Zoe Goodhardt: Why agencies need to speak P&L

By Zoe Goodhardt, Partner and Head of Growth and Marketing, TAG.

In marketing, creativity has always been king, or in my case, queen. But in today’s climate, where every dollar of spend is scrutinised, creativity alone isn’t enough. The agencies that thrive are the ones that marry creative strategy with financial literacy. We can’t just be the people who make things look and sound great. We must also be able to read a client’s profit and loss (P&L) statement, understand which products or services bring in the revenue, and know how to move the levers that matter most.

This combination of creative strategy and financial insight is what truly sets agencies apart. When we understand the numbers, we’re not guessing; we’re accountable. We’re able to drive measurable business outcomes instead of only impressions, clicks or likes.

One of the greatest privileges we have as an agency is when clients trust us enough to share their P&L statement in full. That transparency makes us more agile. It changes the way we work, the conversations we have, and the speed at which we can respond. Take one of our hospitality clients. Every Monday, we sit down with their leadership team and review the previous week. We look at which venues under-performed, which ones exceeded expectations, and how we should allocate media budgets accordingly. If a particular restaurant had a soft week, we’re able to quickly divert spend to give it an extra push. If another is humming along nicely, we know not to waste resources. That granularity extends down to the menu level. Because we can see which items are moving and which are lagging, we’re able to direct marketing attention towards dishes that need more visibility. In doing so, marketing becomes more about improving the profitability of the entire operation.

This principle holds true across industries. Being deeply ingrained in our e-commerce clients’ revenue and profit goals means we can align our work with the metrics that matter most. Too often, agencies focus on revenue growth at all costs. But what’s the point of driving sales if margins are eroded? By understanding profitability, we can prioritise efforts in areas like customer relationship management and conversion rate optimisation. They may not always generate the flashiest marketing headlines, but they move the dial in ways that directly impact the client’s bottom line. When a campaign delivers both growth and improved margins, that’s when marketing proves its real value.

Financial literacy isn’t just a nice-to-have for agency leaders; it’s a skill every member of the team should be developing. It’s essential to train your people to understand more than marketing metrics. They need to be well-versed in all things business. It’s easy to get stuck in the comfort zone of click through rates, return on ad spend and engagement. But if our teams don’t understand EBITDA, gross margins or cost of acquisition, then we’re speaking a different language to our clients. Teaching marketers to interpret financial statements bridges that gap. It elevates conversations from “How many impressions did we buy?” to “How did we influence profitability this quarter?”.

The best agency leaders aren’t purely creative or analytical; they’re hybrids. They understand that a brilliant brand idea must be tied to a commercial reality. They can walk into a boardroom and inspire, while explaining exactly how their vision impacts the numbers. This dual fluency is what clients are demanding. They don’t want marketing partners who sit on the sidelines, known for pretty decks. They want people who can sit at the table, understand their P&L and help make smarter, faster, more commercially sound decisions.

At its core, marketing is about growth. But growth without profitability misses the point. When agencies embrace financial literacy – weaving it into culture, training and client partnerships – we shift from being “the marketing team” to being true business partners.

Zoe Goodhardt is the Partner and Head of Growth and Marketing at TAG, a digital growth consultancy for medium-sized to enterprise-level businesses and emerging challenger brands. Clients include MYOB, Fonda Mexican, FUNDAY Natural Sweets and Nala.

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