The business case for Agency of Record agreements is under scrutiny. The trend of companies committing to a relationship agreement with full service agencies is on the decline, and doling out campaigns on a per project basis has become common business practice.

Why are companies and agencies moving away from engaging in an agency of record agreement, and moving to a per project transactional model? Most companies believe that this type of transactional model is helping them save money. However, this is not necessarily the case. Below are a few options about why agency of record agreements can actually be more cost-effective in the long run.

Agency of Record Relationships

Relationships are the most valuable commodity when it comes to delivering innovative creative that perfectly reflects a company’s heart and soul, in other words, the brand. When an agency intimately understands an organization, it allows them to think like the business without having to do investigative dives into culture and company vision. The agency already knows how a company functions, and what their goals are.

Brand assessment interviews and surveys take time, and their investment cost can be significant. An established agency of record skips this step, resulting in each campaign project saving them time. This means faster project delivery and considerable cost savings over the length of the agreement.

Time & Stress Reduction

We’ve all been there, looking for that elusive file, that high-resolution logo, or the Pantone brand colours that always seem to take forever to find. When you’re working with an Agency of Record, they have all your files in one place: right at their fingertips. When working with an agency that you have an established relationship with, they take care of the details, saving you time and reducing your stress.

Project Flow

Putting out campaigns on a regular basis requires the company to manage all of the pieces. They are essentially the contractor who needs to manage all of the vendors, and then coordinate them. An Agency of Record provides a one-stop shop. If a company doesn’t have the expertise in-house, they have a network of experts who do. The agency will then manage the team, and take responsibility for the team delivering quality work on time and on budget.

Agency of Record Long Term Benefits

From both the company and agency side, there are justifiable concerns about being tied into a long-term contract. The solution is easy. When both parties agree to a quick release clause, either party can decide to terminate the contract if they decide they are not being served well, or unhappy with the work or relationship. This ensures that both parties are safe to leave whenever their needs are being ignored.