HOW BIG IS THE IDEAL CREATIVE AGENCY?
Local or global, big or small, integrated or specialty model… players in the game agree that size, model and nature do not matter, what ultimately stands out is the work of an agency… Attempting to define ‘an ideal creative agency’ immediately sparks off a debate about size, nature and model – do clients prefer big or small, local or global, specialty or integrated model agencies? It emerges from conversations with admen and marketers that each agency may have a different working model, but what counts is the work that comes out of it - there cannot be a cap on creativity. “Some of us may be creative traditionalists, but we need to be creative radicals, this will lead to a win-win situation, we need the light to shine on the creative capabilities of this country. There are many norms in this country that need to be broken. India is now restlessly creative to challenge its own creative norms,” Jonathan Mildenhall, VP of Global Advertising Strategy and Creative Excellence, Coca Cola, had said at GoaFest this year. Clients want the agency to understand their requirement. The choice depends on the size, industry/product segment, the distribution footprint, span of operation and the specific market condition in which the client operates. “In India, the penetration of General Insurance is low at 0.7% of GDP, and efforts are also directed towards developing the market. We at ICICI Lombard usually work with a mid-sized agency having deep insights into the Indian consumer behaviour,”says Shankar Nath, Head-Marketing and Direct, ICICI Lombard GIC. Gaurav Rajput, Director Marketing, Aviva India, too roots for specialty agencies. “To use the idiom, it is horses for courses – specialized agencies have a specific skillset that drives greater value for clients, both in terms of delivery and accountability. Size of the agency should not be a factor; it’s the innovation, talent and experience that one brings to the table that matters,” Rajput says. So what does the future hold in store for creative agencies? The unanimous opinion seems to be that Digital will be at the core of the creative industry, with huge participation from consumers themselves. Another important prediction is that new creative leaders with an understanding and involvement in the client’s business will position themselves on high ground. Let us see what the players in the game have to say. Q] What works best for the client – a local or global creative agency? An integrated services model or a specialty agency? Q] What is the optimum size for a creative agency? Q] What will the agency of the future look like? WHAT WORKS FOR MCCANN WHAT WORKS FOR TAPROOT INDIA WHAT WORKS FOR DDB MUDRA WHAT WORKS FOR BBDO WHAT WORKS FOR RED LION PUBLICI WHAT WORKS FOR DRAFTFCB ULKA WHAT WORKS FOR LEO BURNETT WHAT WORKS FOR EURO RSCG WHAT WORKS FOR CURRY NATION WHAT WORKS FOR SALT WHAT WORKS FOR GREY WORLDWIDE Feedback: priyanka.mehra@exchange4media.com
In India, agencies of all size and shape are a part of the creative ecosystem and there seems to be room for everyone. With advertising at the forefront of capitalism and growth of the economy, a large number of brands operate in any particular category. As the economy grows further, more and more agencies are required, as the same agencies cannot handle competing brands. So the need for new agencies grows, and a new breed of experienced professionals bitten by the entrepreneurial bug start their own agencies.
Indeed, the creative industry in India is shining light on creative talent. Small creative hotshops like Taproot and Creativeland Asia have been proud recipients of recognition, appreciation from the industry and awards for their clutter-breaking body of work for big clients.
As smaller agencies gain momentum, with the accent on personalized attention, larger agencies too enjoy the advantage of scale. As Josy Paul, National Creative Director of BBDO India puts it, “It all depends on the purpose, ambition and leadership. So there is no definite answer to the ‘optimum’ size. The logical answer is ‘Whatever works for you’…” “There is no optimum size. Any size that produces good work is an optimum size,” agrees Agnello Dias, Chief Creative Officer of Taproot India, that has made waves of late.
In the opinion of Arvind Sharma, Chairman, Leo Burnett India, “A global agency brings with it the knowledge of changes from other markets as also the knowledge of how to manage brands in the context of these changes. Global agencies, therefore, add much more value to the process of understanding the consumers, their changing context and building brands.”
The advantages of a global agency seem undisputed, and this is evident in the succession of mergers the world has seen over the last three decades, resulting in creation of three or four mega communication groups globally. The core strength of a local agency is equally undeniable. “I am personally a big advocate of the fact that an agency needs to be very strong in local brands and clients, which determine the fortune of your agency and how well you are recognized in the market. It is imperative to have that,” feels Pratap Bose, COO, DDB Mudra.
An interesting perspective comes from Elsie Nanji of Red Lion Publicis, India. She feels that a local or specialty agency works wonders, but operating under a global name might be better as it would give the agency more recognition and exposure.
When it comes to picking between an integrated agency and a specialist one, the integrated services model seems to be a popular choice. An increasing number of clients are going to specialist agencies over and above their regular creative agencies, with the result that multiple agencies work together to drive the brand message. Creative professionals across the board agree that though this runs a risk of brand dilution, it is the onus of the client to drive uniform messaging and a collaborative working among all the agencies. This trend is more popular among FMCG giants with big budgets at their disposal.
Executive Chairman & CEO, McCann World Group India & President, S Asia
In India, McCann World Group, has four offices Delhi, Mumbai, Chennai and Bangalore. Globally, McCann World Group has a presence in Latin America, the Caribbean, Middle East, Africa, Asia Pacific, S Asia, N America and Europe
What matters is the quality of talent and understanding of business. The kind of agency does not matter, the approach does. Can you provide your clients with clutterbreaking and effective solutions? Clients want to know whether people who are working on their brands have learnt from other brands, have knowledge to share, have had international exposure…
You have to have global and local understanding because the ecosystem is such today. What happens in Europe impacts us, but at the same time, you cannot get carried away by it. So the mix of an international mindset but a strong cultural and local understanding is important.
Agencies have to think of an integrated model today because we are talking about a world beyond advertising. Definitions are blurring and content has become all-important. You have to have fluidity in your ideas, which can be expressed in a 30-second clip or a music video or through a game or an app or even a feature film with the same kind of impact. All this comes from talent. That is what works best for the client.
Big and small are just mindsets. You don’t need to think like that – what is required is an entrepreneurial mindset and a manageable size. Clients come to an agency to work with a particular kind of leadership and talent. The correct size is when it is big enough to accommodate good talent and invest in technology and infrastructure but at the same time, the leadership has the mindset of being directly involved, giving clients personal time. This is why I am hands on for all our business, because clients want that.
A large part of our businesses are local -- Dabur, TVS, Videocon and various others are local-bred clients. We deal with entrepreneurs and naturally the stakes are much higher. Gone are the days when we were dealing with representatives and it was alright to make a good-looking report. Now, clients want results and there is far greater accountability.
A place buzzing with talent, ideas and not thinking it is in advertising. Where people are working on communication and connection and know what consumer connection means in a world of convergence. Ideas not limited to anything because of the growing multitude of touchpoints.
.Ability to invest in great talent, technology and infrastructure that makes us future ready
.Entrepreneurial mindset where the leadership, beginning from me, is involved directly in the businesses we handle
.Paying attention to and understanding the culture of a market like India, which is in a transition phase
Chief Creative Officer, Taproot India
In India, Taproot is a start-up and has one office located in Mumbai
Q] On the best model for a creative agency…
What works for a client is the team that is working on his or her brand. And that is invariably local, irrespective of the agency’s parentage. One must first understand that brand requirements are not standard, predictable models anymore, so there is no optimal model.
Q] On the optimum size…
There is no optimum size. Any size that produces good work is an optimum size.
Q] On the agency of the future…
They will get more and more craft agnostic and will have more conceptual thinkers.
.I don’t see Taproot India working on any different model
.We are just slightly lean as of today
.We work hard and are committed
COO, DDB Mudra Group
In India, DDB Mudra has seven offices at Ahmedabad, Bengaluru, Chennai, New Delhi, Kochi, Kolkata, Mumbai Globally, DDB Worldwide is part of Omnicom Group Inc. and has more than 200 offices in over 90 countries
Q] On the best model for a creative agency…
It is not one or the other; there are examples of a great local agency like Taproot which has done exceedingly well. Both an integrated services and a specialty services model can be successful; for example Ray+Keshavan in the brand identity space is very successful as a specialist agency. Ideally, an agency that is 50% local and 50% global has integrated and specialty services all tied within the same group, would be a ‘Wow’. In India, among the top agencies, DDB Mudra Group fits the bill in respect to all these factors. We have international and local clients, great integrated services as well as specialist services like RAPP and Tribal DDB which fit all clients’ needs.
Q] On the optimum size…
The top four agencies, Lowe, DDB Mudra Group, Ogilvy and JWT India, would each have a staff strength of 1000. These are of scale, successful and have done well for their clients and themselves. If you want scale, size and profits, bandwidth, be rewarded and recognized and do some great work as well, 800- 1000 seems to be a good number in the Indian scenario. But there have been extremely successful agencies like Trikaya and Taproot too.
Q] On the agency of the future…
The agency of the future will be driven by the digital platform, technology, specialists, computer programmers, software developers and technologists. The depth and level of involvement with our clients will have to increase. Instead of receiving a brief from the client, we will be advising him on what new products he needs to come up with and how he needs to re-engineer his business.
.We are a marketing services conglomerate, catering to every consumer touchpoint, barring public relations. Positioning and scaling up has worked for us
.We treasure our media function
.Our group has 22 specialist businesses each headed by an expert in that field. We are like a battalion that moves forward as one
Chairman and CCO, BBDO India
In India, BBDO/Proximity has two offices - an ashram in Mumbai and a Lounge in Gurgaon Globally, BBDO Worldwide has 289 offices in 90 countries
Q] On the best model for a creative agency…
The best agency is one that understands the business, the market, the problem and challenge, and is intuitive enough to follow the right insight and find a clutter-breaking creative solution. It’s less about local or global models, and more about expertise.
Q] On the optimum size…
It’s a philosophical question. That’s like asking ‘What’s the length of a string?’ It all depends on the purpose, ambition and leadership. So there is no definite answer to the ‘optimum’ size. The logical answer is ‘Whatever works for you’.
Q] On the agency of the future…
The agency of the future will be a cross between Jesus Christ and a prison warden with a dash of Zinedine Zidane. Inspiring and miraculous, aggressive and brutal, and intuitive, artistic and fluid.
.Our belief system
.Our brave clients
.Our unfair share of great talent
.Our established infrastructure and responsive network of offices
Managing Partner, Red Lion Publicis
In India, Red Lion Publicis has four offices in Mumbai, Delhi, Bangalore and Chennai Globally, the Publicis Groupe has 200 offices in 82 countries
Q] On the best model for a creative agency…
The local advantages are that the agency has its ears to the ground and is in touch with the local nuances. It speaks to people directly, whereas the global connection gives access to global expertise, connections and a much wider network and database. It is up to the client whether he needs a specialty or integrated services agency. In case of a client with a limited budget, an integrated model may work best, as he may not know where to use his limited resources. So it depends on the client, his business, the product and other factors.
Q] On the optimum size…
It is important that the creative agency is led by a leader with a vision, this leader cannot devote his time to administrative work but has to be involved in his client’s business. A creative agency with 20 people would be good. An agency this size will give you both standard and polish.
Q] On the agency of the future…
A smaller agency, more personalized, fluid, more accessible is how I see the agency of the future. Also less of a marketing role and more of a creative role for executives. The smaller size of the agency also brings in more involvement, as you are constantly thinking of ways to better your client’s business and treat it as your own.
.I am able to meet and devote time to every client
.The agency is easy to manage and control, runs a lesser risk of losses
.Much more exposure for employees leading to more growth and less attrition
Executive Director, India Operations, Draftfcb Ulka Group
In India, the Draftfcb Ulka Group has nine offices in six key markets – Mumbai, Delhi, Bengaluru, Chennai, Kochi and Kolkata Globally, the parent company Draftfcb Worldwide, owned by the Interpublic Group of Companies (IPG ), is headquartered in New York, and has offices in more than 100 countries
Q] On the best model for a creative agency…
An integrated services agency clearly offers a holistic solution to the client under one roof. It does not matter whether it is a local or global agency, as long as it proves that it has the skillsets and leadership to provide solutions beyond just a 30-second script or a pretty layout to the client. It is about the passion, commitment and value addition that an agency brings to the brand and business.
Q] On the optimum size…
There is no such thing as an optimum size for a creative agency. It would depend on the roster of clients and the depth and width of the product/services categories. The end game is to provide the strategy and value addition required by the client to create brand wealth.
Q] On the agency of the future…
Given the intense competition, attracting and retaining consumer attention is going to be a huge challenge. Clients would prefer to have a one-point contact for all strategic, creative and media solutions. This would necessarily tilt the scale in favour of those agencies which have the leadership and talent to provide a onestop solution to clients across abovethe- line and below-the-line and new age media.
.The right management team and thought leadership on an account
.Understanding of the client, consumers and the brand to arrive at the right communication solution
.The ability to execute seamlessly across the media spectrum at optimum cost
Chairman, Leo Burnett, India
In India, Leo Burnett has two offices at Mumbai and Delhi Globally, the network headquartered at Chicago spans 83 countries with 96 offices worldwide
Q] On the best model for a creative agency…
A global agency brings with it the knowledge of changes from other markets as also the knowledge of how to manage brands in the context of these changes. Global agencies, therefore, add much more value to the process of understanding the consumers, their changing context and building brands. In the integrated agencies vs specialist shop debate, today’s advertisers are far more diverse in nature. That’s why both models will not just continue to exist but actually thrive. From the perspective of mainstream advertisers, using a collection of stand-alone specialist agencies may create a discrepancy in ensuring consistency of the brand. As clients begin to spend significant proportions of their budgets in the new media, serious questions are being asked about integration of marketing campaigns and consistency of brand. These answers can be delivered only by an integrated agency, led by a single leader.
Q] On the optimum size…
An agency of about 100 to 150 people is big enough to have depth and diversity of talent and resources. At the same time, it is small enough for all members of the team to know each other, develop working relationships. But, there are infinite advantages to scale. While we move towards creation of even larger groups running into hundreds of thousands of employees, we have to constantly find ways to keep the operating agency sizes small. We have dealt with this challenge by creating a structure that we call ‘agency within agency’. Each ‘agency within agency’ is led by a senior Vice President and an Executive Creative Director.
Q] On the agency of the future…
In five years, advertisers’ marketing plans will be a lot more multi-faceted and not just TV-focused. People will be the most important media owners, through their blogs and social media pages and activism. Probably more than half of the content of successful brands will come from people and not advertising agencies. We will require new skills to orchestrate these inclusive and people-centric campaigns. At a broader level, people, within agencies and across the industry who reflect an understanding of this change and talent for managing these new generation campaigns will be the future leaders of this industry.
.The ‘agency-within-agency’ structure allows team sizes small enough for us to be nimble, responsive and passionate
.Each of our agencies can draw on all the benefits and scale of knowledge of other teams as well as national and global resources
Managing Partner, Euro RSCG India
In India, Euro RSCG has 3 offices located at Delhi, Bangalore and Mumbai Globally, Euro RSCG Worldwide has 221 agencies across the world
Q] On the best model for a creative agency…
An agency exists to create communication for the brand as per the client’s needs, there is no one size that fits all models; some clients have local needs and some global needs. As long as an agency can create effective communication, it works for the client.
Q] On the optimum size…
How an agency needs to be staffed internally is completely dependent on the quantum of work and briefs it has to service, and what the client is looking for in its creative partner. The client can go to smaller agencies for ideas and then bigger agencies for the execution of those ideas. For example decades ago, JWT must have been small when it started with one client and then grown to become one of the largest agencies of the world. Smaller agencies which may be a fraction of agencies like JWT are also very successful. The size is irrelevant; in an agency a ground-breaking idea can come from anyone from a trainee to a NCD. Size is a natural evolutionary process of growth.
Q] On the agency of the future…
An agency of the future is the one that is quick to respond and one that is digitally integrated.
.Our size is a great advantage as integration is much easier than a much larger agency
.Putting Digital at the core of everything we do today
.An indepth understanding of consumer insights
Founder-Director, Curry Nation
In India, Curry Nation is a start-up with one office in Mumbai
Q] On the best model for a creative agency…
In today‘s day and age, an integrated services model works best for the client. Many clients also prefer media functions to be part of the set up in order to get better deals. It also depends on the client, most global multinational brands prefer a global agency, though in the Indian context local is more important.
Q] On the optimum size…
There is no hard and fast number, you can be a creative agency with 10 people also, it is not about the size, what matters to the client is the quality of work and the people who interact with him.
Q] On the agency of the future…
The agency of the future will be a smaller agency that caters to the client on a one-to-one basis. ‘Small agencies with big ideas’, as my partner puts it. As smaller agencies have the personal touch and act as brand custodians, future agencies will see partnerships with clients; the client’s belief in the agency is integral.
.The client deals with the owners of the agency, i.e., the seniormost people. So there is no briefing and re-briefing
.Our background and what we have done in the past
.We are extremely passionate and committed; we treat the brand as our own
Co-founder, Salt Brand Solutions
In India, Salt Brand Solutions is a start- up and has one office in Mumbai
Q] On the best model for a creative agency…
It is about a creative solution to a business problem. Not the geographical footprint of the agency or the skewed focus of the agency.
Q] On the optimum size…
Not so unwieldy that you can’t spend adequate time on building the brands in your care. Not so small that you can’t dream big.
Q] On the agency of the future…
Agencies that build platforms and build communities and those that tap consumers as creative resources versus campaigncreators.
.Personal attention from top talent of the agency
.Agility and response time
.Limiting our client relationships to 15 so that they are truly manageable with a quality interface in place
National Creative Director, Grey Worldwide
In India, Grey Worldwide has five offices at Mumbai, Delhi, Bangalore, Chennai and Kolkata Globally, Grey Worldwide has a presence in the Asia Pacific, Europe Middle East and Africa, Latin America and North America.
Q] On the best model for a creative agency…
All global agencies in India are very much local in their own right, with most agencies having been around for decades with local people at the helm. There’s a definite advantage that a global connection brings. As for an integrated services model, agencies today have no choice but to give solutions across mediums, even if the execution of those solutions is done by an expert.
Q] On the optimum size…
The size of the agency shouldn’t matter to the client as long as the team working on his brand is competent. Whether they share an office with 10 other people or a 1000 other people doesn’t really matter. It boils down to the work the agency does.
Q] On the agency of the future…
I don’t think things will change drastically. You’ve always had small creative-led shops starting up and shaking the bigger existing agencies. It’s just that these ‘small’ places have over the years become big and gotten global partners.
.We’re truly integrated when it comes to giving digital and retail solutions
.We’re big enough to have offices in five cities but small enough to be agile, flexible and constantly hungry for growth
.We’re a truly global agency that works closely with and is ably supported by the Grey Group network
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