Clients: stop toying with direct agencies

A vast number of companies utilise their marketing agency for most ad spend however as the Internet has always been a niche area organisations have utilised a more strategic, short termed time frame. For a long time it has been recognised that the longer a partnership continues between an organisation and their marketing agency the more detailed returns will be gained as the marketer understands the company and its products / services.

High Position have always preached that the best results for an online marketing campaign are gained by those companies that are prepared to add time and resources to help us. The following article underpins what High Position have been saying for some years…

Published: 16 June 2006 00:00

Given the vast sums of money that go into pitches, direct shops can't afford to be taking on business on a casual basis. So if clients want to secure agencies, they need to show they're not afraid of commitment
The days of agencies being commissioned to undertake project work are numbered.
That might seem like a bold statement, but, in my position as chairman of the MCCA, it's very clear that project work is becoming more and more unfeasible - to the extent that some member agencies are even refusing it outright. It's not posturing; it's an economic decision. Some of the numbers coming through clearly demonstrate that, in an oversubscribed market, where clients are able to pick and choose their suppliers, project pitches are an expensive luxury.

If you look at the history of ad agencies, long-term relationships are the norm. Yes, there are exceptions, but most major brands will stick with their agencies for the long haul. It's a recognition that agencies can only give clients solid advice and creative excellence if they are able to devote time to understanding the client's business, its brands, the competitive set, channels of distribution, etc.

By comparison, many integrated and direct marketing agencies have suffered through being used on a tactical basis, sometimes on one-off projects. This is becoming untenable.

In addition to expensive pitch costs, many of the marketing channels to have recently emerged are having a profound long-term impact. Whereas a direct marketing campaign might have only lasted six weeks, a website is live 24/7. It's a different marketing environment, where work can only succeed if an agency and client are working together long-term in Fortunately, things are changing, and the days when clients would change agencies either to make their mark or simply because they had friends in the industry are dying out. Furthermore, procurement departments are moving clients towards longer-term relationships with agencies, boding well for the future.

Still, it can't be emphasised enough: the best work can only be done in a partnership situation. Agencies must encourage clients to see this and, as an industry, we need the confidence to demand long-term relationships. It's a win-win situation: clients are able to select an agency because it has the best people and best approach, while agencies are given sufficient time to develop better solutions.