01 August 2010

ANA Study and strong words in Campaign

The ANA in the USA has just published a report which says that the majority of clients are still using the fee based remuneration system, with only a small minority (1% - very small then) looking at value based output.  I would have thought the latter would be higher with the likes of P&G and Coca Cola now looking to operate in this week. Be interesting to see which clients over here start to look at value based pricing in a big way.  Here is the link to the article - ANA report.

The letters page in this week's Campaign page 22 has 2 letters of interest.  One from David Wethey @ Agency Assessments which leads on from the above mention of value based pricing.  David feels that clients and especially procurement people have become use to paying agencies as some form of salary and that we should look at how architects and design shops are charging.  True re design agencies - they tend to charge per staged delivery.

The next letter is from someone called Marcus Cauchi (if you look him up he seems to work in sales). His views on the Thomas Cook media pitch are shall we say very strong.  His website seems to be written with the same strong view on life.  He does make some decent points, and I understand why Campaign has published it as it is a very entertaining ! read, but I do object to the phrase 'guttersnipe procurement monkeys' when he is talking about the recent Belgian pitch where the agencies went on strike.  Does he know all the facts and like the Thomas Cook pitch, it is always better to know all sides of the story before making such sweeping comments.  But worth a read if you have a copy of Campaign.

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