by Jerry Mpufane (@JerryMpufane) Advertising is an exciting, visible business. At the core of what we do is the ability to draw attention. We do so via ideas that interrupt the day-to-day.
Brands hire advertising agencies because we understand the art of communication; the best among us deliver great ideas that capture the imagination, executed well.
Running a sustainable business
There is another side to this story, and that is our ability as advertising executives to run sustainable businesses. And, yes, clients do insist on proven business success when choosing an advertising agency.
I am fascinated by this subject, which I will call “the business of business”.
I will make use of the privilege that comes with writing this column to explore what I believe it takes to run a great advertising agency. My intention is to have a lot of fun with the column while sharing perspectives that I hope arouse the reader’s imagination.
I humbly request that you engage with me on my thoughts. I have a great preference for conversation. A good challenge to my hypotheses is encouraged and most welcome. Let’s explore as to whether Don Draper’s agency was any different to the agency of today.
My thoughts
So what are my thoughts when it comes to the business of business?
There exist many facets to what makes for a great agency. At the heart of it all is the idea. In my experience however, I have found that success emanates from a balanced view that embraces talent, client, ideas, awards and profit:
Talented people deliver ideas for clients who win awards and make money.
This is the virtuous circle — the recurring cycle of events, the result of each one being to increase the beneficial effect of the next.
In a business sense, an agency will not achieve any significant success without any aspect of this circle getting tapped to its fullest potential.
We also want to avoid the “vicious” circle, where the negative impact of each one decreases the beneficial effect of the next. For instance, many of us have experienced the situation where the less-inspired talent works on the best brief and we fail to deliver a business result.
Talent
We would all leap at the opportunity to retain the best talent across all areas of our agencies. What does it take?
We will explore, in a networked age, how best to manage talent. Some of the thoughts may even challenge the very notion of “organisation” and “employment: should you hire your workforce for a month, year or their entire career?
Client
Do we love our clients, or do we love our clients? By the way, where’s that written brief?
Let’s compare notes about managing relationships in an era when clients pay less for more value extracted.
Some global brands prefer not to hire agencies on a permanent basis, but award project briefs for the most exciting idea.
We’ll ask questions about when it makes sense to remain a creative shop versus belonging to a large global network.
And, of course, discuss the mystery behind the missing brief.
Idea
The most elusive thing during that already-extended deadline.
Did someone remember to feed the team who’s now working overnight?
And, oh, what is the true value of the idea in a world where clients pay agencies by the hour? Is it just about the idea, and how about craft in execution?
There’s also the subject of the emerging markets as the new hubs for ideas.
Awards
We love awards. Clients, too, love them, trust me!
I had a client who bought the creative team a bottle of Johnny Walker Blue for every piece of gold metal. And, of course, success breeds success, and my office cupboard was filled with bottles of whiskey!
We’ll discuss clients who ask about the agency’s creative profile when hiring, but tell you awards are not important when briefing.
We’re also experiencing a phenomenon where a large contingent of Cannes Lions is made up of clients.
Profit
Profitable relationships. I love the sound of that one.
Someone once told me ‘build me a great creative agency and the money will follow’.
There’s also the relationship between building great brands and the profit motive. If brands are built over years, why are they managed over quarters?
I also argue that agencies should claim a success fee for partnering profitable clients.
During the next while, I will be going deep and wide, on any of these aspects of the virtuous circle. Sometimes we’ll deal with one, most of the time a couple of them, because — after all — they are inter-dependent.
I look forward to an interesting conversation with all of you.
Jerry Mpufane has executive experience in both ad agency and client organisations. He’s only got one goal in life, which is to be an inspiring leader. Jerry is currently group MD, Gauteng of M&C Saatchi Abel. His monthly column on MarkLives, “The Business of Business”, will focus on what it takes to run a great AND sustainable ad agency.
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