How do agencies prove their worth and secure more client dollars year in and year out? In an acronym, ROI. When you can prove return on investment, or even strongly suggest it, client checkbooks open.
Tim Williams of The Ignition Group, a consultancy devoted to helping marketing firms create and capture more value, argues that agencies spend too much time looking within to assess value and determine pricing, when the real value is the firm’s impact on the marketplace. Williams notes a survey by the American Association of Advertising Agencies that asked agencies “What information do you track?” Apparently, 98% track their job estimates, 94% track their labor costs, but only 22% track client business results. Williams argues, “The critical first step on the path to becoming a value-based agency is to start turning your attention and energies to what clients are really buying from you; business success.”
The state of Colorado Tourism Office knows something about ROI and buying business success. Thanks to the effectiveness of a new TV campaign from Denver agency, Karsh\Hagan, incremental spending from people who saw the campaign and visited Colorado totalled $898 million. According to The Denver Post, that is $200 in private-sector spending for every tax dollar spent on the campaign.
In other semi-related news, Karsh Creative Director Matt Ingwalson has released a new mystery novella, The Single Staircase: A Locked Room Mystery.
Hat Tip: The Denver Egotist