Peter Levitan & Co.

The New Business of Advertising

Ad Agency CEO

How To Sell A Business

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Want To Know How To Sell A Business? Many Want To Do That Right Now.

I Wrote The Book: ‘How To Sell Your Advertising Agency. And, How To Buy One.” It Is Built For Anyone That Wants To Sell A Business.

Want To Know How To Sell A Business?I wrote the free, yes free, 57-page “How To Sell Your Advertising Agency” book so you will learn how to add significant value to your advertising, digital, and I mean it, whatever kind of company you have. Do you want the book? Just ask me or subscribe below or to the side. Yes, even free has its cost. But, hey, just do it.

How To Sell A Business & How To Buy One.

I bought and sold three advertising agencies. I also had two VC backed Internet startups. I get it. Here is a start for you – The Why and how of my buying an agency in 2002. The deal is to really know why you want to buy or sell and what you will do after the deal.

I will post about the other deals very soon.

Deal Number One – 2002. From New York To Oregon.

This deal had multiple objectives. I wanted to leverage my deep advertising and digital skills + buy a successful advertising agency + move out of the New York area to much greener, mellower pastures. The deal I was looking for would meet both business and personal needs.

I bought the Bend, Oregon advertising agency Ralston Group in 2002. At that time, I was living in New York and had left the position of CEO and founder of ActiveBuddy, a highflying Internet startup. We had raised over $30 million from VCs and individual investors and had patented natural language technology (earlier than SIRI) that we used to create the incredibly successful Instant Messenger Bot, SmarterChild. It ran on AOL, Microsoft and Yahoo. That was our “sample” Bot that had millions of followers because people liked to talk to a smart computer. The business goal was to create natural language Bots for brands and media. These Bots allowed people to talk directly with brands and information resources. Interestingly, our first paying technology customer was Warner Records’ hot band Radiohead. I could not have invented a cooler market entry.

Our company goal, like many other dotcom boom companies, was to sell the company to one of the majors. We in fact had deep negotiations with all when the dotcom dam burst. To make a long story very short, I did not get my “fuck you” money from a sale. Oh, don’t worry about me. I actually came out OK. Microsoft bought our technology.

After the dotcom bust debacle, I started to look for a company to buy. As an ex-Saatchi & Saatchi Advertising executive, owning an advertising agency was one of my options. I found Oregon’s Ralston Group though a classified ad in the Wall Street Journal – how 2002. Advertising in the WSJ was a smart move by Ralston Group’s owner. Here are the four main reasons I bought the agency.

The Ralston Group was a very smart and creative agency. Kevin, who would be my partner after I bought out the majority owner, was one of the best Creative Directors I had ever seen. The agency staff was also top notch. Without question equal to the talent I had worked with at Saatchi London.

The agency had a strong client list in Oregon and Idaho. Big community banks; major healthcare companies (hospital groups and Blue Cross); Sunriver Resort and Idaho Power and more. These clients came with recurring revenues. I knew that the addition of my Saatchi and digital startup background would help us grow.

The owner, who was looking to get on with her life after building the agency, was realistic in respect to agency valuation and – important to say – was easy to work with.

The agency was in the soon to be very famous Bend, Oregon. The idea of my wife and me raising our children near a ski mountain, rivers, fly fishing, mountain bike trails and, yes, even great restaurants and brewpubs, solidified the deal. We gladly gave up the usual two-month wait for a table at New York’s hottest new restaurant for 6,000 feet of fresh air.

Years later, I still view this as a very good business and personal deal.

Stay Tuned For More Stories On How To Buy Or Sell A Business. Plus More Expert M&A Podcast Interviews.

The next story will be about how I bought a design company that got me Nike as a major client. And after that one, how I sold my agency – and got lost in Mexico.

Oh, more… Here is a link to my podcast interview with a major M&A expert. You’ll hear how to sell – the details about how to do it that is.

Free Ten Point Advertising Agency Assessment

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Here Is  Freebie Just For You: My Ten Point Advertising Agency Assessment

Advertising agency assesmentHow is your advertising, digital, social media, PR agency doing? When I owned my Portland advertising & digital agency it was hard for me to tell how I stacked up vs. other agencies. As my friend Jon of Portland’s The Good, a conversion rate optimization consultancy, said on our recent podcast interview,

“It is hard to read the label from inside the jar.”

So, to help you, I am offering, for a limited time (true) a ten point advertising agency assessment. FYI, when I owned my own agency, I took all of the advice I could get. Even when I ran business development at Saatchi & Saatchi, I wanted third-party opinions and advice.

So, Why Offer An Advertising Agency Assessment – For Free?

If you work at an agency or in marketing, you know that making a high-value offer is usually a productive lead generation marketing tool. As part of my own marketing (side note, I practice what I preach) I am running a google PPC campaign that targets advertising agency leadership. Here is my ad agency leader offer landing page (it should at least be instructive as a look as my marketing). As I have often pointed out… this is a Corleone offer. It should not be refused. If you run an agency, go for it.

The offer is driving some incoming interest for my services at a time that many advertising agencies should be reevaluating their agency business and marketing plans. Right?

Levitan’s Ten Point Advertising Agency Assessment & Check-Up

This advertising agency assessment is based on my forever years of experience running major accounts and business development at Saatchi & Saatchi; CEO of two Internet start-ups; my own advertising agency and this business development consultancy. I have worked with dozens of agencies. I have seen what they look like from outside the jar.

Here are the ten points I will assess just for you:

  1. Your business plan: How hard do you look at and possibly adjust your business plan? How will you generate maximum revenues and profits in our strange 2020? Do you make adjustments? Do you understand your Total Addressable Market (TAM)?
  2. Your advertising agency positioning: This is a tough and hard look at your primary brand proposition. You can read about my general perspective on the value of a kick-ass positioning on this website.
  3. Your 8-second website: This is probably one of the first ways that anyone sees your agency. How do your ranks vs. your competition? What do you say that will get me to pay attention in my 8-second look-see. In many cases, you only have around eight seconds to make me look at you and stick around vs. the other 3,999 advertising, digital, etc. agency websites that are screaming for attention. Here is my blog post about the Best Advertising Agency Websites. 
  4. Your business development plan and activity: How have you managed your plan over the past year? My whole blog of close to 800 blog posts discusses how you should market your agency.
  5. Your outbound, account-based marketing: I’ll just ask you… you do this right? If, so, how?
  6. Your social media activity and authority: Are you an active blogger, thought leader, podcaster? How do you look on LinkedIn; Twitter; YouTube; Instagram; and ae you a category leader? What do your stats tell you?
  7. Your client list: How does your client list look to an outsider? Do one or two clients account for too high a percentage of your revenues? Do you know how to position your client list for business development?
  8. Your intellectual property: Do you have any IP? Something that will differentiate and add sustainable value to your agency? You can do this. I know how to make this happen – efficiently.
  9. Your ‘findable’ quotient: Can I find your advertising agency if I do a search for you? You should be everywhere I might search for you (your competition will probably be there)Yes, I have written about this.
  10. Your creative vibe: Yes, clients have brought their marketing inhouse. It is easy. For example, just get some social media type folks to do the work. But, but, most inhouse client resources suck at being creative thinkers and doers. How does your creativity stack up and how do you prove it?

That’s It, Folks

If you need my educated third-party, very honest, no bull shit assessment… go for it. This is a limited time offer. Give me a shout.

OK, One More. Have you listened to the smart and entertaining Advertising Stories podcast?

 

 

Does Your Advertising Agency Advertise Itself?

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An Advertising Agency Launches An Advertising Campaign – For Itself. Weirdly Wonderful.

I council my advertising agency clients to advertise. I mean, actually use on and offline advertising to advertise the agency to increase awareness within the marketing universe, own their own story, and drive incoming leads.

Oh, and be UNIGNORABLE. A weirdly wonderful thing to do.

Today, LONDON Advertising, an uber-cool, massively award-winning and strategic major league agency, has done just that. These guys are ballsy and not your mother’s advertising agency.

The ad I am highlighting says, “How many advertising agencies can you name? Well, now you can name one more.”

A bit more about LONDON – note how focussed their positioning is:

LONDON Advertising is a global agency with just one office. It was set up in 2008 (two weeks after the collapse of Lehman Brothers) to disrupt the traditional network agency model. Since then it has worked with clients based on every continent and run campaigns in more countries than WPP has offices. The agency’s iconic “I’m a fan” campaign for Hong Kong-based Mandarin Oriental has proven to achieve the highest ad recall ever recorded by Ipsos Mori.

LONDON Advertising has been voted Agency of the Year for six out of the last seven years.

The Advertising Deal.

Agencies have historically told their clients to advertise into the headwinds of a recession. Reasons include hold your share or voice; increase your share of voice; be one of the winners while your competitors hunker down; make sure your brands don’t die a slow death. You get this picture. Well here is an agency putting their money where their mouth is. A rarity even in the good days.

I am going to let the LONDON Advertising press release speak for itself.

Ad Agency launches major campaign day after lockdown for a highly unusual client – itself

Ad agencies often tell their clients, brands that advertise in a downturn increase market share.

However, few agencies take their own advice.

LONDON Advertising is taking its own advice and is today launching a major campaign with
10 TV ads, starring Helen Mirren and Liam Neeson, on 9,000 spots on Sky News.

The TV is supported by super-premium digital posters across Ocean Outdoor’s UK portfolio and Linked-in. The campaign is running from 6th July to 2nd August and will reach 30 million people.

Michael Moszynski, Founder and CEO, said:

“Our campaign, launching on the first working day after the easing of Lockdown, is a call to arms to all businesses to get Britain going again. We believe in ‘by example shalt thou lead’ and that we all have a duty to help rebuild our economy.”

‘Advertising Legend’ Rupert Howell (Founder HHCL, MD ITV) commented:

“This is the first time I have seen an ad agency do a major campaign like this for itself.
The ads are bloody brilliant!”.

 The agency’s Founder and Creative Director, Alan Jarvie, explains the rationale:

“It is a fact advertising builds brands and fame. We believe the current situation provides a rare opportunity. Audiences are currently higher than normal and media is cheaper, as many companies have cancelled their campaigns. So, we’re doing what we would advise our clients to do; advertise now.

Our campaign demonstrates the three criteria we believe work must satisfy to be effective: Is it simple? Does it stand out? Can you remember who it’s for? A lot of advertising fails to do one, two or all three of these things.

We also wanted to show it’s the size of your idea that matters, not the size of your production budget. We would like to thank Dame Helen Mirren and Liam Neeson, OBE, for making themselves available to take part in the campaign.”

Here Is The Advertising.

Videos of all 10 TV ads featuring Helen Mirren and Liam Neeson can be downloaded here 

Hi-res image of the poster ads can be downloaded here

If you are a serious client… contact: michael@LONDONadvertising.com +44 7968 063 155

If You Are An Advertising Agency That Wants To Grow Its Client List… Contact Me.

Is Your Advertising Agency Business Development Director Doomed?

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Yes, Your Advertising Agency Business Development Director Might Be Doomed. A 2020 Update.

The interview below was done in 2014. It remains 100% right on.

Some updated thinking. I am asked on a high-frequency basis by agency management, that means CEO types, if their advertising agency should have a business development director. Because of this question, I thought I’d update this evergreen interview with Brooks Gilley who knows what’s up.

My current thinking based on talking with many agencies is that, at best, only 50% of advertising agency business development directors succeed. I am about to do some haranguing. Why?

  1. As is pointed out below, most advertising agencies have a low to a non-competitive brand position. The degree of positioning sameness –  “we are a digital agency” or “we are creative thinkers” – and messaging sameness – as in no soul or a distinctive opinion or having the goal of being unignorable – is crazy. How could even a competent business director sell the 50% of agencies that cannot define a strong sales proposition? Or not have a well-considered target market?
  2. A huge chunk of agencies (it has been reported that up to 75% of agencies) do not have a master business development plan, think of it as a sales plan. How is this possible? And, worse, who is supposed to write the plan? I do not think that a business development director alone can write this plan. It should be an agency self-preservation and growth project.
  3. Many advertising agency leaders have little experience in writing a sales manager compensation plan. Here is a compensation plan you can use.
  4. Too many agency leaders hand off the role of business development to the director. I owned my own agency and I devoted at least half of my time to business development. And, I provided daily support and thinking and budget.

Give me a shout if you want to discuss your agency and its specifics.

Back To The Interview About The Doomed Business Development Director.

To quote the Beach Boys… Wouldn’t It Be Nice. Yes, wouldn’t it be nice to have a business development director that brought in more business for your advertising agency than you can handle? But is your business development director doomed from the start?

She or he could be if you do not have agency objectives, a competitive agency brand positioning, something to sell beyond, “Hey we are a full-service/digital/social media agency”. Or, not having a list of clients and categories you want to nail; an active up-to-date CRM system or you are now in a state of panic because you just lost your largest client.

I know that this is a tough job to fill and do. I managed my agency’s business development director at my own ad agency; for Saatchi & Saatchi Advertising in New York and London and as CEO at two Internet start-ups. I have hired ten business development directors over the past twenty years. Some worked out and some, well, not so well. Again, this is one of, if not the toughest, agency jobs to position for success.

But, don’t take my word for it. Before you read on for an expert interview, you might also want to go to my blog post on how to pay an agency business development director.

An Expert Interview With Brooks Gilley On How To Hire A Business Development Director.

Brooks Gilley is the Founder and CEO of Portland’s 52 Limited. 52 LTD is a 15-year-old creative resource company that connects world-class talent with leading brands, marketing departments, design firms, advertising and digital agencies.

In addition to running one of the west coast’s leading creative talent agencies, Brooks ran the Portland Advertising Federation and worked at advertising agencies.

Peter: According to the RSW/US 2014 RSW/US Agency-Marketer Business Report, the tenure of agency business development directors was two years or less. ADWEEK reports that people in this position at large agencies last less than one year. Is this surprising to you?

Brooks: It’s not surprising at all, largely for the fact that agencies I have worked with on business development director searches come to us in a moment of panic, and that’s usually where the ask starts. It’s a role that is needed now but was probably needed at least twelve months before new business gains became an issue. Additionally, it’s not necessarily a strategic role that is esteemed at and supported within a ‘creative’ organization. [Read more…] about Is Your Advertising Agency Business Development Director Doomed?

How To Sell Your Advertising Agency

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Hmm, so, you want to know how to sell your advertising agency. Or, maybe buy one.

Selling isn’t, of course, a unique thought, especially these days. Here is some background and learning from the why and how I sold my advertising agency – Citrus. I had a plan and it worked.

A few weeks ago, I was interviewed by Jake Jorgovan on his Working Without Pants podcast about selling an advertising agency. You can listen to Selling Your Advertising Agency here. I thought that I was particularly smart that day. And open about why and how I sold my own advertising agency. Note, I have bought and sold three agencies and have counseled a few agencies about how they should do the same.

… Oh, Quickie update. My new 58-page ebook on how to sell your advertising agency is coming out in August. its a freebie. Email me if you want to know when it hits. 

Go: How To Sell Your Advertising Agency.

First, a bit of my background so you know where I was coming from. Literally.

Jake

Peter, for anyone in the audience who doesn’t know who you are and what it is that you do, can you just give us a quick overview about who you are and your background?

Peter

Sure. Today I am a business development consultant for advertising agencies. That’s today.

I started life as a commercial advertising and editorial photographer in San Francisco, woke up one day and said, “I really don’t want to take photographs for other people.” I moved back to my hometown New York, started working at Dancer Fitzgerald Sample, which was a very large Mad Men-type agency. Our client list was bizarre, everything from General Mills to Proctor & Gamble, to Toyota and Nabisco. That agency was bought by Saatchi & Saatchi Advertising Worldwide.

I spent 16 years at Dancer and Saatchi. I worked in New York. I opened and ran the office in Minneapolis. I moved to London and worked across Europe. I ran business development in London and New York. When I came back to New York in ’94 I discovered the internet and went to work for the company that owns Conde Nast putting newspapers online. Did that for a few years, started another company called Active Buddy, which is similar in some ways to Siri as in understanding natural language. The platform was instant messaging. We were going to sell the company to Google, or Yahoo, or Microsoft. I would have had FU money. That didn’t happen, but I did get a good chunk when we sold the technology to Microsoft.

For some reason after the dot com bust, I woke up and said, “It’s time to move the family to Oregon,” and I bought an advertising agency out there called Ralston Group. We renamed it when we bought the design firm Citrus and added a couple of Nike AOR accounts. A few years later I woke up again and I said, “It’s time to sell the agency.” I could discuss the why and how’s in selling an agency if you want. I sold the agency. I now do three things in Mexico, one of which is to consult with advertising agencies around the world.

Why Did I Want To Sell My Agency?

Jake

Nice, that is an awesome and absolutely incredible story. And your headline on your website is very valid when I say, “I’m the most experienced advertising business development consultant.” As you clearly have got some years and track record in this and have done a ton of stuff with the big names. You’ve run your own agency. You’ve kind of been all around the field of things.

First of all, what was the why for you selling your agency? Why did you decide to do that versus continuing to run it like it is? Let’s start there because that a question I’m definitely curious about, and I know a lot of agency owners sometimes think about it.

Peter

Well, the why, I think it’s important to understand why you do anything. And at some point in the latter stages of owning the advertising agency, I ceased to have as much fun as I had had in the beginning. And a real catalyst for that was the 2007 – 2009 recession, which I think dramatically hurt the agency business in terms of profitability. Now let’s couple that with the growth of digital marketing where there are many, many new platforms to manage without commensurate billing, and I really lost a bit of love in the business when the business lost its level of profitability.

You have to remember that I started in the 15% commission days, and we were making bundles. I mean it was really a-go-go. There was a reason why there were mad men drinking wine and whiskey in their office and going out for long lunches and smoking cigarettes and cigars. And that really stopped in, let’s say the late 90s.

By 2009 I knew I had to reinvent my agency. I had done that a couple of times. I was going to reinvent it into a much smaller, much more hub, and spoke distributed agency staff model. And I just woke up one day and said, “You know, I just don’t want to do this again.”

How Did I Sell My Agency?

[Read more…] about How To Sell Your Advertising Agency