6 Reasons Why Agency Search Consultants' Role Has Changed

For decades, search consultants have commanded significant influence on agency reviews, playing a decisive role in which agencies win or lose major accounts. Brands have relied on them as specialized intermediaries to navigate the complex agency landscape, vet potential partners, and manage the arduous review and selection process.

More recently, the power dynamic has shifted. Search consultants are no longer the unquestioned gatekeepers of the review process. More brands are taking greater control over their agency relationships and review processes, relegating search consultants to a supporting role.

why agency search consultants role has changed

What factors have led to this shift, and what does it mean for agencies and the new business landscape?

1. The Rise of In-House Marketing Teams

One key driver of this change is the growing sophistication of in-house marketing teams. As brands have invested more in building robust internal marketing capabilities, they have become less reliant on external agencies for day-to-day execution. This has reduced the need for search consultants to act as intermediaries between brands and agencies.

Many brands now have dedicated procurement, marketing operations, and agency management functions capable of handling the agency review and selection process internally. These teams have developed deep institutional knowledge of the agency landscape and review best practices (often via agency-side experience), all of which reduces their need for third-party guidance.

2. Desire for Greater Transparency and Control

Another factor is brands' desire for greater transparency and control over their agency relationships. Search consultants have traditionally shielded some details of their agency evaluations and negotiations from clients. Today's brands want more visibility into the process and a stronger hand in decision-making.

By taking the reins of the review process, brands can ensure that it aligns with their specific needs, culture, and decision-making criteria. They can also maintain tighter control over budgets, timelines, and other key parameters.

3. Evolving New Business Landscape

New business has evolved in ways that diminish the need for search consultants. More business is allocated via smaller slices of project-based work. There are fewer agency-of-record opportunities and full service reviews.

As search consultant fees are estimated to range between $25,000-$250,000, (in some cases, reaching into the millions), the budgets often aren’t big enough to justify the expense of hiring a consultant (AdAge, Adweek).

4. Impact of ANA + 4A’s “Cost of the Pitch” Report

There’s long been awareness that the agency pitch process is “broken.” When the American Association of Advertising Agencies (4A’s) partnered with the Association of National Advertisers (ANA) and Advertiser Perceptions to publish their “Cost of the Pitch” report last year, it put new weight behind that understanding.

The report found the cost of the average review process is greater than $1 million dollars for brands and agencies (combined), based on three agencies being involved in the review. Additionally, it found that reviews lead to internal disruptions and delays which impact productivity. The 4A’s Matt Kasindorf concluded that agency reviews “should really be considered a last resort,” (Marketing Dive).

The “Cost of the Pitch” legitimized agencies’ long-standing complaints and showed how wasteful the review process is for all parties. It’s no coincidence that more brands seek alternate solutions and different engagement paths to avoid unnecessary reviews. And that affects the way search consultants do business.

agency search consultants evolving role

5. Growing Competition Among Search Consultants

Earlier this year, Matt Ryan of search consultancy Roth Ryan Hayes went on record with AdAge, observing “there are more–and varied in type–intermediary consultants in the last 12 to 24 months than there [has] been in a while.” According to the article, multiple unnamed agency executives and search consultants view this influx of competition as a welcome addition that will benefit the industry.

Ultimately, this new group of consultants are introducing innovative, efficient, and more affordable ways to support brands and agencies as they navigate their relationships. Both newer and established consultancies have been recently recognized for offering fresh solutions. These include repairing agency-brand relationships, creating niche communities for agency new business executives, and negotiating contract and compensation terms (AdAge).

6. Increased Skepticism of Consultant Impartiality

Some brands have grown skeptical of search consultants’ impartiality, particularly when they have financial ties to certain agencies. There is a perception that consultants may steer clients toward agencies that offer them the most lucrative referral fees or other incentives, rather than the best fit for the brand's needs.

As a result, brands are increasingly opting to manage the review process themselves, relying on their own research, networks, and evaluation frameworks to make agency decisions.

Note: While past reports of misbehavior on the part of a few search consultants triggered some attention in the past (influencing another 4A’s and ANA collaboration on “Best Practice Guidelines for Search Consultants”), most search consultants are highly respected members of the advertising community who act with integrity.

How Do Agencies Feel About It?

Now that we’ve identified some of the reasons why search consultants’ roles are changing, let’s explore the agency perspective on it. How will this evolution help or hurt agencies?

Over the years, brand-run reviews have been associated with stories about disorganized processes that disrespect the significant investment agencies have made to participate in them. Among the concerns agencies have cited with marketer-led pitches: ghosting, lack of budget transparency, and favoritism (AdAge).

For many agencies, the involvement of a search consultant in an agency review signals that there might be a greater sense of order, efficiency, and fairness to the process. An unnamed West Coast CMO told Digiday that he prefers consultant-led pitches because consultants bring objectivity and are willing to push back against unreasonable demands from the brand (Digiday).

On the other hand, agencies have also raised concerns about the consultant model, citing high costs, lack of transparency, and the frustration of receiving no feedback on lost pitches. Some have expressed concerns about unfairness, including the limitations search consultants can put on client access in the search process (Digiday). And, of course, when agencies are forced to subsidize search consultant’s costs, it amplifies their own costs of pitching.

Different Experiences for Agencies Based on Size and Age

Newer and small to midsize agencies might welcome a reduced consultant presence in the review process, as they’re more likely to be overlooked. With tens of thousands of agencies in the U.S. and new shops constantly opening and closing, the biggest and most well-established agencies have an advantage with consultants based on awareness.

Newer and smaller agencies face unique challenges for new business whether reviews are marketer-run or led by search consultants. In either case, they often have less brand recognition than the largest players and have to invest in making themselves known. Without that awareness, they won’t be included in the search no matter who runs it.

Agency Search Consultants Aren’t Done

In case it wasn’t clear, we’re far from sounding the death knell on search consultants. Agency reviews are still happening, and search consultants are still being invited to lead them.

In fact, Steve Boehler of the widely-respected search consultancy Mercer Island reported that they are “easily” on track to have a record year, with upwards of 25 reviews this year (AdAge).

According to “The Cost of the Pitch” study from 4A’s and ANA, 46% of marketers use external consultants to conduct reviews, and 39% of agencies use consultants to defend accounts in review (Marketing Dive). Those numbers mean marketers still need search consultants.

Moving forward, expect to see continued search consultant involvement with the largest, biggest-budget reviews. Holding company executives (like Jon Cook, CEO of WWP Agency VML) have reported that most of the reviews they’re invited to are still consultant-run (AdAge).

On the other hand, small and mid-size brands with smaller budgets are becoming more inclined to run searches themselves, as Panda Express did earlier this year (AdAge). Agencies may be less likely to encounter search consultants on those types of reviews.

The role of agency search consultants will continue to shift as they adapt to remain relevant in an increasingly self-sufficient brand landscape. Meanwhile, many are working to evolve the pitch process for the good of all parties and will continue to play a valuable, if less dominant, role in the agency selection process.

What are your thoughts on the changing role of search consultants? How has it affected your agency?