Best Practices for Transitioning to a New or Renewed Agency Relationship

Mediapalooza – when it feels like everyone is putting their agency up for review - is back in 2021 with marketers looking to make changes to address several shifts stemming from 2020, including the need for increased flexibility, broader digital and ecommerce needs and a focus on meaningful diversity in their marketing investments.

Marketers who are thinking about changing agencies must think ahead and develop a plan with essential best practices for a successful transition. To address these best practices, Ad|Optics and Media Plus Advisors teamed up to author this paper. Our goal is to present the essentials to apply to any agency partnership, not just your media planning/buying agency – whether new or a renewal.

Minimize Workflow Disruption Through Preparation

• Rely on open communication with people and teams about roles and expectations who rely on a realistic process.

• Ensure work processes are operating smoothly with the ability to flex during the pitch process to help bolster communications and limit re-work.

• Make certain that marketing and audience management platforms are functioning with no gaps.

Understand the Current State

An essential for transition success is to start with setting a benchmark or baseline and to enact this before changing partners or executing a renewal. A current assessment should go beyond marketing strategy planning and buying to include financial stewardship and contract compliance. Timing is key so that all records and data can be accessed before a potential ending of the agency contract and includes:

• Understand how well the agency has performed as a steward of your money.

• See what has been working or not from a process and procedures perspective.

• Get a comprehensive review of the business aspects of the current contract.

Set Goals to Improve for the Future

Financial and contractual audits are known for identifying solid improvement opportunities to be applied to the new agency relationships or a renewed partnership. Typical improvement opportunities include, as examples:

• Enhanced contract terms for financial stewardship of marketing dollars and other risk avoidance measures.

• Heightened financial controls in billing and reconciliation.

• Improved cashflow so that marketer dollars do not unnecessarily remain with the agency.

• Healthier transparency in general.

Set Implementation Guidelines to Reflect Today’s and Tomorrow’s Media Ecosystem

Performing audits before an agency search also enables marketers to include findings into the RFP process itself and will help to narrow the field to those who are willing to agree to the advertiser’s terms upfront.

As for what to include, that of course is different for every advertiser. Our recommendation is to start with five essentials from Keri Bruce, Advertising, Marketing, Promotions, Media & Technology Partner at Reed Smith and Legal Advisor to the ANA:

• Update agency MSAs regularly.

• Understand the fine print of non-disclosed services.

• Check your data rights and usage strategies.

• Develop process for comprehensive governance.

• Be in the room where it happens so that your unique requirements are met.

Collaboration Drives Ease of Implementation

Collaboration is a key element in elevating agency partnerships. Relationships of any kind are not easy – they require effort and care. With a collaborative approach, all voices are heard, taken into consideration, and prioritized to be built into the transition plan. Whether a marketer awards business to a new partner or continues a relationship with their existing agency partner, a proper transition is imperative.

The secret to the success of marketer/agency partnership – whether that partnership is new or renewed - is three-fold:

• Establish shared goals from the beginning and always make sure that strategies, tactics, tasks, and requests tie back to those goals.

• Scope and staff marketing and agency teams appropriately to deliver upon these goals, setting measurement and governance plans after establishing success metrics.

• Communicate regularly with clear expectations (assumptions are a big “no no”) and an understanding of each other’s points of view. Be respectful, transparent, and kind to each other.

Summary

At Ad|Optics and Media Plus Advisors, we believe that every phase of agency relations can be expertly performed so the outcomes exceed the effort of the process. With preparation, planning and collaboration, your marketing efforts will be enhanced with a new or renewed partnership when applying these essentials.