Let’s face it, times are tough and marketing budgets are often the first thing to hit the chopping block. When budgets shrink, it’s tempting to look for cheaper options.
But too often, that decision leaves marketers wondering why the results - and quality - don’t match their requirements or expectations.
I get it. Before joining agency land, I spent 25 years on the client side, managing some of the biggest marketing budgets in the country. I’ve felt the constant pressure to justify every dollar. And if there’s one thing I’ve learned, it’s this: making quality choices maximises the value of your spend.
The real question marketers should ask - whether times are tough or not - isn’t “How do I cut costs?” but rather “How do I get more from my marketing dollar?”
Sure, working with a lower cost provider might seem like a win in the short term. But over the long run, it rarely delivers what you think it will. The real value lies in aligning the right partners for the right work. Partners who offer the right combination of capability, capacity, and experience to drive better outcomes for your business. Let’s explore these elements further.
Capability matters most
"I’ve lost count of how many times we’ve been brought in to clean up failed attempts."
A capable agency does more than just tick boxes on a brief, they dig deeper. They uncover the real problem (or opportunity) you’re trying to address, figure out the business outcomes you need, and build communication solutions that genuinely resonate with your audience.
High capability means they understand your target audience on a granular level - what drives their perceptions, what inspires behaviour change - and they use these insights to turn good ideas into game-changing creative. They also challenge your thinking, pushing you to explore innovative approaches, channels, and strategies that set you apart from competitors.
I’ve seen this play out time and again. Agencies with lower capability might save you money upfront, but I’ve lost count of how many times we’ve been brought in to clean up failed attempts. Clients often end up paying twice (or even three times) just to fix work that didn’t land the first time.
Capacity reduces risk, increases adaptability
"Do they have the bandwidth to handle it without the risks of compromising quality or timelines?"
Capacity is another piece of the puzzle that’s often overlooked when cost is the focus.
A cheaper supplier may be able to do the job, but do they have the bandwidth to handle it without the risks of compromising quality or timelines?
An agency with the right resources can scale up to meet your needs, no matter how complex or demanding the project. They’re equipped to deal with last-minute changes, tight deadlines, or unexpected challenges and opportunities that always come up. This kind of capacity also saves you time and stress. Well-resourced agencies can take the pressure off their clients by handling complex stakeholder engagement, navigating tricky sign-off processes, or moving multiple projects simultaneously.
Experience = faster, smarter, better
"Experienced agencies have the ‘wisdom’ to know what works and what doesn’t."
Experience is the secret weapon of great agencies. It amounts to years of navigating market dynamics, building relationships and networks, understanding customer behaviour, and learning from successes (and failures). Experienced agencies have best-practice processes baked into their DNA, supported by the ‘wisdom’ to know when and how to adapt them. They know what works and what doesn’t, so things get done faster, with less risk, and are more likely to hit the mark the first time.
This expertise can make the difference between a project that merely gets delivered and one that truly connects with your audience in ways that matter.
Invest in value
Ultimately, the measure of value isn’t the upfront cost. It’s the return on investment that’s delivered and that comes from results. Agencies with strong capability, capacity, and experience are far more likely to deliver work that achieves your business and communication objectives. When you invest in quality, that pays dividends in areas like:
- Greater cut-through, awareness, engagement and likeability
- Stronger customer loyalty and advocacy
- Increased saliency and long-term brand value
- Increased customer acquisition and sales
- Higher staff attraction and retention
- Increased shareholder value
The right agency for the right job
In life, we know that quality comes at a price and we expect a higher level of performance when we pay more. The same applies to your marketing partners.
That said, there’s room for both high-value and low-cost agencies on your roster. Strategic, high-capability agencies are your brand guardians. They’re the ones you turn to for the big, important projects that require that important combination of deep thinking about audiences, messages, mediums and channels and creative excellence.
On the other hand, lower-cost agencies – with less capability, experience and/or capacity - can handle your everyday work like rolling over existing communications, executing templates for social or eDMs, and managing other tactical projects driven by clear guidelines and a strategic direction.
Partners in growth
And there’s one more thing to consider: the value of a true partnership. When you work with an agency, the goal isn’t just hiring a supplier but gaining a partner. Someone who knows your business and challenges you to think differently and aim higher. A strong partnership fosters collaboration, innovation, and a shared commitment to achieving the best possible outcomes. These tough times are exactly when you need this from your agency. A good agency partnership offers ideas, advice, support and a sounding-board – things that don’t necessarily show up on any of their invoices.
So, whether times are tough or booming, choosing your creative services partnership shouldn’t just be about rate card. The cheapest option might save you money now, but quality is what delivers real value – through results that matter - in the long term.
I hope this blog provides some food for thought for those many marketers who are working hard to deliver outcomes with reduced budgets and resources. At the same time, I hope it delivers some valuable arguments marketers can use in explaining, or defending, their decision to keep investing in the right agency partners to their bosses, their accountants, procurement and others who are asking for low-cost, short-term thinking.
