View on advertising agencies and clients clashes through business relationships or How to bond angels and daemons?

1. View on advertising agencies and clients clashes through business relationships or How to bond angels and daemons? Mikhail Chernyshev E-MBA, PhD.

3. Why client-agency relationships?

5. Why client-agency relationships? This agency is pissing me off! I need to get maximum from the client. I can resolve all the issues just by showing how important he is to me.

9. ARA Model Source: Håkansson and Snehota

10. Research layout Focus Groups Online Panel Qualitative Stage Quantitative Stage 6 + 6 52 + 46

12. Main Differences: input information from the client to the agency We don’t get the full picture from the client, often don’t understanding the context of the brief. We provide a comprehensive and needed input

13. Main Differences: fair and honest communication We don’t receive an honest and fair feedback on our work. Client puts his mistakes on us We afraid to criticize the client as it may turn him away from us Most of the time we get and deliver fair and honest communication

14. Main Differences: how agencies and clients adopting to each other It’s like playing in the one goal, which is just Client’s goal! We are the net-payers, why do we have to adapt? Agencies are putting much more effort in adapting internal organization structure, activity links than clients. This is logical due to the fact that the client controls the key resource of the relationships which is money.

15. Main Differences: positive relations influence on mutual performance Without proper relationships, the outcome will be worse The quality of agency work doesn’t depend on the quality of the relationships Agencies are putting much more effort in adapting internal organization structure, activity links than clients. This is logical due to the fact that the client controls the key resource of the relationships which is money.

16. Main Differences: Trust We are building trustful and open relations with the client We prefer to secure our relations with written contracts Generally “trust” between agency and client is driven by agency desire to unformalize the relations. While client prefers to secure itself with the written contracts

17. Main Similarities The higher the quality of ad work, The higher the costs Bonus program for the agency (on top of the basic fee), creates additional stimulus for better performance

18. Main Similarities Cultural fit with the client helps us to deliver better service and understand the clients needs better For us, having a cultural fit with the agency means talking with them on the same language

22. If this will work the dreams might come true…

23. Thank you!

24. Appendix