Agency of the Future

Advertising Agency Recession Freakout

Peter · August 15, 2019 · 1 Comment

Advertising Agency Prosperity During A Recession – Fuhgedaboudit

Is your advertising agency ready for the next recession? Have you been thinking that the current sweet economy that has helped the small and medium-sized advertising agency market to prosper in the past couple of years was going to last forever?

Well, the time has come to fuhgedaboudit.

Early last week a smart agency client of mine asked me about the current volatility of the stock market that is driven by increasingly inept and ill-timed trade war announcements. He mentioned that his clients are getting skittish because they do not have a clear view of the future. Uncertantude is not a harbinger of growth in client marketing, advertising spending and therefore agency security.

Yesterday the stock market dropped 3% on thinking that a global recession is coming. Does this make you feel secure? Even if the market continues its up and down ride, clients will be spooked for awhile.

The Advertising Agency and Recessions

Recessions breed fear and loathing within client ranks. I know this having gone through some major recessions where worried clients lower budgets, stop programs and begin to fire and change agencies. You do not need to hear my personal history. But you should remember the ‘great recession’ of December 2007 through June 2009. The USA GDP dropped by 5.1%.

To be direct, that recession fucked the advertising industry and I am not sure that the industry, as in what it can charge clients, has ever recovered. I won’t go into detail about the recession. But, if you need a memory nudge, watch these two movies again: The Big Short and The Queen Of Versaille.

What Can You Do? Think Business Development Baby.

You know what happens to client spending and loyalty during an advertising recession. What can you do about it other the tried and mostly failed attempts of trying to convince clients that recessions are exactly the time to increase advertising branding and spending.

Well, you should now up your agency to prospect B2B marketing and spending. Get that account-based marketing program off the shelf. That means it is time to market your agency because:

One or more of your best clients will exit through the back door.
You’ve been too complacent. When business is good, advertising agencies think the good time will roll on. Not.
Sorry, referrals will not sustain any agency growth during a recession.
Good news, your competitive advertising, digital and PR agencies have been somnolent as well. They’ve given you a big marketing gap to fill.
“Consultants” like Accenture are smarter than agencies when it comes to managing recessions. They will eat up some business.

The recession is coming. Tomorrow? Next year? Who knows. But, I do know it is coming.

It is time to up your advertising agency marketing game. By the way, this is not my first rodeo. Here is an older blog post on recessions.

My recession marketing reading list. Go forth.

My Recession Reading List…

3 Thoughts On Advertising

Peter · February 12, 2019 · Leave a Comment

Actually 4 Thoughts On Advertising

Here are some thoughts on advertising driven by four recent reads.

What If There Was No Advertising?

Imagine a world where all advertising was erased from the environment. That means no more escalator, or bathroom stall ads; no more behavioral retargeting; movies and tv shows without commercials (oh, that’s Netflix); no outdoor boards on Montana highways, and on. Hard to visualize? Maybe (um not), to help, here is a series of “ads” that have been erased. Check out Jorge Pérez Higuera’s photo series Public Spaces.

Back to reality.

But, First The Good Old Days & ROI

I am having a drink tonight in my town San Miguel de Allende with Michael Farmer whose book, “Madison Avenue Manslaughter: An Inside View of Fee-Cutting Clients, Profit-Hungry Owners and Declining Ad Agencies” is the most informative and insightful book on the reasons for the demise of the good old days of advertising. Michael covers the advertising world from the high-profit Mad Men days to where we are today (much less-profit). Today’s ad world is strapped by client jitters, the quest for low-cost advertising services and way too many advertising platforms that equal an ever-increasing workload.

I suggest you buy the book and listen to Michael’s interview with Jack Meyer’s on MediaVillage. From the interview:

Jack Meyers: Last week we talked about the deterioration in agency-client relationships — fee cuts, shorter relationships, in-house agencies, etc. You said that agencies were downsizing and liquidating their capabilities — becoming less capable of helping their clients solve “brand growth problems.” You predicted that this would lead to financial problems for the holding companies. This did not paint a very optimistic picture of the industry. Where do you think things are headed?

Michael Farmer: There’s a difference between where things are probably headed and where they could be headed. In a funny way, I’m still optimistic about the potential for a turnaround in the industry. As long as advertisers have performance problems — stagnant brand performance, for instance — there are attractive opportunities for problem-solving partners. The question today is whether the current leaders of advertising agencies and holding companies will transform their operations and help them become the problem-solvers that their clients need.

We will not return to the good old days of 15% commissions on large TV, print and radio buys. Today we are paid by the hour and seem to need to run Instagram at a 24/7 pace.

However, it does not have to be gloom and doom. As I have written about over the past few years and council my agency clients… we need to, as Michael says, address the core need of our clients and that is sales growth – not mindless Instagram posts. In the case of 2019’s ability to track much of what we do, that means addressing Return On Investment. Yes, you better be creative art directors, media planners and database experts. But, you have to be able to recognize sales opportunities, have the time to find solutions and deliver ROI.

Advertising Is Back! Y’all. I Hope.

From a Business Insider article.

2017 was a trying time for ad agencies, with issues ranging from transparency and brand safety concerns to the looming threat of consulting firms coming to a head last year.

But the prospects for the advertising industry look a lot brighter in 2018, according to new research issued by UBS.

The investment bank surveyed 350 global marketing executives and 500 US CFOs and has predicted that ad agencies will bounce back in 2018, buoyed by a growth of 4-5% in global advertising spend.

The recovery in 2018 will be driven by a number of factors, UBS analysts said, including large advertisers increasing the scope of work with creative agencies and big sporting and political events driving increasing spend on brand media.

This is particularly interesting, as it runs counter to the trend of advertisers doubling down on direct advertising in recent years, where they have prioritized marketing strategies that drive measurable results.

Advertising Agencies, Nerds And Digital Marketing

Peter · February 11, 2019 · 1 Comment

This is a post about advertising agencies and the ongoing move to digital marketing and as a result, the need for more nerds. In this case, I mean a single-minded person that is highly focused on a technical field, like mobile advertising; programmatic media, database marketing or, well you get it. Stick with me on this one.

There is some personal history here and yes, the name dropping is important. I am trying to make a point and can use all the help I can get.

History

I “discovered” digital marketing in 1994 when I came home to the U.S.A. from Saatchi London where no one had a computer on their desk. I returned to work as Business Development Director at Saatchi & Saatchi Advertising New York and as it turned out, it was my 16th and last year at the agency.

My eventual move out of advertising was stimulated by my discovery of and fascination with the new world of interactivity via CD-ROMs and a life-changing conversation I had with Ted Leonsis who, at that time ran Florida’s Redgate Communications. Redgate was very early digital agency founded in 1987. I found Ted through the 4A’s Michael Donahue another early digerati (you could say this word then without cringing). Using my Saatchi credential, I met with Ted and he told me two very interesting things. One, his company had just been bought by America Online and two, this advice,

“Get the hell out of advertising, it is going to die. Move into digital.”

Well, after the meeting I did two things – one a mistake and the other, the smart one: I listened.

The mistake was that I didn’t buy America Online stock (its stock rose 600 percent in 1998). Had I, I might be sorta near (well, kinda near) where Ted wound up. Today, he is the owner of Washington D.C.’s Capitals, Wizards and Mystics. [Read more…] about Advertising Agencies, Nerds And Digital Marketing

Nootropics, Brain Food For Advertising

Peter · January 30, 2019 · 2 Comments

Nootropics And Advertising

UPDATE:

I originally wrote this 18 months ago and promised an update. I did not receive enough benefit – as in, making me enough of a smarter boy to merit ingesting the nootropics and the cost. It would have been nice to tell you that I became Bradley Cooper.

Back to the original blog post:

Remember the movie Limitless and the little clear pill NZT that turned Bradley Cooper into a raging genius? He had entered the new world of nootropics. Read on.

Today is Day One of my Nootrobox test. My “NZT” test. Nootrobox is a nootropics or “smart drugs” company. I hear you saying, “Nootropics?” Here’s the Wiki definition…

Nootropics (pronunciation: noh-ə-TROP-iks)—also called smart drugs and cognitive enhancers—are drugs, supplements, or other substances that improve cognitive function, particularly executive functions, memory, creativity, or motivation, in healthy individuals.

And, here is the description from Nootrobox, the VC-funded company that is supplying me with my three-pill set. [Read more…] about Nootropics, Brain Food For Advertising

What To Learn From Learn From Crispin Porter Bogusky

Peter · January 20, 2019 · 1 Comment

Advertising Agency Learning From Crispin Porter Bogusky

I use a bit of show and tell when I work with my advertising agency clients. Based on their business objectives, positioning, and service offering, I show a series of relevant benchmark agency websites and marketing tactics to help agencies learn from related B2B best practices. Here is what I think is valuable learning from the recently rebranded Crispin Porter Bogusky and its new website.

Crispin Porter Bogusky – Background

Crispin Porter Bogusky was once the golden creative baby of the advertising industry. It came to fame in the early 2000s with its Truth campaign for the Florida Department of Health. From AdAge, June 2002:

Crispin Porter + Bogusky had a good week in Cannes, winning two Media Lions for its launch campaign for the Mini and picking up two Film Lions for anti-smoking work for the Florida Department of Health. The agency’s brand new campaign for Florida “Truth” takes a rat’s eye view of the tobacco industry.

Over the years, the agency moved from Florida to Boulder and then expanded globally. They’ve been named “Agency of the Year” 13 times, was Advertising Age Agency of the Decade in 2009 and was Cannes Lion’s Interactive Agency of the Year – get this – three times. The agency is owned by MDC Partners.