Are you confident your current ad agency or in-house marketing team is maximizing the efficiency of your ad dollars on Facebook, Twitter and Google? If you’re like most companies we speak with, you’re convinced you can do better. Challenge your current agency or in-house team to a bakeoff with at least one other organization and you’ll almost always walk away with a more efficient ad campaign. At the very least, you’ll validate the effectiveness of your performance and walk away with a sanity check.
What is a bakeoff?
A bakeoff is a competition between two or more agencies and/or your in-house marketing team. The competition can be a “winner takes all” scenario where the winner of the bakeoff secures the advertiser’s business, or you can allocate a percentage of your budget to the winning agency to keep the competition and learnings for your internal team.
How is a winner declared?
Prior to the competition, the advertiser will provide a set of guidelines (generally cost, quality and volume targets at a minimum), and a time period for the bakeoff (generally 60-90 days). At the end of the bakeoff, the organization with the highest return on ad spend is declared the winner.
Measuring the efficiency of competitors in the bakeoff
Most advertisers will look at multiple metrics when declaring a bakeoff winner. For instance, costs generally increase with scale for performance marketers, so it’s possible for an agency to show a low cost-per-action on low volume, but this low cost-per-action may not hold at scale. The advertiser would want to make sure scale is considered in the efficiency equation. Many advertisers will also give more weight to recent data. For instance, if an agency has a big win on day 50 of a 60 day bakeoff, it is possible the agency will win the last 10 days of the bakeoff after losing the first 50. In addition to advertising metrics, the agency fees will also need to be considered when declaring a winner.
Create a level playing field
An agency will generally win with a combination of better ad creative and better bidding techniques. It’s important to create a level playing field for the agencies while also shielding them from one another’s creative processes. For instance, if you have an ad that performs well (prior to starting the bakeoff), provide the same ad to both agencies and let them each iterate from there without sharing subsequent ads. Do not share any additional progress or wins between agencies (ad creative, bid techniques, etc.) once the bakeoff begins.
What happens after the winner is declared?
After a winner is declared, the advertiser should put the winning agency in the best position to succeed. This means sharing learnings from the other organization(s) that participated in the bakeoff as well as providing any additional information that may have been initially withheld to create a level playing field.
The advertiser almost always wins at the end of a bakeoff
The advertiser will almost always walk away a winner in the bakeoff. If a new agency comes in and beats the performance of your existing agency or in-house marketing team, then an advertiser’s performance will immediately improve. If the existing agency is declared the winner, the advertiser will gain the peace of mind in knowing their agency is providing efficient results. And if the existing agency wins, it’s likely they were inspired to work harder and think differently as they fought to retain your business, causing them to gain efficiencies during the bakeoff period.
Take the ConsumerAcquisition Bakeoff Challenge!
- We’re challenging your existing agency or in-house team to a 60-day bakeoff (Facebook, Google and/or Twitter traffic)
- We charge a flat fee of $15K for a 60-day bakeoff ($7,500 per month) in addition to media fees
- For the bakeoff period, we use our own ad accounts (Facebook, Google, etc) to protect intellectual property, and you prepay media fees
- If we win the bakeoff and enter a contract extension, we expose our advertising methods with full transparency (including all intellectual property)
- We will pre-negotiate an exclusive 180 day extension that’s triggered upon winning the bakeoff (on day 60 or sooner if the winner is declared early)
- What do you have to lose?
You can download our free white paper “100K Facebook Ads Tested: Here’s What Works!” and review our recent Client Testimonials.