Ad Agency CEO

Advertising Agency Management 101

Peter · December 17, 2023 · 1 Comment

22 Advertising Agency Management Lessons

I’ve had deep conversations with hundreds of advertising agency management leaders on how to manage and grow their agencies — full-service, specialists, digital, and PR. I am about to condense these down to 22 core lessons.

I feel the need to have you visit The Big Advertising Resource List. Now or after you read my 22 insights = grow your agency ideas. i include some AI resources that can help you streamline your in and outbound content and BIG ideas.

Me.

I’ve been working in the advertising, digital, and Internet startup worlds since the end of the Mad Men era. My global and regional clients and new business wins include J&J, Intel, Nabisco, Northwest Airlines, and Nike. I’ve built websites and digital programs for Microsoft, Nabisco, Honda, LegalZoom and more. I founded, invented, and ran the best-read online news website and invented industry-leading marketing bots.

I’ve made hundreds of business decisions. Some were brilliant and some were “learning experiences.” I’ve decided to share my top 22 business-building and management lessons with you. No, I am not so crazy to think that these will instantly make your advertising agency the next Droga 5. But I do know that most of these lessons represent best practices that, if followed, can help make you more successful. That means being richer and happier.

Quick Advertising Agency Management History

The path that got me here included sixteen years at Saatchi & Saatchi Advertising Worldwide as Business Development Director North America, General Manager of the Minneapolis office, European Director in London, and Management Director in New York. I left advertising for seven years to be CEO and founder of two Internet publishing and technology startups. One, NJ.com, was a major online newspaper that was larger than the NYT for a couple of years. Microsoft bought the other company that created technology that allowed people to have meaningful ‘human’ conversations with a computer (pre-SIRI). If you were online in the early 2000s, you might have talked with our SmarterChild bot on instant messaging platforms. Over 20 million people did.

After my digital sojourn, I moved from New York to Oregon in 2002 to buy the advertising agency RalstonGroup. In the ten years that I ran the 2-office agency, we bought the sports marketing agency Citrus, took their name, and added clients like Dr. Martens, Legalzoom, Montana Lottery, Nike’s college and Major League Baseball AOR accounts, university accounts, and the U.N.

I sold Citrus in 20013 and write about that sale and the other buys and sells I’ve done, plus how to add value to your agency in the PDF book you can get by signing up for my newsletter or just ask me via email – peter@peterlevitan.com.

By the way, I now run an agency consultation business. Hopefully, that’s why you are here on my website. I help agencies find their positioning sweet spot and build action-oriented business development plans that create significant market differentiation and make the agencies Unignorable. My experience as a consultant and the opportunity to look under the hood of many agencies has confirmed that the following ideas can help add value to most, if not all, agencies.

22 Lessons (OK, Advice)

I offer my advertising agency management thinking as advice. There are many types of agencies and not every pearl of wisdom will work for every agency. However, there are some basics that I think you should listen to and modify accordingly. I know this because I have done planning with two-person agencies up to the holding company level.

OK – GO

Have a two-year agency business plan. You’d be surprised how many agencies do not have even a basic business plan – like knowing how they make money. My agency’s plan helped us grow the agency’s valuation through an acquisition, open a second office, pitch and add Nike AOR business (which helped us gain even more desirable clients) and develop a focused; high-energy; 24/7 new business program based on direct marketing and social media. —- Note to the 45+ crowd. The plan also acted as a framework to begin to position the agency for an eventual sale.

Create an agency brand positioning that differentiates your agency from the other 4,000 agencies out there. I know, I know, you’ve heard this one before. But, having a viable agency brand positioning is critical. More importantly, have a powerful & unignorable brand positioning — in reality, it’s really a sales proposition. One that actively attracts and stimulates interest from the right new clients. Here is the most critical thing I learned in my own agency’s positioning development process: Just trying to find yet another new way to say “digital” or “full-service” agency isn’t good enough. It’s really difficult for any agency to find a brand new way to enunciate the same old and generally non-competitive pitch like “full-service.” Some potential clients might want full-service but find a way to say it with style. Note I have a great example from a London agency that runs global Fortune 500 campaigns out of one office.

Maybe you should go even further. Given the rapid pace of change in our industry, it might be time to think through some agency of the future scenarios and business models that will more effectively get you to a truly distinctive and compelling sales proposition that lasts more than six months. Double-digit growth areas like mobile or video marketing might be smart places to start.

You are a business first. Control all costs. This sounds obvious, but it is critical in an increasingly low-margin service business like advertising. My metric was that every dollar I paid to someone else was a dollar I couldn’t hand to my kids.

Stare at your financial numbers – often. We, advertising people, are visual types so Citrus used dashboards as a graphical agency management tool. We had detailed monthly financial dashboards tied to our P&L, balance sheet, accounts receivables, and owner compensation (this one tended to focus our business decisions.) We also used a real-time agency SWOT assessment for all major agency decisions like mergers and acquisitions, go-no on RFPs and to help manage existing accounts and staff.

Be concerned if any single client accounts for more than 25% of your revenues. When we added two Nike AOR assignments, I got nervous in addition to elated and accelerated our new business outreach to add other accounts. Give me a shout and I’ll tell you how we added Harrah’s Casinos during that effort.

Learn how to say no to clients and prospects who want too much free or low-cost brainpower. Your brains, ideas, and pixels are all you have to sell. Charge like a lawyer or even SEO specialists that charge like lawyers. It is time for our industry to exhibit some self-control. If you have to give too much away for free, it might be time to examine the value of what you are selling and the mindset of your client or prospect.

Also, say no to the wrong RFPs and pitches.

Think about an alternative to the notion that brainpower and creativity are all you have to sell. Take some of that brainpower to find out how to create a product or service of your own that can easily be replicated and sold over and over. Create or buy some Intellectual Property. This can be done and does not require scientists from SpaceX. Think like a “start-up,” and hey, “let’s build some IP” can sound like an obvious panacea. However, there is gold in them thar hills that do not require moon landings. There are agencies teaming up with brewers to create new craft beer brands, agencies moving into valuable yet fast and cheap research and agencies like Wieden+Kennedy and RGA becoming start-up incubators. I asked W+K why they are doing this. The answer… they are investing their brains and experience to make more money in a world that Mad Men couldn’t have conceived. If you need seed money for a new venture, try crowdfunding.

Think big like the kid down the street. I bet your team could build one of the more effective Kickstarter sites.

Hire only exceptional people – that’s what Google does so why not you? Do not rush to fill an open position. You will pay in the long run. You can train people but you cannot increase their IQ. Once on the team, make sure to keep all employees are firmly in the loop via scheduled agency meetings and email agency updates. It takes more than a foosball table to build a business-building culture. CEOs need to talk it up. I have always subscribed to Tom Peter’s management concept of MBWA. Look it up.

Reward only your best employees. You don’t owe anyone anything. There is no question that an exceptional employee is as valuable as two marginal people. Does this sound harsh? This approach beats not having investment capital for growth or having to go out of business because you were a bit too magnanimous.

Miscast or problem employees should be dealt with earlier than later. Gary Vaynerchuk has fired the “wrong” hires within their first two weeks.

Grow your digital assets faster. Bring on more technologists (FTE or freelance) to leapfrog even early adopter digital agencies. Pick a growth area. It’s not too late to become the smartest TikTok agency (no one is yet.) Not even the big boys have TikTok figured out. However, it may be too late to be known as the best “social media agency” given the vast sea of social experts. One more digital point, and I know that you know this — digital agencies have a higher multiple than full-service agencies. If you want to sell in the next three years, you best add MORE valuable digital skill sets.

Please provide exceptional client service. All AE’s must know how to think like a client in order to anticipate client needs and address any potential issues before they materialize and metastasize. Consider sending your AE’s to an AE class where they learn advertising agency management, customer care, how to intelligently upsell clients, how to retain clients, and how to charm. The worst call I could ever imagine is a client telling me that our account service sucked. It’s just too easy to fix. Fixing creativity is much harder.

Process rules. Create an agency work process that is dedicated to profitability. Manage your scope of work promises. Then stick with it. The ever-elastic creative process must be tamed. Agencies that do not manage scope of work die. If you need a work process template ask me and I’ll shoot you one. [Read more…] about Advertising Agency Management 101

6 Unignorable Advertising Quotes

Peter · December 4, 2023 · Leave a Comment

Why Do People Like Advertising Quotes? Who knows. Here Are 7 (not 6) Just For Y’all.

Actually, I do know cause I use these unignorable advertising quotes all the time with my agency clients to make some points. My points are directed at their business development programs and even their personal brands. Feel free to steal them from me. I stole them.

“If everything seems under control, you’re just not going fast enough.”

Mario Andretti

My take: It is OK to drive past your comfort zone. In fact, you won’t win without doing it. Oh, who is Mario? Indy, F1, and NASCAR champ.

“If you don’t like what’s being said, change the conversation.”

Don Draper

My take: I occasionally have to remind myself not to go around and around and around. Yes, change the conversation. Or, add some new thinking.

“If you dislike change, you’re going to dislike irrelevance even more.”

General Eric Shinseki

My take: Advertising, PR, digital and mobile marketing is changing so fast that it makes me think of another go-fast quote.

“Lead, follow or get out of the way.”

Ted Turner

You do not need me to explain. Ted has been the man since the late 70’s when he won the America’s Cup. You know, fast boats. Launched CNN and married Jane Fonda. Not bad, huh?

“The world’s best selling book.”

This is from the front and back of Paul Arden’s rather best-selling book… “Whatever You Think Think The Opposite.” Of course, he is bullshitting. Or not. Paul was one of the great British Creative Directors which means, a great bullshitter. A winning bullshitter unless he is talking about whacking baby seals. As in the worst advertising agency presentation ever.

“Steal Like An Artist.”

Another book. This time from Austin Kleon who’s book cover says… “10 things nobody told you about being creative.”

OK, One More.

“The Levitan Pitch. Buy This Book. Win More Pitches.”

My book’s title. Yes, I am a bit cheeky…. well, I stole the idea of being way bold and in your face from Paul. If you want to buy this BEST SELLING book, just go to the top of this page and see for yourself.

You Got A Quote?

Go forth and find your own advertising quotes to prove your points and to grow your agency. Sometimes you just need to steal someone else’s words to get YOUR point across.

Improve Your Advertising Agency Brand

Peter · September 27, 2023 · 1 Comment

The Power of Personal Chemistry and the Advertising Agency Brand

I’ve talked a lot about how a stand-out, unignorable advertising agency brand can make or break your agency’s ability to attract the attention of a new client. Plus, the personal side of an agency brand can determine if you can win or lose a pitch.

Yo People Power

There seems to be one aspect of pitching that keeps coming up over and over and rises to the top of almost everyone’s list. That is the idea that agencies ultimately win or lose based on interpersonal chemistry and corporate culture alignment. How do I know this? I’ve asked a dozen advertising agency consultants about what works and does not in a pitch since so many agencies sound and look alike.

People win pitches.

Manage Personal Chemistry

My fear with the chemistry thing is that it can appear to be something that is just nature vs. something that can be managed and created. There is a school of thought that says that you either gel with the prospect or you don’t. Sorry, Advertising agency Business Development Director, it’s all about a managed chemical reaction, and that’s why it is called chemistry.

Yikes. After preparing a smart, tight presentation, are we ultimately at the mercy and vagaries of some mysterious and unmanageable human thing? Pheromones, anyone?

I refuse to think that we don’t have any control. I don’t like the idea that after the long and expensive journey from an agency’s business development outreach to RFIs, RFPs, and then on to the final presentation, it all comes down to fate: the client either digs you, or they don’t. It just sounds way too passive.

So what can we do to build chemistry?

Let’s start with what not to do. Do not make any of the mistakes discussed in the early chapters of my The Levitan Pitch. book. Think of it this way: if you are twenty-something and you are going out to find your mate, you shower and dress accordingly. If you are a surfer, you wear Hurley’s. If you work on Wall Street, you wear Prada. Once you’ve defined your target prospect and aligned persona, you know that you need to do the obvious: make eye contact and act interested in the other person’s story. You will try to avoid any conversation-killing words. Even better, you will lean in and listen and make adjustments to your side of the conversation to demonstrate your interest. You won’t bore them with endless stories that are all about you. You will flatter them.

OK, you get it. Avoid the things that you can control. Yes, I believe we can.

But can we manufacture and/or control interpersonal chemistry to drive the advertising agency brand? Or, is it just up to some form of automatic business-related pheromones?

New business chemistry gets even more complicated when you introduce the idea that chemistry must be built between two groups in addition to individuals. Sure, some pitches are won because of an agency’s charismatic leader. However, in most cases, it is your team that is being evaluated. In order to develop chemistry between two separate groups (clients and agency presenters), the presenter group, as a whole, needs to demonstrate an understanding of the client group’s challenges, a commonality of purpose, matching emotional commitment (passion), empathy for shared problems, and a common language. Ultimately you will build rapport with the client group if they think that you are all in sync, as in on the same wavelength, especially in understanding their business issues. This is one of the reasons that you always need to remember that the pitch is much more about them, not you.

Two key words to keep on the top of your mind and manage are values, as in having and demonstrating shared values, and trust, as in building confidence in your agency’s integrity and reliability. Building trust is particularly important in service pitches where the client will be committing to a personal relationship. Trust is more easily given between two similar groups; groups that have already established commonalities. You are like me, therefore I understand you better and can trust you more easily.

Cultural alignment is also critical. Assuming that there isn’t a total disconnect between the client’s values and yours (this is something you should have figured out back at the RFP stage), cultural alignment can be managed. To get there, make sure ahead of any meeting that you read up on the client’s Mission and Vision Statements, review their brand values, and understand their corporate goals. If the client is a public company, read their annual report. It provides a comprehensive overview of the company’s business and financial condition and its dreams.

Find commonalities between the client and your agency, and subtly reinforce these in the meeting.

An Advertising Agency Brand Example – Be Delightful

As I mentioned earlier in the book learn everything about the client you want.

My ex-client Sara Lee’s Mission Statement states that they want: “To simply delight you… every day.” Surely your agency could find a very creative way to mirror the idea of “delight” in your pitch and even (very sparingly) use the word “delight” to reinforce rapport.

A WOW! Advertising Book Review For You

Peter · July 21, 2023 · Leave a Comment

I Really Dig This Advertising Book Review

As an author, one has to pray to and then thank the book Gods for a great review. Just for you here is a damn good review – on LinkedIn and on Amazon. In my case, it is an advertising book review.

Why Write Your Advertising Book?

Before I get into the review of my book, How To Build A Kick-Ass Advertising Agency…

We write books for many reasons. But your business book (not your wanna-be Hemmingway book) is most likely written to prove your expertise. My two books on advertising have driven the perception that I am an expert. Sure, I have a good bio. But the books rock as a biz dev tool for my advertising agency consultancy. In fact, in addition to driving high-quality new client leads, their sales paid for themselves over and over.

By the way, if you need some insights on how to write and publish a book in 6 months give me a shout. I’ve lectured on this subject for years.

Now — A Great Advertising Book Review

LOL, a secret coming… Good reviews drive sales. This works for restaurants, products, and my consultancy. A smart book will drive your company’s Unignorable-ness to help you stand out.

A smart new book also gets you interviewed on large audience podcasts. Like The Marketing Book Podcast.

That’s why I am reprinting a wonderful review of my Kick-Ass Advertising book from Lee McKnight, Jr. of RSW/US – a great outsourced lead gen company. Subscribe to Lee’s newsletter.

OK – I can’t help myself…

The Advertising Book Review…

As I’ve mentioned, was in Lee’s LinkedIn newsletter and on Amazon. Here you go.

“I don’t write a lot of book reviews here at RSW, (in fact, there are none) but a recent release from our friend Peter Levitandeserves one.

“How To Build A Kick-Ass Advertising Agency” is a solid work that provides aspiring entrepreneurs and seasoned advertising professionals with invaluable insights and actionable strategies for building a successful advertising agency.

I first met Peter at the Fuel Lines conference in Nashville several years ago and since then, we’ve been in touch, predominantly on business development topics.

If you don’t know Peter, go to his LinkedIn to view his bona fides, which include an impressive run at Saatchi & Saatchi.

But on to the book: from the very beginning, Peter’s writing style is engaging and relatable.

He blends personal anecdotes, industry experiences, and practical advice seamlessly, making the book not only informative but also enjoyable to read.

This is not a slog folks, Peter’s passion for the advertising industry shines through, and it is evident that he genuinely wants to help others succeed.

One of the book’s standout features is the, from the beginning, step-by-step approach Peter takes in guiding readers through the agency-building process.

He covers everything from conceptualizing your agency’s unique selling proposition to hiring the right talent, to building a solid client base.

Each chapter is well-structured, offering clear action points that readers can implement immediately.

The Big Two: Business Development and Client Relationships

One of the most valuable aspects, IMO, of “How To Build A Kick-Ass Advertising Agency” is Peter’s emphasis on two pillars of a successful agency: business development and client relationships/management.

He emphasizes the significance of understanding and addressing clients’ needs, maintaining open communication, and delivering exceptional results-fundamental to building trust and fostering long-lasting partnerships.

And in regards to business development strategies, he provides practical tips for branding, networking, and promoting your agency effectively.

As someone who has experienced the challenges of establishing a business in a dynamic industry, Peter’s advice is not just theoretical; it’s rooted in real-world experiences.

“How To Build A Kick-Ass Advertising Agency” really is a must-read for anyone aspiring to thrive in the advertising industry.

Whether you’re a marketing professional looking to venture into entrepreneurship or an advertising enthusiast eager to understand the mechanics of building a top-tier agency, this book will be an invaluable resource.

I highly recommend it and consider it a real guidebook for building a kick-ass advertising agency.”

Just do it.

Buy my book, grow your agency, and give me a great Amazon review. I will love you forever.

Since I like to be useful, here is a link to how to improve your LinkedIn profile — fast.

Advertising Agency Recruiting and Culture

Peter · November 13, 2022 · Leave a Comment

Corporate Culture Drives Effective Advertising Agency Recruiting

If you’re a CEO/COO/General Manager/Boss or Whatever Leader Title you got… you know that one of the most important things to a company’s success is attracting and retaining top talent. In the marketing and advertising agency world, this is CRITICAL. To do this in 2022, you need to have a corporate culture that prospective employees will want to be a part of.

First. What Is Corporate Culture?

Corporate culture is the set of values, beliefs, behaviors, and attitudes that characterize a company and its employees. It’s what makes a company unique and is reflected in everything from the way employees interact with each other to the company’s core values and mission statement.

A strong corporate culture can be the difference between a company that is able to attract and retain top talent and one that is not. This is especially true in the case of Gen X and millennials, who place a high value on finding a job with a company that shares their values

Define Your Agency Culture to Drive Advertising Agency Recruiting.

Three reasons why having a human-oriented culture will deliver success.

It attracts top talent: As we noted before, corporate culture can be the deciding factor for candidates who are trying to choose between two similar job offers. If Company A has a corporate culture that appeals to the candidate more than Company B, then the candidate is more likely to accept a job offer from Company A.
It promotes employee retention: Once you’ve attracted top talent, you want to keep them around. A strong corporate culture can help with employee retention by fostering loyalty and commitment among employees. Employees who feel like they belong to a supportive community are less likely to look for new opportunities elsewhere.
It attracts passive candidates: Passive candidates are those who are not actively looking for new job opportunities but might be open to hearing about new ones. A strong corporate culture can help attract passive candidates by making your company more attractive than others in your industry. If your company has a reputation for having a ‘humanesque’ corporate culture, you’ll have an easier time convincing passive candidates to interview with you.

Yes, be human. Just like Patagonia.

Proof? Some Research.

A study by Glassdoor found that 60% of job seekers would not apply for a job with a company if they didn’t like the look of its website*, and another study found that 78% of employers believe that a prospective employee’s cultural fit is more important than their skillset.

What does this mean? It means that if your company doesn’t have a well-defined corporate culture, you’re going to have a hard time attracting the best and the brightest.

* Make sure that you discuss your culture on your wonderful website.

No Not That Ping Pong-Table.

To appeal to the ‘younger’ demographic (yes, even older demos), companies need to make sure that their corporate culture is one that would be attractive – caring. Sure, this sounds obvious. But getting there takes a bit of strategic thinking and action.

Your corporate culture should be more than just a bunch of ping-pong tables and free lunches (although those things don’t hurt). It should be reflective of your company’s values and mission. This is what prospective employees are looking for when they’re considering whether or not to apply for a job with your company. They want to know that they’ll be working somewhere that aligns with their own personal values.

Personal Value Food For Thought.

Here are some ideas, and thought starters to get your advertising agency culture in gear. Riff on these. Discuss the value of each idea. Get internal feedback, read about what works, and study your competitors. Defining your culture is not the best area to be dictatorial. Yes, being dictatorial ain’t a good corporate culture thang.

Have a new employee onboarding system that recognizes your agency ‘space’. Are you all in one office? Running a three-day in-office system? Are y’all distributed around the world? Create meet-and-greet opportunities. Have department leaders talk about their objectives.
Consider having a platform (in person or digital) that allows employees to share ideas, personal info, and dreams with each other… Build that culture.
Have offsite group meetings. In many cases, this will cost less than keeping all of that expensive office space.
Provide your staff with learning opportunities. Size matters so you will need to tailor your training to your agency’s size and resources.
Develop a paid employee volunteer program to address community issues. Walk the talk.
Invest in a training and development program. Show employees that you want them to grow. A triple win – this works for the employee and you. And, yup, your advertising agency clients.