However, this is not all about a squeeze on client margins. When we are negotiating with clients and their procurement teams, we must not lose sight of the fact that their expectations may be fuelled by new agencies entering the sector.
Just as a new estate agent discounts its rate for the first few home sellers - knowing that when it has properties displayed in its window, other vendors will follow - so new PR agencies may offer preferential deals when they launch in order to secure their first few clients.
While this may well prove to be an attractive proposition to potential clients, they would be wise to critically appraise the services on offer.
It is only through using established agencies that clients can be assured of the breadth of services necessary to overcome many of the hurdles in the way of a brand's success, not least of which is market access.
Neil McGregor-Paterson, MD, Chandler Chicco Agency.