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ANA Confirms Overwhelming Lack of Transparency Between Agencies & Advertisers, Crippling Performance & Gouging Budgets

Written by: Cheryl Morris, VP Marketing

Yesterday the Association of National Advertisers (ANA) released the results of a much anticipated investigative report on the lack of transparency and misalignment inherent between advertisers and their media buying agencies. The conclusion of the report on the agency-advertiser relationship:

“Non-transparent business practices were found to be pervasive”

Crippling Profitability

This statement alone should make every single marketing executive currently relying on an agency holding company for media buying to recoil, demand answers, and in some instances fire their agency on the spot. The business repercussions of these practices are not only curtailed campaign performance and lost customers that cripple the profitability and outcomes of a marketing department; they are of fiduciary negligence that impacts the profitability of the company as a whole.

In other words, it’s not just the marketing executives who should be placing pressure on their agencies and developing a strategy to circumvent the inherent misalignment highlighted in the ANA’s report; company Boards should be demanding greater responsibility for such a critical piece of their company’s financial statements and levers of growth.

Backing up the aforementioned conclusion are 62-pages of deeply concerning findings and evidence regarding the misleading, misaligned and misinformed relationship between end advertisers and their media buying agencies.  We encourage every marketer – especially those in executive roles, who need to maintain competitive advantage and are on the hook for achieving business outcomes — to read the report first hand here.

Pervasive, But Not New

As pervasive as the findings are outlined in this report, they are also not new. They are one of many reasons why we see the worlds largest and most sophisticated marketing executives increasingly building their own in-house media buying competencies and teams. These executives are true agents of change for their businesses. They are challenging the status quo and ensuring they have a competitive advantage of reliable, consistent scale in obtaining profitable acquisition and remarketing to grow their customer base and ultimately revenues.

We’ve had countless conversations with leading marketers on this topic since our inception in 2010.  We have seen increasing demand for software solutions to bypass the agencies and meet in-house marketer needs.  It’s why we announced back in 2014 our dedication to building software and strategic support to meet the unique needs of the in-house advertiser.

We’ve witnessed first hand this shift to in-house begin with early adopters in fast-moving industries such as ecommerce, gaming and lead generation – and are now witnessing in-house advertising becoming a central topic and lever of competitive advantage and strategic growth in additional industries ranging from CPG to financial services.

Marketers Deserve Better

Marketers deserve more, and deserve better from their partners than what is outlined in this ANA report. The best of these executives have already recognized this, and are agents of change for the businesses in building in-house teams and competencies.

We believe in the in-house advertiser here at Nanigans. We are proud of our commitment and history of doing what’s in their best interest. We are proud to be at the center of releasing their reliance on opaque agency and ad network relationships.

Wherever you are along the curve to in-house – from beginning to make the business case internally based on this damning report to moving to scale a team from one to multiple channels – we welcome the opportunity to help you take control of your media budgets.

Long Live The In-House Advertiser!

Free eBook: The Benefits of In-House Advertising

Find out why data-driven online companies are making the transition in Marketing Moneyball: Why In-House Advertising Changes Everything.

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