Bigger Is Not Always Better, Some in San Francisco Learn: Large Agencies Are Acting More Like Smaller Shops, Playing Down Vast Resources to Vie for Local Biz By Daniel S. Levin

SAN FRANCISCO - Before Peter Angelos

The change in fashion comes as the agency tries to shed its identity as one more corporate outpost of a multi-glomerate for one that emulates the independence of smaller, local shops with which it is having to compete.
‘We’re in the process of reinventing ourselves,’ Angelos said.
As conflicts within their own networks, turf wars between sister agencies and the economy have conspired to limit new business opportunities for such firms, they are increasingly targeting smaller accounts. And they’re finding themselves at a disadvantage with smaller agencies as they do so.
‘The client couldn’t care less what they’ve got in New York,’ said Don Dorward, president of Dorward & Associates, a marketing/advertising consultancy. ‘In fact, that could be a turn off.’
Where they may once have waltzed into review boasting of their vast resources, big agencies are finding small accounts often view such assets as large media departments, extensive research capabilities and sister shops as irrelevant, even a liability. Some small accounts fear they will be made to pay for resources they do not need. Others worry their business will be relegated to junior staffers. Meanwhile, smaller shops can often offer the hands-on involvement of principals.
‘It’s tough to overcome that bias,’ said Jack Tormey, executive vp/area director of McCann-Erickson/S.F. ‘They are predisposed to think that a larger agency will not given them the attention they deserve.’
In a move that will allow the firm to accomplish a similar result, Saatchi & Saatchi this week will begin reorganizing its firm away from departments into account groups.
But such changes don’t come easily for large agencies.
In 1986, McCann/S.F. attempted to mimic the responsiveness of smaller agencies by breaking its account and creative groups into teams in a way similar to what Saatchi has planned. But about two years ago it abandoned that organizational structure.
‘It began running on its own momentum,’ said McCann’s Tormey. ‘It was difficult to maintain quality control.’
Copyright Adweek L.P. (1993)