When Lee Clow speaks, you listen. The man renown for his work on Apple and Absolut at TBWA/Chiat/Day talked about his thoughts on agency compensation a few weeks ago in a video for an event organized by the 4A’s.
In the video he talks about how good creative ideas can be very valuable brand assets and that other than in most creative industries (media, artists, …) you don’t get paid for the value of what you create:
“Unfortunately, in our business, we get paid like we’re doing our clients’ laundry. We haven’t figured out that the ideas that we create can become a very powerful asset to the brands we work for. Many of the ideas — whether they be slogans or advertising forms and styles or a voice that we create for brands — could be listed on the balance sheet of our clients as an asset with millions and millions of dollars in value.”
I think he’s right to the point that the power of good creativity gets undervalued. Good creative and good results go hand in hand and therefore it’s important for businesses to realize that it’s not something you can commoditize, like Mr. Clow mentions in the video. We should – together with our clients – work out different ways of valuing ideas though:
“We’re supposed to be a creative business, but I think we have been probably the least creative industry in the history of the world in terms of figuring out how to get paid.”
With businesses under pressure due to the ongoing crisis there seems to be an always bigger focus on the end (marketing) product – what you see is what you get. The time or talent needed to make the best creative possible are often ‘invisible’ to clients which results in what Mr. Clow talks about in his video.
This also puts pressure on the client – agency relationship, something which doesn’t lead to the best results either as shown by Frank Shuring at the ‘My message in your brain’ conference (NL). His neuroscience research showed that better client – agency relationships directly lead to much better results. Surprised? Not really. Sounds obvious, so now let’s make it happen. And let’s discuss what it is that both sides value most, so we can get out of this crisis together.