Investment vs returns: What ad agencies should know during Covid2019

The growth of advertising has been consistent

Advertising and marketing agencies have witnessed a different horizon during the Covid2019 pandemic, especially the ones serving digitally. Several brands have diverted their marketing spends towards digital mediums, while several others still believe in traditional advertising as the sole solution. Regardless of what experts and marketers think, the growth of advertising has been consistent, and with the markets becoming increasingly competitive, the ad world is surely going to grow unstoppably. 

An ad agency largely invests in the following formats, and let’s see how they can anticipate returns in all of these domains:

●       Advertising spends for clients

Several ad agencies invest in the advertising spends of their clients and get paid for it in return, on a frequent interval. Some agencies, in this process, also charge an ad management fee which is usually a percentage of the total advertising budget finalised upon mutual agreement. Due to the skyrocketing digital traffic during Covid2019 times, the average cost of advertising for sales/impressions decreased significantly which eventually led to a better return of investment for both the agency and the brand.

●       Good content creation

We have heard numerous times that ‘content is the king,’ and true to its meaning, creating the right kind of content is really important for agencies and brands alike. Once you invest rightly into creating relevant and impactful content, it is sure to give you returns which go way beyond just sales conversion.

There are several success stories of how an impactful content has created the right kind of brand recall and visibility for several advertisers across the globe.

●       Efficient teams

Covid2019 brought in difficult times for businesses across the globe. With the buying cycle at a halt, cash flow decreased and it became increasingly difficult to pay the salaries and remuneration. In such a scenario, agencies that have continued to invest in their efficient teams will flourish in the longer run.

Such an effort not only adds up more credibility but also develops a sense of trust for the agency among the team members. Investing in the right team is a must and returns are sure to come.

●       Client relationships

Due to the economic slowdown, some brands had to stop agency services and keep the work on hold for a certain period of time which varied from a month to may be a few months. While one of the perspectives says that you should avoid working when not being paid for it, on the other hand, in such a scenario, several agencies choose to stand by their clients and support them in times of crisis. This strengthens their bond with their clients and helps in developing a connection for a lifetime. Such investments in building client relationships always pay off in the longer run.

(The writer is co-founder and CEO of Gemius. The views expressed are her own and may not subscribe to them)

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