Why Does That Tiny Marketing Task Cost A Small Fortune

Ah, the mysterious world of ad agencies, where the air is filled with creativity, MacBooks glisten under soft office lighting, and yes, where your wallet lightens faster than you can say, “Just change the font size!”

I've been in advertising for 12 years and I'd love to pull back the curtain. In fact, that sentiment is one of the big motivations behind forming Winston (plus the disruptive potential of AI).

Let's dive deep into the slightly puzzling ways of traditional ad agencies!

1. The Hourly Illusion

Imagine this: You stroll into Blue Bottle to get a coffee. You think it'll be just a few dollars, right? Now, instead of charging for the final coffee, you get charged for each action the barista takes. Milk frothing, bean grinding, bean pressing... each has its moment (all rounded up to the nearest half-hour of course). Suddenly, your coffee is the same price as a Michelin star dinner.

That’s how some ad agencies play the hourly game. They’re not just charging for the final product but for every little moment that led to its creation!

And, they love to make a buck on the revisions, change requests, etc.

1. "Team Brainstorming" Charges

In the land of ad agencies, it's common for a "team" to brainstorm ideas. That's right, even if you just wanted to choose between two shades of pink, there could be a mini United Nations summit taking place about it. And guess what? Each attendee comes with their own costly barcode.

1. The ‘Specialist’ Involvement

So, you're told a 'specialist' will handle your minuscule change. This elusive figure sounds impressive, but for all you know, they could just be someone with a penchant for using artsy jargon. Sure, they're great at what they do, but do we always need a NASA scientist when we're just trying to launch a paper rocket?

1. Expensive Coffee Breaks

Okay, we're joking here... or are we? Between discussions about your minuscule changes, coffee breaks, chitchats about weekend getaways, and that Instagram scroll, you're likely getting charged for the "working hours" that aren't quite... working.

The "Because We Can" Phenomenon

Some agencies, perched high in their ivory towers, just charge exorbitant rates because, well, they've built a reputation, and they can. Their history of high-profile clients makes them believe they're the unicorns of the industry, and hey, unicorns don’t come cheap!

Net Net:

Many ad agencies do phenomenal work and charge reasonably for the true value they bring. But many others are squeezing out every penny with inflated prices and a short-term mindset.

Next time you're quoted an eye-watering price for a microscopic task, remember this post. Oh, and feel free to give me a ping. I'm serious: [email protected]. I would love to give you a fair third-party perspective, and I will REFUSE to pitch for the work. I just want to be a helping hand. That's a promise.

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