Guest Column: The Conflict of Conflict: Vikas Mehta

In agency-client contracts, the clause of conflict often becomes a cause of conflict. if every client needs more agencies on its roster, by corollary every agency needs more clients to continue growing. So how does one protect the clients’ interest in this, without putting a noose around the agency’s neck? Vikas Mehta Group CMO, President, Group Marketing Services. MullenLowe Lintas Group India gives an interesting perspective on this perennial debate

e4m by Vikas Mehta
Published: Jan 15, 2016 8:21 AM  | 5 min read
Guest Column: The Conflict of Conflict: Vikas Mehta

In agency-client contracts, the clause of conflict often becomes a cause of conflict. For decades now, agencies and clients have been mutually distressed about this aspect of their relationship.

For starters, let’s define what the conflict clause often is. It’s a condition that prevents the agency from working with competitors of the client entering the contract. It’s designed to avoid conflict-of-interest between two clients for the agency.

Over the years, this clause has evolved into being far more one-sided than it was originally conceived to be. This clause was born in an era where clients retained one full-service agency, for their entire business as a long-term partner. Today, it is more like a roster of 6, each performing a specific and/or specialized function. Yet, the conflict clause is applicable to all agencies on the roster.

In the hyper-fragmented marketing landscape of today, if every client needs more agencies on its roster, by corollary every agency needs more clients to continue growing. So how does one protect the clients’ interest in this, without putting a noose around the agency’s neck?

In my view, we need to isolate the two aspects a conflict clause attempts to safeguard -- ‘Confidentiality’ and ‘Exclusivity’.

Confidentiality is the very foundation of trust in a relationship (thus non-negotiable), and it’s only fair for both clients and agencies to continue demanding it from each other; whether it’s a short term assignment or a long term partnership.

Exclusivity is a flawed demand in today’s context, for a few reasons. Consider these…

Trust Deficit – when you ask your agency to be ‘exclusive’, you are showing little trust in their ability and/or intention to protect your interests. With that as the starting point of a relationship, forget exclusivity and don’t hire that agency in the first place.

Quality of Partners – if you need to maintain a healthy roster of, what is now fashionably called ‘club agencies’, you’re not really offering exclusivity of your own business to any of them. Expecting multiple partners to be loyal, when you’re allowed to cheat will impact the kind of partners you’ll end up with.

Industry Expertise – Say you are a pharma brand. How do you expect your agency to become a pharma-expert if their entire perspective, knowledge and experience about pharma comes from one company, yours?

The false premise of a buyers’ market – Exclusivity is a demand, not a need. The reason behind this demand is based on the assumption that there are more agencies than brands in the market. Unfortunately, India has more top brands than top agency brands, especially in some of the more active categories. If you want a top agency to manage your brand, exclusivity would be a problem.

Rather than spend valuable time and energy arguing over a conflict clause, here’s an approach you may find useful. Consider these scenarios…

1.       If you want exclusivity from one agency, be prepared to reciprocate

2.       If you’re seeking exclusivity from multiple agencies, be prepared to pay for that privilege

3.       In all other cases, drop the demand for exclusivity because it may be an unviable proposition, at least for agencies of scale and caliber

Focus instead on protecting confidentiality. Here are some things to seek from your agency, exclusive or not

-          An iron-clad NDA that clearly defines confidential information, and the obligations linked to it. Make it mutually binding rather than one-sided

-          Discuss the need for ‘separation’ at three levels

o   People – For the key personnel from the agency who work with you, define the kind of other clients they shouldn’t work on

o   Location – If your business is really a category of cut-throat competition (think e-commerce), seek a separate location from where the agency will run your business

o   Server – Impose restrictions on your agency to ensure server-level separation, in case they were to handle a competitor

You’ll be surprised how far your agency is willing to go to accommodate your ask, if you take this line of conversation at the beginning of a partnership. Show them you care about their business and they would more than reciprocate that spirit.

The Author is Vikas Mehta Group CMO, President, Group Marketing Services. MullenLowe Lintas Group India

The views expressed here are solely those of the author and do not in any way represent the views of the publication

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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

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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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'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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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 by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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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

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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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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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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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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