Sunil Gupta, an advertising industry veteran, is country head of APRAIS, a global, independent online relationship appraisal service for clients and advertising agencies. Launched over six years ago by Kim Walker, an advertising professional in the UK, APRAIS is already big in Australia and the US.
Worldwide, it has advertising agencies such as JWT, O&M, Publicis and Euro RSCG and companies like Renault, Toshiba, Toyota, ANZ and Nestle among its clients.
Three months ago, APRAIS selected Gupta (former HTA and RK Swamy BBDO hand) to explore business opportunities in India. Today, Gupta is excited, as the company is about to sign its first client in the country. He talks to Business Standard on why the company's online appraisal system is important for a market like India.
Isn't getting one client in three months a very slow start?
It is one of the quickest conversion anywhere in the world. APRAIS, which is a kind of a relationship audit service, is completely new to India. It will take time to take off.
What exactly is relationship appraisal?
It is a client-agency relationship assessment exercise and not an agency evaluation. In our system, clients and the agencies both have to sign up and share our fees.
Our two services -- Relationship Measurement and Management and Performance Based Remuneration -- are based on a sophisticated software.
It provides clients and agencies with an actual measure of performance. The performance score enables them to rate each other on pre-set parameters. Remember, the clients and agencies are assessing themselves as well as one another.
Then we match the results. There's a standard deviation of 13 per cent -- agencies, often, rate themselves much better. But if the gap is much more then there is a problem in a relationship.
How does the service work?
The service is delivered totally on-line, via secure passwords through our website. The information or assessment done by the agencies and the clients is uploaded directly into the company's central server in London.
Within six weeks the company gives its report (it costs Rs 600,000 to sign on for the appraisal system for a year). We also then give action points for the future in case there are problem areas in the relationship. We track improvement over time.
Why is the agency-client relationship so important?
Losing an account is very debilitating for an agency. It wastes a lot of the agency's time, money and effort, especially as acquiring an account is not cheap.
Pitches are not paid for in India. Also, today the agencies don't sack employees if they lose an account but it will start happening here as well. It's a waste of time and effort for the client too.
But why don't relationships work?
They don't work because clients and agencies don't talk to each other. In India, relationships are client driven almost like master and servant relationships. I have seen first hand that nobody follows up on issues. Agencies find it difficult to articulate their problems. They are reticent about their clients.
Our premise is that the relationship has to be between equals. Gradually, more and more clients are beginning to believe in partnership. But we are not a media auditing firm. We don't take sides. In media audits, X is auditing Y, but here, Z is looking at the partnership between X and Y.
Which are your big markets?
Australia and US are big. We have a presence in the Middle East and Japan. We've just launched in India and now plan to go to Africa and East Europe.
How does a good relationship help?
Great work comes out of great relationships and great brands are built. Besides the industry needs to be more professional though the change will take sometime.
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