After reading Graeme Crossley’s blog on Brand Republic yesterday which asked “Why do some brands think they deserve to get free consulting?” I thought I’d share my thoughts on the matter from my perspective as Director of Operations.

Graeme is understandably somewhat irked by his perception of an increasing trend over the last year of brand owners expecting free consulting from agencies, which as he sees it is not just an evaluation of the brand as part of their conversations about potentially working together, but wanting all of the work for free.

We’re living in pretty tough times at the moment – thousands of people are losing their jobs (including vast numbers in marketing departments up and down the country). EVERYONE is trying to keep costs down to the absolute minimum and everyone wants their suppliers to go the extra mile to secure their business.

I totally sympathise with the situation that Graeme finds himself in; realistically there is likely to be another agency that will put in extra work for nothing for the chance of ultimately winning that big brand account.

We often refer to “the benefit of the back door” or “getting under the radar” – both being descriptions of effective ways of securing decent sized new business accounts from small initial projects. Impress the brand enough and they will use you for work as and when it does come up. However, you have to make sure you have an effective new business strategy in place to nurture this relationship to fruition. We have come across many agencies in a similar situation to Graeme and our New Business Managers have built and maintained excellent ongoing contact strategies that have ultimately resulted in winning new business. I won’t deny it’s hard work – although it’s also our day job, so you won’t find many people in a better position to help you.

In his final paragraph, Graeme says that nobody who applies for a job would work for free for the first three months, so why would agencies do so for brands. Well, I remember leaving college way back in 1993 and looking for a job in the marketing communications industry. Several agencies offered to take me on for unpaid work placements for 3-6 months – the logic being that if you impressed them enough there might be a paid job afterwards but tough luck if there wasn’t and at least you’d have some agency experience under your belt. Even as recently as a few months back I read about a guy who offered to refund his salary to any employer who took him on and wasn’t pleased with his work. On top of this, the number of students doing ‘internships’ (a fancy American name for unpaid work) has risen dramatically in the past few years.

I suspect that these practices have been going on in one form or another for a long time and will continue to do so. In times of economic hardship where competition is fierce for every scrap of business the scale of the problem is magnified as the buyers hold all the cards. The ultimate goal for the agency who wants the business is to convince the buyer that appointing them will yield the greatest possible return on investment for their brand.

Another interesting advertising and marketing column in the Evening Standard (25th October 2010).

The piece comments on the benefits of real time feedback through digital technologies and social media, enabling real engagement with consumers and allowing brands to react to feedback and messages immediately. The example cited is that of Gap and the feedback the company received when they announced a new brand logo. The company binned the logo almost immediately based on the Facebook postings.

Clearly, the capacity for big brands to focus their efforts in the digital world and use social media to gather quick feedback enables them to adapt campaigns in real time. Indeed, research agencies such as You Gov are developing specific products and services to cover this responsive research channel. It has fantastic potential for large brands in terms of consumer involvement and engagement as well as campaign management.

Social media is the new medium for achieving that end result, but actually speaking to consumers or potential consumers for your brand/proposition has been a successful and often underrated and/or under utilised tool for years. The phone is not just about slick sales people chalking numbers on a white board. It is about using each and every call and conversation to learn more about your market and how your offer is perceived.

Alchemis has been doing this successfully for the past 23 years. OK, the brands we represent are marketing agencies and not large consumer brands, but what we are able to do through actually speaking to people is gather a true response to a proposition on behalf of our clients. Based on the feedback we provide, we are able to work with our clients to adapt or focus on part of their offer as well as test new propositions.

We collect some valuable quantitative data through our bespoke software, and this, combined with the qualitative insights gathered by their New Business Manager is the added value our clients buy into when choosing Alchemis to deliver an effective business development campaign on their behalf.

If you can’t be a banker then it looks like social media is the place to be.

A recent survey from a digital recruitment agency which analyzed data from around one thousand vacancies concluded that the average Account Director salary within the social media discipline grew by a whopping 19% in the first half of 2010 compared to the second half of last year. The average rise in digital industry salaries as a whole was a more modest 3.4% since the second half of 2009.

This follows the creation of more social media roles by big brands such as Sky, Starbucks and O2 and an ever increasing amount of new business within this field.

I should point out that average salaries in social media are still below equivalents elsewhere in the industry, but with this growth rate the balance of power within the marketing mix is certainly shifting in favour of the geek and this is being reflected more and more in the type of services offered by our client base. Watch this space…