COMMENT: Either move up the food chain or risk losing relevance

<p>How quickly things have gone pear-shaped for agencies in Hong </p><p>Kong. </p><p><BR><BR> </p><p>The first half adspend figures are in, and they don't bode well for the </p><p>rest of the year. </p><p><BR><BR> </p><p>Adspend is up a respectable nine per cent, but the figures still make </p><p>grim reading. Dreary China property ads, media vendors plugging their </p><p>wares and restaurants and clubs dominate the table. Hardly the </p><p>categories to light an agency's fire. </p><p><BR><BR> </p><p>With the American economy barely showing a pulse, it was simply wishful </p><p>thinking to expect another category to pop up and save the day as has </p><p>been the case in the recent past. In the last five years, one category </p><p>after another - telecoms, technology and the MPF last year - emerged and </p><p>saved the day. </p><p><BR><BR> </p><p>Yet pinning Hong Kong's woes on the economic malaise is only telling </p><p>part of the story. The problems facing ad agencies in this town cut a </p><p>whole lot deeper than that. First off, there is the China factor. For </p><p>years, China has been vacuuming up investment dollars at the expense of </p><p>regional markets, not just Hong Kong. Its imminent membership in the WTO </p><p>and its Olympic coup may cast an even bigger shadow on this town for </p><p>years to come. </p><p><BR><BR> </p><p>Again, China is only part of the story. </p><p><BR><BR> </p><p>With a market of seven million fairly affluent consumers, Hong Kong </p><p>should still offer compelling reasons for marketers not to neglect this </p><p>market. </p><p><BR><BR> </p><p>From the look of things, this isn't happening. If it was, would we have </p><p>had the circus of agencies chasing after Cafe de Coral's US$4 </p><p>million account? Probably not. </p><p><BR><BR> </p><p>Agencies need to take a long hard look at themselves. Are they embracing </p><p>and adapting to changes in the market? Are their service offerings in </p><p>sync with client demands? Or are they simply waiting for a new category </p><p>to emerge and save their skins? </p><p><BR><BR> </p><p>As much as the economy is to blame, the reluctance of clients to spend </p><p>could just as easily be pinned on a poverty of agency ideas. Seen the </p><p>latest ads on TV? Isn't there a certain forlorn sameness about them? Why </p><p>don't the ads make you smile, much less chuckle? Where's the dialogue, </p><p>where's the persuasion? Instead, they leave you indifferent. </p><p><BR><BR> </p><p>Agencies are mired in a rut. The only way out is up - they have to move </p><p>up the food chain, offer clients the ideas, the accountability and the </p><p>returns they crave. Or they run the risk of finding themselves stuck at </p><p>the other end, competing against vendors, including production </p><p>houses. </p><p><BR><BR> </p><p>As it is, vendors have wasted no time in upgrading their creative </p><p>offering - Another Factory hired former M&C Saatchi creative Spencer </p><p>Wong, and Stanley Wong, ex-TBWA creative, is now at Centro Digital. At </p><p>the risk of making enemies in the creative camp, there is a strong case </p><p>for agencies to bring the account planners, the suits, the thinkers - </p><p>whatever such talent are called these days - to the centre of their </p><p>operations again. </p><p><BR><BR> </p><p>This will help agencies to focus on the issues at hand - the effect of </p><p>communications on the market and how they can be more accountable. Isn't </p><p>this what clients facing an uncertain market expect of them? </p><p><BR><BR> </p>