Why The Traditional Advertising Agency Model Is Broken
This is a guest post by Ad Hustler
Not long ago “Traditional Advertising Agencies” ruled the advertising landscape. Companies would hire these traditional agencies as their “agencies of record” and the agency would put together their media plans, do their creative work and negotiate their media buys. Advertising agencies would do all of this for a 15% commission of the monthly media buys. To give you insight as to how traditional advertising agencies make money here is a little tidbit of info.
Most traditional media sources have 2 prices. The net price and the gross price. Traditional media is supposed to give advertising agencies the net price and advertisers asking for pricing directly from the media source are supposed to be given the gross price. The difference between net and gross pricing is 15% and that is the agency profit margin.
The problem with this model is that the ad agency and the advertiser do not have their interests aligned. In order for the agency to make more profit, they have to push more advertising on their client. They have to encourage the client to spend more whether or not that advertising is actually effective. If they don’t encourage their client to spend more money, they aren’t acting in their own self interest as an ad agency.
Affiliate Networks & Affiliate marketers already see the future. The reason that the model works so well and is so efficient is that everyone’s interests are aligned.
Advertisers make more money when Affiliate Networks make more money.
Affiliate Networks make more money when Affiliates make more money.
Affiliates make more money when everyone else makes more money.
No 1 party makes more money without all of the others benefiting as well. The model works because interests are aligned.
A Matter of Image Building in the Mind of Customer
This is a guest post by Ben Johnson. Ben is in charge of Marketing & Business Development with LogoInn
—————————————
In this day and age, one of the most crucial tasks for any business is to stand-out among the immense market competition. Therefore, businesses have to make extra efforts in order to create a unique brand image in the mind of prospective customer.
When we talk about image building, a great logo can help business to create a positive image, while a poorly designed logo can bring a negative impression about a company and its product/service. For many companies, a logo is the only identifiable mark a potential customer may ever see, so it needs to be memorable, describable, and easily recognizable.
The overall design of a company’s logo is crucial to its success. There are hundreds of business logos that have been overlooked or quickly turned away due to nothing more than appearance. When a logo lack in proper designing, it can actually lose a potential customer. When an individual first time sees your business logo that is poorly designed, he is not likely to do a business with you. This is especially true if the logo fails to portray the right image and purpose of a business to the prospect. Hence, as a business owner, be sure to put some time and effort into overall logo design.
Getting a suitable logo may be a daunting task, but it is this crucial initial investment that will ensure your company’s success in a long-run. You should start off by brainstorming about the image your company represents, or the message you want to convey to the public. This will help you to develop a perfect branding tool that will create a strong brand positioning in the mind of a customer.
