Adapt or DieSqueezed by the recession, disrupted by the impact of social media marketing and buffeted by the rapid decline of traditional mass media, the client-agency relationship is in the midst of a fundamental makeover.  Traditional compensation models have been tossed out in favor of performance based plans.  Clients are reducing their dependence on agencies and bringing certain functions in-house.  Agencies are pushed to collaborate with their clients' roster of specialized marketing vendors.

Adaptive MarketingSeveral weeks ago Forrester released a report titled, "The Future Of Agency Relationships."  They contend that the profound changes in the environment call for a new model that they call "Adaptive Marketing."  It's an approach that embraces an ever-changing media landscape.  The report states: "mass media is no longer the foundation of marketing communication, forcing yet another change in the expectations of what marketing agencies can and should deliver. Marketers should assess their partners using the three I's - ideas, interaction, and intelligence - to select the right partners."

New Internal SkillsThe CMO Council issued a report last month that found that the media metamorphosis is reshaping the client-agency dynamic in another way.  Many marketers are building their own internal digital marketing infrastructures, reducing their reliance on agencies.  According to a survey by the Association of National Advertisers, 42% of marketers have some form of in-house ad agency.  "Globalization of markets and new channels of digital engagement are causing senior corporate marketers to seek new internal skills and capabilities, and re-direct spend towards more inventive and localized go-to-market programs," notes Donovan Neale-May, executive director of the CMO Council.

To The MoonForrester notes that agencies have responded to changing client needs by expanding their offerings, sometimes beyond what their resources currently allow for.  Agencies are aware of the dangers of over-promising. Peter Stringham, CEO at WPP's Y&R Brands unit says some agencies "will tell you they can build a rocket ship and fly it to the moon. But especially today, with the specialized skill sets that are required, you're better off saying you don't do this very well ... let's go get someone else to help us handle this."

PromoAidFinding the vendor with the right specialized skill sets remains a challenge for both clients who are orchestrating a variety of marketing programs and for agencies seeking to deliver the best option for clients.  That's where a resource like PromoAid can help immeasurably.