In a positive sign that the ad industry may be emerging from the recession, major advertisers like General Motors and Emirates Airlines are shopping around for new advertising agencies. But, they want the agencies to work for less.
“Ad executives and new-business consultants, who are hired by marketers to help them find new agencies, say an effort to tamp down ad agencies' fees is playing an increasingly important part in the reviews,” The Wall Street Journal reported.
"’Big corporations want more for less and are putting pressure on agencies to cut services or cut fees to win their business,’ Dick Roth, who heads New York-based new-business consulting firm Roth Associates, told the newspaper.
“Over the past few years, the process of searching for a new advertising or media-buying firm has dramatically changed. Companies are involving their procurement departments in the process more, rather than leaving it up to their marketing departments. That's part of a broader effort to wring costs from advertising and marketing, new-business consultants say.”
"’The chief procurement officer has become more important than the chief marketing officer inside some companies,’” Joanne Davis, a new-business consultant in New York, told The Wall Street Journal.
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Posted by: Business Consulting Pro | November 07, 2010 at 05:49 AM