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Propulsion: Exploring the "next practices" of successful marketing communication firms

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The plug and play agency

September 15, 2008 | Author: Tim Williams

One of the greatest challenges to agency profitability is the perception on the part of clients that some agency services are commodities. Because clients feel they can get these services down the street – or across the ocean – for less, there is intense pricing pressure on agencies in areas such as print production, website programming, and media buying.

Unless you do something to add value and turn these perceived "commodities" into something clients can't get down the street, you'll be in a downward spiral of competition for work that doesn't have much of a margin. Not a very attractive business to be in.

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