Big Trouble for Big Conglomerate Agencies
Big trouble for big conglomerate agencies with Big Brands leaving for privately held firms that specialized in specific areas of marketing. The era of being the end all be all, 360 degrees, we can produce everything approach is going out the window. The revolution has begun, and privately held firms get ready to start capturing more market share as the Agency of Record models gets tossed to the wayside.
- More concerned with agencies profits, shareholder and earnings reports. Stock evaluation and shareholder become more focused than client and employees.
- Agency profit margins and performance is the top priority, the temptation for senior leadership to recommend [to Client] what is more profitable to the agency vs. what is best for the client. In addition to suppressing wages and bonuses to show profit or revenue increase.
- Slow, costly and has lots of overhead expense with fancy high-rise buildings, prime locations, and underutilized or unproductive senior management.
- HUGE agency fees to cover all the overhead expenses.
- NOT hungry
- Try to offer the one-stop shop. We do everything, but excellent at nothing.
- Spend and waste money because it’s not their money
- A long and slow process to develop and execute ideas, leading to expensive rush fees on all production, increase the stress of client/employees and last minute travel and shipping. Great ideas get watered down because of lack of time. AOR, Too Many Cooks in the Kitchen…
Private, Boutique, Small to Mid-Size Firms:
- Client first
- Fast, fluid, ability to move at a rapid pace and deliver results
- Specialize in one area, they provide a better ROI and provide a much higher level of customer service.
- Low overhead cost = Smaller Agency Fees
- Very budget conscious – Every Client and Agencies dollars’ matter
To the big brands, do you care where your work gets completed or do you care about results? If the goal is to increase sales and profit margins, the first place is to start is cutting the cost to gain a new customer. Stop paying outrageous agency fees and do business with a firm where your business matters. Take a risk and hire a privately held company and let the results speak for themselves.
The Rocking Star is experts in Experiential Marketing, and for our events, we have a remarkable creative and digital team. We are damn good at lead programs with high conversion rates and low cost per lead. The owner has a proven track record of success with major brands, event budgets more than $20MM, 30+ marketing teams (90+ Managers across the country), 4k+ event days per year with flawless execution and providing 200% to 300% ROI. If your business lives and breathes on leads, take a risk and let us prove the quality of our programs.
Follow us on Facebook @therockingstargroup or online @ https://www.therockingstar.com