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Agency of the Future

Digital or Traditional Ad Agency: Choose One?

Peter · February 19, 2013 · 1 Comment

I don’t think I need to add many words to what the these two charts from eMarketer tell us. It’s sort of pick one for your digital or advertising agency’s future.

OK, maybe you don’t have to freak out and choose one direction today but imagine what your agency could look like in 3 years if you sit still.

I’d bet on mobile and would get started ASAP. This space is young and it isn’t too late. It sure dosen’t look like many agencies have mobile figured out yet.

eMarketer marketing strategies 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

eMarketer marketing strategies increase 2013

Advertising Agency New Business: Instagram

Peter · February 15, 2013 · 1 Comment

My earlier post, “From Traditional To Digital To Integrated To Social To Instagram”, on the advertising blog AdPulp took a look at the New York agency The Mobile Media Lab. As I noted in the post, this agency describes themselves as… “The Mobile Media Lab is a creative agency that produces customized visual experiences with brands and their audiences on Instagram and other social media channels.”

Here is an agency that isn’t worried about finding a niche and owning it. They are not trying to be everything to everybody. Their visual marketing specialty has netted them some famous clients including Evian, Puma, Samsung and W Hotels. Accounts most agencies would love to have. Accounts that a “full-service” Boston agency might have some trouble winning.

Clearly, Mobile Media Lab successfully tapped into a growing marketing area where big-name clients want expertise.

instagram

When I’ve discussed the visual marketing specialty with agency colleagues, they expressed concerns about The Mobile Media Lab’s narrow focus and limitation of tools like Instagram. I have a different perspective. Yes, visual marketing is a tightly focused approach. But, the use of Instagram and Pinterest is skyrocketing and why couldn’t even a large “full-service” agency build a micro-group around niche visual marketing to get new business interest? Just like The Mobile Media lab, another agency just might get the attention of brands that would have never given them a look. Visual marketing is something that can be pitched and should generate interest from sophisticated clients.

Is there any reason that you couldn’t take a niche play to quickly become an expert in a new marketing category? Advertising agency niche markting could be your ticket into the national marketing arena. I’ll soon write about some of the other niches that can be exploited.

What Would Seth Godin Say To Advertising Agencies?

Peter · February 13, 2013 · 2 Comments

sethgodin

First things first. This is a list of Seth Godin’s writing output over the past 19 years. Quite the prolific dude.

Seth Godin Bibliography:

  • The Smiley Dictionary. (1993).
  •  eMarketing: Reaping Profits on the Information Highway. (1995).
  • Permission Marketing: Turning Strangers Into Friends, and Friends Into Customers. (1999).
  • Unleashing the Idea Virus. (2001).
  • The Big Red Fez: How To Make Any Web Site Better. (2002).
  • Survival is not enough: zooming, evolution, and the future of your company. (2002).
  • Purple Cow: Transform Your Business by Being Remarkable. (2003).
  • Free Prize Inside!: The Next Big Marketing Idea. (2004).
  • All marketers Are Liars. The Power of Telling Authentic Stories in a Low-Trust World. (2005).
  • The Big Moo: Stop Trying to be Perfect and Start Being Remarkable. (2005).
  • Small Is the New Big: and 193 Other Riffs, Rants, and Remarkable Business Ideas. (2006).
  • The Dip: A Little Book That teaches You When To Quit. (And When to Stick) (2007).
  • Meatball Sundae: Is Your Marketing out of Sync? (2008).
  • Tribes: We Need You to Lead Us. (2008).
  •  Linchpin: Are You Indispensable? (2010).
  • Poke the Box. (2011).
  • We Are All Weird. (2011).

I first became aware of Seth Godin in 1995 when I shifted from Saatchi & Saatchi to Internet publishing. It was a natural move since I was sucking up all of the digital knowledge and ideas that were just starting to percolate. I began watching Seth’s company Yoyodine that was one of the first digital marketing entities. It created online contests, games, and scavenger hunts but was best known for creating the concept of “Permission Marketing” which lead to Seth’s 1999 best seller “Permission Marketing: Turning Strangers Into Friends, and Friends Into Customers.” The premise of permission marketing remains a bedrock element of digital direct marketing and is a key driver of social media.

Chances are that you’ve read one or more of Seth’s books. Here are my favorite books supported by Godin’s Amazon description and some thoughts on how I see each book’s relevance to today’s advertising agency world. Even Seth’s short descriptions contain highly valuable business advice.

Permission Marketing: Turning Strangers Into Friends, and Friends Into Customers.

“In his groundbreaking book, Godin describes the four tests of Permission Marketing:

Does every single marketing effort you create encourage a learning relationship with your customers? Does it invite customers to “raise their     hands” and start communicating?

Do you have a permission database? Do you track the number of   people who have given you permission to communicate with them?

If consumers gave you permission to talk to them, would you have anything to say? Have you developed a marketing curriculum to teach   people about your products?

Once people become customers, do you work to deepen your permission to communicate with those people?”

My take: Any of your in and outbound agency marketing programs, including email, content marketing and social marketing, should be designed to build your contact database and relationship building programs. Getting permission and building trust with your prospects is key to building that relationship. Here is how my agency did just that with an online survey and follow up relationship-building emails to net corporate business from Harrah’s.

Purple Cow: Transform Your Business By being Remarkable

“What do Starbucks and JetBlue and Apple and Dutch Boy and Hard Candy have that other companies don’t? How did they confound critics and achieve spectacular growth, leaving behind formerly tried-and-true brands? 

Godin showed that the traditional Ps that marketers had used for decades to get their products noticed-pricing, promotion, publicity, packaging, etc.-weren’t working anymore. Marketers were ignoring the most important P of all: the Purple Cow. 

Cows, after you’ve seen one or two or ten, are boring. A Purple Cow, though . . . now that would be something. Godin defines a Purple Cow as anything phenomenal, counterintuitive, exciting… remarkable. Every day, consumers ignore a lot of brown cows, but you can bet they won’t ignore a Purple Cow.” 

My Take: The benefits for an agency to go purple and be distinctive are clear. Me-too sales propositions simply do not work in the long-run. Who has done it right in the past few years? Certainly the somewhat unloved Victors & Spoils (because they are way too purple for some in the industry); London’s London Agency (because they “own” the London brand and offer this concise sales proposition, “We create One Brilliant Idea that can work in any media, anywhere in the world.“) and Bend Oregon’s G5 (because they picked a profitable niche and services that can be resold across business categories.) These three Denver, London and Bend agencies have figured out how to go purple.

Linchpin: Are You Indispensable?

“There used to be two teams in every workplace: management and labor. Now there’s a third team, the linchpins. These people invent, lead (regardless of title), connect others, make things happen, and create order out of chaos. They figure out what to do when there’s no rulebook. They delight and challenge their customers and peers.  They love their work, pour their best selves into it, and turn each day into a kind of art.    
            
Linchpins are the essential building blocks of great organizations.”

My take: Is there anything more important to your organization – or to your clients – than the right staff? The concept and makeup of “right staff” is complex. But, at the end of the day, the right staff means a cadre of co-workers that are going to help you deliver superior service to your current clients and… possibly more important, be partners in helping you continuously define and build your agency for future growth.

All Marketers Are Liars: The Underground Classic That Explains How Marketing Really Works–and Why Authenticity Is the Best Marketing of All.

“All marketers tell stories. And if they do it right, we believe them. We believe that wine tastes better in a $20 glass than a $1 glass. We believe that an $80,000 Porsche is vastly superior to a $36,000 Volkswagen that’s virtually the same car. We believe that $125 sneakers make our feet feel better—and look cooler—than a $25 brand. And believing it makes it true. 

As Seth Godin showed in this controversial book, great marketers don’t talk about features or even benefits. Instead, they tell a story—a story we want to believe, whether it’s factual or not. In a world where most people have an infinite number of choices and no time to make them, every organization is a marketer, and all marketing is about telling stories.”

My take: I’ve reviewed hundreds of advertising agency websites in the past few weeks. The great majority do not offer an agency story. That means any story that helps a prospective client form a strong opinion, helps sell the agency message and builds a differentiated persona. This is very disconcerting since so many agencies preach the power of storytelling to their clients.

Who tells a great ad agency brand story? Ogilvy.

Liked what you’ve read? Lets talk. Here is my Corleone offer.

 

The Top 11 Elements of Advertising Agency Success

Peter · February 12, 2013 · 1 Comment

As an agency owner my biggest fear was that I might have more billings walking out the back door than walking in the front. This thought kept me up many nights and it forced me to really think through what it takes to be a successful agency. Here is a list of 11 elements that I think are essential for building a sustainable agency.

Note that this list does not include some of the advertising industries more critical decisions like how to design a cool office, figuring out where to place the creative awards, choosing between a ping pong or foosball table, or what kind of holiday card to send out.

Here are my 11 elements or goals for agency success… And a good night’s sleep.

  1. The absolute bottom line for achieving all of your goals is that you view your agency as a business that is driven by the pursuit of profit. Yes, running an agency is fun. But, it is a business first. A failing business isn’t fun.
  2. You should end the year with at least a 15% net profit and 4+ months of cash in the bank to cover any unforeseen problems – like losing a big account.
  3. You will have a clear, competitive agency brand position and efficient marketing program designed to set you apart from your competition and generate incoming leads.
  4.  You will be known for delivering business building creative, strategic thinking, tech savvy and superior account service.
  5. You will have an ongoing active new business plan to drive agency awareness and to get your sales proposition out 24/7.
  6. You will get paid what you are worth and will not give away your brains for free. Nothing rankles me, and I suspect you, more than giving away valuable ideas to prove that you are brilliant. Yes, I know about procurement and bending over. But, lets try to get past that evil.
  7. You will have the right staff, expertise and thought-leadership to stay ahead of the rapidly evolving market. You understand that you may have to cut some dead wood. I’ll admit that I was occasionally slow in building for the future by making necessary cuts.
  8. Your management team and most important employees will be paid at or higher than industry averages. I continuously studied industry salary stats. I know that my employees did too.
  9. The best people in the business will call up and ask to work with you.
  10.  Everyone at the agency will have fun and will love to come to work in the morning.
  11. The desirable clients you want will call up and ask to work with you. These clients will deliver at least two of the following: they pay very well (this means very profitable); they understand and want great work; they are famous brands that beget other famous brands.

Just to pile on, allow me to end with a quote that has influenced my personal business decisions and need for speed.

“If everything seems under control you are just not going fast enough.” – Mario Andretti

–> There are more elements, lets discuss how to grow your agency.

Advertising: Get Ahead Of Disruption… Or Else.

Peter · February 12, 2013 · 9 Comments

Advertising Service Disruption

screen-shot-2016-12-26-at-9-18-28-amI wrote this post in 2013. it is…. still relevant. If not more so.

“If you dislike change, you’re going to dislike irrelevance even more.” – General Eric Shinseki

In 1995 I moved from Saatchi & Saatchi Advertising Worldwide to launch New Jersey Online for Advance Publications. It was exciting to play a role in the burgeoning online news industry. It was also scary to know that the daily newspaper was about to be disrupted by the Internet. We had a sense of what was coming and created new online approaches to deliver the news, new advertising formats and new services including well-trafficked community forums which were a harbinger of the coming power of social media.

What most in the newspaper industry didn’t see coming until it was too late was Craig Newmark. Craigslist started as a San Francisco event email service in 1995, moved to Web based delivery in 1996 and then expanded into other categories. Craigslist began to rollout across the world in 2000.

Craigslist and other online classified sites like HotJobs, Monster, Realtor.com and Cars.com radically disrupted the newspaper industry’s multi-billion dollar golden goose – classified ad sales. Some of you might not remember the huge amount of newsprint devoted to auto, jobs, real estate and for-sale classifieds in the late 1990’s. But, just imagine that the classifieds sections alone were at least as thick as today’s current dailies. Newspapers derived much of their cash from small classified ads, not from Macy’s display ads.

The decline of newspaper revenues from the loss of classified sales and the move to other forms of digital advertising and news delivery has been dramatic. I’ve keep this image large for effect.

newspapers

Obviously newspapers are not the only business that’s being disrupted. Guess what, even Craigslist is getting hammered by newcomers.

Yikes!

big chart of disruption

(The chart might be clearer at Andrew Parker’s Gong Show.)

And, what about the advertising industry?

While I don’t think that the world of advertising agencies will experience the dramatic loss of industry relevance akin to newspapers (or travel agents), disruption is a daily occurrence that is affecting our bottom line. The billions spent via Google’s AdWords DIY services has to come from somewhere. That somewhere is the total pot of advertising dollars.

Even some analog businesses are disrupting the old advertising model. Talent agencies like CAA have morphed into marketing agencies with their CAA Marketing in-house agency winning a Cannes Grand Prix for their fantastic Chipotle TV commercial. But wait, there’s more. The barrage of disruption is growing daily.

  • Agencies that are not really “agencies”: Conde Nast Studios and Radical Media, “A global transmedia company that develops and produces television shows, films, commercials, brand identities, advertising concepts, digital content and event-based entertainment.”
  • DIY design: I keep seeing ads for 99 Designs. “The #1 marketplace for graphic design, including logo design, web design and other design contests. Over 150000 satisfied customers!”
  • DIY ads: Google AdWords, LinkedIn, Facebook and Spotrunner
  • Implementation: avVenta, “avVenta resources plug into existing marketing operations to help brands reduce operational costs by improving processes, global standards and outsourcing key responsibilities” and E-Graphics, “E-Graphics Worldwide blends global multichannel capabilities with in-house efficiencies, that adapts and extends your marketing message.”
  • Ideas: Ideascicle, “It’s expert sourcing. Not crowdsourcing” and Genius Rocket and their pitch…

GeniusRocket is what an ad agency looks like when it’s stripped of Madison Avenue skyscrapers, high-priced creatives on payroll, sushi dinners at Nobu, and two-week shoots at the Viceroy in Santa Monica.

Is it time for advertising agencies to roll over and die? No.

But you may need to change your stay-the-course mindset – and soon. For starters, ask yourself if using yesterday’s business model is hindering your growth. Maybe staying the course seems sane to you but living by past decisions and worrying about sunk costs could make you red meat for disruption. But, that’s not how the digital community plays…

“If you’re not doing something crazy, you’re doing the wrong things.”  – Google CEO Larry page

I recently read the results of a CIO Network task force on how major corporations deal with disruptive technology. The task force was co-chaired by CIO’s from Jet Blue, Nissan and Rio Tinto. These CIO’s offer some relevant advice to avoid irrelevance.

Here are a couple of their recommendations plus some of my thoughts and ideas related to the advertising industry.

1. CREATING A CULTURE

“CIOs should create a cultural appetite that accepts change, risks and failure, and understands that innovation can take time. Invite venture capitalists and entrepreneurs to talk to senior leadership and identify ways your business is going to be disrupted.”

My Plan:

 Accept and embrace the idea that change is good.

Take some of your agency time to do a SWOT analysis to identify and begin to address change-driven Threats and Weakness that could impede your agency’s future. In the world of disruptive technology, the future is next month not next  year.

Get out of the office and meet with start-ups and young, hungry technologists. Go to tech events. Trade your services and experience for start-up insights and   energy. Here is a blog post I wrote on AdPulp about the importance of getting out of the office. Religiously reading AdWeek in the comfort of your office will not grow your agency.

2. PARTITION DISRUPTION

“Name the disruption and then partition it as a separate business with separate financials, people and metrics.”

 My Plan:

Leverage the disruption by building a business around it. Think like a start-up. Is this a brand new idea? No. But, are you?

I had a chance in 2008 to be an early leader in the new Android applications market. It was a relatively low cost way to move my agency into mobile marketing. But, I seriously blew it.

When I learned that Google’s Android was going to launch an application SDK, I  asked our Digital CD to accelerate the creation of a new business unit by buying a related URL (like, www.androiddeveloper.com; it was early); build out a lean lead-generation website to highlight our expertise (as in fake it to start) and run some Google ads to gauge early market interest to see if we could generate  incoming leads. All of this was designed to make us look like we had our act    together while we were going out into the Portland mobile developer community  to find partners. Unfortunately, the CD didn’t share my need for speed and he dragged his feet until we missed the early-stage window of opportunity.

I learned three things.

  1. Starting a new division or operating unit on the back of  a disruptive technology is a good idea.
  2. Just do it. Be quick to prototype, test, iterate and launch especially if it can be a low-cost entry. When pundits say that agencies should act like start-ups this is what they mean.
  3. Hire the right people who share  your energy and bias for action. The wrong people could kill your future. The Digital CD left a couple of months later.

To see a company that actually lives and leverages disruption, take a look at New York’s The Mobile Media Lab. They embrace visual technologies like Instagram and Pinterest as brand new marketing services that are getting major client attention.

3. KEEP HEAD OUT OF SAND

“Identify and accept inevitabilities and work them into your strategy. Create an unassailable argument around the inevitable to gain acceptance in the organization.”

My Plan:

Create an innovation culture or maybe an innovation team. Benchmark companies like IDEO.

Help your people understand that without innovation you might have to close  your doors; they could lose their jobs and even careers.

Build a system for continually identifying disruptive and opportunistic  technologies and use scenario planning and estimated financials to help review             business opportunities. You don’t have to completely change your business model. Maybe all you need to do is add a new marketable service. Something     purple (as in Purple Cow.)

A last word. 

One of my favorite clients was Legalzoom.com. Legalzoom.com is in the business of disrupting the legal industry. Disruption is cool if you are the one doing it. I’ve used Legalzoom.com for my wills, advance directives, power of attorneys and LLC formation. They easily curtailed my use of lawyers and, like my experience in online news, heightened my understanding of the dramatic power of digital disruption.

To demonstrate my agency’s understanding of the idea of disruption in our Legalzoom pitch, we used a photoshopped picture of a large yacht sitting on a trailer in downtown LA. The For Sale sign read…  “Lawyer needs cash. Thank You Legalzoom.”

OK, one more last word.

I just did a search on me to see when I started to think hard about disruption. Here is a link to a 1996 AdAge article that included some of my thoughts on the subject: “Classifieds prove to be a goldmine for online outlets.”

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