The Agency-Client Relationship
Forrester Research recently published a report called “The Future of Agency Relationships” and it was featured in Advertising Age this past week. In essence, it is advocating that clients take more of a leadership role in defining and shaping the agency’s role and service offerings, and offers some good ideas, including reaching out beyond the agency world to companies like Google, Sapient and Akamai Technologies. It pointedly criticizes agencies for the bundling of previously unbundled services such as PR, interactive, media and direct marketing and the resulting “jacks of all trades,” and the tendency of agencies to “tell you they can build a rocket ship and fly to the moon.” Also at issue is getting the “slew of shops managing their businesses … to play nice together.” “Not only does the client have to lead the relationship, but they also have to force collaboration,” as one agency CEO puts it. One of the key driving forces of the changes is of course new media. Do I hear the polite reprimand of agencies that have not gotten themselves up to speed on social media?
Personally I think it is a great idea for clients to take a more proactive role in shaping their relationship with agencies and, even more important, in integrating the service offerings from different agencies. The client who really understands his/her business and has a clear idea of what each agency can and needs to contribute to the communication mix will not have to “force collaboration” because that clarity of vision will replace needless jockeying to figure out specific roles. A lot of confusion and inefficiencies happen when the client is not clear on who does what, which leads to inappropriate assignments and sets up the entree to the blame game.
More important, agencies should take these rumblings, largely from the client side, as a cue to rethink their business. Why is it that so many technology-savvy digital agencies continue to rely more or less exclusively on traditional agencies for content? And what is stopping traditional agencies from bringing in new media talent—both technical and strategic—to lead instead of be led? With the way we work today, accessing top talent is much easier than it was not too long ago. And why not take the advice Forrester Research is giving clients for ourselves? Let’s redefine our role before it gets redefined for us. Let’s embrace these alternate service providers and integrate their offerings into what we do. Forrester also advocates “incentive-based compensation.” Why not? And I know many agency principals will respond with a wry chuckle to this one: “Create a productive relationship with procurement.”