In advertising, the relationship between brands and their media agencies has fundamentally changed. Yet many brands still select agencies based primarily on the lowest fees and most efficient CPMs rather than their ability to drive business growth.

When Did “Performance” Become a Buzzword?

About a decade ago, as programmatic technology gained prominence, we started hearing terms like “performance media” and “performance marketing agency.” This terminology has always seemed oddly redundant. When was marketing ever not about performance?

The issue isn’t the terminology but what we measure. Too often, performance focuses narrowly on media metrics: impressions, clicks, and engagement rather than actual business impact.

To be truly effective and more than just a vendor, media agencies today must understand the full business P&L function of their clients, not just media planning fundamentals.

The Procurement vs. Marketing Dilemma

The agency selection process often creates immediate tension. Procurement departments prioritize cost efficiency, while marketing teams look for those who can add strategic value and prioritize business growth. These competing priorities rarely align during the pitch process.

This raises an important question: When is winning business on price alone actually losing? When brands incentivize their agency partners to cut corners, hire less experienced talent, or reduce strategic thinking time, they’re motivating them to deliver minimum value rather than maximum impact.

A balanced partnership means both sides might feel slightly uncomfortable with the terms, indicating genuine give and take. If one side celebrates a deal while the other feels squeezed, the relationship is unlikely to deliver long-term value, regardless of initial cost savings.

Partners vs. Vendors

True agency partners:

• Evaluate your business holistically, including competitive pressures, pricing strategy, distribution channel dynamics – all the key elements from awareness to product delivery
• Create investment strategies based on audience behaviors and media consumption patterns
• Focus conversations on business outcomes rather than just media metrics
• Show genuine passion, commitment, and investment in your success
• Question assumptions when something isn’t working
• Understand that conversion paths aren’t linear

The difference is striking between hiring services by the hour versus partnering to achieve outcomes.

Strategic Discussions vs. Reporting Cadence

While quarterly business reviews help align high-level strategy, waiting three months between strategic conversations is usually too long. Business conditions change weekly, sometimes daily.

This doesn’t mean all clients need weekly reporting or constant engagement. The key distinction is between tactical reporting and strategic discussion.

When campaigns underperform or market conditions shift rapidly, strategic conversations should happen immediately, regardless of the planned schedule.

The best agencies adapt their engagement model to what the business needs, not what looks most efficient on their staffing plan.

Beyond the Bottom Line

As data privacy changes affect attribution models and measurement becomes increasingly complex, the fundamental truth remains: media investment should drive real business growth, not just media metrics on reports or QBRs.

When selecting agency partners, brands should look beyond the lowest price to find teams who think strategically about their business, align with their goals, and drive meaningful results.

This approach may require paying for expertise and experience, but the return in both business outcomes and partnership quality will consistently outperform cost-focused relationships.

The most successful brand-agency relationships today are built on trust, strategic alignment, and shared business objectives. These qualities simply can’t be procured at the lowest possible price.

How to Structure Your Next Agency RFP

Set Business-Focused Expectations

When preparing your next media agency RFP, consider restructuring it to prioritize strategic partnership over cost efficiency. Begin by clearly articulating your business objectives rather than just media goals.

Share relevant P&L information, competitive challenges, and growth targets to give potential partners context beyond campaign metrics.

This transparency allows agencies to demonstrate how they would approach your business holistically instead of simply responding with tactical capabilities and pricing.

Ask the Right Questions

Include scenario-based questions that reveal strategic thinking. For example, ask how they would respond if a campaign underperformed, what business metrics they’d prioritize beyond media KPIs, or how they’d adapt strategy during market disruptions.

Evaluate with Balance

Evaluate responses based on business acumen, not just media expertise. During presentations, notice which agencies naturally speak about your business challenges versus those focused primarily on media tactics and tools.

Consider including both marketing and procurement teams in the final decision, with equal weight given to strategic value and cost considerations.

Check References Differently

Finally, request references specifically from clients who can speak to the agency’s impact on business outcomes, not just their operational efficiency or media buying power.

By focusing your RFP on finding a true business partner rather than the lowest bidder, you’ll set the foundation for a relationship that delivers genuine business growth rather than just efficient media metrics. This type of relationship structure has proven to withstand time versus those that are strictly media, cost and metrics based.

Let’s Talk

If you’d like new strategic thinking on your business and what you want to achieve, please get in touch. We’re happy to talk about where you’re at, where you want to be, and what we think it will take to get you there.

You can also get a sense for our way of engaging and thinking by listening to our podcast, Contrary to Popular Opinion. We address cutting-edge topics and current industry dynamics that brands, marketers, and agencies are facing today.