Being associated with leading creative agencies might sound an exciting business proposition since it offers you opportunities on a platter. While this might be a generally accepted idea, but is that really an advantage in the real sense of the word?
Let’s delve deeper into this question. Does a big media agency that gets business without trying too hard make for a better business option? The answer according to me in not “yes”.
I believe that small agencies have their own advantages and the sum total of these advantages at times outnumber the business scope of a big agency.
Now, let me make it more specific. Since smaller agencies don’t get business on a platter, they have to constantly keep sharpening their skill sets. When one doesn’t get easy business without even pitching, then a whole lot of value additions, planning tools, system processes need to be developed. For which the management has to invest in R&D. These become special value propositions and assets over a period of time. Moreover, client’s benefit from better servicing, closer attention and the over eagerness to retain the business. Not only that, smaller agencies have better control over their businesses since they are never a victim of fallouts or realignment of business with the big brother.
I am not here trying to recommend smaller agencies as an ideal business option or undermine the bigger ones; my sole point is to put forth their bright side. Ideally, I think the best is a combination of both. Might be a 60:40 or better still 70:30 ratio, where an agency has a substantial chunk of businesses of their own. Based on which one can plan long term on all fronts of investment, diversification, talent management and so on.