The Unfiltered Truth About Marketing Agencies: Why Most Are Terrible And How to Find the Few Worth Hiring
Apr 18, 2025
auto_awesome
Kevin Simonson, the CEO of AdMixed and seasoned ad expert, shares his candid insights into the world of marketing agencies. He discusses the chaos of hiring agencies, revealing how to spot the good ones and set realistic expectations. Kevin opens up about his unusual journey, including his stories from scaling DTC brands like Vuori. AI's transformative role in advertising also gets a spotlight, along with effective strategies for navigating agency relationships and the pros and cons of in-house versus freelance talent.
Many marketing agencies underperform, making it crucial for store owners to evaluate client retention rates and employee satisfaction before hiring.
Clear and consistent communication with agencies enhances alignment on goals, ensuring effective marketing strategies that adapt to evolving business conditions.
Utilizing incrementality testing helps businesses measure the true impact of their marketing efforts, distinguishing organic growth from campaign-driven sales.
Deep dives
Challenges in Finding Quality Marketing Agencies
Many store owners face significant difficulties when trying to find effective marketing agencies to assist with their advertising needs. There are numerous agencies available, but the overwhelming consensus is that a majority perform poorly, leading to frustration among business owners. It's highlighted that with over 20,000 marketing agencies operating in the U.S., statistical averages indicate that at least half are below par in terms of service quality. Consequently, to help identify the right agency, store owners are urged to focus on key performance indicators such as client retention rates and employee satisfaction within the agency.
Maximizing Agency Effectiveness
To get the most out of an agency partnership, clear and consistent communication is essential. Store owners should engage in regular discussions that outline what the agency has accomplished and the ensuing results, along with actionable plans moving forward. Understanding the agency's strategies and the rationale behind them can improve alignment and effectiveness in achieving business goals. Additionally, continually sharing relevant updates about the store itself can ensure that the agency remains responsive to changing business conditions and market dynamics.
Creative Strategies for Competitive Advantage
Creativity remains a vital component for driving customer engagement and conversion in marketing campaigns. Agencies are encouraged to leverage diverse creative concepts such as 'us versus them' ads to attract consumers' attention and drive traffic. Tracking the performance of different ad types can help identify which concepts yield the best results and adapt marketing strategies accordingly. The integration of platforms that provide automated insights into ad performance can streamline this process, ensuring more targeted and effective advertising efforts.
The Importance of Incrementality Testing
Incrementality testing is critical for assessing the true effectiveness of marketing campaigns, particularly when traditional growth methods yield diminishing returns. This involves conducting holdout tests to measure how much sales can be attributed directly to ad exposure, thereby distinguishing actual growth from organic trends. By using tools such as incrementality reports from marketing platforms, businesses can better understand the impact of their marketing spend. Implementing these insights allows agencies to refine their strategies and focus on high-impact initiatives.
Choosing Between In-House and Agency Support
Determining whether to engage an agency or build an in-house marketing team depends on a company's specific needs and growth stage. For smaller brands, leveraging fractional talent may be a more cost-effective way to access expertise without the overhead of a full-time hire. Agencies generally excel in access to broader insights and experience across various industries, which can be invaluable. However, as a brand grows, integrating an in-house team alongside agency support can provide the best of both worlds, maximizing efficiency and agility in marketing efforts.
Do you ever feel like hiring a marketing agency is more hassle than help? You’re not alone - agencies are a hot topic in the ECF community, and not always in a good way. In this episode, I sit down with Kevin Simonson, longtime agency founder and ad expert, to talk candidly about what makes agencies so tricky, how to spot the good ones, and what eCommerce owners can do to get the most out of these relationships.
Listen in as we discuss Kevin’s wild background (you won’t believe the stories behind his “Two Truths and a Lie”), his experience scaling top-tier DTC brands like Vuori, and his honest thoughts on how agency fee structures should work. We also cover how to vet an agency, why most are bad, how to set expectations, and how AI is radically transforming the paid ad game behind the scenes.
