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Beyond tangibles

More than business opportunities, global tie-ups are great learning avenues for agencies

As an advertising agency in the business of building brands, we understand the value of a brand that is recognised globally. OHI’s tie-up with DDB, the biggest ad agency in the US, and the third largest in the world, has been our backbone. We were the first agency in Oman to tie up with an international agency network as far back as September 1996, setting a trend. The fact that other agencies are following suit today points to the fact that the benefits that accrue from an international tie-up are clear to see.

The advantages of a tie-up go far beyond internationally aligned business. In the advertising business, an agency’s success is inextricably linked to the talent of its people. So the first and most important edge is that an international name attracts better talent than a local name. I personally found a huge spurt in interest and better quality of applicants, once we became DDB Oman. The next key benefit is creative adrenaline. Creative people need constant stimulation through exposure to international work at more than just the spectator level that today’s easy online access provides. Another advantage is training prospects. With international networks, there is a lot of emphasis and investment in upgrading skills on an ongoing basis. The access to strategic proprietary tools of the global netw-ork is an invaluable asset.

An agency’s international tie-up gives its client access to network support. A network agency can provide logistic ground level support the client may need in another country or access to market information or specialist services not yet readily available in Oman. The client gets international standards of service at local prices, using local resources and market knowledge.

This is not to say that local agencies can’t succeed without a tie-up. But it is naive to assume that a tie-up will see clients queuing up at the doorstep of the local agency from day one. It is a long-term investment and involves being able to put a price on the intangibles like training, exposure, networking and individual growth at the cost of a dent on the bottom line for the first few years.

A cosmetic exercise

Local ad agencies have not gained much from most of the tie-ups forged till now

The biggest difference that an international advertising agency has over a local one is that it has a lot of dots across the globe. In addition to a bigger footprint, an international agency also has at its disposal, proprietary tools and knowledge acquired by working on accounts on a bigger scale. But these are of little consequence without local expertise and knowledge. In a market like Oman, an agency based here brings to the table local knowledge, intellect and expertise that no multinatio-nal can boast of.

If you look at the nature of tie-ups in Oman, you will find that there is no movement of people or talent between the international agency and its local partner. There is no management interface or operational control by the international agency though there may be a small measure of financial control. The parent agency’s participation in the strategic and creative process is negligible or none at all. A name just for the sake of it does not benefit anyone.

None of these tie-ups have brought in the most important input – talent. The nature of the market is such that an international campaign or idea cannot be transplanted easily to the local market. At NPA, for example, most of our executives have already worked in multinational agencies like BBDO, JWT, McCann, DDB or Hakuhodo and have the expertise and exposure that being a part of an international agency gives.

But there are certain advantages that an internatio-nal tie-up brings about. If one is recruiting professionals who are not familiar with Oman or a local agency, an international brand name will be a definite advantage. The tie-up also comes in handy if there are accounts that require support beyond Oman. As the country opens up, there may be accounts which are rooted in the local market but require advertising learnings and support regionally or globally. In such cases, a tie-up can be useful. For instance, Impact BBDO has an MoU with us to support the Nawras account.

It is not as if we don’t want a tie-up. We have been discussing the issue with industry colleagues and have been evaluating partners from time to time. The reason why we have not tied up with anyone is that we don’t want an association that does not add any value. A multinational agency should bring to the table its learnings, talent pool and active participation and not end up being a mere mention on one’s visiting card.

As told to Mayank Singh