Multinational communications agencies (MC, unit 3)

Become increasingly internationalised, reflecting companies & the lack of growth potential in saturated domestic markets
In most cases, the same agency will be used across the brand in all markets.

1. Multinational agencies: trend has been for large agencies to acquire or establish branches in key markets e.g. Saatchi & Saatchi
2. Independent networks: networks & confederations form global partnerships to compete with large multinationals. e.g. ELAN, thenetworkone
3. Local independent agencies: offer unique position in a crowded market

INTERNATIONAL SELECTION CRITERIA

• Global or adapted strategy?
• Client conflicts? To what extent will agency be precluded from operating in other market areas? (increasingly difficult due to diversity of multi-nationals)
• Appropriate skills in all markets? may be weak in one or more markets
• Are there specific local skills required? Local independents may have greater in-depth knowledge. If coordination isn't required sometimes choose lead agency for the creative then multiple others for implementation.
• How will company cope with coordinating global campaign? Sometimes use own personnel to coordinate.

Research shows often trade-off between expertise and degree of coordination.