"Fidelity as a Strategy: Building Lasting Relationships in Advertising"

In the dizzying world of marketing and advertising, the idea of loyalty stands as a fundamental principle that is often overlooked. The notion that loyalty, both between brands and consumers and between agencies and clients, can be a much more lucrative business than the constant pursuit of new partners deserves deeper reflection. This duality between loyalty and profitability leads us to examine how lasting relationships can be more than mere commercial alliances; they can be true strategic partnerships. Loyalty to an existing customer is crucial. According to Paul Thorndike, CEO of VML Peru, the numbers speak for themselves: for every sol spent on retaining an existing customer, 25 soles would be needed to attract a new one. This reality translates into an undeniable truth: taking care of loyal customers is undoubtedly a more sustainable long-term strategy. This principle also applies to the bond between a brand and its advertising agency. Continuous collaboration between the two can generate much more impactful results than a sporadic relationship. In the realm of advertising, there are iconic examples that illustrate this loyalty. The relationship between Steve Jobs and Lee Clow, head of TBWA, is a clear testament to how exceptional communication can flourish from years of mutual trust. Together, they created campaigns that not only defined Apple but also set a new standard in the industry. This demonstrates that continuity in work relationships can lead to innovative and effective ideas. In the local context, the relationship between the agency Causa and Cristal beer stands out as a model to follow. For nearly three decades, Causa helped maintain Cristal's position as a leader in its category through memorable campaigns, underscoring the importance of building long-lasting relationships. However, the advertising landscape has changed. Many brands choose to initiate mass pitches, calling on multiple agencies in an attempt to find the most economical option, without considering the impact this has on the quality of the relationship. The trend of choosing price over experience or shared philosophy can lead to a superficial and temporary relationship, rather than a strategic partnership that allows for growth and learning together. This situation raises the question: are brands really seeking long-term relationships, or do they simply want what seems to be a quick and cheap solution? The publication of the Code of Good Practices for Bidding, resulting from the collaboration between the Peruvian Association of Advertising Agencies (APAP) and the National Association of Advertisers (ANDA), seeks to correct these deviations. This document recommends that brands exhaust all possibilities with their current agency before starting a bidding process. This approach is similar to the advice a therapist might offer to a couple in crisis: explore all options before deciding to part ways. It is undeniable that, on some occasions, relationships reach a breaking point, and separation becomes the only viable solution. However, it is essential that this decision is made as a last resort. Loyalty in marketing and advertising is not only a value but also translates into profitability and long-term success. Brands that invest in cultivating strong relationships with their agencies not only achieve immediate results but also build a foundation of knowledge and trust that can be invaluable. This connection allows brands and agencies to collaborate more effectively, experiment, and take risks, often resulting in more creative and resonant campaigns. Ultimately, loyalty is not just a romantic concept; it is a smart business strategy. In a world where immediacy and constant change are the norm, forging and maintaining lasting relationships can be the true "hidden treasure" that brands long for. So, instead of always seeking the new, why not value what is already at hand? Loyalty is, without a doubt, good business.