Why Advertising Agencies Lose Clients

When it comes to selecting an advertising agency, a company must select one that they believe will best exemplify their company and products or services. The job of the advertising agency is to assist in the development, preparation, and execution of the company's promotions (Belch, Belch, 2001, pg. 79). The agency needs to fit in well with the beliefs and needs of the company and display that through advertising. As a result it can be a difficult process to find a fitting advertising agency, with some companies going through many different advertising agencies over time.

There are many different reasons why a company would leave their current ad agency. One of these that is centralized around the agency is poor performance (Belch, 2001, pg. 95). A client will likely leave if they feel that the agency is not performing up to the company's standards and the client is unsatisfied with the level of quality that is being provided for them.
Additionally, a client will leave the agency if they experience a decline in sales. Advertising is often seen to be a contributing factor to this decline and companies believe that a different agency can bring new ideas and refresh the brand to bring sales back up.
The reason for a company is not always solely the advertising agencies fault. Many times the company and the agency simply outgrow each other and do not seem to fit together well any more. This can be based on changes in personnel, conflicting personalities and interests, changing marketing strategies and policies. Also as a company grows, they can outgrow their advertising agency and require a larger one to handle their advertising.

Heineken is a well-known lager brand that has switched advertising agencies many times in recent history. From 2006 to 20111, Heineken has switched advertising agencies five times (Schultz, 2011). For being such a large company, Heineken has really not clearly established themselves with a strong positioning. The company is trying to create a global brand image and felt that their current advertising agency did not accomplish that. In attempt to choose the right U.S. advertising agency that would integrate well with their global advertising, Heineken challenged two agencies to put forth advertising efforts. This initiative will hopefully increase their sales and allow for a united advertising campaign.





Belch, G. E., & Belch, M. A. (2001). Advertising and promotion: an integrated marketing        communications perspective (5th ed.). Boston, Mass.: Irwin/McGraw-Hill.
Schultz, E.J. (2011). Heineken Switching U.S. Agencies as It Pursues Global Effort. Ad Age. Retrieved 21 January, 2011 fromhttp://adage.com/article/agency-news/heineken-switching-u-s-agencies-pursues-global-effort/226834/