This June, Crispin Porter + Bogusky got an early Christmas present from Gap when the clothing retailer went around Laird & Partners, its agency of record since 2002, and selected Crispin to handle its holiday campaign -- a huge deal when you consider that holiday shopping is often make or break for retailers like Gap.

Although the decision to bring in an extra agency -- one that undoubtedly has its hands busy making Microsoft look cool -- is likely the result of internal business decisions, it highlights an increasingly common reality for brands today, namely the need to work with multiple agencies. But that need, which often stems from an increasingly fragmented and highly specialized media world, can put a strain on the traditional brand/agency relationship, and in some cases, it can even cast doubts on whether or not the agency of record is still a viable model.

While having an agency of record remains the norm, the speed and complexity of digital means that marketers are increasingly seeing instances where moving forward without an agency of record was not only possible, but beneficial.

"The idea of an agency of record is still valid, but it depends upon the industry, the client's marketing needs and the product itself," says Jeff Berkwits, a former marketing manager at Upper Deck. "At Upper Deck, we certainly [worked with an agency for] our digital needs for the "World of Warcraft" trading card game. When we launched the product, we hired an agency to 'lead the online charge.' They did an excellent job, but given our budgets, release schedule, and the changing nature of the online space, we felt that on an ongoing basis we could do an equally effective job in-house."

According to Berkwits, that in-house strategy lasted for about two years, with Upper Deck handling the traditional duties of the agency of record. While it meant additional work, Berkwits says the in-house approach allowed Upper Deck to better exploit faster-moving marketing channels, such as social media. However, the in-house strategy eventually came to an end, in part because of "explosive growth in the MMO space and the "World of Warcraft" brand," which eventually led Upper Deck to return to an agency of record to handle the increased workload.

But there are some brands that handle the duties of an agency of record entirely in-house, without exceptions. Smaller and newer brands, many of which advertise exclusively online, often report forgoing the agency of record model altogether, choosing instead to farm out creative projects to a handful of smaller shops, handle media buying in-house, and task specialty agencies with one-off assignments. 

But that has raised doubts at larger brands, many of which have complained that their agencies aren't able to handle the dizzying array of platforms presented by digital. That backlash has made the brand/agency relationship an increasingly murky and uncertain stew, and it raises serious questions about where big, bold ideas are to come from, and more importantly how brand managers can get the most out of that relationship as the notion of the agency of record transforms to meet the challenges of the digital age.

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