Pringles Asks Agency to Prove Ads Work

August 12, 2009

Pringles Asks Agency to Prove Ads Work

It had to be a tough pill for ad agency Grey Global to swallow. No more billable hours. Instead the proof better be in the pudding… potato pudding.

According to Bloomberg.com: “Instead of being paid for hours clocked devising promotions for rice potato chips or crispy cracker sticks, Grey earns an undisclosed fee upfront and add-on payments for sales and market share gains.”

It also sounds like P&G and Coca Cola want to do something similar moving forward. Is this good or bad for the Ad industry? My answer: Yes.

The good news? It forces advertising agencies to develop campaigns that generate return on investment. The bad news? Cat fights. Lots of them.

Before, marketers held the final say on what went out the door. It was their brand and money on the line so they held all the cards. But what happens now? If agencies are just as financially responsible for the success of a campaign then who should make the final decision? Being part of a few pitches in my career it’s safe to say that the #1 idea of the agency almost never aligns with the #1 idea preferred by the marketing people. Murphy’s Law perhaps?

In the end it’s a good thing if it forces marketing and agency people to be more accountable while working together to come with a communications that illicit a response.

Recent Work From Around the World