Five reasons why agencies resign business
A conversation with industry professionals indicates that while agencies resigning business is rare, there are enough reasons that lead to it

In the cutthroat ad world, agencies can paint the moon to lure a client and then really bend backwards to retain the business. This is true for not just agencies in India, but world over. When ‘clients’ are the basic income for an agency, the mandate largely is to ensure the business stays, while attempting to add new businesses at all times, thus leading to organic and inorganic growth. But there comes the not so common occasion, when an agency has to bid adieu to business. And it is a tough call to make.
The CEO of a leading media agency, on conditions of anonymity, remarks to exchange4media: “There are times when we have invested from our own pockets to support a client, but what is the point of continuing with a business which becomes a liability instead of giving returns?”
Conversations with some of the leading agencies reveal that there are several crores of rupees that agencies had to forgo as bad debt in the past. Even today, there are various examples where clients haven’t paid agencies for several months and have now moved on.
To quote a few – a famous Delhi-based food chain hasn't paid its creative agency for the last eight months and now the two have parted ways. A media holding company had to let go of a handset business due to non-payment of dues for over eight months. Earlier in the year, we had seen a media agency resign business of a confectionary and snacks company – the reason was incompatibility between the two teams.
One of the problems faced by agencies is that despite the strict guidelines from industry body AAAI (Advertising Agencies Association of India) for thorough checks before partnering with a client, pressures to acquire a business are so high that agencies often justify working with a company that may have been resigned by its earlier agency for reasons such as non-payment.
“Agencies have to raise a flag at the right time, launch a formal complaint so that actions can be taken accordingly. The longer you allow a problem to persist, the more difficult it becomes to be resolved. We constantly advice industry players to take informed decisions while partnering with clients,” remarked Nagesh Alai, President, AAAI and Executive Director, India Operations, Draft FCB group, informing that the body works in close tandem with IBF (Indian Broadcasting Foundation) and INS (Indian Newspaper Society) to take actions on defaulting clients.
A senior source from a creative agency however divulged, “You eventually have to fight the case yourself. There isn’t much help available. Clients switch partners and then it is business as usual for them. Legal cases take years to resolve leading to more frustration. We are creative professionals and not recovery agents so it becomes very difficult to recover the money back.”
Agencies have found solutions over a period of time, though for some, the solution has been to cut losses and move on.
Five Reasons, to say – Sorry, Good-Bye…
Agencies have various reasons to let go of a business, but here are the top five that lead to the unhappy parting of ways
Payment Blues: Non payment of dues is the top reason for agencies to resign a business. Experts advise that it is wiser to raise alarm at the right time rather than wait and suffer. “We are not here for charity. This is business and regular cash flow is crucial,” is what agencies say.
Incompatibility between teams: Advertising is a people business. At the end of the day, there are people handling the client side and representing the agency side and it is this team work that can give great results or create complete disaster. When client starts taking an agency’s time and ideas for granted or when the chemistry is just not right, it’s better to end the relation quickly than prolong an unhappy co-existence.
Changing pressures of terms and conditions: Agencies also leave clients when the terms and conditions of business are no longer viable. ‘Unlimited liability’ that asks an agency to pay for a fault that has happened from a third party vendor has been a put off for many. Looking for more from the same can be a deal breaker too. In the past, when a client has asked for agencies to cut down on their fee or commission citing recession, the situation has led to breakups.
The chance of a bigger business: Another reason for agencies to resign business is better prospects. If a bigger brand in the same category calls for a pitch, and there are fair chances for an agency to win, or it has already won, it parts ways with the existing client on ground of a business decision for growth.
International diktat: Last but not the least, agencies part of a larger network may have to resign businesses in local markets in case of a global alignment that forbids servicing competing brands.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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