Close-Up: Live Issue - Is the regional network model viable?

Can a regionally based agency compete on a level with the London shops, John Tylee asks.

Golley Slater's decision to extend beyond its regional heartland, and set up shop close to London's Regent Street, is in marked contrast to the way the flow used to go.

The tide has turned from a time 20 years ago, when the international agency groups led the march out of the capital to colonise the regions In 1990, Grey boasted outposts in Manchester, Birmingham, Leicester and, of all places, Bournemouth.

This made sense when regional clients with significant budgets liked the comfort provided by an agency on their doorstep and when, according to a leading industry consultant, 'London equalled expensive and regional equalled cheap'.

Today, only three major networks continue to fly the flag outside of London. Manchester remains a second home for McCann Erickson, TBWA and JWT. Additionally, McCann also has offices in Bristol and Birmingham.

The others have retrenched for a variety of reasons - better technology that obviates the need for lots of face-to-face meetings; a better transport system, which means a train trip to London is relatively quick and comfortable.

Then, there is the perpetual problem of regional agencies keeping hold of top talent. The best and the brightest like the glamour and the fatter pay cheques associated with London, and many clients have followed them, particularly for the planning expertise many regional shops are unable to match.