Why Work with Agencies – Pros and Cons

The advertising industry in Germany is huge, with over €37 billion invested in 2023. Despite being a top five digital market globally, Germany still heavily relies on traditional media, with digital advertising making up only 13% of the market in 2021. This reliance on traditional media presents unique challenges for businesses trying to integrate and optimize their marketing efforts.

Partnering with one of Germany’s 28,000 advertising agencies could be the key to driving real results. We looked at some data and interviewed our experts to uncover the real benefits of agency collaborations. Here’s what you need to know.

Common Business Struggles

  1. Fragmented Media Planning: The sheer complexity of managing multiple marketing channels can overwhelm businesses. According to GTAI, “The proliferation of marketing channels available today means that companies are often unsure about which channels to choose to achieve their marketing goals.” This results in inconsistent branding and messaging.
  2. Data Mismanagement: Without proper insights, tailoring strategies to specific audiences becomes a guessing game.
  3. Inefficiency: Coordinating multiple agencies often leads to inconsistent branding and high coordination efforts.
  4. Talent Shortages: Finding specialized talent is a significant challenge, with only 5% of respondents in a McKinsey survey stating their organizations have the necessary capabilities. This shortage makes it harder for companies to develop and execute effective marketing strategies in-house.

The Agency Advantage

Leveraging Specialized Expertise

According to Statista, 29% of EU businesses cite difficulty in finding employees with the necessary skills as their biggest problem. Agencies bring advanced knowledge and innovative solutions to the table. This specialized expertise often surpasses what in-house teams can offer, providing strategic insights and cutting-edge tools that optimize campaign performance.

Agility and Personalization

Speed and responsiveness are crucial. Agencies excel at rapid test-and-learn cycles, ensuring your marketing stays ahead of consumer behavior shifts. With dedicated teams and tools, agencies provide high responsiveness and tailored service, crucial for adapting to market changes.


"Speed and responsiveness are essential in a shifting economic climate. Agencies offer focused attention, with each client receiving a dedicated team."
Andreas Peltret

Reducing Advertising Rates

Agencies can secure the best pricing through direct deals with sales houses, ensuring full transparency and no kickbacks. Their goal is to maximize results within your set budget, striving to do more with your resources.

Tools and Trends Monitoring

The influx of data is a significant challenge for many businesses. “91% of business leaders say the growing number of data sources has limited the success of their organizations, and 73% admit their lack of trust in data has stopped them from making any decision at all,” (Oracle). Agencies help centralize data and provide actionable insights, simplifying the reporting process and enhancing decision-making.

Solving the Decision Dilemma, Oracle 2023

Managing Digital and Traditional Media

Given Germany’s unique landscape, which relies heavily on traditional media but is slowly shifting to digital, agencies can manage and report on all campaigns. This simplifies the media buying process by providing all services under one roof, ensuring integrated campaigns and tailored messaging for success across all channels.

“One-Stop Shop: our agency manages and reports on all campaigns, simplifying the media buying process by providing all services under one roof.”
Eric Vissers
VP of Marketing

Cons of Working with Agencies

  1. Cost: Hiring an agency can be more expensive than managing in-house teams, especially for smaller businesses with limited budgets.
  2. Less Control: You might feel less in control of your campaigns, as agencies handle most of the strategic and operational decisions.
  3. Communication Barriers: There can be communication challenges if the agency doesn’t fully understand your vision or brand.
  4. Opaque Pricing and Operations: Conventional, network Media Agencies can have hidden costs and unclear operations that lead to budget overruns. (ie. Pay per mail sent – crazy!).
  5. Lack of Personalization: Many agencies offer generic strategies that fail to account for client-specific needs.
  6. Inflexibility: Rigid campaign models do not adapt to market dynamics.

Recommendations: Choosing the Right Agency

Considering the complex landscape, an independent, multi-channel agency with proprietary tools like GLADTOBE can be highly beneficial. 

“As an agency, we must keep adapting to each client and the whole market by developing talent, fostering transparent partnerships, prioritizing flexibility, and leveraging internal tools.”
Andreas Peltret

These agencies offer a blend of traditional and digital expertise, personalized service, and the flexibility to adapt to market changes. They provide the best of both worlds: the innovation and agility of a small firm, with the comprehensive service offerings of a larger one.

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Just like your advertising itself, a media agency is an investment in your business. You’ll spend money to get results, but some of the expense can be softened by the comprehensive services your agency provides. By considering factors like specialized expertise, agility, and personalized service, you can find an agency that aligns with your business goals and propels you toward success. 

Independent agencies, in particular, offer a unique blend of innovation, personalized service, and flexibility, making them an excellent choice for many businesses. With over 28,000 advertising agencies in Germany, understanding these nuances will help you make an informed decision. 

To make your life easy, you can also straight away contact GLADTOBE - we would love to hear about your challenges.

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