How Agencies Buy Marketing Technology
The relationship between agencies, marketing software vendors, and the brands they serve is a complicated one. Let's try and break it down.
The relationship between agencies, marketing software vendors, and the brands they serve is a complicated one. Let's try and break it down.
Technology vendors hate agencies.
I’m sorry if I hurt your feelings. I’ve been a marketer at many different marketing technology companies at different stages as well as on account teams at many different marketing agencies of different sizes and disciplines. I’ve also spent time on the brand side and am fascinated by how the three legs of the marketing stool integrate to drive business outcomes.
Because I’m a digital marketer I’m most interested in the relationship between marketing software vendors (social media management, analytics, CRM, etc.), the agencies (traditional, media, digital, PR, etc.), and the brands they all serve.
Today, brand teams are challenged with an ever-growing set of marketing opportunities, dynamic consumer preferences, and a dizzying range of digital platforms. Most brands of significant size look to agency partners to help fill in their gaps in talent, keep an eye on emerging consumer and marketplace trends, and generally advise and execute on marketing strategy. As a result of these complexities, groups of software vendors have emerged within every imaginable nook and cranny of marketing. The industry has been trying to map them for years, but it’s quicksand – constantly shifting and expanding.
All of these marketing technology companies are competing for brand dollars, desperate for logos on their homepage, customer success stories, and the chance to land and expand into these giant organizations with massive marketing budgets. Every tech marketing and sales manager wants to sell directly to the brand. It seems like a clear path to success – the brands have the dollars and the power to define what and how things get done. But in reality, because brands rarely invest in the means of production or the specialists and tools required to reach consumers across key touch points, they disseminate dollars and authority to agency partners. Even brands with marketing technology teams buy very little tech directly – there is just too much perceived risk, too many niche offerings, and traditional IT teams have little interest in trying to harness marketing’s fascination with shiny objects.
Tech marketers and salespeople must accept that, in most cases, brands are influencers and not direct buyers.
Agencies are mandated to solve their client’s marketing challenges – big and small – elegantly, effectively, and at reasonable cost. Our model incents keeping every dollar we earn and we are hesitant to pass any of it through to third-party vendors. Yet, we’re also deeply client-centric and service-driven. Long-term client relationships are essential to our success and we keep clients by delivering great work, however it gets done. Additionally, the complexities of digital have put more pressure on agencies to keep up, be more effective and efficient and always be aware of the right tool for the job. Agencies can no longer have all of the expertise or consider building all the tools they need in-house. As a result many agencies are becoming much more open to working with marketing tech vendors.
In this structure, it is agencies that are most in need of great marketing technology solutions.
On one hand, agencies must be constantly exploring, pressure-testing, and building relationships with the best solution providers. We are required to understand emerging trends, be able to apply creative thinking to every new platform, device, or partnership, and execute flawlessly. But beyond the financial incentives to keep our money, there are a slew of challenges keeping agencies from buying more tech.
While there are myriad challenges to selling in to agencies, there are also many opportunities that marketing and sales folks should invest resources and creativity in exploring.
I’ve seen many marketing and sales people pull their hair out when working with agencies. We often engage vendors when we’re still pitching and opportunities with significant investments of time and resources can evaporate into thin air. Agencies tend to need considerable guidance up front and customization through the process, all while pushing hard to lower fees. This is frustrating. But knowing this and building efficiencies internally is half the battle.
For agency folks, believe that marketing tech can make you better at what you do and help you grow revenue, profits, and the breadth of your teams and offerings. But respect the realities of running a lean organization focused on solving challenges in an incredibly dynamic environment. You may need to work with an account person, a support person, and an existing customer to get all the information you need. You might be able to get costs down by sharing your story publicly and within your organization, etc. Get creative and strive to understand quickly what tools and partners can meet your needs.
Regardless, those on all legs of this stool who embrace the realities that we’re all on the same team and that we can make each other better will see success. Let the healing begin.
Image via Shutterstock.