
The Dark Side of Advertising Campaigns
The advertising and media industry has taken a hit from the pandemic. But it has been delicate for numerous years. Global advertising spend is expected to decline by 9.1% by 2021.
By
CIO Applications Europe | Friday, March 12, 2021

The advertising and media industry has taken a hit from the pandemic. But it has been delicate for numerous years. Global advertising spend is expected to decline by 9.1% by 2021.
Fremont, CA: Advertising agencies are challenged with more diminutive customer concentration spans, falling budgets, an ever-evolving media channel dynamic, and the pressure to produce quicker than ever before.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
This has produced problems in the relationships, advertising agencies have with their customers. An implicit problem in this relationship is the opportunistic behaviour of both parties. Beneath the dazzling award functions, clever campaigns by our favorite fast food joints, and jumping on the latest Instagram trend are deceitful practices.
A study reveals that advertising agencies and clients act opportunistically both before and after the signing of a deal. Pre-contract, advertising agencies over-promise and delay information. Often, the senior managers who pitch to the buyer are encouraged to work on the actual campaign, yet junior employees end up managing it post-contract.
An especially bizarre feature of advertising agencies is their prioritization of winning awards, rather than creating what is best for the client.
Consumers act opportunistically pre-contract by misusing advertising agencies and withholding information. They might agree to pay the advertising agency for 80 hours of work, yet intend to subtly claim the advertising agencies for 10 more hours of work during the process without an additional fee. Some consumers steal the creative concepts that advertising agencies have offered them.
Check Out: Top Ad Management Solution Companies
Advertising agencies overcharge by distorting their actual hours working on the campaign. They also trick their consumer to assume that the work undertaken is exhausting. This type of behavior was widespread with the arrival of digital marketing. Customers overcompensating for setting up websites or Facebook campaigns because it was unknown territory to them.
Some agencies oversight smaller customer work to meet the requirements of larger customers. Other agencies formulate separate entities, to work with competing brands.
Post-contract, consumers primarily use their powerful position to mistreat advertising companies. This includes calling the advertising agency’s key account manager to ask for work.
The opportunistic attitude in such relationships will remain. While there are genuinely altruistic people out there, opportunism is ingrained in human behavior. Convenient working relationships can be nurtured by two-way communication, responsibility from both parties, being clear and practical when charging and paying, representing loyalty, and accommodating changes in the situation as allies.
More in News
Weekly Brief
I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from CIO Applications Europe
THANK YOU FOR SUBSCRIBING


