Why Companies Are Reevaluating Their Agency Mixes
Marketing procurement leaders, including those at major brands like Walgreens, have been taking a closer look at their agency mixes to find ways to optimize their spend and their marketing acquisition processes. Although many major brands are considering their options between large agencies, relying exclusively on traditional agencies may no longer be cost-effective—it could even be putting some organizations at a disadvantage.
The consensus is that agencies no longer have a monopoly on talent. According to a report by Digiday, many of the professionals now leaving agencies are not seasoned veterans but "Gen Z and millennials," many of whom are looking to strike out on their own as freelancers or work as part of internal marketing teams.
In this blog post, we’ll explore why companies are reevaluating their agency choices and why now might be an opportune time to factor in new approaches to talent and service acquisition.
Agencies Don't Have a Complete Hold on All Marketing Talent
Not long ago, most companies turned to traditional agencies when they needed to augment their internal marketing teams or see a campaign from start to finish with a completely outsourced marketing department. Although the largest agencies still represent a significant force in the world of marketing, they are no longer the only option for brands.
Companies now have a range of smaller, boutique agencies to choose from in addition to their larger counterparts. These agencies may offer niche or select services, or they may specialize in a specific industry or a specific type of audience.
Companies can also choose from a widening selection of talented freelancers offering everything from writing services to web design, web development, and artistic and creative service. Platforms like Fiverr, Toptal, and Upwork make it easy for brands to find talent to suit their needs quickly and at a cost.
According to Marketing Dive, some of this change has been driven by agencies' adoption of new technologies: "One of Forrester’s predictions, in fact, is that agencies will embrace Big Tech partner programs such as Google Marketing Platform or Facebook Business Partners to take over some of the work that was previously completed by people."
Increasingly, companies may turn to major agencies for larger, more technologically complex campaigns, but they may stick with smaller agencies and freelancers they trust for their creative needs.
The Advantages of Restructuring an Agency Mix
This restructuring can offer several advantages.
For one, the ability to access smaller, more specialized agencies can help save time and money by offering access to services that may not be available from larger agencies. Smaller, boutique agencies may also be able to provide more personalized attention to the brand, including tailored campaigns that better target specific audiences or industries.
Companies can also benefit from the cost savings associated with using freelancers. As freelancing platforms continue to expand their reach and selection of talented professionals, companies have greater access than ever before to cost-effective talent. By leveraging freelance talent in this way, companies can ensure they are receiving the best possible value for their marketing spend.
Some companies are also discovering that they can handle tasks in-house that have traditionally been associated with agencies. Technology—especially automation—has made it easier to launch campaigns with minimal overhead. At companies that have onboarded new marketing technologies for their internal teams, marketing procurement leaders could identify opportunities to reduce costs.
Take Another Look At Your Agency Mix
Overall, now may be an ideal time to take a second look at your agency mix. It could be that you're spending money on services you don't need, or that you could receive better attention to your campaigns by partnering with a smaller agency.
Even if you've been working with the same large agency partner for years, it might be time to revisit their contract to see if you can achieve cost savings, better efficiency, more transparency, or even better campaigns with a different partner.
If you'd like to learn more about building an optimal mix of agencies and freelancers, don’t miss the next ProcureCon Marketing event. It’s happening from November 6th through November 8th at the Hilton Tampa Downtown in Tampa, Florida.
Download the agenda and register for the event today.