The Role of Independent Agencies Independent agencies need to harness unconventional thinking for every client challenge. The lack of bureaucracy and nimble structure can only be a strength if it leads to better ideas. The Agency Structure Agencies — large and small, independent and networked — face the challenges of meeting clients’ needs in a rapidly changing healthcare environment. More so than their holding company peers, independent agencies have the ability to be fluid and to respond rapidly, providing a level of service that clients come to expect. The Changing Service Model Independent agencies typically are structured with fewer levels of bureaucracy than their larger counterparts and thus are more nimble and more flexible, allowing them to meet the daily needs of their client base more responsively. In today’s environment, advertising is no longer about following a set of standard operating procedures. Each client’s needs are different and each requires an agency partner that can provide a unique set of solutions to support the brand and to increase market share. This industry is evolving quickly, and agencies must become adept at creating new solutions in response to new paradigms. Independent agencies, because they lack the rigid infrastructure of larger and more traditional agencies, are well equipped to anticipate and respond to client needs. In addition to being service oriented, independent agencies tend to be more entrepreneurial in nature. This mindset permeates the agency, allowing the staff to create a spirit and a culture that reaps rewards for clients and their brands. Independent agencies need to harness unconventional thinking for every client challenge. The lack of bureaucracy and nimble structure can only be a strength if it leads to better ideas. Creating Intimacy Independent agencies tend to focus on core capabilities, and bring that focus to bear on meeting a client’s particular needs. This depth of focus means that the agency is intimately involved — from the top down — on understanding a client’s market, its competitors, and providing the tools and solutions to compete. Key agency personnel are actively involved with the client’s business from the pitch through strategy development and deliverable. Oftentimes the client base of an independent agency is smaller, allowing clients greater access to senior management. The depth of a client relationship is of vital importance and tends to lead to higher client retention. For midsize clients that may not have the resources of their larger counterparts, this attention to service and detail can allow greater success in even the most competitive therapeutic areas. One of the challenges independent agencies face is convincing clients to take a partnering risk with a smaller agency that may not have the depth of resources of a larger holding company. But once the initial reluctance is overcome and the agency is given a seat at the table, clients find that there is a greater level of service, commitment, and enthusiasm with smaller agencies. An independent agency may not immediately appear to be the best fit for all clients, especially those that require bundled services and commodity-based rates that larger agencies can provide. Clients that have larger than average resources at their disposal tend to partner with agencies that are associated with holding companies because of the perceived value of dealing with one partner to meet every one of their needs — med ed, market research, consumer advertising, professional advertising, and so on. But in today’s environment it’s rare that one agency can truly excel at providing all of the services required to move market share, therefore most agencies, whether large or independent, must develop partnerships with other service providers. Because independent agencies are not locked into working with any one partner, they are able to bring the best resources to the table without the political entanglements found in some holding company structures. Finding the Right Fit In some cases, because the client’s time and resources are also limited, the pitch process is being redefined to become more strategic rather than creative. Some clients are requiring agencies to engage in a scenario that resembles a case study rather than a traditional pitch. Based on a set of parameters — the brand, the market conditions, and the marketing objectives — agencies are required to propose actionable solutions. Independent agencies are well equipped for this new environment as it plays to their entrepreneurial spirit and strategically oriented structure. This type of pitch requires a different level of resources and is more intellectually taxing, as opposed to the financial expense associated with big, and at times unnecessary, creative executions. For independent agencies it is important to determine what they do well rather than that they be all things to all people. Independent agencies need to build the appropriate skill sets around core competencies and then communicate those capabilities to clients without overstating or overselling. The obligation for any agency should be to make a commitment to the client to do what is in the best interest of the brand, and to do whatever is necessary to exceed client expectations. Joe Carofano CCA Advertising March 2006 VIEW on Advertising CCA Advertising, New York, is a strategy driven, creatively sustained agency with the power to develop campaigns that engage, inspire, and move people. For more information, visit ccaad.com.

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