Multinationals are increasingly looking at aligning themselves with advertising agencies, working for them globally, in India as well.
The latest company to do this is S C Johnson, which shifted its advertising account for All Out and Baygon to FCB Ulka as part of a global alignment. S C Johnson is not a stray case. Last month, the Henkel India media account moved from FCB Ulka to Mediaedge:cia.
The reason: if an agency has handled their advertising globally, it ought to be better equipped to do it in another country as well.
"With a globally aligned agency it becomes easier to retain the essence of the brand and then give it a local flavour," said Arvind Wable, executive director & CEO, FCB Ulka, New Delhi.
Very often it is likely that an ad agency may not be too keen on using an idea that may have worked in another country if done by a rival agency.
"There are economies of scale that go with this arrangement as well, since the same ideas can then be used across markets and countries at times," pointed out Arvind Sharma, chairman & CEO, Leo Burnett.
Yet another advantage is that the agency already knows how the brand needs to be positioned, which tends to be advantageous for the client.
It is, however, not always a cakewalk for local ad agencies. Shubha George, managing director, Mediaedge:cia, feels though there may be an initial advantage, it does not necessarily translate into being handed the local account on a platter. Apart from Henkel, this agency also handles Sony Ericson and Accenture as part of a global alignment.
"For all three accounts there was either a pitch or some sort of review involved. If the quality of the work is lacking, no company is going to stick with the agency," George said.
While MNCs handing over their local accounts to the parent's ad agency in a new country is not unheard of, it is also possible that the company may decide to switch agencies if they are unhappy with the quality of the work.