The Tip of the Iceberg Scenario
With brands continuing to move their marketing and advertising work in-house, and agencies being asked to support on a project-by-project basis, both sides are looking for ways to best navigate the “Tip of the Iceberg Scenario”.
When a brand has an initiative they need help with they’ll reach out to agencies with a request for a proposal (RFP) or a request for pricing. The agencies will typically respond in one of two ways:
- Reply to the exact request.
- Reply and point out how the request is a small piece of a much larger issue (i.e. the whole iceberg) and create a broader proposal for what they think the brand needs, not just what they asked for.
When agencies respond the first way they set themselves up to be tactical service providers, not advisors or strategic partners. Without asking additional questions or providing context for the brand to consider, they’re creating short-term solutions that will cost the brand more money in the long-term. By neglecting to demonstrate any thought or knowledge beyond the immediate ask, the agency will be judged solely on their costs and ability to hit a deadline.
When agencies respond the second way, they can eliminate themselves from the process right away based on a perceived lack of understanding of the brand’s needs or because their pricing is beyond the project’s budget. While the agency may be trying to help by identifying what the brand ultimately needs to succeed, the brand isn’t asking for the whole solution because they’re not ready to tackle it at the moment due to their budget, strategy, or short-term goals. With the wrong message or messenger, agencies can be perceived as opportunistic when they propose larger, more expensive ideas than the brand requested.
While most of us understand the importance of long-term vision, strategy, and planning, we often operate with short-term goals. The best-case scenario is that we acknowledge we’re only addressing the tip of the iceberg while recognizing there’s more to be done in the long-term. The worst case is that we’re oblivious to the long-term implications of our short-term decisions and jump from project-to-project without a broader strategy. That said, there are ways for brands and agencies to work together which can make project-based work incredibly successful.
Agencies that identify broader issues that are not being addressed in an RFP can recommend a plan to address the immediate ask (i.e. the tip of the iceberg) while letting the brand know there are other connected issues that could ultimately be addressed to ensure long-term success. The key is to do it in a reasonable way that’s not overwhelming for the brand. Pointing out all the things brands are not doing right without offering a reasonable plan to move forward is not particularly helpful. Instead, agencies can recommend a “Stage 2” plan to follow the initial ask for the brand to consider. This creates an opportunity to keep the conversation going before asking the brand to dive into a high-risk, long-term investment with a new agency. The brand can still choose to only execute “Stage 1” but there’s now a door open that they can walk through if they’d like.
As with just about everything, the key to navigating the “Tip of the Iceberg Scenario” is communication. If both sides are willing to take a step back and really look at what’s in the best interest of the brand, conversations can flourish, trust can be built, and great work can be executed.