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January 15, 2007

Is Your Radio Advertising Agency Flying These Red Flags?

It can be difficult for those outside of the radio advertising industry to know how to properly evaluate the performance they're getting from their radio advertising agency. Financial results are of course one good way. Overall service is another. But in general it is subjective.

There are, however, two enormous red flags that you never want to see being waved by your radio agency.

The first is a lack of data visibility. If your agency refuses to provide you full-detail reporting, they are likely hiding something. Why else would they hide information from you? The truth is that there is no acceptable reason. It's your money the radio agency is spending and the radio agency must be held accountable for showing you how your money is being spent - otherwise what mechanism exists to ensure there are no improprieties? Honest agencies have no problem providing detailed reporting

The second large red flag is when your agency requires 100% exclusivity. The only reason to require 100% exclusivity is you don't think you'll perform better than other agencies if your client goes off and tests one. We welcome head to head testing because we are confident in our ability. But we've been approached by potential clients who wanted us to test, only to run into the issue of their current agency threatening to fire them if they don't remain 100% exclusive. That's a fear-based move if there ever was one. There is no good reason for requiring exclusivity. As an advertising agency, you earn business with your performance and you earn client loyalty by acting in the best interest of your clients-and that means being open to competitive testing. Good radio advertising agencies don't fear competition.

Posted by Jeff Small & Brett Astor at 10:52 AM | Permalink