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Advertising: Are clients looking at Mid-sized Agencies During Economic Crisis?

Created by : Chandan Roy, Creative, J Walter Thompson  | 12 04 2008 10:44:32 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : Growth(Strategy & Execution)
Keywords : Advertising Financial Crisis Clients During Economic Crisis Looking Agencies Mid-Sized Agencies Mid-Sized Economy Downturn
Activity:  720 views;  last activity : 07 06 2010 20:18:09 +0000
At this time of economic slowdown, where various sectors facing a standstill of sorts,a new debate is emerging in the advertising fraternity. Are clients looking at leaving the huge commissions and expenses that come with a large agency and move their businesses to mid-sized agencies? Even as many may be thinking on those lines, What you say about this emerging in the advertising fraternity...
  
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Definitely, if not then they should. See not only does ssize of the agency affect the money they charge, a small agency works much closely with their clients. They don't need to maintain flashy offices and charge on an average as low as 30% of what the big agencies do. During recession, not only are the companies shifting to 'only necessary communication', but also trying to save up some money. Mid sized agencies always have equally good ideas because of the same backgrounds, and no office politics, so they can concentrate on their work better, but maybe, not a big portfolio. The companies will benefit (it must have crossed their minds) by giving them a chance... they maybe able to break the mould and save tons of money, both on the agency and the media buying. Best part is that these agencies are always working hard with any client to crack that great ad / sales / packaging idea which will make them known. Well any client of theirs can get lucky.

Thank You
By Saurabh Dey, Creative Director, Forte Design Solutions Pvt.Ltd  | 09 12 2009 10:34:54 +0000
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Actually mid sized agency can extend more value additions and greater commitment and can handhold with the clients in this difficult time.Also client will also hesitate to call large agency when they cutdown their ad budgets more than 40 %.This is not because  they dont like the agency but they feel agencies interests and commitment will also get reduced to 40%
By rajumenon , Partner/Principal/VP, maitri advertising works pvt ltd  | 01 20 2009 14:17:51 +0000
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Yes I think this is an opportunity for agencies that belong to the genre of 100-150 size agencies that are poised in the middle, clients who are developing or businesses that are developing and have been working with smaller agencies move up to us. Even in times of an economic slowdown, this can be looked as an opportunity for mid-size agencies.
By Sasi Dash, Art Director/Sr Art Director, U TV  | 12 04 2008 11:32:38 +0000
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I am not aware of any such shift happening. If there is a possibility, the clients would look at lower pay outs. That could mean compromise in terms of quality versus the payout. The economic slowdown is going to impact everything. Even the visibility of ads is getting reduced....
By Dayanand Deshpande, Senior Consultant, Ernst & Young  | 12 04 2008 11:34:57 +0000
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In my view, economic slowdown does impact budgets. But it is more prudent to stick with the agency and benefit from their experience and extract better synergies and ideas to tackle it. Some clients do tend to use it as a broom to bring in new agencies without really intending to achieve cost savings. The bigger bucks are on the media outlays, in comparison, strategy and creative outlays are relatively lower and don’t yield much quantitatively in terms of savings...
By Chandan Roy, Creative, J Walter Thompson  | 12 04 2008 10:44:32 +0000
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