An online ‘Ad Cost Checker’ that has already been offered in several regions around the world is being offered to Canadian marketers via The Argedia Group to help benchmark the price of working with agencies.
Developed by a management consulting firm called TrinityP3 based in the Asia Pacific, the digital calculator culls agency rates and invites users to enter fees they’re seeing into the database using an Excel file.
In return for contributing to the database, users get a report that compares what they’re being quoted with rates from similar firms. The range of agencies and fees covered by the tool includes more than traditional ad agencies and creative services firms, extending to digital agencies and other third-party brand partners.
“I don’t know anybody who’s not looking for more transparency in marketing costs,” Stephan Argent, the firm’s president, told Marketing. “The thing that is really important here is that we don’t lose sight of what constitutes value. Even if somebody checks rates and finds out they’re slightly above the median, that doesn’t mean (their agency) is not providing the best possible value.”
Though TrinityP3 has offered the Ad Cost Checker either directly or via other partners in places like Australia, Hong Kong and London, Argent said Canadian marketers should be assured they’ll get local and relevant information.
“We’re not aggregating worldwide data to get Canadian rates. That wouldn’t make sense,” he said.
Though the Ad Cost Checker will not be the only thing that determines whether a brand works with a particular agency, Argent said it may help address common complaints from marketers who believe they are paying too much — even if they’re not sure what kind of fee would be more acceptable.
While online calculators and similar tools have been around for a while, Argent points out that there is a “network effect” in making them available. In other words, the more the Ad Cost Checker is used, the more data it will have to provide an accurate, up-to-date benchmark compared to other static tools based on surveys and the like.
Of course, brands are not only working with ad agencies but IT companies, content marketing firms and a range of other organizations. Argent said the tool is sophisticated enough to evolve with clients’ needs.
“It’s not just the additional companies – there are additional titles out there to consider,” he said. “A few years ago we didn’t have a chief digital officer, or a social strategist. As those titles become more prevalent, we will then add those sorts of disciplines in. It really comes down to demand.”
In a release, TrinityP3 founder and managing director Darren Woolley said the firm was “delighted we can now support the Canadian market.”
