Free Lunch. Free Creatives.

The Unsustainable Business of Nepali Advertising Agencies

Advertising is a critical aspect of any business, and advertising agencies are responsible for creating and executing effective campaigns. However, the advertising industry in Nepal is facing a unique challenge – the prevalent practice of providing free creative designs to clients. This trend has become so widespread that clients have come to expect it, putting immense pressure on agencies to provide high-quality designs at no cost. The question is, how sustainable is this practice in the long run?

Agencies in Nepal often offer free creatives to clients as part of their sales pitch to win business. While this approach has been effective in attracting clients, it has created an expectation among them that they will receive free creatives every time they need them. This trend is problematic because creative work has its own cost, and providing it for free is not sustainable in the long run. Agencies invest significant resources, including time, manpower, and technology, to create compelling designs. Providing these designs for free means that agencies are working at a thin margin and cannot sustain their business in the long run.

Clients are becoming increasingly demanding, requesting multiple designs within a quick turnaround time. Agencies are finding it more competitive when they can offer as many designs as possible within a short period. However, providing free designs within a quick turnaround time is a daunting task for any agency.

Advertising agencies are profit-driven businesses, and they need to make a profit to sustain their operations, invest in new technologies, and talent to remain competitive. The trend of providing free creatives puts pressure on agencies to compromise their profitability, making it harder for them to invest in the resources needed to deliver high-quality designs.

It is crucial that clients understand that nothing comes for free, and every job has its associated cost. Agencies need to make clients aware that providing free creatives is not a sustainable business model. It will only lead to the closure of their business sooner or later, resulting in job losses for many creative enthusiasts and discouragement towards the industry.

Every job deserves respect, and creative work is no exception. Clients need to understand the value of creative works provided by agencies and be willing to pay a nominal cost for creative options, even if they do not give the project. This approach motivates agencies to work a little extra to create something innovative and effective to meet clients’ advertising and promotion goals.

A respectful creative industry is a must for a flourishing economy and building sustainable brand perception in the market. The advertising industry needs to be respected, and the contribution of advertising agencies to the economy should be acknowledged. The industry cannot thrive if clients continue to demand free creatives.

Thus, every creative agency should value their existence and ask for a nominal cost for every design they offer. A successful bid should generate significant revenue for the company. When investing time, talent, and resources in a business, do not shy away from charging for your creatives. Otherwise, find another profession or business that suits you because this industry is not for you.