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Read the Wethey Forecast blog! Musings from Agency Assessments' Chairman on agencies, clients and the business of advertising on the brandrepublic website http://www.brandrepublic.com/blogs/.

Surrey Garland interviews David Wethey,
Chairman of Agency Assessments International on the company’s 15th anniversary
SG In July 1988 you abandoned a career as an agency head for an even more uncertain future in an untried area of consultancy. Why?

DW As an agency boss you can see the need for greater accountability and professionalism in the client/agency relationship first hand. And I felt I could make a more significant contribution by setting up a new kind of business to help achieve it.

AAI became an instant reality through our two founder clients: Kellock, part of the Bank of Scotland, and Interbrand. Working with those first two clients I developed a methodology which is essentially the same we use today. And I learnt how agency relationships look from the client’s standpoint – different from the agency view.

SG How are they different?
 
DW Well, my contacts on the boards of mighty client companies tell me advertising is almost never discussed. At that level they see advertising as a cost, not an investment. But when it comes to the serious marketers in companies and their opposite numbers in agencies, there’s far more symmetry – and relationships tend to be positive.

SG Do they really see agencies as ‘partners’ ? Or just rather more colourful suppliers?
‘my spies who sit as non execs on the boards of mighty client companies tell me advertising is almost never discussed…’
DW Agencies are undeniably suppliers. If you’re the one sending the invoices, that’s what you are. But good clients do try to partner with their agencies, and I am hopeful that more will come to see their agencies as stakeholders in the company’s success.

SG How have agency/client relationships changed over the past fifteen years?

DW Vastly. Here are some ways: agencies are much less arrogant; relationships are much shorter lived, 3 or 4 years on average, against 5-7; ditto Marketing Directors - they used to get 2-3 years to prove themselves. Now it’s little more than a year. With serious implications for the agencies they hire.
Also, remuneration is a markedly more contentious issue - with hassle and haggle on every renegotiation. Then there’s the fact that ad agencies - now called creative agencies - are losing share of market to media and DM shops; that clients have less time to spend with their agencies – and agencies miss the oxygen; and that agencies have been forced by financial pressures to spread their better people more thinly across each account, and are deploying them more intensively on new business.

SG: To me that sounds like a couple of challenges too many. Is there any hope for agencies to make a real contribution in conditions like these?

DW Yes it does - but yes there is! I think that a mutual commitment to measurability and evaluation will be key.
Measurement is always going to be a client responsibility, but it’s in the agency’s interest to do a terrific job, campaign for a long term role, and to buy in to whatever metrics are mutually agreed to make sense.

SG More and more pitches are being run by AAI and those who came after you. Can you explain the growth in your business?

DW Bluntly, a DIY job is looking increasingly hazardous. It’s a mixture of the high stakes everyone is playing for nowadays, in terms of both marketplace success and personal careers, and the growing recognition of the complexity of the task: of mastering different agency offerings, resolving conflicts, and so on. International reviews require even more specialised on the ground knowledge - which AAI is unique in providing.

SG Where do you think you’ll be in fifteen years?
‘…good clients do try to partner with their agencies, and I am hopeful that more will come to see their agencies as stakeholders in the company’s success..’.
Twelve years ago our experience took us into relationship management; ten years ago, into training. Now, half our business is helping clients and agencies to achieve more productive relationships, rather than to change them.
As to the future, we’re developing two new services; the first is a diagnostic technique – for pitches and relationship work – to try and predict which creative recommendations are more likely to be successful long term. The second is a reinvention of several key aspects of the client’s relationship with their creative agency.

SG Is that the Sea Changes programme?

Yes - it’s a new model for the way clients buy their marketing communications. It retains a starring role for the creative agency in the “new integration”, where creative meets media and brand entertainment; it proposes more equitable rules for pitching and remuneration, more dynamic contractual arrangements and a faster, leaner process.
I believe Sea Changes will be the most exciting thing we’ve done; and the time is right for it.’

SG What was the worst pitch you’ve ever seen?

DW: We won’t go there.

SG: OK OK, the best?

DW: We’ve witnessed some amazing scenes over 15 years.

Let’s just leave it that the agencies who screwed up never won the business, and the clients who broke the rules ended up with the agencies they deserved.
As for the best, it’s invidious to pick one – so I’ll give you three: HHCL when they won Britvic’s Tango; Saatchi & Saatchi Cape Town and London when they won Guinness Africa; and Leo Burnett Chicago and London winning Heinz Tomato Ketchup.

SG: Thank you.
‘now, half our business is helping clients and agencies to achieve more productive relationships rather than changing them…’
   
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