MorganAnderson POV: “Procurement in ‘suspicious marriage’ to agencies” by AdAge 4/14/08

As reporter Megan McIlroy correctly points out, the frequent disconnect between agency and client procurement continues to be a problem standing in the way of optimizing return on marketing investment. Both client and agency need to have a balance of art and science (it’s not one vs. the other), with agencies – particularly the large ones – fully embracing “transparency” and procurement taking responsibility for spearheading “creativity relationship management”. As this Morgan Anderson observer sees it, beware though 1) a marketer should have a legitimate need for running a review that a current agency relationship cannot or will not handle and 2) it is “best practice” for a client to pay an honorarium fee to the finalists for participating in the review. Also note the agency’s economics that even though the agency does not directly recoup its costs of pitching, that amount becomes part of the agency’s Unbilled Direct Client Costs which are included in its overhead and spread across all clients on a fair and equitable basis


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