Marc Nohr, chair of the IPA Commercial Leadership Group and chairman of Fold7, warned that agencies are "colluding in their own demise" if they don’t evolve their pricing strategies.
Nohr oversaw the publication of the IPA’s latest pricing report, Price for Success, which was launched at today’s IPA Business Growth Conference (25 November).
The report explores the nuances of client-agency commercial relationships, and outlines a “new model” of commercial partnerships based on eight core commercial components.
It also addresses questions from IPA agencies to explain different aspects of commercial partnerships from an agency perspective.
“Unless agencies face up to the many and varied challenges they face commercially and change the way they price their products and services, they are colluding in their own demise," Nohr, who is also group chief executive of Miroma Group agencies, said.
He continued: “This report gives them the tools to skill up, get good at it, and ultimately secure their own future.”
Price for Success was commissioned by the IPA Commercial Leadership Group and written by marketing advisory Alchemists.
Vlad Komanicky, founding partner of Alchemists, said: “Current agency commercial models are rigid and hinder innovation.
“We hope, therefore, that this guide will help agencies to adopt a process which allows greater agility and flexibility.”
Komanicky said that the guide will enable agencies to build partnerships “comprising several commercial components” with clients, and will allow agencies to understand where they are “at any stage in the client and agency relationship”.
Komanicky added: “By identifying this, they will know where they stand in terms of the potential risks and rewards for any commercial partnership.”
The guide is available to purchase from the IPA .
A new IPA report, The Future of Brand and Agency Relationships, claims that five models will define the way advertising agencies and brands work together in the next decade.
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