Contracts are often overlooked in our business: Naresh Gupta

Since its inception in 2012, Bang In The Middle (BITM) has been an independent agency. Over the years, the agency has worked with Jabong, Indiamart, Hindustan Coca-Cola Beverages, PhonePe, and Bath & Body Works, amongst others. Reflecting on 2024, Naresh Gupta, Co-Founder of BITM, describes it as a year of significant milestones and learning experiences.

However, 2024 also brought its share of challenges, particularly around the contentious issue of idea ownership. The agency’s experience with Medanta highlighted an industry-wide concern: The misuse of rejected ideas by clients. It is one of the reasons why Gupta stresses the importance of clear and tighter contractual agreements to protect agencies from unethical practices. 

Another challenge Gupta points out is the exploitative practice of posting open briefs on LinkedIn, inviting hundreds of agencies to pitch, only to mine their ideas without accountability. He encourages agencies to value their expertise by staying out of these ‘beauty parades’ and focusing on their worth instead of succumbing to such unfair tactics.

Additionally, he highlights a shift in the advertising landscape, with the industry increasingly moving away from retainer models to project-based work—a transition that brings both opportunities and challenges. He stresses the importance of understanding evolving consumer demographics and their dynamic relationships with brands, encouraging agencies to stay ahead of these shifts.

In a broader perspective, Gupta emphasised the need for the industry to move beyond the traditional versus new-age debate and instead concentrate on addressing more critical challenges like finding ways to navigate economic slowdowns and overcome revenue constraints. 

Looking ahead to 2025, BITM is focused on expanding its offerings, and strengthening its presence in international markets like the US. Gupta shares the road ahead for BITM.

Edited Excerpts:

Bang in the Middle has been an independent agency for over 12 years. Can you take us through the journey of building the agency from its inception? What were some key milestones or campaigns that shaped the agency's identity and direction?

We set up BITM in April 2012 with no clients. Today we are over 70 people with two offices with a proven ability to deliver growth and business solutions for our clients. Our work for Jabong, Indiamart, Hindustan Coca Cola Beverages, Pearson, Amity Online University, Bath and Body Works, Groupe SEB, Home Credit, Phonepe are all known and have delivered excellent results

Looking back at 2024, how would you assess the agency's growth and new business? Could you share some of the agency's key highlights, including any notable new client wins or major campaigns that stood out this year?

This year we worked with AVT for their Gold Cup Tea and the campaign we produced has been delivering excellent results in the South Indian Market. We are working with Vishnu Bhawan, a new startup from Kerala to launch ethnic foods in western markets. Our work for Groupe SEB has helped Tefal grow, Bath and Body works has seen its footfall grow on the back of our work. We did some very effective work for Antara for their Senior Living project and with Araville for their new launches. 2024 has been a great year for the agency

Reflecting on the creative industry in 2024, do you think it pushed the envelope in terms of boldness and innovation? As we begin 2025, do you foresee BITM taking more creative risks to stand out in an increasingly competitive market?

We pride ourselves in delivering work that works for our brands. We have consistently created work that is apt, and we will continue to do that. We do not have a formula and we try and find unique solutions to every brief we work on. All our work has an approach that the brand requires and is uniquely tailored for the brand

Every agency has its unique strengths. What would you say are the key USPs that Bang in the Middle wants to be recognised for?

We are an agency where we do not think from a discipline angle. Our work spans all disciplines, we are fluent with new digital media needs and understand how the traditional brand appeals work and we create work that works across mediums. But more important is the fact that the brands have access to senior most people in the agency and that experience is there for them to leverage

You have spoken about the need for better contracts and client relationships. Can you share some suggestions as to how agencies can move forward to have more control and transparency? 

In our business, the contracts are often overlooked and once the client is on-board they rarely look at what they agreed to pay the agency for. The onus is completely on the agency to protect its work and potential revenue and reputation loss. The more the agencies look at tight contracts, the better it would be for them. The clients are least likely to be proactive on this front, its only agencies that have to protect their interests

Do you believe there’s a need for standardisation or collective guidelines around pricing to ensure fairness and sustainability of agencies? Additionally, how can the industry come together to tackle this issue while maintaining healthy competition and fostering mutual respect for the value of creative services?

No, I do not believe that there needs to be price control or price cartelisation. Most businesses that moved this year from one agency to another, moved on lesser prices. Price is a business tool and the agencies and clients are free to arrive at the optimum price that works for both. The bigger issue is pitches and the refusal of clients to be fair about the pitch process. The tendency to post a requirement on LinkedIn and then wait and watch 200 agencies apply and then grind them out, farm their ideas and shamelessly use them is the real issue. Agencies need to pick and choose, as a rule stay out of the beauty parades and value their skills. 

Is there a growing shift from retainers to project-based work? If so, how is this impacting the relationship between agencies and clients? In this case, how can agencies manage creative differences effectively while building long-term, mutually beneficial partnerships?

There is a shift from retainers to projects and this shift is both good and bad. Projects allow the agency to have a shorter interaction, and move on to do another project. The bad is that while the agency has a defined charter, there is very little that the agency gains by the growth in business that happens. I am not sure if this will be sustainable for the agencies as they have committed costs and the revenue doesn't always keep up with the costs. This is something that the agencies have to look at and find their own balance

As the advertising landscape evolves, we’re witnessing major consolidation, like the merger of two large networks into one, alongside the shutdown of a prominent agency in India. These events raise questions about the sustainability of traditional agency models. How do you view these developments as a reflection of larger shifts in the industry, and what implications do they have for running an independent agency?

I am not sure if the traditional agency model is still in operation. Many of the marquee brands have already been shut down, the rankings are changing, the old leaders are now trailing behind. The future will mean leaner networks, optimised number of brands, greater integration between a variety of services and a greater focus on efficiency. The debate of traditional vs new age is an old one, the new debate should be on how the industry can survive a slow down and overcome revenue crunch. 

What are some of the emerging trends in the advertising space that you believe agencies should be paying more attention to?

There is a whole new bunch of consumers who are coming into the consuming class. These new consumers have grown up differently. Their relationship with brands is radically different from those who we target today. How will this new bunch react to advertising and what will they seek from brands is unknown. The next five years will be those of learning and resetting all we know about advertising. 

What would you say is the most crucial leadership quality for success in 2025, and how are you nurturing that within yourself and your team at Bang in the Middle?

We are a small dedicated agency and possibly a very good ground for learning as we are the most open agency you will come across. We have no walls, every point of view matters, we do not have hierarchies, and the seniors are always there. As an agency we value independence and freedom. There is a very strong leadership team across disciplines that actually runs the agency, and the future of the agency is in their hands.

Lastly, what are some of the major goals you’ve set for the agency in 2025, both in terms of business growth and agency culture?

We are looking at expanding our services this year. We are in the process of rolling out our strategic consulting services with a fresh team that understands how the new tech driven world operates. The clients can leverage our knowledge and expertise across industry and geography. We are also looking at expanding our offer beyond India. While we do have clients in the US, we are looking at making this stronger.