CMOs warn agencies be careful what you wish for when small shops chase big business
Helen Lecopoulos
Small agencies desperate to get on the roster of big brands – or even chase the entire business – should be careful what they wish for, with the end result often an agency culture crushed under the weight of the business, according to Woolworth’s former head of media.
At the Secrets of Agency Excellence (SAGE) conference a panel of leading CMOs warned that while small agencies saw the win of a big account the launch pad to the next level, it often worked the other way as they realised their businesses were not set up to deal with the scale of a big advertiser.
Helen Lecopoulos, former head of media with Woolworths, said too many small agencies looked to the big win to drive their businesses – but big clients also needed to be aware of the negative influence they could have in allowing agencies to bite off more than they can chew.
“create additional value with what you have got”…
How the heck do you create additional value with the same amount of dollars without comprising on the quality of the work, hiring unpaid interns or don’t pay overtime??
Question for Broome.
If an agency was to come to you and say we need another $100k to hire a new employee to help with managing your account what would you say?
And what do you mean “It just creates hassle”… this just comes off apathetic towards your agencies who are probably desperate to stay afloat and at the same time deliver award winning campaigns…
Also – watch out for the commercial arrangements. One big IT company is ruled by its procurement department which imposes standard contracts on everyone. Their killer T&C: no bills will be paid in less than 90 days from invoice date! i.e. You need to be their banker.