LEADER: All up to agencies to adapt and grow

<p>The Hong Kong 4As charter is an admirable, albeit delayed, effort </p><p>to improve the lot of member agencies as earnings are decimated by yet </p><p>another slump. The latest downturn, the second in under three years, has </p><p>amplified the fundamental shift in budgets from above to below-the-line, </p><p>a trend that started when the late 90s slump hit. Still, better late </p><p>than never. </p><p><BR><BR> </p><p>But will the 4As succeed in achieving one commendable objective of its </p><p>new charter - that is to help member agencies acquire what the </p><p>association's chief Jeffrey Yu calls "recession-proof" skills? Yu </p><p>essentially means communication skills other than advertising, chiefly </p><p>the over-used but largely little-understood discipline of customer </p><p>relationship management. </p><p><BR><BR> </p><p>Success on this front will depend on two things - the type and quality </p><p>of programmes the 4As is able to source and offer member agencies. </p><p>Secondly, but crucially, it will hinge on the willingness of agencies </p><p>themselves to make the transition. This is where the real battle </p><p>lies. </p><p><BR><BR> </p><p>Clients are making the transition, albeit tentatively. Since the last </p><p>downturn, demand for a broader range of communication services - in </p><p>place of TV-centric campaigns - has been growing. Yet anecdotal evidence </p><p>suggests that some agencies are simply unwilling to change in line with </p><p>client demands. Hong Kong is rife with talk, which admittedly is </p><p>difficult to confirm, of ad agencies hijacking accounts won by their </p><p>direct siblings. </p><p><BR><BR> </p><p>Given the way agencies are structured to bring home the bacon, it's </p><p>plausible that this tug-of-war does take place behind the scenes. After </p><p>all, a number of networks run separate profit and loss balance sheets </p><p>for their different units, and by large, ad agencies still earn their </p><p>living from implementation - on production, project management and media </p><p>- using strategy and creative ideas as free bait. In effect, ad agencies </p><p>have reduced themselves to nothing more than production houses. And </p><p>unless they see the real value of their ideas and strategy, they will </p><p>not have a future to speak of. </p><p><BR><BR> </p>