Automakers look for cost-savings from agencies -- and just about everyone else

Yes. It's been a long time since we've posted. We have good reason. We expanded the agency this summer by bringing on a new partner. Jody Jacobs joined us in August. She provides the global experience we've been seeking, as well as high-level, strategic marketing program development. Learn more about Jody here.

But the real reason for my post....just read the blurb in the Wall Street Journal about Automakers seeking to cut costs by rethinking their long-term ad agency agreements.

Check out the article, if you're so inclined. (Automakers look for cost-savings from agencies)

As the owner of an agency with a business-to-business marketing focus, I think the auto makers are right on. A nod of respect to large, established agencies, but for many marketers, especially those in the industrial or manufacturing sectors, paying for the overhead associated with large firms isn't necessarily feasible these days.

With the exception of a few behemouths who can win business based on the creatively outstanding work they've delivered, agencies should rethink the way they are structuring their costs and serving their clients.

Marketers want the most bang for their buck. They aren't as likely to get this from large firms with established infrastructures. Agencies that are thriving today are those that are seeking partnerships with firms that offer complementary services so they can help clients without burdening them with overhead.

Agencies that are thriving today are those that are helping clients use their budgets as wisely as possible. Maybe that means replacing a standard print campaign with online activities -- a reduction in fees for the agency, but a potential boom for the marketer.

It's not just the auto industry that should consider an agency review. Medium and small manufacturers may want to consider it as well. The recession will subside. Some sources predict a rebound in 2010. Manufacturers who are smart about their marketing (among other things) will be positioned not just for recovery but for growth.

An agency -- and marketing audit -- can be a first step in securing market leadership.

As a marketer, make sure you ARE getting the biggest bang for your buck. Conduct an audit. Ask questions of your current agency regarding the SMARTEST options for your marketing investment. Think outside the box with regard to resources (ie. a small firm may still be a highly qualified option that can provide great services). And if you haven't already done so, craft a strategic marketing program for 2010. The road to success begins with a map.

More later.