Advertising’s pricing model has become ever more complicated as the industry evolves with clients and agencies seeking the best value for their investment of time, money and people. But how do you put a cost on creativity?
Every agency and client is different, and each campaign or project takes various resources to achieve success. And how can success even be measured to warrant the amount paid?
The discussion comes alive in this Connect: London session entitled Solving the Pricing Issue: A How-To as author and journalist Ian Leslie probes Toby Drummond, Ogilvy UK’s global MD of business operations; Rob Connolly, co-founder and director of The Business Model Company; and Tracey Shirtcliff, founder of The Virtu Group, for their thoughts.
“The tension sits between both sides because there’s not a view of transparency,” said Shirtcliff referring to the constant tug of war between the two sides. “One doesn’t trust the other. Fundamentally, the brand thinks it’s overpaying and not getting the returns it should. While the agency feels like the brand is underpaying and there’s no win-win. Both sides feel they’re hard done by with the current arrangement.”
Whether pricing on a project-by-project basis, through retainers or creating new strategic partnerships like the way Uncommon Creative Studio works are the solution, all these themes and more are discussed in the video produced by Wooshii Agency above.
Shirtcliff also spoke to Creativepool following the session to expand on her thoughts on pricing as well as other issues affecting the industry.
Finger Industries Ltd January 10th, 2019, around noon
We've always priced based on the process/work, not people or time. Deliverable's take time and talent but the agency pays for the process we go through to produce that animation for their client/campaign. On top we cost usage to use that end product. I've never understood why agencies charge per head per hour but its been insightful to watch.The scoping process takes time and that process in itself is collaborative. Understanding the value/budget and time it takes to create- which should be identified through scoping- is what sets you out on the right path to successful delivery. Be it us scoping to agency or agency scoping to client.
Account teams and creatives need to be given time to figure these elements out- I talk a lot about cost vs creatives and what's fit for purpose in the scheme of campaign/end user/channel etc.
Scoping a project is often grossly underestimated in terms of the back and forth, identifying the costs and creative. Agencies should be able to bill for that. As it happens, scoping is the one thing we don't charge for but then going through a scoping process is also about forming the partnership and ensuring everyone aligns; if we do a good job, we win the work. For us scoping also consists of defining the brief, setting a style, proof of concept, quotes and schedules and eventually an SOW. It's a partnership, collaborative, iterative- all good, relevant words to this chunk of the process.
Thanks for sharing Creativepool!
Carrie @ Finger Industries.