Why marketers are taking over reviews from consultants—and how agencies can adapt

Under economic pressure, more and more marketers are skipping search consultants and taking agency reviews into their own hands. While search consultants are certainly still active, many seem to be focused on the larger and most lucrative pitches, such as Rocket Cos., Hershey and BlackRock. Holding company executives affirm that notion: VML CEO Jon Cook told Ad Age that roughly 75% of the reviews the WPP agency is invited to are still run by search consultants. But there has been a recent wave of midsize and small brands leading searches themselves, according to several agency new business executives. Panda Express’ creative review, for instance, was managed by the restaurant chain’s marketing division, according to a person familiar with the matter. Panda Express didn’t return a request for comment. And since the fourth quarter of 2023, about 95% of Mojo Supermarket’s new business opportunities have come directly from clients’ marketing and brand divisions, according to Ray Kang, head of growth at the agency. “Procurement hasn’t even really been involved until we’re talking about rate cards and signing the scope,” Kang said. Ad Age Small Agency Conference & Awards Join us July 23 & 24 in Boston Learn more here Why marketers grabbing the wheel Economic pressure is a primary catalyst behind the rise in marketer-led reviews. As clients pull more work in-house, search consultants are often first on the chopping block, Lisa Colantuono, president of consultancy AAR Partners, said. “Out of all three of us—search consultants, agencies and marketers—we are [seen as] more of a vendor,” Colantuono said, adding that she has been invited to two reviews in the second quarter, down 50% from the prior period. Search consultants operate on a fee-for-service basis, and their pricing varies based on the size and complexity of the review. Fees can span anywhere from $25,000 to $250,000, according to one search consultant who spoke on the condition of anonymity. But in some cases, fees can reach millions of dollars, “depending on the scope of the review,” according to Greg Paull, principal of consultancy R3. “Some search consultants are subsidized by agencies and media vendors which might make them seem more cost-efficient, but marketers need to weigh that against the cost of independence and transparency,” Paull said. Marketers are also spearheading pitches in an attempt to find their own strategic partners who can elevate their return on investment, especially as CMOs have faced more turnover in recent years. Also read: CMO tenure stabilizing as female marketers gain ground “A lot of the conversations we’re having specifically with [chief marketing officers] now are really [about] ticking all the boxes,” said Courtney Jones, VP, head of business development at The Martin Agency. They are asking, “‘Do you understand how I make money? Do you understand why my job could be at risk? Are you the type of partner that can help elevate my role as a CMO, on top of delivering creative?’” Some clients also feel comfortable leading reviews because of their prior experiences, said Mona Munayyer Gonzalez, chief growth officer of Pereira O’Dell. “These seasoned marketers, whether it’s because they spent time agency-side or because they’ve done these reviews so many times, they now want to be more actively engaged.” Ad Age Small Agency Conference & Awards Join us July 23 & 24 in Boston Learn more here The fractional way Rather than enlisting a search consultant, some smaller companies without CMOs or robust resources are enlisting temporary outsiders to support their varying marketing needs, including agency reviews. Colle McVoy has participated in three reviews managed by a fractional CMO within the past year, according to a spokesperson from the Stagwell-owned agency. Natural pet food company Wellness Pet, which in April named Colle McVoy its creative AOR, hired independent consultant Barbara Reilly to oversee the selection process. But in general, working with a temporary executive can present hurdles, said Gina Gray, executive VP, business development at Colle McVoy. Read more: Agencies, brands are hiring more fractional executives “We have to remind ourselves that we’re not working with the [fractional CMO] forever,” said Gray. “There has to be a balance … and opportunities to build a relationship with [clients] because they’re ultimately the ones who will be working with the agency.” Fractional executives have their own challenges when handling reviews. Zach Foster, a former executive at Droga5 and Goodby Silverstein & Partners, has served as fractional CMO for barbecue brand Jealous Devil since January. Foster initially planned to conduct a review to support Jealous Devil’s upcoming marketing push, but he pivoted after realizing it would be difficult for an agency to work under the company’s “lean budget.” Instead, he opted for a two-day sprint with freelance creatives that led to a creative platform for an upcoming campaign. Foster then worked with a marketing-focused talent matchmaking service called SelectFew, which helped Jealous Devil find paid media and organic social specialists to support the campaign moving forward. Check out the latest Ad Age events and award programs A split jury Agency executives are torn on marketer-led pitches, with some bemoaning ghosting and lack of budget transparency, as well as clients playing favorites. “The unfortunate outcome of this change is an uptick in client bad behavior,” said Kang. “When there’s a search consultant, you understand the pitch is being run on fairgrounds and you get all the context upfront. When it’s brand direct, I feel as if the playing field isn’t nearly as level.” Also read: New business pitches are broken Paull suggested marketers weigh the long-term pros and cons before deciding on who is leading the review. “Rather than the cost of a search consultant, it might be better to look at the cost of not using one,” he said. “A marketer will be investing hundreds of millions, sometimes billions of dollars, with an agency over the coming three years. A search consultant is a very low-cost insurance policy to ensure true due diligence is undertaken.” But some agencies appreciate the opportunity to connect directly with marketers. Matt Kasindorf, senior VP of business intelligence and insights for the 4A’s, said agencies have responded well to reviews overseen by marketing, which he has seen more of over the past six months. In one pitch, “the CMO basically stated at the beginning, ‘The purpose of this review is to understand what it would be like to work with you on a day-to-day basis,’” Kasindorf said. “That, from a relationship perspective, is like a gold standard.” Check out the latest Ad Age events and award programs How can agencies adapt? A rise in marketer-led reviews means agencies must invest further in establishing their own brands to CMOs who may not be as well-versed in the agency world as consultants, according to many people interviewed by Ad Age for this story. But that can be difficult, especially for newer shops which may not have the time or resources to establish industry connections. Some agencies are going on the offensive instead, doubling down on external communications and marketing. Mischief @ No Fixed Address said it tries to run its social media accounts as a brand rather than agency—posting content that informs, educates or entertains (ideally hitting all three areas). In doing so, the agency aims to clearly define itself for potential clients. @mischiefusa Lots to unpack here. #tiktokrizzparty #tiktok #rizz #adage #joymaxxing #agencyoftheyear #viral #fyp @Ad Age #greenscreen ♬ Suspense, horror, piano and music box - takaya “Once we have our brand out there, it creates a draw from people who are right for us,” said Oliver McAteer, partner and head of development at Mischief. “People know why they’re knocking on the Mischief door by the time they come here. And that's half of the new business battle.” Also read: How agencies are marketing themselves Another viable tactic is to specialize or deviate from the traditional agency model, an approach new shops such as X&O, Plug and Play and Dang are trying. X&O offers off-the-shelf pricing, quick sprints and a cadre of anonymous freelancers, some of whom are former CMOs themselves. Plug and Play acts as a connector between brands with production shops, artists and creators to help brands solve specific marketing challenges. Dang specializes in Gen Z. But agencies’ best bet may be to learn to work well with marketers leading their own reviews as well as those employing search consultants, because at least for the foreseeable future, brands are using a mix of both. “I value the search consultant approach tremendously because they have visibility into the industry in a way the internal procurement team wouldn’t,” said Lisa Martinelli, VP, marketing and brand experience at Stop & Shop, who recently enlisted Mercer Island Group to hire Curiosity as its new creative agency of record.

Why marketers are taking over reviews from consultants—and how agencies can adapt

Featured Stories