Ad agency clients demanding more bang for their bucks

"So what else you got?" Until recently, that used to be the one question that advertising/marketing agencies and public relations firms feared the most when they presented creative concepts and strategies to their clients. Now, they are contending with another challenging question: "What results can

"The most significant difference I've noted among my clients is that they are looking to quantify results," said Jane Corcillo, president of Norwalk-based Corcillo Direct Inc., one of Fairfield County's largest advertising agencies. "This trend is definitely tied to the budget pressures that corporate ad managers are facing in this tough economic climate. They need to demonstrate to their bosses that there is a return on their investments," Corcillo said.

"Clients have learned to advertise smarter than in prior years and are playing a much more active role in collaborating with us to create effective campaigns," she said.'

To help clients track results for their ad dollars, Corcillo's agency creates more "action directed" campaigns where target audiences are asked to respond in ways that can be measured, such as returning a business reply card, calling for more information or visiting the Web site.

Special projects

Corcillo said that 2003 is looking good for her agency with the booking of two new clients in the last quarter. "I'm optimistic that there will be modest growth for the advertising industry as a whole even though all of us in this business will still need to educate some of our clients about the dangers of pulling back too much in their advertising. It's important for a company to stay in the limelight especially during tough times," she said.

Industry trends bear Corcillo's observation that companies have been slashing ad expenditures. According to Ad Age, advertisers in 2001 spent 6.5 percent less than in 2000 for all advertising in print, outdoor, television, radio and Internet outlets.

Charles A. Wintrub, president of Stamford-based Catalyst Marketing Communications Inc., an advertising and public relations firm specializing in business-to-business marketing communications, agreed that clients want measurable results and are showing more interest in public relations to communicate "more effectively with their major stakeholders."

There has even been a shift in how companies approach public relations programs that speak to these uncertain and challenging times, said Nick Kilsby, president of Emanuel Kerr Kilsby Inc. of Stamford.

"The biggest change is that our clients are undertaking special projects instead of putting us on retainer. In one respect, this helps fix the costs, but it really illustrates the urgency of the projects, which are mostly crisis planning and communications security focused," he said.

Another change, Kilsby said, is the difficulty for companies to plan long-term programs, given the uncertainties of terrorism, war and the economy. "We are suddenly working in a very different and unsettling landscape and, it's a challenge for PR professionals like us who champion future-directed initiatives," he said. "Rebuilding confidence in the financial markets is one initiative that public relations profession should lead, but it will require sustained commitment and programs with substance as there is no quick fix to this problem."

Brand recognition

With all that has happened in corporate America over the past year, it takes more than just advertising, marketing and public relations to improve a company's performance, said James R. Gregory, founder and chief executive officer of CoreBrand, the 29-year-old Stamford branding firm that has helped several Fortune 1000 companies build their brands.

"In fact, understanding the value of the corporate brand should be a key element in a company's ongoing effort to protect and build market share," Gregory said.

"Through our research, we've determined that there are measurable correlations between brand recognition and stock value, that branding the company, not just the product, really pays off," Gregory said. In the current climate where investor confidence has been shaken, "branding is critical."

Looking to 2003, Matthew Clark, president of the Advertising Club, said "optimism is high because clients have actually been spending more on campaigns for the better part of the past year." Clark also pointed to the 5 percent increase in the club's membership of 400 ad agencies, graphic designers, printers and media professionals, and increased interest in club seminars and events as a barometer that the overall climate "has significantly improved from last year."