Investments in infrastructure
Posted: Sun Feb 02, 2025 5:54 am
Partnerships and cooperations are common in the advertising industry. If they are based on long-term contracts, whether through counter-deals, quotas, commissions or reseller conditions, they endanger the consultant's independence. For example, if a consultant is both a licensee and a reseller of a CRM tool (a common model), he is unlikely to recommend another CRM to his customers. And if he can get his own CRM for free if he wins a certain number of new customers, then his germany rcs data independence is completely gone. How else will he achieve his KPIs?
Investments in your own infrastructure are a double-edged sword. On the one hand, the agency has to use fewer external services and pass the margin on to others, but on the other hand, it ties up the consultancy because the investment has to be amortized. If an agency invests in its own programmatic advertising infrastructure, for example, it incurs considerable costs in technology and know-how. In the following years, the agency will try to process every order via this infrastructure in order to amortize the investment as quickly as possible. The result: the consultancy is based on the constraints and not on the needs of the customer.
This makes it clear that advice must always be examined from the perspective of self-interest. This is because this means that customer needs and the efficient achievement of customer goals are no longer the focus of the advisory work. It is therefore all the more important for clients to take a close look behind the scenes of the agency and not to be seduced by the agency's sales skills before placing orders. Because one thing is certain: everyone in the advertising industry can sell.
Investments in your own infrastructure are a double-edged sword. On the one hand, the agency has to use fewer external services and pass the margin on to others, but on the other hand, it ties up the consultancy because the investment has to be amortized. If an agency invests in its own programmatic advertising infrastructure, for example, it incurs considerable costs in technology and know-how. In the following years, the agency will try to process every order via this infrastructure in order to amortize the investment as quickly as possible. The result: the consultancy is based on the constraints and not on the needs of the customer.
This makes it clear that advice must always be examined from the perspective of self-interest. This is because this means that customer needs and the efficient achievement of customer goals are no longer the focus of the advisory work. It is therefore all the more important for clients to take a close look behind the scenes of the agency and not to be seduced by the agency's sales skills before placing orders. Because one thing is certain: everyone in the advertising industry can sell.