Like a long-married couple looking to revive their relationship, agencies and clients have weathered some tough times and now find the terms of their marriage need to be redefined.
The fruitless agency reviews staged recently by Purolator Courier and Bombardier Aerospace have shown that perhaps clients and agencies expect different things from the relationship.
In this story, we look at what agencies expect from the union and on March 17, we’ll examine the issue from the client side.
Across the board, agencies want to be seen as more than just a supplier by their clients. They want to be considered a valued partner – and one that is paid fairly for its services.
Frank Palmer, president of Palmer Jarvis Communications of Vancouver, says ideally, he wants a relationship conducive to open discussion.
‘We’re definitely looking to have a partnership where we’re allowed to contribute more than just some marketing or communications ideas,’ he says, adding, ‘When we have that kind of relationship, it works for the long-term.’
Palmer says, in the past, agencies weren’t privy to a client’s overall business plans to the extent that they needed to be. The client would tell the agency what its requirements were, he says, and the agency would develop a campaign, even if it wasn’t the right thing to do.
‘They were taking the client’s word for what they wanted,’ says Palmer.
Ian Mirlin, president of Harrod & Mirlin of Toronto, believes agencies lost their status as true partners when consumers became more advertising-savvy.
He admits his view is contentious, but points to the fact that, in the early ’80s, consumers became much more sensitive to product quality.
‘When that happened, a lot of manufacturers started to realize they were relying on the pyrotechnics and illusion of advertising [to sell their product],’ he says, adding much of the blame for that situation was laid squarely at the feet of the advertising agencies.
Today, he says, he is looking for trust in client relationships, the kind of trust that moves a client to ask for the agency’s opinion on issues relating to its business.
Rob Lawrie, president and ceo of Toronto’s SMW Advertising, says an open-minded client with a belief in advertising is a prerequisite for a good relationship.
‘I think we need a willingness on the client’s part to work with the agency in a constructive manner, sharing information, sharing assessment of information and coming to conclusions that are shared.’
Open-minded, information-sharing clients are necessary, say agency presidents, if agencies are going to attract and nurture top talent. They’ve also got to be willing to pay.
David Haan, president and ceo of FCB Canada, says the downward pressure put on agency remuneration by clients hinders their ability to attract the brightest talent and still make a profit.
He attributes the cash squeeze in part to the perception by multinational clients that they can have one campaign worldwide, emanating from the u.s. or the u.k.
Clients know that 70% of Canadians speak English, says Haan, so they believe there’s no reason they can’t use the same creative here.
Consolidation and globalization of advertising and marketing is a worry to Canadian independent agencies and multinational affiliates alike.
‘One of the biggest shams of 20th century advertising has been global marketing,’ says Mirlin. ‘It really is American architects of North American blueprints saying that whatever you do in America you must do the same everywhere. That’s not global marketing.’
The concept of global marketing is only sound if it’s a dialogue, not a monologue, says Mirlin, where campaigns can be tweaked to take into account local marketing conditions.
Mirlin says he’s concerned that consolidation is causing a brain drain not just on the agency side, but on the client side too.
‘More and more of the great conceptual and visionary thinking is being taken south of the border, leaving some of our brightest talent on the client side to be simply executioners of a North American vision.’
Palmer says there has to be some education about the value of advertising in Canada.
He says in the u.s., advertising is considered an investment, while in Canada, it’s thought of as an expense.
‘Americans, who have always been more aggressive and progressive, figure if they advertise and promote, they’re going to make more sales and build market share,’ says Palmer.
‘In Canada, the first thing we reward are people who save money, rather than rewarding people who gain performance.’
‘We reward the wrong things.’