Peter Levitan & Co.

The New Business of Advertising

Agency of the Future

So You Want To Be A Rock ‘n’ Roll Star Advertising Agency

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Want To Be A Rock Star? (I Hope)

So You Want To Be A Rock ‘n’ Roll Star is a 1967 song by California’s The Byrds. Never heard it? You should. But more to the point, it could act as an anthem for you becoming a rock ‘n’ roll star advertising agency.

By the way, you are an advertising agency even if you are a digital or experiential agency because “advertising agency” remains the number one search term that clients use even if they want a content agency. Just see what Google Trends says.

OK, back to Rock.

Below are some thoughts on how you can channel the Byrd’s song’s opening lyrics:

“So you want to be a rock and roll star? Then listen now to what I say. Just get an electric guitar. Then take some time and learn how to play.”

Some Rock ‘n’ Roll Agency Thoughts for 2018

I had specific goals for my agency Citrus. We met these with clients like Nike, LegalZoom, Harrah’s and the Montana Lottery.

Our Big Goal: Make us money. Grow every agency employee’s income.

How we got there. We wanted to work with clients that met at least three of these criteria: They wanted great marketing (as in respected what the agency could do for their business); do great work; be famous (working with famous clients gets the attention of other clients); be long-term (screw short low-income projects that ate up our time and talent unless the work would clearly lead to more business) and of course, back to profitability. OK, one more… we wanted to work with clients that were nice people.

Here You Go

  • Trump, whether you dislike or like him, just handed lots of cash to American companies care of his large corporate tax break. Since many of these companies also compete internationally, I think that advertising budgets could move higher this year. Economic optimism breeds larger budgets – across the globe.
  • Finding a unique, differentiating, clear agency positioning, remains the biggest hurdle for most agencies. As I have written many times… figure out what you do well, what clients want and then go sell it in a nicely designed package.
  • Make business development a priority. Have a process, have a budget and be consistent.
  • Study up on Agile Marketing and think about employing its tenets for your sales program. Here’s a definition: “Agile marketing is an organizational effectiveness strategy that drives growth through focusing team efforts on those that deliver value to the end-customer.“ While you are at it, use a bit of start-up thinking and energy to drive growth.
  • Use the right KPI’s (key performance indicators) to hone your sales program. The right KPI’s are not the number of emails sent; your average open rate; clicks and shares; or even conversion rates. (Jargon coming) … You need to understand the difference between MQL (marketing qualified leads) and SQL (sales qualified leads or, better, actual vetted prospects that want to hire you.) Clicks on your blog are meaningless unless they convert to high-profit sales.
  • Emotion sells. Do you have agency stories to help sell who you are? Not just facts (all agencies have facts) but real stories?
  • Personalize your agency. I cannot believe how many agency websites are human-free zones. People buy people and who you are, how you look, how you sound, could be a major agency differentiator.
  • Use video to sell. But, do not be boring. Note: short, interesting videos. Sell me by being entertaining. This is a bit on the crazy side. A few years ago when my Portland agency wanted to get way noticed in San Francisco, we did a VLOG about San Franciscans. Here is an interview with a pimp. Yup, a bit, um, edgy. Here are the video, awareness strategy and my very honest assessment of the MosaicSF program. Hey, we tried to stand out.
  • Be cool. Since my first day in the advertising business, clients told me that they dig cool. You are cooler than them. Make your brilliance fun… too.
  • Content and thought leadership is a good thing – it is how I grow my business. Prospective clients want pertinent information. Business-building information and insights that the clients you want cannot ignore. Cannot ignore is the critical element. Read some agency blogs. Too many are not well-positioned and are just downright boring. Maybe its time to kill your blog.
  • Pick your battles. Unless you are large, it is very difficult to run a blog, write white papers, broadcast a weekly podcast, produce videos, Tweet 5 times a day, hammer LinkedIn. Do one or two things correctly.
  • Study up on and commit to running Account Based Marketing. Figure out what categories to target, specific clients and build programs that dazzle over time (and can’t be ignored.)
  • Know what, make being Unignorable a critical agency goal. Me-too sucks and if you just act me-too, you will not succeed. If a client thinks you are me-too, they will think that you will do me-too work – for them.
  • Look smart. Write a book or create a zine. Try something different that proves you are really smart. My friends Beau Fraser (Death to All Sacred Cows: How Successful Business People Put the Old Rules Out to Pasture) and Russ Stoddard (Rise Up: How to Build a Socially Conscious Business) did it. They look and sound smart and different. I did it too. You can.
  • Win awards. Clients need third-party help. London Advertising and San Diego’s Basic (like 17 Webby’s) do this every year. Winning isn’t an accident. In addition to deciding to do only standout work, these agencies have awards strategies.
  • Spend a few minutes on your end game. Want to sell someday? Well, you better build an agency that someone else will want to buy. This exercise is also a smart way to build an agency that clients will want to work with.
  • Have a smart referrals strategy. Your friends want to help you. Be active.

 

Be Bold.

Passive agencies lose. Ask for the order. OK, here you go… last year I worked with advertising, experiential, digital, PR agencies on five continents. Want to fill your new client pipeline? Go here.

The Byrds Lyrics

So you want to be a rock and roll star?
Then listen now to what I say
Just get an electric guitar
Then take some time and learn how to play

And with your hair swung right
And your pants too tight, it’s gonna be all right
Then it’s time to go downtown
Where the agent man won’t let you down

Sell your soul to the company
Who are waiting there to sell plastic ware
And in a week or two if you make the charts
The girls’ll tear you apart

The price you paid for your riches and fame
Was it all a strange game? You’re a little insane
The money, the fame, and the public acclaim
Don’t forget who you are, you’re a rock and roll star

Songwriters: Chris Hillman / Roger Mc Guinn

 

On Being Smart

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Smart Is A Good Thing (For 2018)

Hey, I like being smart. Yeah, I just said that.

I bet you like being smart too. In fact, as you know, being smart is an essential element in driving brilliant marketing. This includes being curious.

So, without further ado, here are a couple of smart places to help you get smarter before 2018. This MIT article and Stanford interview got my intellectual juices flowing and I’ll assume yours will flow too.

First, here is a hot list from MIT’s Technology Review. Its list of the 50 Smartest Companies 2017 offers a look at companies that have found the inflection point between innovative technology and a sound business model. Something I’d think a savvy 2018 advertising agency would like to find.

Second, is a video of the Stanford interview with Chamath Palihapitiya, Founder and CEO Social Capital, on Money as an Instrument of Change. I have listened to Chamath in YouTube videos this past week (the CNBC guest host is also worth your time) and find that he opens up my mind and, yup, makes me smarter.

 

2017 Advertising Predictions

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The Art Of Advertising: 2017 Advertising Predictions

Huh, 2017 advertising predictions? No, I am not one year behind. This is just a redirect of a post I wrote in early 2017 about, yup, my predictions for 2017. I wanted to share it with you simply to show where my thinking was one year ago. So, below is the post. Was I right? Hard to tell. But, based on working with a bunch of agencies this year in the USA, Canada, the UK, Australia and Asia, I can say I was pretty darn close.

One trend I missed was the growth of consultancies eating away at the large advertising agency networks.

OK, one more. The phenomenal growth of Facebook, Google and, now, Amazon advertising. The high concentration of advertising on these three platforms is NOT good news for many agencies. DIY advertising may not be the best type of advertising but it is being used more and more.

________________________________________________

Here’s my early 2017 blog post.

Is Advertising Art? Yes and No. Thoughts on 2017.

images-campHere are some thoughts about the business of advertising that I will explore in 2017. A key one for me is thinking about the value-oriented question: “is advertising art” or is “advertising science” and how the recent move to data-love effects what you are selling to your agency’s current and future clients.

What I Think We I Will Be Talking About This Year

Is advertising art or science? Well, it used to be very much art. Today, it has become, in my estimation, too scientific. I find that it is getting harder to find the big advertising ideas (name five from 2016). You know, the ideas that resonate, hit the emotions, get talked about. These big, brand-building, sales-generating “ideas” seem to be lost in a world of ever-evolving tech / digital platforms and data mining.

Sure, this could simply be ‘good-old-days ad veteran speak’. But, no… While I grew up on mega-buck TV shoots, I also moved into the digital world in 1996 (founding NJ.com then ActiveBuddy) and ran a ‘digital’ agency in Oregon –  so, I’m not too-stuck-on-good-old-days after all. I just miss the time when people stood around the company water fountain and talked about advertising.

Today… we are simply not spending enough time thinking about the BIG ideas that drive humans to pay attention and to act (to give a shit) and then to want to do the action you, as a marketer, want them to do. We spend too much time talking about the technology and targeting that puts boring ad ideas in front of people. Boring.

Does the technology work? Facebook advertising fibbing / bullshit – again and again (the BIG 2016 story). And then there is ad fraud. Billions? Wasted? Clients have woken up. This should be interesting.

Workload will load up. More and more advertising platforms will lead to more and more agency staff work. You are in a tough position… more work and clients that want to take a bite out of your profits. Plus, employee burn out.

The business of advertising sucks (Part I). I talk with dozens of agencies. Most, even shops up to 200 people (I won’t even get into the networks) are barely making it. Why? Well, most do not really know what business they are in. They like making ‘ads’ and using the latest ad tech. But, they do not know how to make money. Most, the vast majority of agencies, do not even have a business plan that spells out the path to success. Please, start with a plan. And, given the pace of change, review the plan every year.

Ultimate bottomline: Most agencies do not have a marketing plan.

ADHD. In addition to not having a business plan, many agencies do not run a consistent marketing program. Many (most agencies) do not run their sales plan with any consistency. They: Start – Stop – Start – Stop. They clearly have some form of attention deficit problem. Agency leaders have to treat business development like they treat an agency client. Do not take your eyes off the new business ball.

The business of advertising sucks (Part II.)  I was blessed during the first half of my advertising career. We got paid well by the 15% commission system. This ended for me about 1989 when a new CMO at my Northwest Airlines client wanted to reduce that to 8%. Get this, this cut took us from $9 million in revenue and $3 million in profits to about $4.5 million in revenue. All of a sudden we were operating at a loss – if we did not cut back on our service. We didn’t and it didn’t matter because, of course, the new CMO wanted to hand the account to another (read: his) new agency. OK, it’s 2016 and you guys are now charging by the hour. I witnessed this problem at my Oregon agency. The problem? Not so much that we got paid less. But… the problem of getting paid by labor hours for creative services. The value my agency provided clients far exceeded the hourly rates we could provide in an industry that had become based on low costs. There was always another agency that would work for a lower hourly rate.

Ready? Sell your agency? Sorry, most owners will never be able to sell their agency. Ever.

Why? Most agency owners are not building a business for sale. That means that they do not have a product or service that someone else will want and want to pay big bucks for. You can build a valuable agency. But, you have to make the goal of building value part of your plan. A part of your business plan. To get there, figure out what kind of agencies are getting bought (most sales are local) and have the type of agency that another wants to buy.

Process equals success. Having a clear, well-managed agency process is critical. Agencies have to find as many repeatable systems as possible. Otherwise, you are doomed to the world of over-work and low-margins. Read this: Advertising Agency Process and Profitability. It is long. It is based on how my agency built a system for profitability. An agency I was able to sell.

There is much more. But, I have to go now. Adios and —– Feilz Ano Nuevo!!!

OK, Back To The Art Of Advertising

lumascape-marketing-techOne more thought. You are in the advertising industry. This means that you have to connect with hearts and minds in order to cause the action you seek. This means that a form of art is involved.

Sure you have to use advertising technology to get the word out (that’s all that overwhelming stuff in the Lumascape at the left). But, you will not get the results you want until you spend some time making advertising art that connects, inspires and informs.

Soooooo, as a New Year’s gift, I give you a very brief definition of art. Think of this Richard Serra video the next time you crawl into the ad tech wormhole. Who is Richard Serra? From Gagosian, his dealer…

“Richard Serra is one of the most significant artists of his generation. He has produced large-scale, site-specific sculptures for architectural, urban, and landscape settings spanning the globe, from Iceland to New Zealand.”

Richard Serra – Why Make Art?

The Ultimate Test Of A Great Marketing Agency

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The Ultimate (Litmus) Test Of A Great Marketing Agency

Smart marketing agencies reevaluate their brand, sales prop and business objectives every year. This evaluation is the ultimate way to answer How are we doing? Is the industry passing us by? Are we set up for 2018 or 2019? Are we happy? Should we change?

Sorry to be so simplistic. But, as you head towards 2018, ask yourself how you will make $$$ (more $$$) in 2018. It’s a great challenge and now is the time for evaluation and planning.

Here are some questions to get your engine rocking.

  • Do you re-evaluate your goals? Do you have the right staff? Client compensation system? I’d do this on an annual basis. Here is some smart thinking on compensation from down under.
  • Has your business (what you do) and client base (who you do it for) shifted in the past couple of years (digital would be a change driver)? If so, what planning can you do to take advantages of new market opportunities?
  • Do you ask your clients for feedback? As in “How are we doing / what can we do to make you happier?” I used the net promoter score when I owned my agency.
  • Have you evaluated your brand position and sales proposition lately? Maybe its time to morph. Is your market morphing?
  • Ask what is and is not working with your business development program? I hope you test your specific efforts and platforms? Do more of what works, less of what doesn’t.

You should be entering a time when you can take some time off to clear your head. Read up on best practices, read a book on marketing (I am reading Scott Adam’s Win Bigly;. It’s about Trump and the art of persuasion – love him or not, he persuaded a lot of people to buy into him) OR! just let go for a few hours. Being an advertising agency, design agency, digital agency, experiential agency, marketing agency is always a mix of serious fun and, well, some angst.

Talk

I talk to lots of agencies. Many just want one or two insights – I learn from them as well. Some become my clients, some don’t. I still like the conversation. Take me up on my Corleone Offer. Go ahead, just do it.

 

An “Advertising” Cure For CPG’s Ills

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An “Advertising” Cure For CPG’s Ills

images tideImagine creating a new marketing company that directly goes after a huge industry’s Pain Points. I mean, directly.

I just read, “2 Saatchi Alums Vow To ‘Clean Up’ CPG” in MediaPost. These ex-Saatchi guys vow to help clean up CPG’s big needs per the article …

“As the consumer packaged goods (CPG) industry continues to experience sharp declines in sales, two former Saatchi & Saatchi senior global executives, Vaughan Emsley and Cliff Francis, are launching Clean Up On Aisle 7, a new consulting firm to help CPG brands be more effective, responsive and agile in today’s changing landscape.”

Why Is The Idea Of This New “Consulting Agency” So Smart?

5 Big Reasons.

  1. CPG is in bad shape. Overall purchases of consumer-packaged goods in the U.S. declined 2.5% in unit terms in the first quarter, according to Nielsen.
  2. Volatility sucks. There are “probably more sources of volatility today than at any other time in history,” P&G Chief Financial Officer Jon Moeller said Wednesday in a call with reporters.
  3. CPG companies have been rather slow to adapt to the new world of digital marketing and consumer shifts. They need some speed.
  4. Clean Up On Aisle 7 (a cute name but a bit lengthy) aims to go directly at these major client pain points.
  5. Clean Up On Aisle 7’s management has the history and ecperience to deliver smart thinking. “Previously, Emsley served as the global client leader for all Publicis Groupe agencies working on P&G brands, while Francis worked as the former worldwide creative director for P&G brands at Saatchi & Saatchi.”

OK, One More Smart Point – For Your Agency.

Clean Up (a shorter version as I am sure they will be known) stands out from the huge pack of advertising agencies and consultants that do not have a well-defined positioning, a bold reason for being and a hard to ignore sales proposition.

A new company dedicated to curing the ills of CPG meets a clear need and… stands out.

They are unignorable.