Marketing Week publish David’s letter on ’shared risk’

March 6, 2009

 

David Attinger was published in this week’s Marketing Week on the topic of sharing the risk between an ad agency and its clients.  It’s an important topic because we’ve found that clients are willing to continue spending even during a deep downturn if we are willing to share that risk with the conviction of our own ideas.  We’ve always felt that if our advertising is any good, why would we be afraid of sharing the risk? Here’s David’s letter in full:

 

“Stuart Smith was right on the money to say it was no coincidence that the last recession gave birth to a new third wave of stellar UK agencies (MW, February 19).  He also correctly identified their ability to ‘keep their nerve’ and ability to strip out ‘cumbersome bureaucracy hobbling UK ad networks’.

 

However, it’s his statement about ‘shared risk’ that is perhaps the most important (yet least recognised factor) in the longevity of successful UK ad agencies.  As an agency head and veteran of three severe downturns, I’ve witnessed at first hand how clients will continue to advertise so long as agencies are prepared to share the risk.

 

Why?  If an agency is willing to put its own neck on the line, a client will meet it half way in the sure-fire knowledge that the partnership is more than likely going to be successful.  The success of digital media is particularly symptomatic of this, especially lead generation where all the risk is borne by the agency. 

 

Smith was right – there are a surprising number of clients ready to advertise.  They just want to have peace of mind that advertisers care as much about their business as they do and back it up by sharing the financial risk.  In a recession, words alone won’t do.”