting the marketers’ own numbers that much more challenging.   #Advertising #Marketing #Pitch #AccountManagement #P&L #PennyWise

Your marketing agency might be lying to you. Sure, they could be getting you 3x ROAS. But are they spending your full budget? Marketing agencies using their own reporting platform is always a red flag. Such platforms are often customised to obscure true ad spend. Here’s the logic from such agencies: 1. People buy results. 2. We promise to get 3x ROAS with x budget. 3. If we achieve that at a lower cost, we will keep the remaining ad spend. We’ve earnt it. Transparent reporting is a basic right, yet many businesses are robbed of this. They are being STOLEN from, there’s no two ways about it. Demand clarity on every penny spent. Your business deserves honesty, not manipulated metrics. #MarketingAgency #MarketingAdvice #AdSpend

Let's finally change the meaning of an ad agency "review". It's not what you think. Association of National Advertisers 4A's American Advertising Federation #agencyassessment #agencyappraisal #agencyevaluation #marketing  #procurement #marketingprocurement #marketingoperations #ANAAFM

Cost caps this cost caps that. Focus on making better ads and having good offers and funnels This fancy methodology won't make or break your ad account. If any it will merely amplify what you feed it. It has a place and time. Any business that is just starting out or not a the size of the "big dogs" can actually benefit from this strategy. Having tighter cost control and just finding new winners by CHAD RAMMING is important. Later when you grow and diversity and things outside of ad account become more important that CPA and number is not the most important part anymore. After a time when you are at the point where getting certain learnings from creative/offer is beneficial for wider appeal, the pure CC doesn't justify in majority of cases. You need to know - why certain pieces of new persona or angle failed - what works and to what extent - incrementally beyond that CPA Hindering creative cycle at big scale can be detrimental to your business. Maybe not right now but its a shrinking sponge soon TLDR: - Should absolutely be used when smaller to preserve efficiency but shouldn't be holy grail. - Longterm and scale wise can hinder creative cycle leading to shrinking sponge END

The shocking truth about most businesses' ad accounts… They’re spending less than £10 a day on advertising. At the same time, they say that they want to make £500,000 a year, £1,000,000 a year, or even £10,000,000 a year. 🤯 That's not naivety. That's insanity. Let’s say your business is doing ok. You're on track to hit £500,000 this year. But it’s been like this the last couple of years, and you've been telling people you will hit seven figures… And yet you’re spending £10 a day on ads 😳 Your actions don't match your intentions. Most of the scaling £1,000,000 businesses I know spend north of £100,000 a year on ads. That might be a wake-up call, but that's what it takes to scale consistently. Yes, there are outliers and wild success stories. But I'm not giving you the whole truth if I only tell you about those. I tell most prospects to budget 10% of projected revenue for ads at a minimum—some as high as 50% in high-margin businesses. So there you go… some info that most marketing agencies won’t tell you because they’d be worried you won’t pay their fees if you knew the truth. #stayhungry🦖 #businessgrowth

I am talking with a lot of new potential partners and I am hearing that most ad agencies' fee structure is completely broken. Here's why. At the moment, agencies are charging a percentage of media spend. After some time, when the ad spend continues to increase, the percentage of media spend remains the same. So, those agencies start to make way more money without doing any extra work. They're just getting paid and incrementally winning without providing any extra value. If your percentage and fee are increasing, you should add more services or keep the profit margin the same and ensure the client is getting bang for their buck. What we usually do is, when we are successful with a brand and the media spend continues to grow, we reduce our percentage so that we keep our fees at a more sustainable level for both parties. We also then add additional services into that mix to allow us to keep giving value for money! So if the client grows 5X, we don't increase our fee by 5X. The other way to do this is through a fixed-fee model or with a split fee/CPA model (similar to how affiliates do marketing). Now, I understand that agencies are in the business of making money. They're not there to avoid taking a percentage fee when you win. But there has to be an incentive to be aligned. Agencies should not solely focus on profits, undercut prices, or deliver subpar services. I believe "Pay peanuts, get monkeys" is a massive selling point in this industry for a reason. However, you cannot just keep increasing fees with no increase in talent or value added.

Agencies must balance their ledgers—but how ethical are pre-negotiated publisher deals? “You can’t have every client be your ‘lowest cost,’ because then you can’t get the savings,” An anonymous source said. “You have to decide where the savings is going to go. You can either spread it evenly across all clients or bring more savings to a smaller group of clients.” Even smaller clients might secure below-market rates, but some marketers benefit more than others. According to Belsky, clients spending $50 million or less on media are more likely to pay higher rates than marketers with larger budgets.

My latest Substack post on #AgencyAppraisals. Association of National Advertisers 4A's American Advertising Federation ProcureCon US In-House Agency Forum (IHAF) #agencyassessment #agencyappraisal #agencyevaluation #marketing  #procurement #marketingprocurement #marketingoperations

#PayPerClick ads help you get seen and bring in more customers for your business. However, creating a successful #PPC campaign takes more than just setting up an ad and waiting for the clicks to come in. Here are 5 reasons how we can help. Read more... https://hubs.ly/Q02mcl8v0