3 Marketing Agency Red Flags That Can Waste Budget and Stall Growth

The Bureau of Small Projects CEO David Gaz lays out what businesses should be thinking about before they go out and hire a marketing agency and why accountability is so important.
3 Marketing Agency Red Flags That Can Waste Budget and Stall Growth
Kia Johnson
By , DesignRush Podcast Host
Reviewed by Ilze-Mari Gründling, Senior B2B Reporter

Marketing agencies are under pressure to prove their value.

From a 2026 survey of 494 agency professionals, 55% said that the question "Can we link marketing performance to revenue?" was the one they were asked most frequently, according to the

AgencyAnalytics 2026 Marketing Agency Benchmarks Report.

For businesses hiring an agency, the question is whether their money will deliver.

We spoke to David Gaz, Founder and CEO of The Bureau of Small Projects, on the DesignRush Podcast about what businesses should be looking at before they pick a marketing partner.

Drawing on his experience with brands such as Disney and IBM, Gaz explains how businesses can spot agency red flags, avoid wasted marketing spend, and make better decisions about their growth..

"Because you don't just lose money, you lose time," Gaz says.

He identifies three warning signs businesses should watch for:

  1. Excuses: Avoiding responsibility when the campaigns do not perform.
  2. Blame: Blaming the client, with no effort made to actually work towards a solution.
  3. Poor accountability: Failing to link marketing activity to business results.

Watch the full episode on YouTube or listen on Spotify.

designrush

Who Is David Gaz?

David Gaz is Founder and CEO of The Bureau of Small Projects, a branding and digital marketing agency for startups and small businesses. He has over 20 years' experience and has worked with a number of major organizations, including Disney and Sony. His specialisms are brand strategy and the agency/client relationship.

How Agencies Should Handle Poor Marketing Results

When you get traffic and no sales at all, you need to understand why.

Gaz is warning against agencies that pull away from the disappointing results.

"If an agency starts blaming you, that's a problem," Gaz says.

He warns against agencies that report advertising clicks but fail to investigate why those visitors aren’t turning into customers.

Businesses should expect their agency to look at the campaign performance and tell them what needs to be improved.

Gaz says that you need to track ROAS and revenue from advertising.

For business leaders, looking at the ROI of their digital marketing can be a useful way of working out whether their marketing spend is actually delivering an acceptable return.

Evaluate the Expertise Behind the Agency

The decision between an agency and an in-house team is really about who is going to do the work.

Gaz points out that a lot of smaller businesses will have one or two people looking after a number of the marketing functions.

Agencies can of course provide specialist staff in that respect, though you need to check that the people you are actually getting on your account are the people you want.

He also talks about AI tools which can reduce the cost of doing things but which still require a human to review the output.

"Because if you're spending a whole lot of money and you're not getting results, then you're throwing your money away," Gaz says.

Choosing a cheaper provider can also end up being expensive if the work has to be redone.

When you’re comparing doing your own marketing in-house against using an agency, you have to consider the level of expertise that is required and the cost of getting it wrong.

When Your Business Is Ready to Invest in Marketing

Some businesses come to agencies with problems which could limit the effectiveness of their marketing campaigns.

Gaz is of the view that you should look at your competitive positioning and your site performance before you ramp up your spend on advertising.

"Fix the low-hanging fruit first," Gaz says.

For a company with $10,000 to invest, that could mean asking whether its website can turn visitors into customers before it goes ahead and invests in any other campaigns.

He also remembers when they were letting go of clients they simply could not serve during a period of very rapid growth, and thinks agencies should be in a position to know when a business is not quite ready for any further marketing spend.

"Maybe you're not quite ready to spend marketing money," Gaz says.

Companies can go ahead and compare agencies based on their track record, expertise, and previous work before they actually go out and ask for proposals.

What Should You Ask Before Signing an Agency Contract?

Gaz suggests looking at the client retention figures and how the agency tracks performance.

He suggests asking a question many businesses might overlook:

"Can you show me an example of your worst work?" Gaz asks.

Why would the agency's weakest project be of any use in assessing its capabilities?

Gaz explores this further in the full episode, including:

  • What client retention tells you about the strength of the agency relationship.
  • How can you assess the consistency of an agency's previous work?
  • When companies should reconsider their marketing investment.

Watch the full conversation on YouTube or listen on Spotify to hear Gaz's advice before you pick your next marketing partner.

👍👎💗🤯
Latest Marketing News
Receive our NewsletterJoin over 70,000 B2B decision-makers growing their brands