{ "media_type": "text", "post_content": "Didnt ask this the right way before: Whats your theory about when—and for what reason —classic “Big Agency Pitching a Big Client for AOR Relationship” went away, and became project based with no 💰?", "post_id": "5e6d64ec22ab1f001a33ed27", "reply_count": 8, "vote_count": 1, "bowl_id": "5565cfca8b2b9a03009acf57", "bowl_name": "Advertising" }

Didnt ask this the right way before: Whats your theory about when—and for what reason —classic “Big Agency Pitching a Big Client for AOR Relationship” went away, and became project based with no 💰?

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For the why part of it: 1) agencies stopped putting data behind their value 2) holding companies (especially Sorrell) started valuing quarterly results over long term health 3) senior account people stopped learning how to manage clients and started becoming pandering “yes” people instructed to keep a client at any cost (see my point about Martin Sorrell)

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When clients lost their job security and agencies failed to provide strategic guidance rather than tactical gibberish.

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Billing hourly like lawyers led to project based vs AOR.

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Didnt ad agencies always bill hourly? Ive filled out timesheets my whole career—havent those always been marked up and charged to clients in addition to any retainer?

Clients know that agencies misuse their retained resources. Who do you think works on pitches?

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Read Madison Avenue manslaughter.

funny

In addition to the above: when clients needed to be smarter with money and realizing aor fees are basically paying for fancy offices and free snacks, but not for work that drives business changing results. Project based work gives them the ability to ‘shop around’ and find partners that best suite them/their needs and basically only paying for exactly that. I feel like it creates more pressure on the agency to keep delivering good work to continue to foster that relationship and keep those few pennies rolling in.

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This is really interesting, I asked the same question (or meant to) a couple of days ago, just worded it as “when did it happen.” Answers were like “2012” and “when facebook data became a big thing.” These are all sort of anti-agency. Im trying to figure out how the question was worded so differently.

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