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Ad agencies, public
relations firms and their clients are behaving like single people did in the
1970s. They want something brief, mutually agreeable and satisfying. But
fewer seek commitment, and nobody wants to get married.
The explanation for
the trend depends on who’s doing the explaining. But most seem to agree
there’s more short-term work available, usually in connection with a
particular narrowly focused project, and less long-term, retainer work.
It’s the same work,
many say, but handled more on an as-needed basis that requires specific
expertise or experience.
“It’s increasing,”
said Beverley Hammond, president of PR firm Veritas Communications. “Our
agency is about 90 percent project-based, versus 10 percent retainer-based.
That’s reflective of a couple of things: the economic landscape, and clients
need budgetary flexibility.”
Shorter horizons
demand faster results. Fiscal concerns run to the end of the quarter rather
than the end of the year. Clients don’t want to commit to anything long-term
because there’s so little encouraging economic news.
Paying for short
projects keeps the accountants happy; there’s a direct correlation between
the checks and the work they pay for. The shorter a project, the fewer
unknown variables there are.
“Longer-term
retainer-based situations really don’t exist anymore,” Ms. Hammond said. “We
can’t rely on something for three years. But it’s easier for cash-flow and
accounting for us as well as for clients, and for both of our budgets.”
Terry Johnson’s
advertising agency, Allard.Johnson Communications, has been working on a
per-project basis for many clients — which include such companies as Royal
Bank and Wal-Mart — for years. Lately, he finds more of his competitors are
working that way, too.
“The approach
hasn’t been common. But we don’t have a lot of client turnover, even though
we work on a project basis,” he said. You have to prove your worth over and
over again, but that can work to your advantage. “Most of our clients are
with us an average of five or six years, even though we’re working on a
project basis.”
The ad business is
not growing rapidly in Canada. And fewer companies with U.S. head offices
maintain big marketing staffs.
Decisions about
Canadian marketing plans are more likely to be made in Los Angeles or
Pittsburgh or Bentonville, Ark.
But once made, they have to be executed by Canadians the decision-makers
will likely hire as they’re needed.
Project-based work
means more flexibility for clients, too. If you don’t like the work your
agency is doing, short-term projects allow you to audition other outfits you
think might offer a better fit without having to go through a review.
“There is a shorter
time horizon,” said Doug Checkeris, managing partner at The Media Company.
“People are pressed for time, short-staffed, and don’t want to do the big
agency review because it will be a circus.”
Farm out a project.
If it doesn’t work, it’s been a relatively cheap learning experience. If it
does, maybe you’ve found a new agency.
Shorter-term
projects lower financial risk for clients, and mean opportunity for smaller
shops.
“We get to work on
accounts that were closed to us,” said Mary Donohue, creative director at
Communicor Public Relations. “It gives us the opportunity to really shine in
areas where we know what we’re doing. It’s a chance to develop a
relationship, and every one of the clients I’ve done project work for has
called me back.”
The change means
bigger shops have to be more flexible. If clients want project-based work,
you have to be able to offer that option.
“It depends on the
sector,” said Linda Smith, Fleishman Hillard Canada executive
vice-president. “Financial communications tends to be transactional, tied to
an acquisition or and IPO or a divestiture. Marketing communications,
technology, it’s both. This is the time of year when we’re finding out.
Clients are trying to work out how they want to work this coming fiscal year
and what their budgets are.”
Demographics also
play a part in the shift to project work.
“Maybe it’s also a
generational thing,” The Media Company’s Mr. Checkeris said, describing
himself as a Baby Boomer. “More people of my age want to work in a different
way. That’s the other side of the equation — the supply.” Cost-conscious
agencies want to run leaner, with smaller staffs. Senior advertising
executives still want to work — just not at the office and not every day. So
they work as hired guns on short-term projects without the managerial
wrangling.
Is this change
permanent?
“Nothing’s ever
permanent,” Ms. Donohue said. “We’re in a fluid economy. I hope to see more
of a marriage between marketing and public relations so that as teams we can
solve the client’s problems.” |
