I wholeheartedly agree with this article that agencies are in more trouble making their clients happy than ever before. I also believe that the piece touches one some of the key points, but not for the right reasons. It's not so much that companies are trying to figure out which firms have the right resources for them, but rather, which ones can deliver a return on investment; something most agencies would rather not do - because they flat out can't! It's certainly true in the PR world, which is why I'm an even greater advocate that agencies need to covert away from retainers to a Performance-based fee structure. Though I'm not going to hold my breath that anyone will do so soon. Well, I suppose that's better for my company in the short-term.

Relationship troubles Economic demands plus new-media expectations have created pressure for clients and direct agencies to find new ways to work together BY CHRISTOPHER HOSFORD Story posted: October 12, 2009 - 6:01 am EDT The client-agency relationship is undergoing a sea change. The economic meltdown, combined with the precipitous rise of all things digital, is significantly altering the expectations and demands companies make of their agencies. “So much has changed, but I think the economy just brings into stark relief trends that already were under way,” said June Blocklin, a partner with Gilbert & Co., a marketing management, merger and recruiting company. “New technologies have been massively disruptive to the media marketplace, and the rise of search marketing is a good example,” she said. “But the agency world is nowhere near where they should be here. Search is often the first thing the agencies outsource.” Blocklin said the big advertising holding companies dominate in every functional marketing discipline except digital, “where the money is going to the independents at the rate of two to one.” Read the rest of the article here.