| 1. what exactly was the fee structure like in the past? And is it still like that today? You simply "take" a percentage of a budget or ... what do fee models look like today - e.g. in your company? |
| Thomas Krebs, owner of Agentur gestalten AG, Zurich |
Curdin Janett, CEO, Publicis, Zurich |
Manfred Strobel, CEO, Mediaschneider, Zurich |
No, the percentage fee you describe is no longer common for us. With today's campaign models and the consulting and services we provide for clients, this model would not make either the agency or the client happy. Fortunately, our industry has long since left this dusty romanticism behind. Today, we charge for what we do. In other words, the current fee models are based on the work that an agency does for a client. This is fair and transparent. And for everyone. |
For a long time, the percentage fee was almost the "standard model" in our industry. Which, of course, also had advantages for customers: offers were directly comparable and costs could be clearly budgeted. But of course, at a time when we are all talking about "earned media", it is no longer applicable in every case. Even 25% at CHF 0 results in 0 francs. What we still advise against is pure hourly remuneration on a project basis. This may be assessable in terms of organization and realization - but how long does it take to find the groundbreaking idea? This inevitably leads to discussions. There are smarter models, for both sides. |
Media agencies often still offer "percentages on media volume" - although this is no longer comparable to the "old days". Today, these are low single-digit percentages, often with performance components (e.g. customer satisfaction with the quality of cooperation) and hardly cost-covering for online media planning. Another model is based on time and effort and requires complete transparency about the actual hourly output. And, of course, there are the mixed forms of percentage of effort/success sharing. |
| 2. how do you get new customers today? Do people still pitch, i.e. take part in competitor presentations to which a potential customer invites them, with or without compensation? |
Of course, this theater still exists. The public sector in particular is constantly setting an example with the official tenders for its external mandates and contracts. Fortunately, however, other models have become established that are much more cost-effective and meaningful. Many clients seek detailed preliminary discussions with us to find out how we work and think; others simply start with a project order and then see how the collaboration develops. On the whole, clients have become more sober and are less convinced by the glitz of a competitor's presentation and more by honest performance on a day-to-day basis. |
There are still competing presentations. And even today, the winning concept sometimes looks very different from the campaign that actually appears. Because the actual work begins afterwards. Which is why an agency evaluation often makes more sense than a classic pitch. After all, it's ultimately about a partnership, where the right team with the right considerations is more decisive in the long term than a spontaneous idea. The fact that we - like all bsw agencies - insist on an expense allowance is intended to protect our industry from pitch inflation. For an agency, a pitch is not simply an offer - we deliver our core product: ideas. A pitch is still a large investment for the participating agencies, and the pitch fee covers external costs at best. |
A pitch is usually put out to tender, which means that there is often a so-called short list on which the agencies invited to pitch are listed and have to submit by a certain date - this can also be separated into buying and strategy and include a later presentation. Collaboration is rarely awarded "just like that", although an excellent reputation or great references sometimes allow a decision to be made without a pitch. Compensation for expenses is considered "good standard practice" by agencies accredited in the bsw leading swiss agencies, but is not always required or is sometimes unfortunately not feasible. |
| 3 A big issue today is the media landscape, including social media. In the past, you knew which media were suitable for a campaign even without a computer run-through. Today we have online media. What does that mean for an agency? Call in specialists, outsource work or stick to the traditional? |
You are indeed addressing a major challenge for all agencies. The diversity of media and technology has increased to such an extent that it is demanding to be competent in all areas. However, the major challenge has remained the same for years: Namely, the ability to transcend media and technical boundaries, to link several communication measures together for a client and then still convey the right messages in the right implementation. You can't do this with specific specialist knowledge or with external specialists. Only conceptual ability, intelligence and creativity can help. That's what makes good communicators. |
Today we have employees with job titles that didn't even exist three years ago. In this sense, yes, we clearly need more specialist knowledge today. However, we have opted for the integrated model, where each customer has their own team - not three teams that they have to coordinate themselves. Our main task has remained the same: the supporting strategy and the media-neutral basic idea. There were times when older advertisers longed for the good old "idea on a beer mat". Good news: this is back in demand today. The basic idea in one sentence, which serves as the basis for all channels. |
Tools and training are crucial here, as are the best possible market overview and quality contacts with providers. What's more, today we sometimes question the brief, because we need a briefing with so-called business objectives and KPIs (key performance indicators) that the client wants to achieve together with the agency. Today, a modern media campaign has a clear objective as a guideline, plus business insights, a comprehensive brief and, if necessary, measurement criteria. The media agency responds with a strategy process, efficient booking with the media and controlling of effective performance - all of which is no longer possible without the best employee qualifications and IT tools. |
| 4 Let's move on to skills. In the past, there were the two camps of "consultants" and "creatives". The consultants, known as cardboard carriers, had direct access to customers. The creatives, known as prima donnas, tended to work behind the scenes, dreaming up ideas in a quiet chamber. What has fundamentally changed - has professionalism increased? What about the qualifications of agency employees today? |
The qualifications of employees have indeed increased. Anyone who wants to be successful in an agency today must be highly qualified and highly motivated. As already described, the media and technical possibilities have expanded massively, boundaries are blurring and the time and financial pressure on every employee is enormous. Believe it or not, finding highly qualified employees is still one of the biggest challenges. And perhaps at this point I would like to point out to all the small talkers who want to lead our country into isolation by isolating it from the euro: Without the many extremely talented employees from abroad, we would never, ever be able to provide our services. If you want to be "state of the art" today, you have to think internationally as an employer. |
It used to take very good consultants and outstanding creatives to develop a really good campaign. And they did exist. Today's complexity simply requires even more specialists. The lowest common denominator remains: They have to be the best in their field. And: they have to work as a team. |
The situation is traditionally somewhat different for media agencies. Service providers always have to work with the client. We don't have divas in the background, but planners and consultants who are responsible to the client. At Mediaschneider, employees are continuously trained and educated both online and offline. Our aim is to work with knowledgeable and competent employees who can also establish and maintain good contact with the customer. |
| 5.Today, text is also referred to as "content". In the past, copywriting was never charged separately, it was included in the fee. What role does the text, the copywriter, still play today? People hardly read any more, they say. Or only very short texts and very short words... |
Perhaps the term "text" is a little one-dimensional these days. It's all about developing exciting stories. These need an idea in terms of content and form, a dramaturgy, words, texts and images. It's not simply a case of "Make another slick headline", but rather "What are fascinating ideas?". From this perspective, "text" is perhaps more important than ever. Simply as "content management" and "story telling". |
A supporting role in a double sense. Copywriters are very often copywriters/concept developers. And the supporting concept cannot be valued highly enough. Anyone who simply uses all possible channels without a concept is not managing their brand. And then much more content is created than before. In other words, content. Because every new channel needs exactly that. The same applies here: the quality of the content is decisive for the match. Regardless of the channel. With a bad wine, I don't care whether it comes in a hand-corked bottle or a plastic bag. I just don't want to drink it. |
I can't answer that from the media agency side. |
| 6 Today, graphic designers practically only work with computer support. They have to be able to work with multimedia. Swiss graphics in the sense of a high-quality "brand" hardly exist any more... |
That's not true. There are many very good Swiss designers who are able to produce multimedia designs at the highest level. Of course, the currency is no longer simply called "poster", as it was perhaps 50 years ago. But nothing has changed in terms of high quality. |
I would separate the two. Whether outstanding graphics are created by hand or on the latest device makes no difference. We see this in art: the technique used says nothing about the quality. So I can paint just as horrible pictures with oil on canvas as I can when Pixar lets me into their studio... unfortunately I'm just largely talentless. Where I absolutely agree with you: Graphics are unfortunately less appreciated and cared for than they already are. This is regrettable, especially in a country that was a leader in this field. |
I can't answer that from the media agency side. |
| 7 This leads to the question of how to deal with the different disciplines: classic advertising, online advertising, PR, sponsoring, sales promotion, etc. Which agency can still find its way around? Does the full-service agency still exist today? Is more external know-how being bought in today than in the past? |
See question three. There are thousands of specialists, but hardly any generalists who have the size to deploy and manage all these specialists competently. These people are in demand today more than ever. Gestalten AG clearly positions itself as an agency responsible for directing all disciplines. Regardless of whether we fulfill everything with our own resources. That is not important for the client. What is important is that we can think in all areas and take responsibility accordingly. |
This is precisely why we merged Publicis' advertising, dialog and digital agencies into Publicis Communications in 2011 and have been working in integrated teams ever since. Our media agency ZenithOptimedia is also part of the same company. If we want to manage brands with our clients and not just implement measures for them, this is the right way to go. I am personally convinced of this. Nobody on the client side has the resources to maintain disciplinary silos in marketing either. What's more, someone has to be able to see the big picture. If the agencies fail to do this, consultants are needed to keep the various agencies together. Because it is in the nature of specialist agencies to contradict each other. A clear plea for the integrated full-service agency. |
The real full-service agency today is more of a network, i.e. a partnership of different agencies with the aim of offering everything "from a single source", i.e. being able to present and implement ONE solution. Consequently, this means that the lead agency must also have good project management skills and work in close cooperation with the other agency partners. |
| 8. the subject of marketing. Some advertisers and advertising clients had little or no idea about marketing. They acted on instinct. Today, advertisers must be able to have a say in marketing matters on an equal footing with the client. Can an agency still influence a client's marketing today? |
This is more a question of the client and less a question of the agency. There are clients who involve their agency very closely in marketing. We have already helped design marketing plans and develop products for clients. The results of such collaboration are impressive. If I were the client, I would definitely transfer joint responsibility to my agency. But there are also clients who simply want a specific advertising medium and nothing else. It's like everywhere else in life: "You get what you ask for." |
Perhaps both sides used to make more gut decisions. In the successful examples, however, there were simply good people on both sides who met as equals. The task here remains the same: You have to be on an equal footing before you can look each other in the eye. |
This is the key to success today, but especially for the future. An agency is included in a joint marketing target agreement and is then also a marketing service provider. It must therefore have a say in a larger part of the marketing value chain and be able to orchestrate so-called consumer touchpoints beyond advertising, i.e. also have an opinion on the packaging or correctly evaluate market research results. |
| 9 Client Relations: Has the relationship with clients changed? If so, to what extent? |
I learned something for life at a highly remunerated leadership seminar for managers at Columbia University: "If they don't like you, they will kill you". We work according to this principle every day. Clients have a right to be respected and honored by their agency. Nobody gets angry with their agency. That's why a personal relationship and mutual trust is still the key to success. |
As with all the changes we are currently seeing, speed is the biggest driver here too. Key positions are changing more quickly and the respective people have a packed agenda, which leaves less time for talking about God and the world. However, the basic theme in an agency-client relationship is probably still commitment, flexibility and trust in a successful partnership. I think the stories that budgets used to be allocated simply on the basis of lavish meals at the Kronenhalle are fairy tales. There were certainly longer and more intensive personal relationships, but the motto "No performance, no success" certainly applied even then. |
The relationship with the client has become somewhat tougher, but not necessarily in a negative sense. The client wants to understand what he can trust the agency to do, and the client wants his return on investment - measured as quickly as possible and possibly certified by an auditor (at least on the media side). The client wants to be surprised, i.e. he wants innovations from the agency and will only rate an innovation as "well-rounded" if it is perfectly integrated - in concert with the other agencies, with media partners and also with measurable data structures. In the end, the relationship with the client becomes much more professional! |
| 10.Where is the journey going? How has the way advertisers think changed? |
Anyone who claims to know what's hiding behind the next bush in today's communications jungle is talking out of their ass. Change is the order of the day, and change will continue to occupy us in the future. That is perhaps the only thing that is certain. At Gestalten AG, we believe that the most important thing is to keep curiosity and openness to change alive. Only those who are always quick enough to embrace new things will be fit for the future. Perhaps you could put it like this: "Experience is old school. Newschool is curiosity and courage." |
I see three main issues that will continue to occupy us in the near future. 1. the speed:New opportunities arise every week, and you shouldn't wait until you see the best-practice examples of the competition and get annoyed. Try more, be courageous, lead the change. 2. openness:You have to be prepared to engage with new situations, opportunities and people. Collaborations, new forms of work, creating more laboratory situations. 3. the differentiating positioning:Certainly an evergreen, but one that is becoming even more important in an increasingly complex environment. I need to know exactly what my brand is promising and how it intends to deliver on this before I think about the possible forms of communication and how to communicate them. -channels. If you have nothing to say, sheer multiplication doesn't make you any more interesting. |
The path is moving away from broadcasting towards contemporary interaction with the consumer. Of course, the broadest possible message "out there" is still needed at a certain stage, but at the same time authenticity and feedback loops as well as sustainability are required. Advertisers and media strategists need to take all of this into account today if they want to create modern brand communication. |