The Wethey Forecast

David Wethey

In August the ANA (ISBA equivalent) and AAAA (America’s IPA) jointly published something called the Agency-Advertiser Value Survey, which was derived from parallel surveys among their respective memberships.
 
Just two sets of results. First, how the clients defined the dimensions of value that agencies add:

   1. Fresh and unexpected creative ideas
   2. Integration
   3. Collaboration
   4. Developing ideas that work in multiple communication channels
   5. Best agency people on the account – and agency management available when needed
   6. Driving awareness, consideration and purchase intent
   7. Guidance on new media and technologies

Now for the agency point of view. Here is their batting order:

1. Clear, well-supported strategies
2. Interesting and relevant consumer insights
3. Marketing solutions for reaching consumers in new and innovative ways
4. Fresh and unexpected creative ideas
5. Marketing initiatives to drive client’s business
       6. Ideas that work in multiple communication channels
       7. Constantly thinking about client’s business, and providing ideas without being asked

I found it fascinating that there was common ground on only two dimensions. Is it surprising that value-based pricing is a long way from being adopted, despite enthusiasm on both sides of the fence? Should ISBA and IPA replicate the survey here? I think so. Meanwhile we are stuck with a payment system based on inputs, not outcomes and outputs. It is also a method of remuneration that any trained procurement specialist can drive a coach and horses through – simply by clipping 5% here and 10% there from the agency’s estimate of individual timeburn. And that’s before they start challenging profit mark-ups and overhead factors.