The Trouble With Agencies

The last time I expressed my views on our industry to our industry was at the 2006 American Association of Advertising Agencies’ Management Conference. In my speech, entitled “The 5 Percent Solution,” I encouraged holding companies to allow their agencies to retain one-fourth of their individual operating profit for growth through investment, incentive or reward. My feeling was and remains we are unable to get bigger if we are unable to get better — and that requires money.