PenQuin-Icon24
PenQuin-Icon24 Dark
  • What We Do
  • Who We Are
  • Resources
  • Blog
  • Our Work
Hit enter to search or ESC to close
Get in touch

Strategy

Getting the Most from Marketing Partnerships

By Grant Leishman
September 21, 2015

Header agency relationships Organic Green and Blue

How a client-agency relationship can work for you

Published originally in Entrepreneurmag, Jun 19, 2012. Revised September 2015.

Relationships in the new business environment:

Business Meeting

In the current high pressure business environment, there is an ever increasing focus on efficiency, cost saving, margin management, profitability and cash flow.

The inevitable casualty of this profit-based methodology is the relationship between business and suppliers.

Great relationships do not necessarily differentiate one business from another when economic downturns occur, and one area in which the pressure is felt most acutely is the relationship between businesses and their marketing or advertising agencies.

 


Road and sun upswing

When the economy flourishes…

They work closely with their agencies to create successful campaigns and talk fondly of the win-win partnership relationships they have fostered.When budgets are big, the client marketing teams generally get to spend as they please, with little interference from the internal finance or procurement departments.  

These relationships benefit the creative process where both the client and the agency are able to take creative and calculated risks to differentiate themselves from the competition.

 

 

 

Economic downturn arrow graphWhen the economy gets tough?

As soon as margins and profit come under pressure, however, the marketing budget inevitably comes under the spotlight and is often an area that suddenly receives attention from finance and procurement. What effect does this have?

 

The effect on internal marketing departments:

  • Contracts are scrutinised.
  • Long standing relationships are questioned.
  • Comparative quotes are requested.
  • The business may put out a tender or hold an agency review.

The flip-side: How the agency is impacted.

  • The agency remuneration structure is reviewed and shorter term or ‘no-retainer’ agreements are requested.
  • Agencies most often agree to these terms, since they are under the same economic pressures.
  • Procurement and finance departments continue the price-reduction cycle because of the forced compliance.

What’s the price?

At what cost have the cost savings been won?

Marketing is not a commodity, and therefore the comparison of ‘apples with apples’ is extremely difficult, especially if conducted by finance or procurement people.

In many instances, long term, successful relationships and partnerships between client marketing teams and their agencies are severely damaged.

Landing Page 6 Marketing Metrics eBook In-Blog Penquin

So how do we avoid a procurement-wedge from dividing an established client-agency team?

We need to focus on building a solid and transparent working relationship during the upswings. To do this, the following is important:

  • The marketing team must be held accountable for the money they spend.
  • ROI must be measured consistently.
  • Performance must be tracked against past experience as well as against industry standards and competitor performance.

By keeping the client-agency relationship accountable when times are good a culture of fair partnership is created that can be respected as each partner takes some of the pain in the bad times. By holding everyone accountable all the time and acknowledging that marketing and advertising are part art and part science, the hard work completed during good economic times is not thrown out of the window as soon as times are tough.

Trust creates the best relationships

The most important aspect of a good client-agency relationship is trust. Accountability throughout the full business life cycle is the best way to ensure the trust relationship, both internally and to external stakeholders.

trust shaking hands greyscale

Ensure that you measure the impact your activities have, and work together to optimise and improve your campaigns to ensure mutual success.

For a handy guide on the key metrics you will need to ensure your boss, their boss, and the procurement department stay abreast of the growth you are influencing, download our Metrics eBook: 

Contact us  

All posts
About Author
Grant Leishman

Grant Leishman is a founding member and CEO of Penquin, a full service agency. He has experienced all facets of marketing and advertising and believes that if you want a different result, you need to do things differently. He takes a creative approach to solving business problems. From the outset, Penquin’s strategy has been to offer 360°, integrated and innovative marketing solutions that delivers value to clients.

You might also like
Penquin’s Award Nominations: A Benchmark in Integrated Marketing
Penquin’s Award Nominations: A Benchmark in Integrated Marketing
February 26, 2025
Why Your Business Needs a Fully Integrated Marketing Agency
Why Your Business Needs a Fully Integrated Marketing Agency
February 17, 2025
Predictive Personalisation: The Trend to Watch In 2025
Predictive Personalisation: The Trend to Watch In 2025
January 23, 2025
SUBMIT YOUR COMMENT

Subscribe

Subscribe to our newsletter & stay updated

PenQuin-Icon24

We help our clients, sell more stuff, to more people, more often!

Quick Links
  • Our People
  • What We Do
  • Get In Touch
Resources
  • Blog
  • Free Resources
Legal Stuff
  • Privacy Policy
  • Terms Of Service
© Copyright 2025. PenQuin Airtime Pty (Ltd).