Letter to Campaign - 17 February 2010.

I read with interest your article “Clients paying the price for driving down costs” (Campaign, 5th February). Didn’t we all see this coming? Media agencies finding themselves in the position of conceding to less than desirable terms will compromise more than just the tenure of their relationship with the client.

Within the context of brutal media buying agreements it appears that the old “cheapest is best” model survives in some quarters and the art of planning, creativity and innovation takes a back seat role.

Severe pressure from client procurement departments and auditing processes can create a pure commodity market where agencies shoot themselves in the foot over unprofitable terms in order to win business. They appear more addicted to the drug of account wins than driving bottom line success. Only those media owners willing to succumb to immense pressure then get to carry the business. An untenable situation for all.

As a media owner that delivers great products, highly valuable audiences, proven ROI for advertisers (eg £6 for every £1 invested by retail advertisers) and great creative ideas, we won’t play this game because it undermines precisely what we do best. For the health of the industry and client’s brands, it is vital that agencies refuse to bow to these pressures and instead we should aim to focus on what actually delivers the most effective communications and success for all. 

Paul Hayes
Managing Director
NI Commercial