Lonsdale Saatchi & Saatchi has had to keep "reinventing" itself over the last few decades to remain relevant, says Ken Attale, executive chairman of the company.
This comes as Lonsdale Saatchi & Saatchi celebrates its 61st anniversary this year.
"The hallmark that has allowed us this longevity is our ability to reinvent ourselves from time to time and meet the market needs. Most agencies in T&T are what you would call, full-service agencies. They supply an array of services from traditional advertising, dabble in events and different areas of promotion. But their principle business is that of traditional advertising, radio, press and TV," he told the Business Guardian on Monday.
He said the company started as Caribbean American Advertising Service Ltd in September 1953 and outlined the history.
"It was then bought out by the Canadian company Pemberton Freeman Mathis & Milne Caribbean Ltd. Then there was a merger between Lonsdale Hans, which is English company with Pemberton Freeman Mathis around 1964 and the company became Lonsdale Hans Freeman Milne Trinidad Ltd. Then we became Lonsdale Advertising in March 1977. Then we entered into an affiliate agreement with Saatchi and Saatchi in June 1988 and became Lonsdale Saatchi & Saatchi Advertising Ltd."
Attale spoke to the Business Guardian at his office, Herbert Street, St Clair.
He has been at the company since October 1982.
Some of its clients include Digicel, Pepsi, Proctor and Gamble, Massy Stores and UTC.
In the state sector, Lonsdale Saatchi & Saatchi works with companies like National Gas Company (NGC), National Petroleum (NP) and Water and Sewerage Authority (WASA).
Digital marketing
Attale said that the advertising industry is quickly changing because of the influence of digital media.
"There has been the disruption of the digital world in marketing and communication. There has been the impact of social media. In the public relations arena, you would have had days to think and wait for news to break. In the digital world, you now have seconds to react and respond. So your response mechanisms have to be largely different. Plus the fact, a lot of the emerging markets consume a lot of their entertainment online. They listen to music when they want to, they read when they want to, look at video. The modern consumer wants to enter into a dialogue with his market rather than be spoken down to in traditional media."
He said although not in the same way as developed countries, digital media and its transformation of the market is having an impact in a smaller emerging market like T&T.
"It is happening more slowly in this part of the world. Not as quickly as in other parts in a more sophisticated and developed market but it is becoming a medium that cannot be ignored."
He said the company had no other choice but to develop its own digital division and today about 20 to 25 per cent of its business now comes from digital media.
"About three or four years ago, we decided that the market needs were changing and that we had to reinvent ourselves. So what we did was to develop a division for digital capability called IUGO, which is the Latin word "connect."
We employed a number of young people with that capacity and competence to deliver digital media. By digital media, I mean managing social content, developing Web sites and managing all social media content like Facebook and Twitter on behalf of clients."
Volatile industry
Attale called the advertising industry "volatile."
"It is true we have had to remain relevant like any product or service and continue to relaunch. A buzz word used today is all about 'rebranding.' It is alright to rebrand and dress up your brand and make sure the verbal language and visual language is appropriate and modern.
"What is a brand? A brand is the experience your customers have with you. So if it does not hold to the brand promise that you are making then all that communication goes to nought. It is really the relationshipcustomers have with you."
He added that there are about 16 advertising companies in the Advertising Association of T&T.
"It is a crowded marketplace, apart from the association there are many freelancers that operate peripherally. So they are also competitors. As a company, what we have done is keep standards and keep raising the bar," he said.
He also spoke about how "results oriented" the industry is.
"We believe in the passion and service that we provide our clients with. We also produce work that provide results for them. If we provide work that is creative and does not provide results for our clients then it is irrelevant creativity. In the end, we are selling services and convincing people about something. If we do not have those results then what we have done is irrelevant."
Lonsdale Saatchi & Saatchi employs 70 people and he said this is indicative of the emphasis they place on attracting and retaining talent.
"We keep employees happy. We make this an environment where people want to be. We create space so people can create. It is not easy for people to create. So we have to win the confidence of the client. Plus we have a low turnover of staff. Our salaries are competitive and I know this because we contribute to the salary review of PricewaterHouse Coopers."
Reorganise structure
He said companies believe that their advertising budget is the easiest to cut in bad times.
"Why is this industry so volatile? It is so because it is the easiest expenditure to cut in a business. All it takes is a phone call. Employers do not have to negotiate with the trade unions, they do not have to put machines into mothballs or anything like that. How do you survive in this environment?" he asked.
He called the post-2009 years "tough."
"The years 2009, 2010 and 2011 were tough for us and the industry. That is when we decided to reorganise the business. We looked at the structure, reduced costs to become more lean and mean and became aggressive in new business. In that period we got Digicel as a new client, we won many project type businesses. We have had clients for over 30 years, so our client retention has been exceptionally high. In the meanwhile we continue to pitch for new business."
In 2009 they moved out of their building on Herbert Street, to Alcazar Street and by 2011 they had moved back to Herbert Street.
"We had lavish plans for this building on Herbert Street and then the market collapsed. So we then refurbished our building here on Herbert Street and then moved back in. We spent a few million dollars on the renovation in 2011. We reduced our costs and got rid and consolidate our debt."
Future outlook
He pointed out that 2015 is an election year as general elections are constitutionally due but noted that they do not engage in political advertising.
"The company has been premised on very prudent management and stringent fiscal management. It will be an interesting year because it is an election year. There is a phenomenon that happens in the year that elections are normally held. Business always tend to sit back a bit to see what the outcome will be so there is a lull before and after the elections."
On their revenue, he said the company continues to gain "modest growth."
"We had three difficult years but after 2011 we attained modest growth. But we have clawed back and have had growth both in terms of revenue and profit."