When should you consider agency reviews?

Agency reviews for alcohol marketer Mast-Jägermeister primarily serve the purpose of consolidation and efficiency, particularly as the company focuses more on events held in bars and other alcohol-serving locations. Previously, the company's on-site presence was managed by 19 different agencies, which made it challenging to maintain a unified strategy. By streamlining its roster of agencies, the company has been able to quickly and uniformly implement changes and adjustments, according to Charles Littlefield, the company's CMO, speaking at an Advertising Week panel.

"If the concept we all love isn't effective within 30 or 60 days, how can we collectively pivot and make it succeed? This is one of the major changes we have experienced," stated Littlefield.

When it comes to agency reviews, Mast-Jägermeister also takes into account the global presence of the Jägermeister brand. While Mother handles the marketer's global footprint, it is important to have an agency that understands the international complexity but can also create content specifically for the U.S. This is a high priority.

Mutual passion

Littlefield, who has newly taken on the role of CMO at Mast-Jägermeister, participated in a panel discussion alongside Marla Kaplowitz, the president and CEO of the American Association of Advertising Agencies (4A's). Other panelists included Lisa Colantuono, the president of agency search consultancy AAR Partners, and Karina Kogan, the chief marketing and commercial officer of Pvolve. Littlefield emphasized that the agency review process could take six to seven months, demanding the full attention of the person in charge. Additionally, Littlefield engaged in a conversation about recent consolidation attempts, moderated by Marilyn Mead Brutoco.

The defending account can expect to spend an average of $400,000 for an agency review, whereas non-incumbents may spend $200,000 solely to participate, as stated by Kaplowitz.

Effective communication plays a crucial role in maintaining a strong marketer-agency relationship. Numerous factors can prompt an agency review, including the appointment of a new CMO or unsatisfactory sales performance. However, AAR Partner's Colantuono believes that complacency is the main culprit.

Colantuono stated that when an agency becomes complacent or if the marketer perceives complacency from the agency, it triggers nervousness. Kaplowitz presented recent research conducted by the 4A's and the Association of National Advertisers, which revealed that the incumbent agency is retained about two-thirds of the time. Although the data may have been slightly influenced by other factors, Kaplowitz suggested that better communication between the two parties could have prevented the time-consuming process.

It is disappointing that clients choose to spend money on conducting a review when they could have simply had a conversation about their needs. This review process takes valuable time away from the core business, lasting an average of three months and involving a minimum of two months with the current agency. To achieve the best results, agencies should be viewed as an extension of the team. Given the expense and time-consuming nature of agency reviews, they should only be utilized when absolutely necessary. Additionally, since incumbent agencies are often retained, companies may not need to undergo a review as frequently as they believe.

Kaplowitz said, "If you don't regard that group as an integral part of your team and as a partner, you won't achieve optimal results. Without treating them as such, you won't attract top talent, nor will you motivate them to go the extra mile. However, the partnerships that truly excel understand that when the client succeeds, they too are successful."