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 agencies and clients. “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 creative studio Uncommon Creative Studio works, all these themes and more are discussed.
Shirtcliff also spoke to Creativepool following the session in a second video produced by our video partner Wooshii Video Agency to expand on her thoughts on pricing as well as other issues affecting the industry.