Stephan Argent is a former agency planner from England, and has held senior roles in agencies in both Canada and the United States. Most recently he was Vice President of Digital Media at CTV, and is now President of Canada’s leading independent Marketing and Agency Search advisory and consultancy: ListenMore
It's easy to blame procurement for problems in agency remuneration negotiations. This post shows that it can sometimes be the marketer that is at fault.
5 tasks for marketers to consider and plan to do in the coming year that will guarantee a more effective and efficient marketing program in 365 days time.
Imagine my surprise and horror when asked to review a current agency contract worth several million dollars which defined the scope of work of the agency as:
When agency remuneration is not linked directly to the scope of the work delivered, marketers can increase their expectation of the agency output without any cost implication.
Clauses in the SPAA supplier contract used in TVC production expose agencies and marketers to legal disputes. It seems that few agencies are challenging the production companies on the terms of their agreement.
When assessing agency compensation models there appears to be an underlying assumption that one model will need to suit all circumstances. Darren Woolley of TrinityP3 offers a range of agency solutions here:
When looking at agency compensation or agency remuneration it is wise to consider a range of options to add value. Agency solutions examined here by TrinityP3 - Strategic Marketing consultants:
TrinityP3 methodology is to negotiate price and quantity at the same time as you are evaluating quality, because as this video demonstrates, you should never just negotiate on price.