How to evaluate the performance of your paid media agency partner?

So, you are a brand/agency owner looking for the right paid media agency partner or have already partnered with one for your firm’s paid media requirements. 

If you fall in the former category, you might want to read our blog, “11 Factors To Consider When Choosing An Offshore Digital Marketing Company.” 

However, if you are in the latter category and have an existing paid media partner whose performance you seek to evaluate, this is the right place to be!

With twelve-plus years of experience and expertise, we understand the importance of reviewing the performance of your existing PPC partner to get the maximum ROI on your paid media campaigns. Therefore, we have compiled a checklist that you can use to review their efficacy. 

In today’s rendezvous with our paid media experts, Amardip Raijada and Karan Doshi, we have compiled their honest and unbiased opinions on the following parameters:

• Delivering on the Decided Goals and Objectives
• Relevant Key Performance Indicators (KPIs)
• Data Analysis and Reporting
• Effective Budget Management
• Seamless Communication and Collaboration
• Performance Review Process
• Signs you should consider changing your paid media agency partner

Towards the end of this piece, you will understand the parameters on which you should evaluate the performance of your paid media partner. You will also know the red flags to watch out for, which are clear indicators of jumping ship. 

Are they delivering on the decided goals and objectives?

Clarity on your paid media goals and objectives and the ability to communicate them effectively to your paid media partner can set the right cadence for your outsourcing association. 

Evaluating the performance of a paid media agency requires you to consistently monitor whether the agency is effectively meeting the goals and objectives set for the campaigns as per the scope of work. 

Your outsourcing partner should be able to understand and deliver on those holistic goals.

Are they collecting, analyzing data and sharing reports as planned?

Evaluating the performance of your paid media agency involves a thorough analysis of data collected from campaigns and the generation of comprehensive reports. 

Ensure that your paid media agency partner collects data from the relevant channels and platforms where your campaigns are running, such as Google Ads, Facebook Ads, Twitter Ads, LinkedIn Ads, etc. 

Your partner agency should implement proper tracking mechanisms, such as conversion tracking pixels or tags, to capture important metrics like clicks, impressions, conversions, and other key performance indicators (KPIs) specific to your goals.

They should also be able to leverage the full capabilities of relevant analytic platforms, such as Google Analytics and Facebook Ads Manager, to gather insights into audience behavior, campaign performance, and ROI.

Also, ensure they use advanced features such as audience segmentation, A/B testing, and multi-channel attribution to optimize campaigns and maximize results.

Are they effectively managing your budget?

Suppose you are a brand/agency owner with USD 1000 (agreed upon in the scope of work) to spend per month on paid media endeavors to achieve more leads, conversions, or even impressions (in case you are a new brand owner trying to grab more eyeballs!). If your offshoring partner either exceeds the monthly budget, does not utilize it completely, or even spends it in the wrong places, your end goals might bear the brunt of it!

If they spend USD 1200 or USD 500 or run your ads across locations that might not be your target market, your paid advertising goals will take a hit. 
If you’d like to know how we at Mavlers ensure optimal utilization of your monthly media spend, you may read our blog titled, “How does Mavlers ensure that my paid media budget is well-spent?”

Is the communication and collaboration seamless?

The three C’s of a successful offshore endeavor also apply here ~ Clarity, communication, and collaboration. 

When you decide on the scope of work with your paid media agency partner, you should have a clear understanding of the frequency of communication, the point of contact, and the frequency of feedback. 

Here’s what you can do to judge the performance of your paid media agency partner on these grounds;

• Assess the clarity and accessibility of communication channels established by the paid media agency. This could include email, phone calls, project management tools (e.g., Slack, Asana), or any other preferred method of communication.
• Keep track of whether meetings are scheduled regularly and held consistently. 
• Consider the agenda and format of these meetings. Are they focused and productive? Do they provide opportunities for strategic discussions, brainstorming sessions, and problem-solving?
• Evaluate how the paid media agency responds to feedback provided by your team. Are they open to feedback, and are they willing to incorporate it into their strategies and tactics?
• Check the agency’s flexibility and adaptability in responding to a change in your demands or evolving business needs. This could include changes in campaign objectives, target audience, budget allocations, or market conditions.

Is there a performance review process in place?

To gain a deeper understanding of your paid media agency’s performance, set up regular review sessions (weekly, monthly, quarterly) to consistently monitor it and allow for timely adjustments and optimizations.

Once you have defined KPIs, you can assess whether the paid media agency is effectively tracking and reporting on these KPIs. 

Identify areas where performance can be optimized or enhanced, such as targeting parameters, ad creative, messaging, or budget allocation.

Collaborate with the paid media agency to develop actionable recommendations and strategies for improvement.

Signs you should consider changing your paid media agency partner

When asked about the proverbial red flags that you shouldn’t overlook in your association with a paid media agency, our subject matter expert, Karan Doshi, had the following insights to share;

• Performance-based indicators – If the agency is unable to deliver on the decided KPIs, chasing vanity metrics(like for E-commerce clients, they want more ROI or revenue, but the agency is chasing increasing paid traffic), not defining the right parameters for the campaign’s success
• Management inefficiencies – If the agency is being unresponsive, showing communication gaps, not suggesting new strategies, and not sharing detailed analyses and insights in the performance reports.
• No recommendations—If the agency is not suggesting the right Paid Channel mix, should it be Google? Or Google + Meta, etc.

The Road Ahead

Now that you are familiar with the performance metrics you should use to judge your current paid media agency partner, you might want to acquaint yourself with possible PPC offshore failures to stay forewarned, you might want to acquaint yourself with possible PPC offshore failures. 

Read our blog “When Does Outsourcing PPC To An Agency Fail?” to stay ahead of the curve!