The Agency Business

Functions of an agency

• Client servicing

• Media

• Creative

• P&A

• Accounts

The client brief

This is normally the first business meeting between the client and agency after the agency has signed on. Most likely the top brass of the agency and the marketing department would be present to introduce the operating people who would transact day-to-day business

Client briefing

• What exactly is the agency being asked to do?• What information does the agency need?• What questions are the agency likely to ask?

In the briefing session, even the creative and media people may be present so that they get first hand impressions of the problems encountering the company.

‘Pitching’ for an account

• Sometimes agencies may solicit for an account and make a pitching brief to the client organization hoping to get the account. This is speculative.

The agency is a people’s business

• For an agency the assets are its people – their calibre, expertise, knowledge and experience

• It is for this reason that some people become so well known that they are ‘brands’ in their own right

• There is high mobility of people within the industry, especially for good people

Change of Agency

Agency changes are normally made because of some dissatisfaction. But very often it is an excuse to disguise shortcomings within the client’s organization.

When does change happen?

• Whenever there is a change of guard at the highest level

• Changes in ownership/mergers/acquisitions

• Change in client servicing needs

Changing an agency is costly

• Time

• Monetary terms

• Momentum is lost

Agency selection is normally a top management decision

Criteria for selection

• No. of people assigned to the account• Quality of people assigned to the account• Creative abilities ( Past work of the agency)• What kind of accounts are presently being handled by the

agency• Culture/style fit• Ability to deliver and adhere to deadlines• Reputation for integrity• Ability to defend and justify recommendations• Degree of understanding of the client’s business• Market research and media buying abilities

Normally client would not take up an agency if it is dealing with

a competitor brand

Similarly agencies do not sign up with competitors if they are handling brands in the same product category

Building partnership and trust

• It is not simply a principal-supplier relationship• The agency by virtue of its experience in different

markets, different product categories, is expected to give a different creative perspective and insight on the company’s problems.

• It is not expected to agree with the company all the time.

• A client who does not expect and reward an agency for fresh thinking is usually expected to get mediocre advertising

If a campaign is working the client should stick to it. Too often the

campaign gets changed not because it is stale but the company people get

bored with it.

It must be remembered that the consumer is just about beginning to

notice it then

Building a great agency-client relationship

• Inculcate a spirit of friendship• Be wary of change for change’s sake• Ensure the agency is making a fair profit on

your account• Make the agency totally absorbed in the

company’s product, people and culture• Create an environment for experimentation

and be prepared to pay for failure

Cont’d

• Treat the agency people well• Agree on clearly defined objectives• Keep approvals simple and disapprovals

kind• Give the responsibility and authority to the

agency to produce good advertising• Give the agency a formal evaluation

annually

What does an agency look for when taking up a new account?

• Product one would be proud to advertise• Not take up an account where one cannot better

the efforts of the previous agency• Steer clear of products whose sales have been

consistently falling – either due to product weakness or inconsistent management

• Account where the agency can make a profit• If profits are unlikely, is there mileage to be

derived elsewhere?

Cont’d

• Agency-client fit• Avoid clients where there is low belief in

advertising• Not accept new products unless attached with a

national product• Always deal with one decision maker, not

committees• Do not have conditional accounts. It never works.

Agency Compensation

The key issue is that compensation should be commensurate with workload.

• Commission

• Fee

• Payment by Results (PBR)