"We want to take a clear position"
Diego Bally, who will continue to serve as president of the ASW until the upcoming anniversary meeting, enjoys challenging the industry’s outdated billing models.
Diego Bally, who will continue to chair the ASW until the upcoming anniversary meeting, likes to scratch at encrusted billing models in the industry.WW Do small agencies have more opportunities in these times of crisis because they are not so difficult to steer in the event of a change of course? There is certainly evidence in the market that smaller agencies that maintain a good relationship with their clients come under less pressure as long as their clients themselves do not get into a crisis. With a large agency, clients may be more inclined to play one agency off against another in order to cut costs. The personal relationship between two people plays a lesser role at such times with large agencies. In contrast, we have an advantage as a medium-sized and smaller agency. We are owner-managed and we can guarantee a client the same contact person for years. This leads to friendly relationships, which are now also recognized as success factors in marketing. We can implement long-term strategies, which is a prerequisite for the sustainable development of a brand, for example.
The current trend is for various creatives, CDs and consultants from large BSW agencies to set up their own small agency. Do they join the ASW or do they remain more BSW-oriented?
There are both. Some enjoy the very collegial and friendly world of ASW. Others work more ADC-oriented and want to keep their connection there. The two can coexist very nicely.
An important keyword in the annual report is the so-called Alliance Agreement. How realistic is this rather idealistic idea?
It has been brewing for a long time. There is a desire on the part of certain agencies that already work together in a loose network that a written agreement should now be drawn up on how to work together at all. Such a network will be characterized by very individual personalities. The idea is certainly on trend, even if it remains a little utopian. There are certain prerequisites for a defined agreement to come into play at all.
Without relationships among each other, there's probably not much going on ...If network services are to be provided to a customer, the acquaintance among the partners must be very good. Team solutions are needed to support this network. There should also be transparency within the network and towards the customer. This has just materialized in a project in which we want to establish a system using the latest IT technology and then offer it to our members. Of course, not everyone will take part. But networking is a trend, right up to the idea that a freelancer can work from home or with a virtual agency.
So several ASW agencies work together on the same project? However, it is important that the individual employees within the network are clearly committed to a core competence. Not everyone can offer a full service and want to benefit from the network. The individual members must offer themselves as specialists with different areas of focus.
The ASW no longer participates in the fee structure practiced by the BSW. Why?
There are various billing models with clients, be it a fee on a flat-rate or hourly basis, as engineers or PR consultants usually do. We took an initiative in which we increasingly realized that a fee of 17.65 percent would be utopian. We decided that the old fee structure, which we had developed together with the BSW, was no longer fit for purpose. We approached the BSW and tried to find a new arrangement. For us, this is called the advertising services contract and is based on the contract for work and services. The advertising service contract is now in place and is used very frequently, even by non-ASW members.
Why do you think the BSW didn't support the idea? The BSW probably didn't go along with it for political reasons. I understand that many large agencies would still like to have their percentage fees. As smaller agencies, we can perhaps afford to scratch and break up encrusted billing models. We are convinced that the advertising service agreement is the forward-looking regulation between advertising clients and agencies.
BSW and BPRA discussed a major alliance. This will not happen for the time being. What is the ASW's position on this issue?
In principle, this is a matter for BSW. We have a different stance on this. We believe that an industry association has the task of representing an industry in such a way that it can take a clear position. If an association also appoints players from the market who belong to different categories as members, then the association paralyzes itself because it can no longer represent a clear opinion to the outside world. We have exactly this problem with the Swiss Advertising Association (SW). We have three parties: Advertising agencies, clients and the media. And they all have different interests. A specialized industry association cannot function if the interests of advertising agencies, direct mail, media and now also public relations all want to be represented under the same umbrella. Conflicts of interest are inevitable.
Interview: Andreas Panzeri
The current trend is for various creatives, CDs and consultants from large BSW agencies to set up their own small agency. Do they join the ASW or do they remain more BSW-oriented?
There are both. Some enjoy the very collegial and friendly world of ASW. Others work more ADC-oriented and want to keep their connection there. The two can coexist very nicely.
An important keyword in the annual report is the so-called Alliance Agreement. How realistic is this rather idealistic idea?
It has been brewing for a long time. There is a desire on the part of certain agencies that already work together in a loose network that a written agreement should now be drawn up on how to work together at all. Such a network will be characterized by very individual personalities. The idea is certainly on trend, even if it remains a little utopian. There are certain prerequisites for a defined agreement to come into play at all.
Without relationships among each other, there's probably not much going on ...If network services are to be provided to a customer, the acquaintance among the partners must be very good. Team solutions are needed to support this network. There should also be transparency within the network and towards the customer. This has just materialized in a project in which we want to establish a system using the latest IT technology and then offer it to our members. Of course, not everyone will take part. But networking is a trend, right up to the idea that a freelancer can work from home or with a virtual agency.
So several ASW agencies work together on the same project? However, it is important that the individual employees within the network are clearly committed to a core competence. Not everyone can offer a full service and want to benefit from the network. The individual members must offer themselves as specialists with different areas of focus.
The ASW no longer participates in the fee structure practiced by the BSW. Why?
There are various billing models with clients, be it a fee on a flat-rate or hourly basis, as engineers or PR consultants usually do. We took an initiative in which we increasingly realized that a fee of 17.65 percent would be utopian. We decided that the old fee structure, which we had developed together with the BSW, was no longer fit for purpose. We approached the BSW and tried to find a new arrangement. For us, this is called the advertising services contract and is based on the contract for work and services. The advertising service contract is now in place and is used very frequently, even by non-ASW members.
Why do you think the BSW didn't support the idea? The BSW probably didn't go along with it for political reasons. I understand that many large agencies would still like to have their percentage fees. As smaller agencies, we can perhaps afford to scratch and break up encrusted billing models. We are convinced that the advertising service agreement is the forward-looking regulation between advertising clients and agencies.
BSW and BPRA discussed a major alliance. This will not happen for the time being. What is the ASW's position on this issue?
In principle, this is a matter for BSW. We have a different stance on this. We believe that an industry association has the task of representing an industry in such a way that it can take a clear position. If an association also appoints players from the market who belong to different categories as members, then the association paralyzes itself because it can no longer represent a clear opinion to the outside world. We have exactly this problem with the Swiss Advertising Association (SW). We have three parties: Advertising agencies, clients and the media. And they all have different interests. A specialized industry association cannot function if the interests of advertising agencies, direct mail, media and now also public relations all want to be represented under the same umbrella. Conflicts of interest are inevitable.
Interview: Andreas Panzeri
