This story in the Wall Street Journal on the pressure being placed on large ad agencies by their clients to reduce fees is really worth reading, if for nothing else, because it gives some insight into the attitude many large agencies have concerning their self-importance and the value of their services. This quote in the story, sort of sums up their general attitude: "The reality is that clients want more for less," says Maurice Levy, chief executive of Paris-based Publicis. "It's something that is unfortunately becoming quite common."

What is surprising is that it took Maurice (who allegedly is an advertising professional with a pulse on what consumers in general want) this long to figure this out. Isn't more for less one of the driving forces of our economy? Wal Mart, Target and Sam's Club have done pretty well operating under this premise. Why does Maurice think that his customers want more for less when it comes to the toilet paper they buy or the clothes they wear but not when it comes to the services of Publicis? It appears that he really thinks companies should pay Publicis more just because they are Publicis. At no point in this article does anyone from any agency say that clients should pay the same or more because they are doing a better job, or driving more sales for their clients. They just believe they should make outrageous commissions because that is the way it has always been. Good luck fighting against the tide, Maurice. Maybe Maurice's dreams will come true and once the economy recovers advertisers will come to their senses and get back to the good old days where they were willing to pay more to the people with the coolest clothes, regardless of the services they provide, but I wouldn't bet my Target jeans on it.

Here is part of the Wall Street Journal story:

While ad companies have historically lagged behind in economic recoveries, this time their rebound may come even later, and be less convincing. Not only have marketers slashed what they spend on ad time and space, but many companies have also significantly reduced what they pay their agencies for ad services, such as creating TV commercials.

Ad executives say marketers have slashed the fees they pay by 5% to 30%. Some companies have even asked that fees be reduced retroactive to Jan. 1, meaning firms are paid less for work they have already completed, say two ad executives.