Ad Insider - Aug'08

There is a problem with most agencies. I run one and I'm becoming acutely aware of the pace at which this problem is increasing.

Agencies are expected to produce work based on an annually shrinking budget (increasingly so), to create incredibly innovative, eye catching, buzz inducing, never-been-seen-before big ideas and then deliver them on time, and with the quality of execution that only a perfectionist like the mono-lobed Van Gogh would demand.

But there is a flip side to this story.

And the problem with most clients is of course they're being driven by their bosses to perform minor miracles of their own. They're juggling a smaller budget, and reduced turnaround times because production is not only getting faster but is being driven by the need for "new and improved" which means that the advertising needs to be sharper, prettier, sexier, bigger and of course better. Their job depends on it.

So the client pushes agency and the agency responds. And so the story goes on.

Now, add to this scenario the fact that we are now entering a global recession combined with increased inflation... so less money going around and yet cost of product A and service Y is increasing... a super dangerous time with its own phrase - stagflation.

Then overlay this global predicament with rising consumer expectations... yes your customers are becoming even more fussy, more demanding and more knowledgeable. Don't believe me? Do a search on Google now for your product or service (place commas around your search and use the adjective you are looking for a response...eg "Motorola rocks") and see what everyone thinks about you. Oh - and they - your customers - want updates and add-ons now. Today. And if you can't provide it someone else will. Twice as quick to market.

So is it solely a problem with agencies, in terms of coming to grips with rising demands, challenging budgets and shorter lead times? I don't think so.

So, how do we solve this ever decreasing circle?

First off, let's face the very real and growing demands as a team. As partners.

Secondly let's get off our arses and do something about it. Be pro-active. Spend time looking for real solutions not patches to stop the leaks.

As partners let's share some risks and rewards.  In financial terms let's look at a partial payment by results (PBR) model. The basics can be covered but the margins can be run low with the chance to build higher on sales and profitability of the product or service advertised. Once this is in place all parties will work without barriers to achieve more. Money may be the root of all evil, but in my experience it helps pay the team.

Time is an unsolvable... well pretty much. You can assess the brief properly, push for better insights and marketing data, work smarter to attack it head on, first time, so less rework. As my tailor would say, measure twice to cut once.

Which brings us to the "quality' conversation. If time and money are reduced stresses, then quality of the creative output will rise. Agencies can and will produce great work but they need understanding and progressive partners to do so.  Let's split the problem and solve it together.

Robert Doswell

Managing Director

Ogilvy RedCard Singapore