Agency merry-go-round

China and India are, we are often told, the Holy Grail of advertising. The two markets that will drive Asia to the forefront of the global marketing scene. Huge domestic markets, local brands itching for a bigger stage and ever-increasing marketing budgets make for a heady combination, and few major agencies worth their salt do not now have concrete strategies for succeeding in these countries. Perhaps, however, the international agencies should tear those long-term plans to shreds. For, over the past few years, some of the biggest and brightest brands in India and China have begun to display little patience with the conventional agency-client relationship. Their reasons may differ, but clients in the two markets currently appear happy to switch agencies at the drop of a hat, eschewing all talk of long-term relationships in favour of instant gratification. In China, J. Walter Thompson Northeast Asia area director Tom Doctoroff puts this trend down to three factors, starting with rampant short-termism. "Brand equity is something that is constructed over time -- in order to build a brand you need a long-term orientation," explains Doctoroff. "Many companies in China don't have this, and the only way an agency can be stable is if the client appreciates the value of maintaining long-term agency relationships". "One of the key problems with many local clients is they have a very short-term ad focus," adds Doctoroff. "The message is not consistently communicated because the importance of consistent messaging hasn't yet come here." In addition, international agencies simply cannot meet the expectations that local clients may have of them, expectations which are often founded on local agency models being on call 24/7. "Most local agencies are structured differently from multinational agencies," says Doctoroff. "We are more top-heavy... their structure is to do very quick turnaround." This gap is often complicated, furthermore, by a mindset that is often deemed at odds with Western notions of branding. "Basically you've got a cultural incompatibility," points out Doctoroff. "Many local companies operate in a hiearchical, rigid manner, and the directness of many 4As people can make many local clients uncomfortable." These factors all contribute to a situation where China Mobile has six different creative agencies, or Sony China pitches every major new campaign, according to agency complaints. The danger is that international agencies have yet to make a case for long-term relationships in a strong enough manner. "We basically stand tall but as soon as the breeze blows we fall over," Doctoroff claims. "If there is a consensus that we only accept long-term engagements then a line is drawn -- a clear differentiator with short-term agencies." The solution, of course, lies in effectively convincing clients of the benefits of brand building, while also ensuring that an agency does not miss out on the revenue from short-term projects. Recent acquisitions or investment in local agencies by Ogilvy & Mather and JWT have been widely intepreted as a play to cover the tactical angle; persuading brands to think more long-term may be a harder sell. "The media efficiency of short-termism is awful," says Doctoroff. "When you introduce a new idea to media, that always costs more than a sustaining one." In India, meanwhile, some of the largest clients across categories are shaking up their agency relationships, for reasons that differ markedly from the China equation. A more mature communications mentality has little trouble accepting the value in brand-building; ironically, it appears that agencies are simply not providing enough in the way of strategic brand solutions. In this regard, creative has become more important to clients in the country, while servicing, especially in its classical model, finds few takers. Ex-adman and current head of marketing at Reliance Infocomm, Kaushik Roy, likens them to the despatch departments in agencies of yore, while Saugata Gupta, head of marketing at Marico, says: "There's no need for a middle man. Unless servicing adds value, it's doing a very operational, project management role." Planning is also viewed with increasing scepticism, with clients remarking that the discipline has emerged sporadically and is currently more individual-driven. That customised research by planning departments is often not interpreted in a constructive way, is another common complaint. Says Vivek Rampal, vice president of skin care at Hindustan Lever: "They don't play a very well-defined role at the moment. They ought to compare what competing brands are doing and find how we are different. What we find completely worthless are planners with 200-chart presentations." Servicing has a harder route. Clients themselves manage the 360-degree communication process -- interacting with the agency, media partners as well as specialists. Servicing could help by being the bridge between these functions; yet there still remain doubts about whether a servicing person will put the brand before the interests of his agency. Another timeless demand is greater accountability. Says Arvind Mediratta, vice president of marketing at Whirlpool: "We expect agencies to develop advertising that is clearly business building and improves brand health scores." Adds Nabankur Gupta, group president, Raymond: "How you get the work done is no longer a matter of concern -- the content and its delivery is very important. An agency must manage resources efficiently." Brands in India have seen unprecedented levels of churn of late, with both clients and agencies looking beyond current partners. Changes in the marketing department are often a culprit, immediately resulting in a pitch with a manager trying to bring in agencies he has a greater comfort level with. It's a phenomenon Mediratta cautions against: "Putting sales people in marketing shoes spoils the situation. Their outlook becomes tactical. Branding is a long-term exercise and clients should be consistent with positioning. Changing the positioning of the brand every year with the change of the CEO/ marketing head is extremely detrimental to the brand." Additional reporting by Ravi Balakrishnan