The Role of Independent Agencies Never has our industry valued or embraced the independent agency as it does now. Part of the reason for this is the backlash created from the aggressive mergers and acquisitions during the past 10 years. Pharmaceutical clients have begun to seriously ask large public agency systems, “What is in it for me? I see the resources but I also see silos. Is there a better way?” This clearly paves the way for the role of the independent agency. Entrepreneurial Environment Independent agencies typically foster a more entrepreneurial environment. This translates into more direct ownership of their clients’ brands because they are the company not just employees of a public company. This commitment is something that clients crave. It makes them feel that they have a team that will “jump into the fire” with them. Additionally, it creates an internal environment where everyone on the team feels empowered regardless of his or her level. As a result, the agency has a very customer-focused orientation — it can react more quickly because it is structured to do so. Less Bureaucracy Independent agencies are also less bureaucratic and can work more freely to meet individual client needs. They are less caught up in maintaining a specific profit target and can make investments in their clients business that have negative short-term profit impact yet longer-term benefit. It can be as simple as agreeing on a Friday evening to keep the agency open on 24-hour shifts through the weekend or as complicated as making a software investment to enhance how it conducts business. Regardless, there are simply less approval levels to work through, meaning the agency has the ability to be more responsive and work in real-time. Refocus on the U.S. Market In the late 1990s the focus in the industry moved to global marketing. Clients were trying to figure out how to best leverage the benefits of their brands across multiple markets. Certain clients needed to have the resources offered by a global agency system to manage their brands across multiple markets thereby limiting the agency options that they might explore. Recently, the pendulum has started to swing back to the basics of building a brand in the U.S. marketplace. It doesn’t mean that elements of global marketing are not important — they certainly are — it means that the brand can’t afford to become diluted in the U.S. marketplace simply for the purpose of identifying a common denominator position. Independent agencies never lost their focus on the U.S. marketplace — they were not distracted by opening offices around the world — they remained focused on honing their skills for building brands in the United States. Integrated Thinking Just because an agency is part of a network, it doesn’t mean that it necessarily has the best resources available to offer its clients. In fact, there can be a benefit to not being forced to use the existing resources of a particular system. Independent agencies don’t separate the tactical ideation into disciplines before brainstorming, which often limits creative thinking. Agencies should brainstorm to solve their clients’ problem, leveraging all of the necessary disciplines and resources, then determine where to self-execute or bring in the best partner. This provides more freedom in creating innovative solutions for clients. So, what is the role of the independent agency? The combination of an entrepreneurial environment, less bureaucratic structure, singular brand focus, and integrated thinking makes the independent agency a key part of the pharmaceutical services sector. The combination of an entrepreneurial environment, a less bureaucratic structure, singular brand focus, and integrated thinking makes the independent agency a key part of the pharmaceutical services sector. Wishbone/ITP Inc., New York, is an independent, full-service healthcare advertising agency. For more information, visit wishbone-itp.com. Renee Mellas Partner/Director of Client Services Steven Michaelson Founder/CEO Judy Capano Partner/Chief Strategic Officer The Agency Structure March 2005 VIEW on Advertising

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