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Seven Survival Tactics for Independent Marketing Communications Agencies

Rollinsville, Colorado (PRWEB) February 4, 2008--Financial services brands under a cloud, real estate in freefall, global stock market volatility. The companies and brands making the international headlines may be the giants, but chaotic economic times hit smaller independent advertising and marketing communications agencies just as hard. In fact, according to some experts, smaller businesses, such as independents, are especially vulnerable.

While there are no magic bullets to weathering a downturn, deploying certain tactics can improve an agency's chances of coming out stronger than ever. Collectively, the more than 70 members of the ICOM network of independent agencies (http://www.icomagencies.com/), which are owned locally and work globally in more than 50 countries, have faced everything from devastating recessions to raging inflation. In the international network's 58 years of existence, they have not only survived but thrived by focusing on what's important. Advises ICOM President Rino Ferrari, also president Rino Publicidade/ICOM, São Paulo, "Always have a Plan B, one for recession and one for growth."

You could also call it disaster preparedness on an international scale. Here are seven proven survival tactics from Rollinsville, Colo.(USA)-based ICOM that work regardless of an agency's country of origin.

Tactic No. 1: Stay close to existing clients. Understand their needs and attitudes and help them achieve their objectives with fresh and existing solutions to their communications challenges. Mariana Iesulauro, general account director, Diálogo Publicidad/ICOM, Buenos Aires, notes that it's important to review each account to determine how a downturn may affect the client and make recommendations accordingly.

Tactic No. 2: Step up your new business activities. This is the one area where you cannot afford to cut back. But you can be smarter with a more focused strategy. You may want to focus on new business from existing clients, on activities that generate higher margins, on big accounts cutting budgets handled by large agencies that may not want smaller accounts, on businesses not hurt by a downturn or on specific industries where you offer special expertise. Uffe Just, CEO, Just/Kidde/ICOM, Copenhagen, notes, "In a downturn, consumers still buy goods and services, just not as much or differently than in better economic times."

Tactic No. 3: Expand your agency's capabilities to offer a full range of integrated marketing communications services, including traditional print and broadcast advertising, digital and online, promotion, direct marketing, public relations, special events. This can help gain additional business from current clients as well as increase opportunities for new ones. Says Meltem Gürler, co-president & partner, Fikir Merkezi, Istanbul/ICOM, "During one economic crisis, we started our PR company to get more business from existing clients."

Tactic No. 4: Offer value and be able to explain that value to each client. The value can be fresher ideas, non-traditional, less expensive communications solutions and simply back-to-basic advice that ongoing promotion of a brand is important. If your client sells value brands, encourage more promotional activity since consumers will be looking for value alternatives; if the client markets luxury brands, come up with some promotional, yet classy, activities that will spur sales without harming an upscale image. Says Johnny Mun, CEO, Krakatua Sdn Bhd/ICOM, Kuala Lumpur, "This is especially important when the cost of traditional media is high compared to the cost of other activities."

Tactic No. 5: Staff for the lows, not the highs. Keep a list of accomplished freelancers, and use them when needed. If you've pared your staff to the bare bones and don't want to cut any more, use any short-term down time for training.

Tactic No. 6: Devote sufficient time to yearly planning; be vigilant about monitoring your P&L, and respond immediately. After eliminating all frills in the budget, make sure everyone understands the importance of keeping costs under control. Advises Susan Meany, president, SKM Group/ICOM, Buffalo, N.Y., "If the forecast looks weak, act quickly to make any needed cuts in expenses."

Tactic No. 7: Don't lose sight of what made your agency successful in the first place, and stick with the basics. "We focus on being better than our direct competitors," says Mike Diccicco, president, Diccicco Battista Communications, Horsham, Pa., while Satoshi Akata, planner, ADEX Nihon Keizai Advertising/ICOM, Tokyo, says, "Be unique and different from other agencies."

Principals from ICOM agencies around the world are available for further comment. For a list of agencies offering advice, go to http://www.icomagencies.com/agencylist.asp.

About ICOM: ICOM, a leading network of independent advertising and marketing communications agencies, represents US$2.0 billion in revenues annually with agencies in more than 50 countries. ICOM offers a full range of integrated marketing and media communications services and is an alternative to the huge and increasingly similar agency groups.

Contacts:

Nancy Giges

nancy(at)icomagencies.com

1-914-683-5108

Gary Burandt

burandt(at)icomagencies.com

1-720-261-4829

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