Procter & Gamble Creates an Agency/Client Relationship of the Future

By Barbara Bacci Mirque

My blog about The Coca Cola Company’s journey into value based compensation as discussed at the ANA’s recent Advertising Financial Management Conference has generated several comments.  The last day of the conference we also heard about another interesting methodology from the Procter & Gamble Company.  P&G’s Rich Delcore described how they have been working to refine agency structure in a world of fragmented media and the need for more integrated communications.  Their former agency structures were created in a world of one dominant communications medium and a very specific communications funnel. Today we live in a word where the communications flow to consumers is generated from multiple touch points and consumers move through decision making processes very differently from the past. So Procter is now planning for integration from the start and in the process hoping to build marketers and agency personnel who are flexible, adaptable and comfortable with different communications vehicles. They are moving from decentralized agency planning in which there were 300 pay points, duplication and overlapping responsibilities as each brand undertook its own master planning and non advertising agencies were rarely involved from the start, to a model in which they have a Brand Agency Leader. This huge organizational cultural change is all about understanding the needs of the consumer – not their own internal needs. Under BAL there is a single point of contact per brand and a person and an agency leads an integrated agency team and manages the work of each member agency. The benefits they have realized are holistic communications, more efficient spending, a reduction in time and touches and the number one benefit – more integrated marketing. They find that every area of expertise is on the same issue from the start and all agency types have an equal seat at the table. When market opportunities arise, they can be quickly addressed and they all win and lose together. They acknowledge this approach may not work for every company but at Procter they have begun to reap the benefits.