Why agencies can't brand

Agencies constantly pitch themselves as being able to brand your offering. The pitch is so seductive: "We'll use your money to increase your sales and make you as beloved as Nike, Apple and Coca-Cola." Who wouldn't fall for this siren call?

The truth is that no agency can brand your product. One one level, this is demonstrated by the musical chairs that companies and agencies play. Agencies pitch their "creativity" and "positioning," companies stroke their collective chins and make poor agencies jump through more hoops, and then select a "winner," and everyone chimes into the chorus of creating a great brand. Then in one, two or three years, the process begins again.

Why?

The selection process is rigorous, agencies have talented people, budgets are available, and companies are committed to branding. So why are the pages of marketing publications filled weekly with news of new agency pitches or selections?

The primary reason is that agencies cannot brand. That's mainly because agencies are not in charge of the fundamentals of branding -- service, innovation, engagement, and execution. Agencies can make a brand promise, but, ultimately, they cannot fulfill it.

The second reason is because agencies are, in the end, nothing more than an organization, and subject to the strengths and weaknesses of any organization. And sometime, organizations fail to deliver, no matter how strong the historical record is or how committed the leadership is.

The best example of this is in an amazing email from TB Song, the chairman of TB Song. He wrote an email on December 31, 2008, outlining why the agency was not fulfilling objectives, either its own or its clients'.

The email is well worth reading:

http://media.blog.brandrepublic.asia/davidtiltman/ogilvy-chinas-collective-failure/

The point of this post is not to point a finger at Ogilvy. Indeed, Ogilvy is one of the world's premier agencies, and Mr. Song deserves great credit for accurately identifying the issues involved. In fact, if I believed in the agency model, Ogilvy would immediately make my short list. The first step to solving a problem is to identify it, and Mr. Song has nailed it.

Here are some relevant excerpts:

"We, including planners, account service and creative professionals, must be more active and engaged in our clients’ businesses. This means doing a better job of understanding their operations, strategies and market positions. We must stand alongside our clients in facing business challenges and changing market conditions. We must infuse our creativity – our core competency – into our clients’ businesses. Our creative people can’t simply sit at home, receive the brief, and then 'do creative.' Our advertising must be more than just TVCs or print ads, as our creativity should blaze new paths of communication which aims to help our client’s business. The best ideas are still undiscovered. If Ogilvy’s creative people think only about the awards, TVCs and print ads, or even scam ads, I will encourage them to leave. Our creative people should be forbidden from working on scam ads. I’m not against awards, but the focus must always be on our clients’ businesses, and let the chips fall where they may."

"The focus must be on our clients' business, and let the chips fall where they may." Too many agencies sell their "creativity" and highlight their "awards." But creativity is meaningless unless it results in profitable sales, and "awards" are nothing more than industry veterans recognizing their industry peers. The only award that matters is one that customers give you.

Another excerpt:

"We must work to deeply understand the client’s business model, especially their financial systems/cycles and the up/downstream structure of their industry. These factors will impact the client’s short-term marketing and communications strategy. We should incorporate these considerations in the advice we give clients and adjust our service accordingly."

Too much attention is paid to "creativity," or worse, "positioning," instead of understanding pricing, distribution, supply chain relationships, competition and other relevant business issues. Until you understand these, it's difficult to solve client business problems.

"Ogilvy China remains in the leadership position in Greater China, and irrespective of the downturn, Ogilvy is still regarded as the best option in the eyes of many clients. However, we must be also aware that we have already become too lazy and proud and have been resting on our laurels and enjoying our good reputation. We considered ourselves infallible and even arrogantly believed that we could engage consumers without actually understanding them. This has destroyed the Ogilvy brand and David Ogilvy’s vision: 'We sell or else!”' 'Remember?'

"We arrogantly believe that we could engage consumers without actually understanding them." This applies to every agency and company that attempts to brand without doing prospect, customer and lost customer research. You cannot brand without ongoing brand audits.

"We need to remember that we are 'Brand Stewards.' And branding is a long-term project. In 2009, clients will be looking for quick solutions to their sales problems. Ogilvy should be focused on being 'effective in a short amount of time, but also beneficial to long-term branding.' That’s the key to sustained success in hard times."

That advice is not only applicable to agencies, but also to companies seeking short-term fixes or branding silver bullets.

Ultimately, agencies are only partners in branding. Only companies that are focused on execution, measurement and, most importantly, customer engagement can brand.

Kudos to Mr. Song.