Will OLIVER, the in-house agency, fly in Asia?
Nick George, the former Asia MD of production company Tag, has just taken on the job of leading the regional expansion of OLIVER, a marketing services agency that hand-picks advertising teams to work on a client’s premises.
In this Q&A with Mumbrella, George explains why an approach that challenges the traditional agency model will take off in Asia.
Briefly explain the idea behind OLIVER.
One of the things that warmed me to the OLIVER approach is its simplicity. We create bespoke agency teams that are aligned to the needs of our clients, and place them inside their organisations. And we give support to the on-site teams with strategists, creative technologists, designers, writers and so on, from central regional hubs. The idea is deliver better work, faster and more cost effectively.
Where does the idea come from and why will clients buy into it?
A single in-house agency doing everything from planning and execution, to adaptation and delivery – that is what is appealing to clients.
Global clients are still asking local and regional marketers to adapt from central brand communications, but we are seeing a shift towards more locally-developed initiatives. We can offer a consistency of messaging across media and markets, but we are also focused on providing services to local markets wanting to create local work for the markets they operate – the markets they understand better than anyone.
Do you think the big established top agencies like Ogilvy and DDB are nervous about the competitive threat a model like Oliver’s poses?
These top agencies have been around for years and have their advantages. If anything, we might just complement them.
Can you give us a bit of detail on exactly how the remuneration structure works for clients?
A monthly flexible cost is charged to the client based on the resource within the bespoke team. This allows the client to plan and manage their budget without having to worry about any sudden spike in cost. Clients are not charged for any resource that they do not need.
What would you say is the most successful example of the OLIVER model working so far, and why?
We’ve created in-house agencies for the likes of Starbucks, Vodafone, AXA, Pepsico and 3M. The logic behind placing staff in-house is to build a level of intimacy and understanding of the brand that companies cannot get with the traditional agency model. It’s also about reducing the communication time lag between us and the client. We can work together on delivering real-time marketing and seeing results faster.
Oliver is well established in Europe. What makes you so confident that the model will work in Asia?
I think the model has appeal regardless which part of the world you are in. You could argue even more so in Asia, where cultures are so diverse. Marketing across Europe tends to lend itself well to adaptation – a piece of creative developed for the UK market can fairly easily be adapted to work in, say, France or Germany. However in Asia, the markets are so varied, not only in language but also in culture, which demands local creative that will touch the local consumer. Local marketing campaigns are a must.
One problem with the OLIVER model could be putting people inside a client’s building who don’t fit with that company’s culture. How do you tackle that issue?
An implementation team will immerse itself in the client’s environment to understand their culture, process, what their needs are, and the key people that the team will need to work with. Also, clients can play a role in interviewing and assessing shortlisted candidates before they are hired and placed on site.
What’s your approach to sourcing talent in a region like Asia, which was a serious talent issue?
Our employer brand has a big role to play. When you take a closer look at the resource we have available, it is encouraging to see the amount of good and dynamic talent available who want the chance to diversify and apply their skills across brands. We have attracted good talent in the UK and US with this model. I have personally worked in Asia for 10 years and have always been inspired with the high level of talent in the region, not just creative, but in account servicing, technology, etc.
What are your hopes for the first 12 months of the Asian business?
Establish our brand, set up our core hubs, expand our client base, produce good work and enjoy it. There’s no point in doing anything if you don’t have fun in the process.
There was a time when starting an ad agency was all about passion and having a unique communication style and vision…that usually came from the founders’ talents and spread to their employees. Now it looks like you can have an agancy assembled for you like ikea furniture. Hmmmmm.
Admire the intention here (many pluses of having an inhouse agancy)….but how do you trust an outsider from interpreting your needs….they just come in, ask a a few questions and voila? Heres your new inhouse agency, see you later? The model here can only be to make as much money for onesself ….which means cutting corners on costs and turning important creative functions into commodities.
I would urge creatives specially to evaluate such offerings with caution lest you find yourself being treated with insulting salaries….good talent costs money and I am not sure if these turnkey project guys understand that….i doubt they even know how to evaluate talent.
ReplyIt’s not exactly new, is it? The agency currently known as Lowe was set up as Lever International Advertising Services (Lintas) decades ago – then spun off when they realised that no decent agency person wanted to be in an in-house agency with just one client, no independence, all the downsides of client life and few of the upsides.
ReplyStephen has made some excellent points. As Peter Drucker said “If it’s easy it’s anyones money”. Setting up and running in-house agencies for clients which does great work that delivers against clients objectives is not easy. In fact it’s hugely complex. Stephen has highlighted just a few of the challenges. Getting the best talent. Nurturing passion and commitment to the clients cause. Harnessing the energy we create into a dedicated agency to deliver creative work that achieves results with maximum efficiency. OLIVER’s in-house agencies are all about expertise, creativity, passion, and process. They become greater than the sum of their parts because they are not just each clients in-house team, but a dedicated extended family consisting of our whole agency. OLIVER focuses on keeping teams fresh and aligned to the clients goals. Plus it’s much more transparent than traditional agency models both in what we do and how we charge for it. This is not commoditisation, but it is exposing the true costs of activity to clients and asking them to pay a fair price for the value being delivered. Not only do OLIVER know what great talent looks like we also know how to harness it for the benefit of all.
ReplyThat spiel sounded like it was lifted straight off the company brochure. As George says, its all about, ahem, “expertise, creativity, passion, and process”.
If so, there may be a far more cost effective way to go about setting up your own inhouse agancy. It’s all about EXPERIENCE and CONTACTS….so start by hiring a seasoned veteran of the ad industry on your marketing team….shoot for Sr Acount Director level or higher. This person will know all the systems, set up needs, numbers, logistics and key personnels phone numbers embedded in their brain already.
They can help you set up the whole shebang…right down to creatives, planners, runners, printers and project managers theyve worked with and trust (a big deal). They will take care of all the nurturing of passion and commitment to the client’s cause….usually the promise of fair pay and a non-exploitative work environment works better than any lecture on work culture. You can afford to pay these people a little better because you will be saving a huge fortune on your current agency CEO’s penthouse rental, trips to cannes for 10-20 people a year, entry fees for scam ad campaigns and so much more.
This Sr Acct Director level person will also be in a slightly better position to gauge talent….unlike so called experts who just open up The Work Vol 5 or turn to the Campaign Brief Top Creative List …by now most clients are aware of the dangers of recruiting scam advertising practitioners and no accountable inhouse agency wants that ever.
The whole business of advertising runs on common sense not consultants…so what can I help you with next?
ReplyCouldn’t agree more that the industry runs on common sense. That’s why I like this idea!
Clients either don’t have the time, money or requirement to create agency infrastructures within their own business. I’d much rather my marketers were focussed on making my brand more visible and hitting their targets than setting up another internal department. In fact, that’s the reason I’ve always worked with agencies; you get great talent, service and avoid the risk of increasing headcount.
But common sense says that working right next to somebody is going to be more effective than working with an agency based miles away.
I haven’t got the time to build my own team. But I would like one built for me. And common sense says that’s a powerful thing.
ReplyCommon sense also tells me that no one can know my needs better than my team, whose feedback I gather in regular fortnightly sessions. For a function that is as vital as advertising, I know I must free up my time and attention for it and not leave it to consultants who sometimes make a lot of promises without delivering….and then I hate the excuses that invariably follow.
If I build my own inhouse agency I know I am going to do it exacly according to my vision, with nothing lost in communication….I know what sort of talent I need since I approve the work…and I can pull in relevant agancy personnel who have all the experience and have grown disenchanted with agency life. The best part is I can save much more than 30% on costs.
ReplySounds like all Tim Norton and the likes need is an easy to use, free for all template and expect results from them.
ReplyAnyone can throw a few people together and call it an agency. That’s how 99% of agencies are formed…their philosophies are generic and work boring. Real agencies run on strong, likeable, and mostly talented human personalities…..they are very delicate, organic structures built on human dynamics, talent and lubricated by years of HANDS ON experience. These guys talk about it like they are building an oil rig.
I am highly sceptical of anyone with no track record whatsoever to show in advertising claiming to understand the business and its often hidden talents as expertly as they claim.
But lets get objective.
I woud love to see Mr George show some proof of the tall claims made. Is there any work from the inhouse agencies he has been responsible for setting up. Please share real work exmples and let us see if these defy the ‘template’ and what results they have shown.
ReplyWhenever you have a new agency, new process in place, its never easy. Especially when I have no control who works on my brand. Most creative agencies would allocate base on who has the capacity to take on the account and not work would fit best for the brand. If I am able to be part of the hiring process, this model I think will work. Would love to have my own creative team without the operational overheads!
Reply“Would love to have my own creative team without the operational overheads!”
Creative team is a very expensive and useless piece of machinery if you dont know ho to operate it….moreover it does not come with a manual….very few creative teams know what to do without being told….majority need you to tell them exactly what to do. It’s a risk but if you are lucky then doesnt matter.
ReplyIsa is spot on. Too often the work goes to who ever has capacity. The work is then usually absent of the context provided by past learnings. This ivory tower (trying to appreciate the depth of the account) approach to creative and planning does nothing for the client’s business. Disconnected from the context leads to frustrations for all involved. I would love to see Oliver succeed.
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