Are ad agencies paying heed to start-up needs?


In April 2017, FCB India announced it will cater to start-up clients via its rebranded division Bushfire. Rohit Ohri, Group Chairman and CEO, FCB India, tells us that he took around six months to bring together the right team, to collaborate with businesses that demand fast ideas and quick results. Lowe Lintas has a bunch […]


Are-adIn April 2017, FCB India announced it will cater to start-up clients via its rebranded division Bushfire. Rohit Ohri, Group Chairman and CEO, FCB India, tells us that he took around six months to bring together the right team, to collaborate with businesses that demand fast ideas and quick results.

Lowe Lintas has a bunch of start-up clients in its kitty. Arun Iyer, Chairman and CCO, Lowe Lintas, admits, “Working with start-up brands is a different ball game altogether. Typically, these brands have short term goals and quickly slow down the advertising splash to rationalise what is going in their world. That’s one reason why these days investments are coming only if there is a genuine marketing need.”

When Sajan Raj Kurup of Creativeland Asia set up an investment firm (Ventureland Asia) to back emerging brands and start-ups, it was assumed this was yet another way for an agency to make inroads into the budgets of start-up clients. Kurup, however, is clear that’s not going to the case: “I don’t believe in commoditising creativity. The moment you start subsidising your services, a lot is at stake.”

Ventureland Asia, therefore, will be giving only marketing advisory to brands it invests in. If the brands wish to avail of Creativeland Asia’s services, they will be charged like any other client.

While we have a fair idea of what agencies are doing for start-ups, we decided to ask the start-up universe how it views agency partners. Prepare to be surprised.

Specialised creative services are like a mask for cheaper services

Meera Iyer, Head of Marketing, BigBasket.com, doesn’t think a start-up’s marketing needs are different as such. However, she observes, “What differs is the budget and my sense is that the specialised creative services are more a mask for cheaper services as compared to what you will give to a large organisation.”

She further adds, “You want advice from people who talk sense, have experience and genuinely add value. I have heard of smaller brands in a large organisation also taking this path, only to be totally disappointed. Honestly, while evaluating an agency, big or small, a start-up or a mature firm will use the same parameters but the budget consideration will be a very big factor for bootstrapped start-ups.”

All start-ups are like sponges

RAW Pressery’s Founder Anuj Rakyan believes start-ups are self-sustaining in more ways than one could imagine. Hence, specialised divisions don’t really attract him.

“All start-ups are like sponges. We love to absorb from the environment around us and use the same to craft creative communication,” he says.

A lot of his artwork is done his in-house. Everything else, which is not considered as an area of expertise, is outsourced. “We would love to hear from agencies on producing our collateral with the same quality and at optimum costs. It’ll be a win-win for both parties,” adds Rakyan.

The rule is simple: One size won’t fit all

According to Vashist Vasanthakumar, CEO, Vaya Life, the rule is simple: one size won’t fit all. He believes that there is a significant need to set up a separate division in an ad agency.

“Start-ups are nascent brands. Branding and advertising are incredibly important to a company’s internal solidarity, customer outreach, and overall success. In such crucial initial stages, an agency with an exclusive plan and strategy helps the brand build its identity.”

Rohan Mirchandani, CEO and Co-Founder, Drums Food International, also has similar thoughts. He says, “The early years of a start-up are focused on creating a brand and delivering communication that drives its desired positioning. It is good to have the services of a full-fledged creative agency, with strong planning and creative, to partner that ambition.”

Many other marketers also think that there is a lot of homework that agencies need to do before they approach start-up brands. That’s one reason why Jamit Doshi, CMO, Coverfox.com, would consider speaking to specialised agencies only if they can offer him different product thinking.

“Most of the ad firms settle start-ups with traditionally followed plans. As a community, we love to experiment and want to scale fast. I always look at smart partners who are ready to learn together, and honestly, there is a lot of re-engineering required to do so, which is currently missing in the advertising business,” concludes Doshi.

Source: Brand Equity

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