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Marketing Procurement

Nike Evaluates Digital Agency Partners Using a “Reverse Auction”

By Advertisers, Advertising Agencies, Marketing Procurement No Comments

reverse auctionNot a believer in the reverse auction methodology for sourcing professional services firms. History has shown that this methodology is clearly not the most effective means of evaluating capabilities and or the distinctive nature of an agency’s work and or relevant performance. Additionally, this approach can limit an advertiser’s access to top tier agency talent as many firms will simply choose not to participate in this type of review process.

From a supplier perspective, advertisers using this approach risk being typecast as only being interested in driving agency fees lower, not in building collaborative partnerships or the caliber of the work or the depth of an agency’s resources. Will be interesting to see which agencies choose to participate versus those that opt out. Read More