Why fight an outdated battle?


The debate between full service and specialist, when it comes to communication consulting and activation, is not as simple as some people make it out to be. Keeping the politics of ‘who is the bigger partner’ aside, we need to explore the practical relevance of the nature of client-agency engagement in today’s context.

By necessity, that exploration will take us back to the age when the whole disintegration’ or ‘specialisation’ process started.

There are two truths we have to keep in mind.

One, agency business models have changed only in response to client demand. Way back in the ‘80s and ‘90s, as clients expanded their brand portfolio and appointed multiple agencies to handle different brands, they demanded consolidation of buying with one agency, so that they could enjoy the benefit of scale. That is how, most advertising agencies separated their buying departments, branded them and launched them as media buying companies. With the passing of time, clients saw the futility of separating media planning from buying and therefore integrated the two with the media agency.

Two, the separation of media from creative happened, when classical media such as TV and Print were the only media strategic to the client’s marketing efforts. The creative agency produced the message and the media agency found the most cost effective way of exposing it to the audience. Life was simple. It helped that classical media itself were neither as fractured nor cluttered as they are today.
Today we live in a world that can be called the Experience Economy. As consumers pay less and less attention to brand messages, Exposure based models, which old advertising agencies have followed forever, are failing to deliver. The 30 second TVC may never be dead, but it is getting consistently weaker in its effectiveness. For at least a small, but influential segment of customers, video means youtube and not television; that means the restriction on copy duration is over. At the same time, as the television is getting smarter as a box, ‘watching’ will soon be replaced by ‘using’, which again threatens the relevance of the 30 sec TVC, they way we know it.
Every brand worth its baseline is running to deliver a more powerful and enduring experience to its customers. Highly evolved brands going a step further: they are attempting to do what we at Starcom MediaVest Group call ‘branding the experience’.

Marketers today know that they have to truly respect the media neutrality of their customers and use a fine mix of mainstream media as well as direct marketing, experiential marketing, PR, word of mouth, digital marketing, point of sale, digital OOH, sports, cause enabled marketing, shopper marketing, trade marketing, relationship marketing, and many other disciplines to be able to build their customer assets. Which one agency has understanding of all these disciplines?
What then, is the relevance of the so called full service agency? What would you like as a marketer – a simplistic model of a full service agency, which constantly glorifies the 30 second TVC, and ‘also’ gives you suggestions of other contacts or would you integrate a powerful combination of specialists who understand your brand and its customer challenges?

Between simplicity and effectiveness, what will you choose?

The battle for supremacy between different types of agency models is over. Either we get it now, or we will write a book someday about the decline of our business.

[Published in IMPACT 5th Anniversary Issue, September 2009]