Most ad agency teams understand client deliveries. Not so much, how to ensure agency margins.

6 min Read

Running an ad agency is a tricky business. Teams need to be motivated to deliver outcomes to clients – while staying within tight budgets approved by clients. But at the same time, every ad agency must ensure that they meet their target margins while going through the dynamic advertising operations every day. After all, any ad agency is a running business concern!

To ensure agency margins, all the key team members must be on the same page commercially along with the management. What do we mean by that?

Auto Track Agency Margins

As your ad agency grows in volumes, clearly, there’s a need to auto track agency margins through the hectic activities of each day. 

And it may not be humanly possible for the same team to focus on client deliveries as well as agency margins. What is required is a central system for keeping the entire agency continuously aware of the margins as each client’s campaigns & jobs are executed. To be precise, we call this a central billing system of record. 

Now many agencies refuse to accept a central system, saying that spreadsheets are adequate for operations. Some wrongly rely on their accounting software to track margins – but that is at the time of billing – usually too late corrective action. While a few  go to the other extreme of building & maintaining their internal systems!

Agent of Change

The agency’s scope of deliveries goes beyond traditional advertising & marketing services, to deliver marketing outcomes. No longer acting as mere selling agents or delivery partners but contributing directly to brand revenue. With a new mix of technology, projects, & marketing services to promise secondary or even primary outcomes (sales) for their clients. 

Besides acting as reselling merchants, agencies will execute (are already executing) end-to-end tech projects. Going forward, they will offer to design & implement & technology solutions with fees based partially on outcomes. 

These trends are not confined to the bigger agencies. Mid-sized agencies will manage to deliver with outsourced expertise. And these trends are confirmed because some of the big 5 consultants (not ad agencies) have already moved into the area of marketing services to help their clients build and manage customer experiences, commerce, and marketing (to paraphrase one of the big 5 consultant’s marketing services.)

Put simply,  your agency is no longer just an agency – it is an agent of change for marketers.

Mediaware has been in the forefront of commercial control systems for ad agencies for many decades. The more complex the business scenario & models, the greater the need to define & ensure target margins, accurate & prompt central billing, & general commercial discipline. So we continue to improvise and add value to our clients.

Here are the available options: 

Mediaware has been in the forefront of commercial control systems for ad agencies for many decades. As the business scenario & models become more complex, the need to ensure target margins becomes acute. So we continue to improvise and add value to our clients.

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