Peter Levitan & Co.
The New Business of Advertising
Lise Colantuono, President of AAR Partners, the leading advertising agency search firm, asked me to help you become a top-of-mind advertising agency. Oh, here is a list of the leading agency/client search firms. Do they know you?
The Bot SmarterChild, AI, and ChatGPTTechCrunch on AI and One Of My Puppies.
My Activebuddy co-founder Robert Hoffer and I were recently interviewed by TechCrunch’s Amanda Siberling about our intelligent bot SmarterChild as in. Sure, I sound smart (yeah, yeah). However, it is a good story about early-stage AI (way pre AI and ChatGPT)think fast conversational interface, and where we are today. No, SmarterChild was not #ai but, we had a super smart real-time/natural language instant messaging interface. Y’all (30 million of you) talked to a smart computer about sex, drugs, rock and roll, and lots of super fast to get to information.
The article is here: Twenty years ago, AIM chatbot SmarterChild out-snarked ChatGPT. ChatGPT’s younger sibling was ahead of its time.
And yes, read the whole article.
Far before there was ChatGPT there was SmarterChild, an instant message chatbot whose encyclopedic knowledge and quick wit could put Google to shame. Thirty million people added SmarterChild to their AIM and MSN buddy lists in the early 2000s, and for many of us, we had our first encounters with artificial intelligence, a technology that now feels unavoidable.
In the early aughts, millions of preteens raced home from school and hopped onto their parents computers, opened a chat window and typed… probably something like “” “” (I had to edit cause LinkedIn did not like the article’s words).
“Do you kiss your mother with that mouth?” SmarterChild would reply in an instant. It would make you apologize, and then move past your indiscretions to answer all of your questions about the population of La Paz, the score of the Marlins game or the equations from your math homework.
SmarterChild was far less sophisticated than ChatGPT, but then again, this was 2001. The chatbot was special enough that it inspired to fund Siri, which paved the way for Amazon’s Alexa and other robot assistants.
Levitan has remained level-headed about the future of AI. But another ActiveBuddy co-founder, Robert Hoffer, isn’t as calm. Dubbed “the bot father,” Hoffer describes himself as “cautiously skeptimistic” and repeatedly references stories like “Frankenstein” and the myth of Prometheus. The common denominator of these tales? Perhaps humans have gone too far, just because we can.
I chose the title SHERPA for my upcoming book because it will soon be the ultimate guide to building and running a kick-ass advertising agency.
“A Sherpa is a member of an ethnic group of people who primarily live in the Himalayas of Nepal. They are known for their expertise in mountaineering and guiding climbers and trekkers through the mountainous terrain of the region. Sherpas are often employed as guides, porters, and helpers by mountaineering expeditions seeking to climb the many peaks in the region, including Mount Everest, the highest mountain in the world.
The term “Sherpa” has also come to be used more broadly to refer to anyone who serves as a guide or assistant, particularly in a cultural or social context. For example, in business or politics, a “sherpa” may be someone who helps to guide or facilitate negotiations or decision-making processes.”
I’ve guided before via “The Levitan Pitch”.
Calling the book SHERPA and by relationship, me as a sherpa guide might be a bit much. But, hey, it is my book. Stay tuned.
This Solo Design Agency Kicks AssThe design agency Designjoy, a solo practitioner, has a much higher profit margin than most agencies. A lesson for advertising agencies follows.
I am writing a new book about how to build and run a kick-ass advertising agency. An important chapter discusses how an advertising agency can productize its services. To, yes, make more money at a much higher profit margin. Lots of ideas. But, here is a big one.
The design agency Designjoy offers design as a subscription. A design product. Billing starts at $4,995/m.
This one-man shop has reported annual recurring revenues of over $1.5 million. From Brett Williams’s LinkedIn profile:
Designjoy is a one-person premium design service currently serving 40+ clients with a + $1.5M ARR. One guy.
On his website:
A design agency with a twist.
Apps, websites, logos & more.
“Why wouldn’t I just hire a full-time designer?
Good question! For starters, the annual cost of a full-time senior-level designer now exceeds $100,000, plus benefits (and good luck finding one available). Aside from that, you may not always have enough work to keep them busy at all times, so you’re stuck paying for time you aren’t able to utilize.
With the monthly plan, you can pause and resume your subscription as often as you need to ensure you’re only paying your designer when you have work available for them.”
Brett’s solo Instagram has over 74K Followers. 35K Followers on Twitter. The mega-agency VMLY&R has 57K followers and, get this, 16K employees.
Now the very serious stuff. From a 2023 Tweet at @designjoy:
“Just started tracking my spending habits and budgeting. Designjoy now costs less than $400/m to run. That’s it. That’s my overhead. And half of that is a Shutterstock subscription. Agencies are doing it all wrong.”
Yikes.
You can now dive into Brett’s Productize Yourself course for $99. Of course, you should sign up your design agency, or any agency for that matter, for his productized course.
Will AI Kill Advertising?I asked ChatGPT… “Will AI Kill The Advertising Biz?”. Here is the answer:
“It is difficult to predict the future of the advertising industry with certainty, but it is likely that the industry will continue to evolve and adapt to new technologies, including AI tools. AI has the potential to greatly improve the efficiency and effectiveness of many advertising and marketing tasks, such as targeting and personalized messaging. However, it is also important for the industry to consider the ethical implications of using AI and ensure that its use is transparent and respects the privacy and rights of consumers. Overall, it seems likely that the advertising industry will continue to exist and play a significant role in the economy, but it may look very different in the future as a result of the adoption of AI and other new technologies.”
OK, not feeling so bad.
So then asked about my consultancy…
“Yes, there is a future for advertising agency business development consultants. As the advertising industry continues to evolve and become more competitive, agencies will need expert guidance on how to grow and expand their business. Business development consultants can provide valuable insights and strategies for increasing revenue, attracting new clients, and positioning the agency for success in a crowded market.”
OK, not feeing bad too.