Working with Ad Agencies: How to Play Nicely in the Sandbox

(or Not)

Sara Holoubeksaraholoubek@gmail.com

Agenda

• Introduction

• The ecosystem

• The continuum– Being a business partner– Playing nicely in the sandbox– Feeling Threatened

• Tips

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The Ecosystem

SEM Large Agency

Advertiser

The Continuum

business partner plays nicely threatened by agency

wants no part of search

wants search, but doesn’t know how

only offers PPC

threatened by SEM

Interactive or Traditional Agency

SEM Agency

Being a Business Partner

• Deal structures– Referral– Preferred outsourced partner status– White label SEM service

• Works best when– “Ownership” of SEM project is agreed upon– Information on goals and budget are freely shared– Both parties work together to grow program

• Beware of– Making the agency (or any other media format) look bad – Agencies that aren’t equipped to properly sell your services

through

Playing Nicely in the Sandbox

• Deal structures– Client seeks an SEM, even if agency offers same services– SEM is the incumbent and agencies switch hands– Agency only offers PPC

• Works best when:– Senior management on both sides are aware of the dynamics– There is a mutual agreement on who “owns” budget– Partnership might lead to acquisition of SEM– There is full transparency

• Beware of– Repeated requests for search 101 sessions– Agency politics– Clients that “play” both sides

When Threatened

• Deal structures– Forced situation– Advertiser insists on SEM – Political preferences

• Works best when– Each party has a formal contract with the client– Each party has direct contact with client– Client is aware of the dynamics, and manages all agencies

• Beware of– Agency politics– Competitive blocking

Tips for Success

1. Understand the annual budget planning process– Agencies and vendors can get a seat at the table– Encourage folding search in early (so you aren’t begging for

scraps)– Work with partners by providing annual proposals early

2. Pay attention to politics– Within the agency and between the agency and the advertiser – Large conglomerates– Career ambitions– Typical client/agency friction

3. Learn to speak CMO– The "search is better than all other media" argument will get

you nowhere– Focus on search as complementary to the overarching plan