EXCLUSIVE: As speculation mounts that the Royal Automotive Club of Queensland (RACQ) is looking to consolidate its creative account, TrinityP3 managing director Darren Woolley has questioned the value of agency consolidation.
The insurance arm of RACQ is concluding a closed two-way pitch between incumbent Clemenger BBDO Brisbane and SapientNitro Brisbane, which handles the wider RACQ business.
A well-placed industry source has suggested SapientNitro is the frontrunner in the race, which would lead to a consolidation of the RACQ creative account with the agency.
Woolley said agency consolidation is only a wise move in certain circumstances. “This strategy works for some clients, however those with multiple brands, strategies and specific segments need to find specialists in those areas.
“The reason consolidation happens is that very little time is spent working out what is the right structure of agencies to suit the marketing strategy for the client and it ends up being decided on a tactical short-term basis rather than a strategic basis looking at long-term future gain.
“Agencies will propose that if you put all your business with one agency, they’ll do it cheaper. But in my experience, time and time again, the agency will come back in six months time and ask for more money. You then see big consolidations fragment again.”
Clemenger BBDO Brisbane was appointed to the RACQ Insurance account in February 2010 and has been responsible for creative communications for the business across motor insurance and home and contents.
When contacted, SapientNitro and Clemenger BBDO could not comment on the process. At the time of writing, RACQ has failed to return multiple calls.
Clemenger BBDO Brisbane is also currently defending its Energex creative account against George Patterson Y&R Brisbane and Junior.
A decision on the Energex account is expected in the coming weeks.
This article first appeared in the 23 March 2012 edition of AdNews. Click here to subscribe for more news, features and opinion.
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