Ad agencies are adapting to survive a potentially disastrous downturn in business caused by more brands taking their marketing in-house. it’s easy for brands to initiate assignments without doing the homework on what that outcome needs to look like,” said Stephanie Parker, svp of brand leadership at agency Barkley. Agencies have reported an increase in specialised project work, often as lucrative as old-style longer-term relationships, while some are being used as head-hunters to help boost brands’ own marketing teams. Marketers say specialised boutique agencies will benefit the most because they are used to doing small projects. The change also means agencies spend less time and money on elaborate pitches. “Clients want to know what you can do for them rather than how much it costs,” says Mr McMahon.
Ad agencies are adapting to survive a potentially disastrous downturn in business caused by more brands taking their marketing in-house. Agencies have reported an increase in specialised project work, often as lucrative as old-style longer-term relationships, while some are being used as head-hunters to help boost brands’ own marketing teams. Marketers say specialised boutique agencies will benefit the most because they are used to doing small projects. The change also means agencies spend less time and money on elaborate pitches. “Clients want to know what you can do for them rather than how much it costs,” says Mr McMahon.