Often marketers ask their existing (or potential new) agency how much things cost, and that is one of the hardest questions to answer. What does good creative advertising, design, public relations, social media, interactive marketing cost? We end up in these stand-offs, playing the game of “you first, no you first” and everyone walks away from the table frustrated.

Fact is, good marketing is not cheap. Just like anything else in life, you get what you pay for — and quality has its price. We have the good fortune of working with some incredibly high quality clients whose products are synonymous with the finest in their categories — Tiffany & Co., Brookfield Homes, the Setai San Diego Hotel, The Mark — the list goes on and on. If you would not skrimp when purchasing the best solataire diamond money can buy (yes, it comes in a little blue box) then why would you cheat yourself with low quality marketing?
Most agencies like us price themselves fairly — you can check around and see our fees are all pretty comparable. After all, we are in San Diego and although we’d all love to get away with Manhattan agency pricing, there’s a reason we’re not there. And a reason why we don’t charge those kind of fees.
But here’s the thing I really don’t understand. Since creativity costs money, and good creative requires a decent budget, why ask agencies to produce champagne campaigns on a beer bottle budget?
Now, I think we’re pretty darn good at wringing every last morsel of power from each dollar of our client’s budgets. We painstakingly take into account every opportunity to provide the lowest costs we can, so that these savings can be passed on to the client — resulting in more dollars to spend on their marketing impact. We negotiate with media and vendors to provide fair and reasonable bids, and pass that savings on to our clients.
It’s our job to manage the budgets efficiently and productively, and we excel in this area. Even when costs must be cut, we partner with our clients to figure out how and where to eliminate dollars in a way that still supports the brand efforts most effectively.
In this current economy, we have had a couple of clients tell us of their need to reduce marketing spending. Go figure. Although it’s not fun for either party, what’s been rewarding is our clients’ approach to our partnership with them. They ask for our opinion and participation in the budgeting process, allowing us to help them identify cost cuts that make sense for them and are not knee-jerk, arbitrary measures.
So, if you are finding yourself in the uncomfortable position of cutting marketing budgets, here’s a couple of things to consider as part of your process:
- Use your agency partner as just that — a partner. Have them help you decide the best places to cut. If they are truly the trustworthy and credible resource you have hoped you hired, then they can be trusted to help you decide how to manage a smaller budget. And without self-serving motivations.
- Determine what things in your budget are nice-to-haves, and what are must-haves. Prioritizing your line items based on what will bring you the most sales or revenue is going to help your decision process.
- Consider shifting dollars from broad, far-reaching campaigns to ones that are more directed and targeted. These should allow you to measure results more effectively, and prove up ROI.
- Take it more slowly. Maybe that “big bang” campaign is no longer possible, but you can still use the creative materials and launch on a multi-phased schedule.
- Don’t throw the baby out with the bathwater. Just because the budget may be smaller, it may not be smart to stop programs completely — especially if you have invested dollars in creating programs upfront.
- Don’t compromise quality for quantity. It doesn’t work with cars or clothes, and it won’t work in marketing either.
Creativity DOES cost money. But that money can be spent effectively, efficiently and productively if the client and their agency talks openly and plans together in partnership.
These economic times will change — they always do. But creativity never goes out of style.