It is not easy...

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

Mahesh Chauhan,
President, Rediffusion

“It is not easy...”

“It’s not easy for a client to change his agency. He makes a certain investment in an agency and change means that he’d have to invest all over again in a new agency. It’s not easy. So, unless there is a strong cause for a change, led by maybe non-delivery or non-performance, the client will not change his agency. But on the other hand, the CMO is no longer under 1-5 year time cycles. He is virtually evaluated on a 1-3 months performance. The pressure is humongous. If an agency partner is not up to that speed then the CMO has no option but to look at other more promising agencies.

If you were to flip this argument and look at it from an agency point of view, I genuinely believe that the agency game hasn’t really evolved here. We have virtually become vendors of the creative product which is mainstream, traditional and not really hi-tech. Clients come to me for TV, print, radio, outdoor and go to somebody else for digital solutions. This de-bundling and media fragmentation, led to fragmentation of agency products too, which led to a lowering of the agency value, from a client point of view. So if the client is not ascribing so much of importance to you, as compared to a holistic communication consultant (as in the past), the threshold is lowered - agencies themselves have lowered it. Therefore you see that there are more pitches happening today than ever before, from a purely statistical point of view. But, the savvy marketer still believes in – and maintains a longer term perspective of his relationship with the agency.“

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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