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INTERVIEW WITH MAREK ŻOŁĘDZIOWSKI

07 June 2010 | Tags: brief

When you joined the Doug Faber Family agency and then converted it into Change Integrated, many people had doubts about the success of your work. However, time has shown that they were wrong. What made it successful?

There were two main factors behind it. Firstly, by creating Change Integrated, we offered something new to the market. We combined the flexibility and agility of an independent agency with experience gained for years at the best network agencies. Secondly, Change Integrated appeared on the market at the right time. The crisis that was just beginning at that time was quite paradoxically our ally. In hard times, customers are more likely to verify their marketing strategies and invite tenders more frequently. Obviously, the fact of being new on the market, combined with the talent of the people who agreed to participate in building Change, resulted in Change being invited to submit its tenders for virtually all major projects on the market.

Many experts in foreign markets predict that the future of the advertising industry lies largely in small agencies that are as specialised and flexible as possible in what they do. What do you think about it?

I agree with this prediction. Just look at the advertising agencies in the UK, which is Europe’s largest and best developed area in terms of advertising. In that market, in the past four years, we have seen the emergence of more new independent agencies than in the previous twenty years. More importantly, many of the agencies have been notably successful and become established in the UK market. The majority of the agencies were made up of well-known, experienced managers who were tired of the limitations of working at network agencies and decided to start up their own businesses, smaller and more flexible ones that would make logical decisions regarding management issues, independent of the policies of the large advertising groups oriented only towards increasing their price shares and profit for their shareholders. No wonder that it is these businesses that are capable of delighting customers with their passion and commitment. A similar trend can be seen also in Poland. For some time, in the final stages of fighting for the largest projects, independent agencies have been joining the fight on an equal footing with network agencies and they often win the fight.

What do you think of the situation in the industry today? Do you think there is any point in setting up small independent agencies?

The crisis is not over yet. Therefore, it’s a hard time for the entire industry for obvious reasons. On the other hand, it’s a great time for companies to gain competitive advantage. It is at the time of a crisis that small independent agencies stand a greater chance of winning projects for well-known brands. The time when only network agencies guaranteed quality and creativity is already in the past.

What is the most important advice you could give to people who have joined the advertising industry only recently?

The beginnings will certainly not be easy. They’ve got to be ready to work hard, probably harder than anytime ever. They’ve also got to be resistant to criticism. Our first step was a big test for us. But the more people we heard saying we wouldn’t be successful, the more motivated we became, just to prove that all the pessimists were wrong. Even if your business is going through a hard time, such as not winning a few contracts in a row or losing a customer, you mustn’t give up. That’s what I think is the key to success.

What are the available sources of funding for an agency at the beginning of its operation, when its customer base is not very large yet?

It’s a very individual issue. Everything here depends on your determination and approach. You can start with a single-room office and work to develop your business and win new customers. You can also look for investors. It could be an important test for you – if you succeed in persuading someone to invest their money in a new agency business, it’s quite likely that you will also succeed in acquiring your first customers. However, whichever way you go, you need sufficient financing for your business for at least six months. It’s particularly important at a time when getting a bank loan for your business requires paying additional insurance costs and when the time limits for payment are often ridiculously extended. Financial liquidity is becoming one of the most key factors determining the success or failure of a business.

What do you think is the most important thing at the early stage of an agency’s operation?

It’s the same thing as at any other later stage – you’ve got to be determined, have a passion and believe that what you’re building is something unique. An agency is like the brands it works on every day. It must, above all, stand out, find its market niche for itself, and identify its DNA that would be attractive to customers. The example of Change shows that you must have ambitious plans and never give up in trying to make them a reality.

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