It’s Not A Talent Shortage, It’s A Dollar Shortage: Clemenger Boss

It’s Not A Talent Shortage, It’s A Dollar Shortage: Clemenger Boss
SHARE
THIS



Clemenger Sydney’s CEO has handed down a withering assessment on the parlous state of the advertising agency industry in Australia and blames clients’ unwillingness to remunerate them fairly as the root of the problem.

Andy Pontin, CEO of Clemenger BBDO Sydney, who is responsible for the Clemenger BBDO, Proximity and Porter Novelli businesses in NSW, was speaking as part of a skills shortage workshop organised in partnership by ADMA and B&T.

andypontin-thumb-200x278-41636
“I think you can either say there is a talent shortage or there is a dollar shortage. And our issue is that there is a dollar shortage. The talent’s out there, we just can’t afford to pay for it,” he said.

Pontin said the problem applied to both talent already living in Australia as well as talent the agency was trying to bring into Australia.

“I think where we and every other agency is really struggling is that we used to be able to attract really great thinkers because generally we pay more, we used to offer a better working environment and often more variety in the role. All three of those things have changed now.”

Pontin said that agencies were now paying relatively less for their staff than the the clients they serviced.
“So I think now we’re beginning to pay less, so it used to be an account director would be sitting across the table from the client, our guy would be earning more, now they are probably earing 30 per cent less than the person on the client side. So that’s a big challenge.”

So how do you keep people on board with that, Pontin asked the room?

“One way to keep on board is the soft stuff. So it’s the cultural side, the environment, well that costs money and we all have tight controls over line items. So, that’s difficult to do and also frequently now many of our clients have funkier premises than us.

“They have their own creative product, their own great thinkers and they can offer similar scope and scale in the roles that really only used to exist in advertising.

“So that’s the issue really: the talent’s there, we’ve got to find a way to make an advertising agency the right place for the right talent to land,” he answered his own question.

He also said that while many agencies were going for people with broad skill sets, he said what was really needed was people who are jacks of all trades, masters of none.

“You still need experts. Clients still look across the table at you and say: who’s your digital guy? Or, who’s your social guy? So you need all that because the generalists know some things, but most clients will say that that’s a weak link but it’s actually what they pay for.”

Pontin finished off his  opening salvo in the workshop with one last observation: “If clients paid us properly, probably we’d have better talent. And that sounds like a whinge, but the industry is in a dramatic hole at the moment, because we sold ourselves 20 years ago onto the consultancy, head-hour based model and I’m telling you in 20 years, that hourly rate for that creative director has not changed, but the salaries have changed.

“So our ability to detach our revenue line from a linear connection to a cost line is zero. And that’s a horrendous business model in a business changing as fast as ours.”

Please login with linkedin to comment

Latest News

Retail Software Player Vend Moves Into AI As Part Of Platform Revamp
  • Marketing
  • Technology

Retail Software Player Vend Moves Into AI As Part Of Platform Revamp

Point-of-sale (POS) retail software company Vend has taken its first steps into AI to help retailers grow and compete as part of a major platform refresh. Dott aims to help retailers make better decisions about their stores and how to grow, bringing the much talked-about promise of AI to life for retail. Neither male nor […]

One-on-one With Pacific Magazines’ Wendy Moore
  • Media

One-on-one With Pacific Magazines’ Wendy Moore

With audiences consuming more media than ever before, Wendy Moore, general manager of Pacific Magazines’ homes and food titles, sat down with Magazine Networks to outline two unique projects in her portfolio. When she’s not gracing our TV screens as a judge on Seven’s House Rules, Wendy Moore oversees Pacific Magazines’ portfolio of homes and […]

Enough With Your Shitty Videos Already
  • Opinion

Enough With Your Shitty Videos Already

In this opinion piece, Mike Cardillo (pictured below), co-founder, executive creator director and resident frustrated soul at Sydney-based production company Sixteen Corners, argues why making a video for the sake of making a video will never do, and offers some words of wisdom to those looking to create a clip. So, the solution to every marketing, comms, […]

Opinion

by B&T Magazine

B&T Magazine
The Amazon Effect! Study Shows 88% Of Aussies Hate Local Retailers
  • Marketing
  • Media

The Amazon Effect! Study Shows 88% Of Aussies Hate Local Retailers

Amazon’s Australian launch is imminent and if you had any concerns about its ability to succeed Down Under you only need to look at a new survey that reveals a whopping 88 per cent of Australian shoppers say they’re no fans of local bricks and mortar retailers. The study, by tech solutions firm Pitney Bowes, showed a […]

by B&T Magazine

B&T Magazine
Bauer’s Christian Fricke Resigns As MD Of Xcel Media
  • Media

Bauer’s Christian Fricke Resigns As MD Of Xcel Media

Further to today’s news that Bauer Media will close three of its magazine titles, the publisher has announced the resignation of Christian Fricke, managing director of Bauer Xcel Media. According to a statement sent to media, Fricke, who had been in the role a mere 18 months, will return to Germany for family reasons. Commenting on Fricke’s departure, Bauer Media […]

WWF Campaign Labelled “The Saddest Christmas Ad Ever”
  • Campaigns

WWF Campaign Labelled “The Saddest Christmas Ad Ever”

The World Wildlife Fund (WWF) has unveiled its annual Christmas ad campaign that has been labelled as “one of the saddest Christmas adverts ever produced. The global campaign aims to daw attention to the devastation caused by Africa’s ivory trade and the tremendous cruelty inflicted on its elephants. It was produced by the WWF’s as part of their Just Like Us campaign and […]

by B&T Magazine

B&T Magazine
Former Aussie Cricket Captain and photography enthusiast Steve Waugh for SnapSydney.  Picture: John Appleyard
  • Campaigns
  • Media

News Corp Expands ‘Snap Australia’ Campaign To Regional Titles

News Corp’s award-winning Community Media’s ‘Snap Australia’ campaign continues to build momentum. ‘Snap Australia’ is a social media movement that celebrates what Aussies love about where they live. The feel-good factor of the initiative has extended into each capital city and into News Regional Media, with an additional 18 regional publications joining the initiative. Today […]

Virgin, Yellow Brick Road & GoSwtich Flock To Sports Content Platform PlayersVoice
  • Marketing
  • Media

Virgin, Yellow Brick Road & GoSwtich Flock To Sports Content Platform PlayersVoice

Six weeks after its launch, sports content platform PlayersVoice is winning the hearts and minds of consumers and brands. Established as a platform for rich and raw first-person sports storytelling, PlayersVoice has created an environment where elite sportspeople feel comfortable sharing their thoughts, hopes, dreams and fears, shining a light on ‘The Human Behind the […]

Red Agency Grows Partnership With The Whiddon Group
  • Marketing

Red Agency Grows Partnership With The Whiddon Group

NSW aged care specialists The Whiddon Group – a longstanding PR and social client of Red Agency – have widened their remit to include content, paid social and SEO in line with the evolution of the aged care sector. Whiddon, which celebrates its 70th birthday this year, delivers care services that enable quality of life […]

Image lead story Toby’s Estate Taps Influencers To Launch First Concept Coffee Range
  • Campaigns
  • Marketing

Toby’s Estate Taps Influencers To Launch First Concept Coffee Range

Toby’s Estate Coffee Roasters has launched its first ever concept coffee range – the Underdog Series. The series shines a spotlight on the world’s relatively unknown, but emerging specialty coffee producing regions. The Australian business leads the local market in selling specialty coffee from regions including Uganda, Malawi, Mexico and Myanmar. For the first time, […]

Image lead story Our Revolution Shows Off Packaging For New Smallgoods Player The Smokeman Brothers
  • Marketing

Our Revolution Shows Off Packaging For New Smallgoods Player The Smokeman Brothers

Locally-sourced Australian brand The Smokeman Brothers, has hit shelves with packaging mastered by independent creative agency Our Revolution. The Smokeman Brothers is different to your average deli meat. It is a range of premium crafted meats, made in Australia, and authentically smoked using sustainable timber sourced from the Victorian Highlands and The Riverina regions. Our […]

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign
  • Advertising
  • Campaigns

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign

Yarra Trams has appointed Icon Agency to deliver a new passenger safety campaign, following a competitive three-way pitch. The campaign aims to reduce the incidence of slips, trips and falls on trams via Melbourne’s latest safety ambassador, ‘Tram Coach’. Commencing today, Tram Coach will be travelling the Yarra Trams network throughout the week. His mission […]

The Red Republic Appoints New General Manager
  • Marketing

The Red Republic Appoints New General Manager

The Red Republic has strengthened its management team with the appointment of Mai Aristoteli (pictured above) as general manager. Aristoteli joins The Red Republic from Talk PR in London, where she has worked for nine years as a board director. The appointment of Aristoteli follows The Red Republic managing director Lynn Mooney’s relocation to head-up […]

PR Deadlines Inks Deal With GlobalCom PR Network
  • Marketing

PR Deadlines Inks Deal With GlobalCom PR Network

Sydney-based agency PR Deadlines has extended its global reach after inking a partnership agreement with the GlobalCom PR Network. The agreement gives PR Deadlines’ clients access to some 70 independent agencies covering all European Union states, as well as 60 more in countries worldwide. In turn, clients of affiliated agencies will have access to PR […]

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador
  • Marketing

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador

InstaReM, which offers international money transfers to individuals and businesses, has signed on Australian wicketkeeper Matthew Wade as the sports face of the brand. InstaReM lists Australia as its founding market, having begun life here in 2014. Since the company’s modest start in Australia, InstaReM has since successfully spread its wings to other corridors by […]

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?
  • Marketing
  • Opinion

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?

As Australia continues to grow and the population becomes more ethnically diverse, it is important that marketers ensure digital environments are more inclusive, especially for those who don’t speak English as a first language, writes Siteimprove’s Haley Doel (pictured below). Having a readable and accessible website is no longer just a high priority for large […]

Opinion

by B&T Magazine

B&T Magazine
Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign
  • Advertising
  • Campaigns

Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign

Pepsi MAX has partnered with PHD and Time Out to not only inspire Australians, but also enhance their ability to ‘MAX’ out their summer this year. Through the use of a live dynamic data feed, consumers will be served ads by the brand on events taking place around them that are relevant to their personal […]

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine