The Future of the Client Agency Relationship - A presentation by Hall and Partners

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The agency landscape

High value, strategic

Low cost, tactical

Short-term Long-term


New demands

Mass, Populist

New, New Tech

High value, strategic

Low cost, tactical

Short-term Long-term



The IPA client relationship group

Leigh Thomas (Chair)Dare

Joyce KelsoHead of Groups

Richard AlfordM&C Saatchi

Jason Cobbold Redscout

James Denton-ClarkKarmarama

Kate CoxBray Leino

Helen JamesBBH

Pippa GlucklichSMV Group

Sarah HennessyMEC Global

Sara Tate Mother

Mark Boyd Gravity Road


The new whyThe brief


The Hall & Partners team



1Discussion with the IPA

Agency Group

24Senior marketing

clients

25Agency CEOs and

leaders


The agencies


The clients



A relationship breakdown…

it’s emotional


Pointing fingers. Blaming each other


An open debate to create a Shared Agenda to deliver new value



Feeling less valued


They do not value us as much as they once did. Our relationships are weaker, shorter, with more and more pitchingWe only hear half the conversation sometimes.You know there is a conversation before the meeting and it goes on after the meetingI sense they do not trust us, they hold back. We no longer feel we get the full pictureThere is a diminishing acknowledgement of agency capabilitiesThere is an inherent tension in the working relationship and an increasing lack of love and respect for our industry Fundamental mistrust between many of us. I don’t feel they value our talent and skills as they once didWe are rarely honest with each other about decisions or how each other feel about ideas. It's essential that there is honesty from both the client and agencyA fragmentation of strategy has led to so many people being involved. This has bred a culture of mistrust


Struggling to deliver better, faster, cheaper


Clients want it all, they want it now, want it to be great and they expect it to be cheaperClients are demanding acceleration of delivery. We are struggling to keep up with demandsMore pressure to deliver cheaply, less resource to do it, more frustration, more blamingWe are chasing bottom lines and being forced to push products and services that make the most revenue. It is harder to always consider what’s best for the client and brandProcurement has become ever present, driving down cost at the expense of time to deliver properlyAll our clients are putting us under increasing pressure, as they are under pressure. It’s a vicious cycleIt’s getting faster and faster and faster. There is a the danger of losing the essence of what makes agencies strong The need for speed is turning what we do into a commodity and harming the value of creativity


Drifting downstream together


We are slipping further and further away from the top table discussionWe’ve become implementers of short term tactics focussed on short term sales. I’m involved in fewer discussions about long term brand strategyMarketing’s own ground is shifting, this is leaving us out in the coldWe are getting stuck with mid-level marketers who lack accountability and sight of the top-table agendaWe’re no longer connected at CEO level. Now seen amongst a bunch of other agenciesThe brand discussion has become an internal organisational discussion, no longer limited to just products and services. We’re not always involved in this discussionMore and more are asking for content that is delivered across devices, aligned to what audiences need and wantThey once looked to us for advice on the strategy but now they are looking at so many others as well


Being told to work collaboratively


Collaborate they say. We try. But it is becoming harder and harder. We have to learn new skills in collaborationClients said they want integrated full service, one-stop shops. A dream team, cream of the crop but what agencies deliver is integrated mediocrity, with no clear navigation toolsThe client rarely creates an environment where agency collaboration is possible. Clients need to elect a lead, otherwise it doesn’t work

The lead agency is often too controlling, wanting to champion their creative idea, rather than solving the real consumer problemAgencies are sometimes at fault when it comes to collaboration. Not being true to their specialism and saying they can do it allThere is no incentive to collaborate at the moment. Although some clients are beginning to build it into their appraisal systemsClear ideas should be centrally nurtured - controlled and radiated out through the centre


Not getting paid

fairly


The industry has become diversified and pluralist, the implication is spend is now divided up across more suppliers. There is less to go roundWe’re not getting paid for the true commercial value of our ideas

The conversation increasingly about the reduction of cost when it needs to be value versus cost

The dynamic with procurement can be very counter to clients explicit request for a ‘partner’

We need to get better at engaging with procurement



Access to wider parts of the business

New reward models and fair payment

Clients to establish clear principles and models for collaboration

Space to deliver creative excellence and build long-term value

Involvement in broader strategic discussions

Clear KPIs and incentives for collaboration



More negative, than

positive


Seen as selling, not listening


They come in on talk mode. It’s all about what they think I should be doingSome agencies monopolise all the meetings, sucking all the oxygen out the room

They are like nagging children, they have no awareness that they are only a small part of my role

Being part of the team and integrated required knowing what’s going on, how I work

Agencies should break up current operating models where account teams are gatekeepers to planning and creative. They think about how to innovate in how they service clients, be quicker and better at collaborating, think about offering up payment by results


Not understanding their world…


Not commercial


Narrow view of the Marketing Director role


Agencies need to “get with the programme”. Most have not moved to anything like the P&L driven, dynamic environment in house marketing teams have to operate inAgencies still overly "creative driven" - they never arrive at a conclusion that is focussed or driving the business Knowledge sits high up in the agencies, but those aren’t the people who work on my accountThey don’t understand the numbers and can’t build business cases, particularly creative agenciesThey put their P&L first rather than bringing to life their own specialism in an ecosystem of specialists. You can’t be all things to the clientIt's time to focus on solving the business problem and think of yourselves as brand people, strategy custodians. Think big pictureThe strategic discussion is shifting away from communications towards customer engagement and product innovation


They think, wrongly, that a Marketing Director is all out creative, when in fact less and less of their time is spent on that

I need people who understand my business, are wise and have a way of getting to the hub of the business, but without being too geeky

Agencies need to understand the marketing jigsaw, why and how decisions are made

Internally we are getting involved in the sign-off process, outside of marketing. We now need to co-create with non-marketing functions

They don’t all get it. Our focus is being more direct with end customers


Not understanding their customers’ world


Shoreditch microcosm of people coming out of the same mould, they have no idea about the real worldA lot of people in the industry like to navel gaze and aren’t streetwise or connected to the consumerI don’t think any of them have ever been into an ASDA store, they shop at Whole FoodsMy agency doesn’t know how to communicate with the 18-24 year old audience, no one at their agency seems able to develop a campaign that keeps them engagedThey used to know our customers, but that planning skill has become executionally focussedAgencies need to come in being almost a management consultant - this is a very useful thing for clients. This it too often seen as the unglamorous part of the role I’m seeking a partner agency that is less reactive and more proactive, identifies ideas that can transform my business


Not understanding the new world


Not just advertising. Not just TV. Not just digital.


It’s about connected customer experiences


Ad agencies are still focussed on old school advertising with its sparkly veneerThey still think it is about the ads when it’s about so much more

It is now all about creating engaging experiences, most agencies seem to have missed this shift, still thinking it is about communicationsWhen they talk digital, it is still comms, whereas I am thinking service innovation

Digital overblown as ‘new’ now – its just another channel. It needs to be more joined up across delivery

Is now all about putting customers first and designing seamless experiences (driven by technology and innovation)


Our brand has evolved, from being a challenger to being more credible and purpose driven

Less brand-centric and more about connecting with consumers, being relevant. There is a corresponding shift in how you use content and channelsAgencies need to start demonstrating platform neutral innovation

The strategic discussion is shifting away from communications towards customer engagement and product innovation

Understanding and loving the business is what agencies used to do. They also need to come up with product ideas, not only repositioning the brand


Agencies claim to do everythingwhen specialist skills required


I’ve been disappointed in the past by agencies telling me they do everything, but then they can’t deliver, or at best they partially deliver

Specialise rather than generalise – think about it, can one agency really be the best at everything? Do your clients really believe this?

More and more clients are requiring specialists to go in and work in their businesses. They are also building in-house resource


Agency people no longer have a monopoly on talent


The industry is just not attracting smart new, diverse talentThere is a lot of nepotism within advertising

They are all fishing from the same pond

Hoxton is such a different 'out of touch' world. The industry needs to do more to attract really clever peopleAgencies need to realise they are competing with the City and even US for good talent




Greater commercial awareness

A broader creative contribution

Beyond comms, more focus on customer experience

Commercial creativity, with clear ROI

More diverse talent including technical skills

Genuine collaboration

Better integration of specialist skills to deliver the connected experiences


Danger


Innovating fast

Building in-house talent

Blurring the lines of internal external

Leading integrated teams themselves

Developing new skills to manage change

Winning and developing talent

Evolving new models and ways of working

Working with a broader range of partners



Long-term commercial partner?

or

Project-based specialist?


Creating great communications?

or

Creating great customer experiences?


Consultancy that orchestrates and integrates?

or

Deliver solutions within your specialism?



Greater commercial focus and responsibility

Focus on long as well as short-term goals

Articulate how purpose underpins customer experiences and galvanises new behaviours

Define the collaborative working model

Establish clear accountability and performance measurement/ROI

Broaden the diversity of talent

Create fair reward models and payment structures

Business

The Future of the Client Agency Relationship - A presentation by Hall and Partners