A Big Case for the Midsized Agency Anshal Purohit, Director, Strategy and New Business Mark Kruger, VP, Promotional Education Shana Robinson, Account Supervisor Agency Structures Donahoe Purohit Miller Advertising You know the stories well. A biotechnology or diagnostics company approaches the stage where their first product is ready to enter Phase III clinical trials, and they must brace themselves for incorporating commercial operations into their business model, sometimes for the first time. Or perhaps it’s a midsized pharmaceutical company launching or acquiring a product in a new therapeutic area. Or the story might be a large pharmaceutical company with a product that is anticipated to occupy a niche in the marketplace. When preparing for any of these situations, the need for a strategic, resourceful, and nimble advertising agency partner becomes clear — and the combination of service and creativity needed to support these firms defines the emerging role of the midsized agency. A Midsize Structure Not that long ago, clients were forced to make a choice as they developed their agency selection criteria. They had limited choices in terms of partnering. They could partner either with a large, networked agency that might not be able to field a dedicated “A team” or they had to turn to a small, boutique agency that could provide dedicated service, albeit spread out across several brands. Neither choice was ideal. Young marketing teams need high agency service levels and quick responses just as acutely as they need strong strategic and creative input, particularly as their products dodge bullets in an ever-evolving healthcare marketplace. The midsized agency houses a unique combination of features that can be ideal for the client in search of a long-term strategic partner. The flat organizational structure of an agency of this size typically allows for direct client access to senior-level team members in all functions. In fact, these team members are often on the front line servicing the client. This scenario leads to a second benefit offered by the midsized agency: product quality. Delivering the Creative Creative deliverables at a midsized agency benefit from a strategic focus combined with the input of senior, experienced creative staff. This yields creative executions that are not just strong, but for the right clientele are often stronger than they would be if they were to be developed by a larger agency. Finally, midsize advertising agencies are typically financially independent, and can offer tighter, more efficient control over revenue, enabling them to deliver their services with more flexible and negotiable budget arrangements. In addition, when changes in strategy or budget occur, as they often do, these agencies can typically respond quickly and accurately without compromising the quality of their work or service. The midsized agency essentially presents a balance between the service of a boutique firm and the resources of a large agency. Finding the Right Match There are, naturally, situations when a company may fit best with a small boutique agency or a large networked agency. Clients looking to support a potential blockbuster product may need the resources of a larger or networked agency. Products that are projected to reach upward of $1 billion in sales require a multi-layered, dedicated team — a promise that may not be fulfilled by a boutique or midsized agency. On the contrary, companies looking for short-term or ad hoc support may do well with a small boutique agency, since these firms are often structured to draw upon contract or part-time staff when necessary and are therefore open to these types of relationships. In either of these situations, a midsized agency’s benefits are not necessarily relevant to the end user, thus becoming over-valued to the ad hoc support seeker and under-resourced to the blockbuster launch team. As the healthcare industry grows to incorporate more entrepreneurial brands, markets, and companies the midsized agency is becoming an increasingly relevant partnering option, one that offers a combination of benefits that were previously unattainable. With direct access to senior-level minds, flexible budget arrangements, nimble staffing, and quick responses, many of today’s pharmaceutical, biotech, and specialty marketers are finding themselves comfortably at home with midsized agencies. The midsized agency presents a balance between the service of a boutique firm and the resources of a large agency. Donahoe Purohit Miller Inc., Chicago, is a full-service healthcare agency offering strategically creative advertising, market research, and education. For more information, visit donahoepurohitmiller.com. March 2007 VIEW on Advertising

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