How the long-term client-agency relationship got fractured

Long-term client-agency relationships are the cornerstone of stability and trust in advertising. These partnerships often result in iconic campaigns and sustained brand growth. Below are some notable examples of enduring client-agency relationships:

Unilever and WPP (formerly JWT, now Wunderman Thompson)

•    Duration: Over 100 years
•    Highlights:

• JWT has been instrumental in creating legendary campaigns for Unilever brands like Lux, Sunsilk, and Lipton.
• The partnership has evolved as JWT became Wunderman Thompson and then VML under WPP, showcasing a blend of legacy and innovation.

Coca-Cola and McCann Erickson

•    Duration: Since 1950s
•    Highlights:

• McCann Erickson was behind iconic campaigns like "I'd Like to Buy the World a Coke" and the "Open Happiness" tagline.
• This partnership has consistently delivered culturally resonant messaging.

Volkswagen and DDB

•    Duration: Over 60 years (started in 1959)
•    Highlights:

• The partnership began with the famous "Think Small" campaign, a turning point in modern advertising written by the legendary Bill Bernbach.
• DDB helped establish Volkswagen's reputation for witty, minimalist, and clever advertising.

American Express and Ogilvy

•    Duration: Over 50 years
•    Highlights:

• Ogilvy created campaigns like "Don't Leave Home Without It," establishing American Express as a premium brand.
• The agency continues to develop integrated campaigns that blend traditional and digital advertising.

Ford and WPP (formerly J. Walter Thompson)

•    Duration: Over 75 years (recently shifted more to BBDO but retains ties with WPP).
•    Highlights:

• Ford's partnership with JWT/WPP produced decades of creative branding, especially around iconic vehicles like the Ford Mustang.

Nestlé and Publicis Groupe

•    Duration: Decades-long global relationship
•    Highlights:

• Publicis has worked with Nestlé across multiple brands, including Nescafé and KitKat, delivering campaigns that resonate across markets.

IBM and Ogilvy

•    Duration: Since 1994
•    Highlights:

• Ogilvy helped IBM transition into a services-oriented business with campaigns like "Solutions for a Small Planet."

These partnerships demonstrate how consistency, trust, and a shared vision between clients and agencies can lead to advertising excellence and sustained brand relevance.

But is the long-term relationship with clients and agencies dying? I was speaking to an agency person recently who was handling the advertising of a large mobile instruments maker. I was quite surprised to note that all the client’s agencies were involved in a pitch, project by project. And shamefully this included the network agencies.

So one was never sure who would get what during the course of the year. Well, kudos to the client if it is working for them, but both agencies and clients are responsible for the degradation of the client-agency relationship. 

Clients, in their haste to get the best feel, think constant pitching is the secret to success. Agencies struggling for revenue in an increasingly digital world are willing to accept the bread crumbs thrown at them. Because they don’t have long-term relationships, the breadcrumbs shore up their agency revenue.

However, in the long term, it would be difficult for agencies to make revenue projections in an uncertain world of constant pitching.

A 30% growth this year does not guarantee the same growth next year. Because the amount of stable long-term relationships can be projected with some accuracy, but there is no knowing how the constant pitch business will work out during the year. It is a bit of a gamble, and you can only hope that the gamble works out all the time, which it may not.

The phenomenon of advertising agencies pitching for individual projects or short-term assignments rather than securing long-term retainers is becoming increasingly common.

This shift reflects broader changes in the advertising and marketing landscape driven by evolving client needs, technological advancements, and competitive pressures. Here's a closer look at why this trend is taking hold:

Implications for the industry

•    Increased pressure on agencies:
Agencies must constantly prove their creativity and efficiency, as they are judged on a project-by-project basis. This can lead to higher operational costs for agencies as they participate in frequent pitches.

•    Focus on results-oriented campaigns:
With shorter engagements, agencies are pushed to deliver measurable impact quickly, leading to an emphasis on ROI-driven strategies.

•    Evolving client-agency dynamics:
The traditional "agency of record" model is being replaced with a more transactional and diversified approach.

Implications for clients

Inconsistent brand messaging

• Working with multiple agencies on a project basis can lead to fragmented campaigns and inconsistencies in brand voice, tone, and strategy across different touchpoints.

Higher costs over time

• While project-based engagements may seem cost-effective initially, constant onboarding, briefing, and coordination with new agencies can increase hidden costs over time.

Limited strategic depth

• Agencies on short-term assignments lack a holistic view of the brand, which can result in campaigns that focus on immediate results but fail to align with long-term business goals.

Loss of institutional knowledge

• Agencies involved in long-term relationships accumulate deep insights into the brand, industry, and audience. This institutional knowledge is lost when switching agencies frequently.

Increased management complexity

• Coordinating multiple agencies for different projects adds to the client’s workload, requiring more effort to manage, align, and integrate outputs.

Missed opportunities for innovation:

• Long-term partnerships foster collaboration and innovation through mutual understanding and trust. Short-term engagements discourage the risk-taking necessary for groundbreaking ideas.

Conclusion
While project-based engagements offer agility and responsiveness, they sacrifice the depth, trust, and strategic alignment that long-term partnerships provide. Striking a balance—leveraging projects for specialised needs while maintaining core long-term relationships—might be a more sustainable approach for both clients and agencies.

(The author is a leading brand consultant)