Wise Buddha

It appears to have dawned on some people that the way that Agencies conduct business in Canada may need an overhaul. I would also add Clients to the discussion as they complete the circle and there is no doubt that many lack experience and under value Agency expertise. Marketing recently reported that Agency types have decided that the Agency model needs an overhaul..what..really! Read the article from Marketing here and in particular the observation “Our (national) character doesn’t lend itself to bold communications…” what exactly does that mean, it would have been handy if it was accompanied with a definition of the unique elements of our character that limit us in this way.

The Client / Agency relationship has been the subject of debate and review for years, many commentators have put forward various remuneration models some suggesting that payment should be based on results. However, in the vast majority of cases the fee structure and the way billings are handled hasn’t ever really changed.There are two sides to every story, but having worked on both sides of the table as a Client and as an Agency guy on balance my support is with the Agency. There is no doubt that some Agencies have or do overcharge and they need to be held accountable. A clear remuneration structure needs to be agreed at the outset of the relationship. Agencies (especially the big multinational ones) need to avoid viewing Clients as a budget as opposed to a business with commercial objectives that they need to help solve. In addition, Agencies must focus on delivering value innovation for Clients by ensuring that they hire the best possible account people who are formally qualified with a recognised marketing qualification and are able to meet a minimum professional standard.

The latter point is a real issue in Canada, the bar for staff and staff training is way too low and invariably junior staff with little or no commercial instincts are left running pieces of business. I would like to see a minimum standard of competence that all account management personnel have to obtain before they are allowed to manage a piece of business. Agencies should get their act together and develop some benchmark training for their staff, common standards that are a reflection of peoples skill, expertise and basic competence. Forget about local chapters holding on to the coat tails of the AMA enjoying promoting each other to President, Past President, Director at large and building their Resume’s and LinkedIn network instead of developing training standards. Agencies need to focus on elevating the professionalism of their sector rather than bemoaning feeling undervalued.

Clients are also to blame, many have very limited experience particularly in the West and seem to place little value on Agencies expertise. Hey why pay a pro when you can get your receptionist to do a bit of marketing right! Witness Clients contacting 15 plus Agencies to pitch, or expecting the Agency to produce spec work. Because many Clients lack experience or formal training themselves they also lack the ability to get the best out of the Agency relationship. This means means having difficult conversations from time to time and challenging the Agency about their strategy, thinking, assertions etc. Remember Clients, Agencies are your business partners first not your friends sure it’s great to go out and get lashed - you do do that in Vancouver right? But you also need to be independent and know your own mind.

Agencies lets elevate the professionalism within the business as a whole and stop giving work away for free. Clients stop asking for free work and recognise that most agencies do their best to deliver for you and if selected and handled correctly can deliver your objectives and do deserve to get paid well.