Similarly, both client-side and agency executives agree that “trust” is imperative in building and maintaining a solid partnership. Thus, one could logically conclude that establishing a relationship predicated on trustworthiness would be beneficial to advertisers and agencies alike.
However, as the ad industry has evolved and grown over the last decade or so, it seems as though the ability to establish trust between stakeholders has been greatly compromised. Whether this is between advertisers and agencies or agencies and ad tech providers or between ad tech providers and publishers. While the reasons for this are many, pundits will point to the myriad of documented transparency related issues that have plagued the industry, while cynics might suggest that Agatha Christie had it right when she said: “Where large sums of money are concerned, it is advisable to trust nobody.”
As consultants specializing in marketing supply chain accountability, working with advertisers and their agency network partners, we take a more pragmatic view. We believe that trust is not elusive, that it can be earned and nourished if clients and agencies are willing to commit to the following three steps:
- Establish a Principal-Agent Relationship – In short, an advertiser should never have to doubt the allegiance of their agency partners or the objectivity of their recommendations. A principal-agent relationship establishes the expectation that the agency has a fiduciary responsibility to always act on behalf of and in the best interest of its client. Memorialized within the client-agency agreement, this principle is the single best means for fostering trust.
- Perform Independent Transparency Accountability Reviews – Actions that advertisers should consider and that agencies should welcome include contract compliance reviews, financial management audits and media performance assessments. Independent reviews of agency performance relative to client expectations and contractual performance requirements instills a certain level of discipline when it comes to governance, and provides both parties with the assurance each is acting within the guidelines of agreement and a platform in which to discuss improvement opportunities.
- Conduct QBRs and 360° Performance Evaluations – We are all in the communications business, yet too often client-agency communications are inadequate when it comes to strengthening the relationship. Not talking about day-to-day interactions, but dialog regarding key business strategies and challenges, performance expectations and opportunities that occurs at even the most senior level within each organization. The use of quarterly business reviews (QBRs), that involve cross functional team members and executives from both the advertiser and client organizations are a great way to ensure that both sides are focused on the business and relationship priorities established at the beginning of the year. Complementing the QBRs should be an annual performance evaluation where representatives from the client and agency are invited to provide feedback on the relationship and identify opportunities to improve processes and performance. This should then be followed by a brief meeting to discuss the results of the evaluation and come to an agreement on actions to be taken in the coming year.
Business relationships can be complex and at times difficult. In our experience, implementing the aforementioned steps greatly enhances effective levels of communication, which fosters trust and confidence, which leads to solid relationships that drive superior performance. As George Bernard Shaw intoned: “The biggest problem in communication is the illusion that it has taken place.”
Interested in learning more about how to improve your marketing supply chain accountability for your organization? Contact Cliff Campeau, Principal at AARM | Advertising Audit & Risk Management at email@example.com for a complimentary consultation on the topic.