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The Perfect Advertising Agency Pitch

January 21, 2022 By Peter Leave a Comment

How To Run A Perfect Advertising Agency Pitch

Avi Dan followed me as the guy running Saatchi & Saatchi Advertising Worldwide’s business development program (and, I think did a better job than me as by the end of my tenure all I could think about was the growing Internet space). Avi just wrote the following article on LinkedIn about the subject of the good, bad, and ugly advertising agency pitch. I thought that I’d respond a bit to his thinking because I wrote the New York Times best-selling book on how to run the world’s most powerful, new business-delivering ad agency pitch.

From Avi’s bio… “Avi Dan is a columnist for Forbes, a former CEO and board member of 3 major agencies, and a highly regarded agency pitch consultant. By his own estimate, he has been involved in over 200 pitches in the past 30 years.”

From Avi…

Q&A With A Pitch Consultant: “Don’t Hire The Agency That Inspires You, Hire The Agency That Is Inspired BY YOU”

In 2019, the year right before Covid, a Morgan Stanley analyst had reported that a record $35 Billion of advertising spending was up for review. That was almost more money hanging in the balance than the amount under review during the previous two years, combined. With the economy picking up now, advertisers are, once again, rethinking their agency relationships. Ad Age had recently reported that one-third of all advertisers stated that, they plan to put their business into a pitch.

Peter: One-third? Crazy. This really can only mean one of two things. Either advertising agencies are doing a shit job or clients have no clue what they really want from their agency. A smart client should be able to get smart thinking and service out of their own — current — agency. I have been an agency owner and a client. Good clients know how to manage their agencies. Well, most. It is absurd that one-third should think they have a failing relationship. Too high.

Q: Why do you think there are so many reviews lately?

A: If those numbers tell you anything, it’s that, advertisers aren’t happy with their agencies, even the good ones. For example, Wieden had lost KFC and Droga5 had recently lost IHOP. Marketing is much more complex these days, and very few agencies are capable of evolving fast enough to keep up with the needs of their client. What’s surprising isn’t that so much is in review, but, that it didn’t happen sooner.

Peter: Avi says… “very few agencies are capable of evolving fast enough.” OK, possibly true for many. But not Droga5 and Wieden. These best-of-class agencies are just too good, big and well-managed. So, I’ll point to clients as a failure point. By the way, how can anyone be expected to dramatically increase pancake and waffle sales during a pandemic?

Q: How are pitches different now?

A: The briefs for pitches that we see coming through to us now, are more transformational. Clients are deep into the digital transformation, and so is the consumer and the media. Technology, cloud services, eCommerce, data, and virtual CX are becoming critical issues for the enterprise.

Peter: The marketing world has been way about the idea of digital transformational since I left Saatchi in 1995 to put major newspapers online (and invent website advertising – yes, I did that) or in 2000 when my company Activebuddy invented interactive chatbots including SmarterChild and commercial bots for clients like Radiohead. Is Avi saying that the zillions of agency people that live and breath digital do not understand transformation? Could they be worse at it than a marketing director at IHOP? Side note. I have been a consultant in a few advertising agency pitches lately and every agency talks transformation or related subjects. How could they not?

Q: You are very critical of the pitch process. Why? [Read more…] about The Perfect Advertising Agency Pitch

Ask For The Order

January 4, 2022 By Peter Leave a Comment

After I left Advertising… I Learned How To Ask For The Order.

I left advertising for the first time in 1995 to start one of my two Internet / digital companies. You can catch up by reading How I Discovered the Internet After Saatchi. It is a decent read about my asking for a new career and about how to ask for the order.

When I founded and ran New Jersey Online, a very hot and popular first-of-its-kind online news website, my owners, the Newhouse family (think Conde Nast, mucho magazines, mucho newspapers, and Random House) handed me Jim Hageman as my sales director. Jim had been very a serious sales director at the Miami Herald.

As Saatchi & Saatchi’s USA and European business development director – I thought that I knew how sales worked. That was until I went on sales calls with Jim (we were inventing and selling first-gen Internet advertising.) One of the key things he taught me was to never leave a sales meeting without doing for the ‘ask for the order’ dance. If the prospect said yes, great. If, no, we tried to craft a program that fit their needs – and gave some stuff away to soften them up. i.e. we’d sweeten the pot. It worked a lot. And, it became of of my atomic habits.

Today I See A Lot OF Advertising Agencies That Are Way Too Shy – They Do Not Ask For The Order.

Below is a quick example of a smart guy that knows how to perform the ASK. In this case, Jim Clear (a New York Times Best Selling author of “Atomic Habits”) is asking me to share his newsletter with my friends. A clear ASK (yes a clear ask from James Clear). My point, see how he does it… Nicely plus an offer for you.

Learn from this to grow your company’s newsletter and even your advertising agency client Referral Program (you have one, right?)

___________________

Hi there! It’s James Clear. [Read more…] about Ask For The Order

Advertising Agency Sales Prospecting

December 3, 2021 By Peter Leave a Comment

The Art & Science of Advertising Agency Sales Prospecting – A Smart ‘KISS’ Approach

You know what advertising agency sales prospecting is. Yup. But… let’s start with a couple of definitions to get us on the same page.

From Shopify: Prospecting is the first step in the sales process, which consists of identifying potential customers, aka prospects. The goal of prospecting is to develop a database of likely customers and then systematically communicate with them in the hopes of converting them from potential customer to current customer.

From Peter Levitan: Sales prospecting is efficiently going after and getting the new clients for your advertising agency that y’all deserve.

A ramble: All advertising agencies, digital marketing expert agencies, PR, well you get the idea, need to grow. If you have been reading me for a long time, I’ve told you that you start to lose that new client the minute they become a client. So, knowing that your clients will eventually leave by the back door means that you better be working hard at bringing them in the front.

NOTE: The following is NOT a definitive prospecting plan. I am just toplining the core elements that you have to do. Sales prospecting is both science and art. I help agencies every day get this particular act together.

Sales Prospecting

I am going to assume that you have a referral strategy so you have taken care of that critical business development tactic. But, you cannot rely on referrals and WOM alone for growth. Can’t, shouldn’t. Way too many agencies do this. need a referral plan? Here you go.

Your Brand Positioning Comes First

To be a great prospector, you need to offer the market, your specific market, a compelling brand proposition that will get their attention — one that resonates. You can do all of the prospecting you want but if you do not sound like you will meet a potential client’s needs then ‘fuhgettaboutit‘… you will be wasting your time and money. Need to rethink your positioning? Go here – How To Position An Advertising Agency. [Read more…] about Advertising Agency Sales Prospecting

How I Discovered The Internet After Saatchi

September 9, 2021 By Peter 2 Comments

I Discovered The Internet – Kinda True

This is my 800th blog post. So why not get personal? Here is my story about how I discovered the Internet and left advertising in 1995 to become an Internet start-up CEO. I think that it might be instructive to the people leaving the advertising industry today. Don’t take my word for it, people are leaving – read Avi Dan’s Forbes article, “People Are Fleeing The Ad Industry Because Of Burnout And Wanting To Work From Home.”

By the way, that is a picture of the explorer Robert Peary.

When I Discovered The Internet and The End Of My Advertising Agency Career

After my three years working at the Saatchi & Saatchi Advertising Worldwide London office as European Director running business development and the J&J and Sara Lee Europe accounts, my family and I returned to Summit, New Jersey in the winter of 1994. Our welcome was a brutally iced in house. So iced that we had to hire some off-duty firemen to chop out the ice so we could use the front and back doors.

After leaving Charlotte Street, I now worked at the big black iconic (Darth Vader) Saatchi & Saatchi building on NYC’s Hudson Street. My large 18th-floor office had a wide-angle view and very cool furniture inherited from a recently exited executive creative director. Due to a failed New York office culture, talented colleagues were starting to exit the building.

My job was running Saatchi’s North American business development group. The job was nearly impossible as poor management had trashed Saatchi’s New York reputation and the global brand itself was in decline. The Saatchi brothers had finally overreached when they tried to buy a UK bank. These advertising guys’ “want to buy a bank” hubris was not warmly received by the public markets. Saatchi’s had gone from being the “world’s favorite” advertising agency to a company that no longer got the type of new business incoming and responses I had become accustomed to. Like, I wasn’t getting returned calls from prospective clients. This was a new experience. However, I was getting weekly calls from the trade press asking me for comments about people fleeing the New York office. Not the kind of trade media calls a business development director wants to receive.

I Discovered The Internet

While all of this office and career shit was going down, I had discovered the Internet and its insane growth curve. Yes, I discovered the Internet. Well, this happened because I returned to the USA from the Luddite UK and got the wake-up call.

I immediately fell in love with digital platforms like CD-ROMs, Netscape Navigator (the first commercial graphical browser launched in October 1994), and, of course, America Online and CompuServe. I was also seeing the exponential growth of Internet usage – as shown in the chart. How could this not be a gold rush? This was around the time that Jeff Bezos became enamored with the dramatic hockey puck growth of Internet uptake and you see where that got him. Side note, I had had my first early taste of digital when I briefly ran the Western Union Easylink email account a long time before I moved to the UK. Easylink was the first commercial email service – or as we called it, Instant Mail. Um, yes, a good idea but a bit early. Understatement.

In 1995, one did not have to be a genius to see that the digital universe would become a serious advertising platform. I tried to get Saatchi management interested but they were so consumed by the Saatchi death spiral that, like small children, I could not get them to focus on the new opportunity that was right in front of them. We could have been a contenda.

A Life Switch – “Get The Fuck Out Of Advertising”

Two things soon happened that would change my life.

First, thanks to my prescient friend Mike Donahue, who was the digital lead at the American Association of Advertising Agencies, I found out about Redgate Communications. The leading, and one of the few, digital ad agencies. [Read more…] about How I Discovered The Internet After Saatchi

Quit Advertising Today

August 9, 2021 By Peter 6 Comments

OK, I Do Not Want You To Quit Advertising. I Just Want You To Move To Mexico.

I quit advertising twice. First when I left my global job at Saatchi & Saatchi to do the Internet startup CEO thing. Then again a few years later when I sold my Portland advertising agency Citrus to become an advertising agency consultant. I did the digital nomad thing for a year and then moved to Mexico. I can work from anywhere but like living in Mexico.

And you? Now that you to can move around, it just might be time to move your gig to a groovier place than Boise.

Hola Gringos.

Every week gringos (the definition: “in Spanish-speaking countries and contexts, chiefly in the Americas – a person, especially an American, who is not Hispanic or Latino”), ask me “How did you move to Mexico? Why Mexico? What is life like in Mexico?” Recent travel to New York and Naples, FL. have coalesced my thoughts on the right answers.

Plus, one of my very own USA ad agency clients has decided to move to my town San Miguel de Allende (SMA). Why choose San Miguel? Other than my piquing his interest over time, he knows that SMA is one of the most beautiful towns in the world. Just ask Travel & Leisure. Plus, he can now work from anywhere. Just like you.

OK, why move to Mexico? Or, better yet, my town, San Miguel de Allende.

Big reason #1: You can actually live and work from Mexico. We have the Internet.

#2. You can actually make it happen. Most Americans, ya know the ones that think the world loves us, are surprised to find that very few countries will accept their full-time residence. Mexico does and getting an official residence is easy. This is a rather critical point as, I am sorry, but Italy and New Zealand do not want you. I am not even sure that Canada wants you.

Mexico is in the middle of the USA times zones. Plus it is close. I can get to Dallas or California in 2 hours. Your clients don’t care where you are and if you need to be in the HQ ‘office’ tomorrow you can make that happen.

Mexico has mucho international flights. There are two International airports within a short drive from SMA and Mexico City’s mega airport is about four hours away by a lux bus or private vans. I have a car but I don’t drive to crazy Mexico City. It would be like my Bozeman Montana relatives trying to cross from Manhattan to Brooklyn in their Ford-150 during rush hour.

Mexican cost of living is rather groovy. According to the cost-of-living website NUMBEO,…

“Consumer Prices in United States are 92.73% higher than in Mexico (without rent)” and “Consumer Prices Including Rent in the United States are 120.51% higher than in Mexico”.

Back to Boise: “Local Purchasing Power in Boise, ID is 155.92% higher than in Mexico City”

My house in SMA is easily 30% of what it would go for in Portland, OR, or Denver or Dallas. New York? Forgetaboudit. My daily croissant and coffee in New York’s East Village cost me $11.00 in May. Here – $4.00. I was just in Naples (a city they tell me has more millionaires per capita than anywhere else in the USA) and the cost of every meal was mind-blowing. A trip to Whole Foods or Publix to feed my 5-person family seemed to always come in at around $300. OK, I do like wine.

Note: Living costs vary greatly. San Miguel is on the high side compared to other towns. Living by the beach in Puerto Vallarta is on the high side. However, if you do your homework and pick the right neighborhood, Mexico makes the inflationary USA housing market look like 1984.

The USA, OK except for my home town NYC, is BLAND. Lots of nice roads leading to the next mall or strip mall leading to the next strip mall, gas station, and fast food Meca. If you think driving by Midas Muffler stores is cool, then, yup good luck. Mexico has texture.

Mexico has real soul. Cool nice people. Music in the streets. Grandmas. Passionate. Sweet kids. OK, it is occasionally loud. And, yes, it can get funky vs. your Louis Vuitton store. But, it is a special funk – like a mellow funk based on life, not commerce. By the way, did I mention that SMA is one of the most beautiful towns in the world? (While I write this, I am sitting in the main square listening to the bells from the world-famous Parroquia de San Miguel Arcángel and watching young girls in white dresses heading inside for their rite of First Communion.)

Mexicans. Mexico just simply feels much more friendly. Everyone says buenos dias, bueos tardes and buenos noches. It is a polite acknowledgment that we are all in this together. Family life rules here. Large families hang out. Advice: do not wear your MAGA hat.

Here is what my neighbors look like… La Gente photographs.

Mexico is a large country. There isn’t one Mexico. Do you want beach towns? We got it. World-class cities, we got it. Places for Gen Xers to get drunk? Sure. Mountains? Yes. Places for you to eat up culture, yup. Big regional differences? Yes. Street tacos at 3 AM? Si.

San Miguel, in particular, is known for its art center, dozens of art galleries, and culture. Outdoor art movies; world-class musicians; theater and roof bars.

Want to party? We’ve got lots of roof bars and late-night clubs. But if you want to be hammered 24/7, head to Tulum.

An advantage of having a large number of expats in Mexico is that you have been preceded by decades of USA expat experts – many like me quit advertising in the states. One of my Saatchi ECDs enticed me to move here four years ago. Note that one does not have to only hang with expats. But the local information and advice is a big benefit.

Do you like eating? SMA is known as being a ‘gourmet’ foodie town. Same for Mexico City and… Oaxaca. Otherwise, you know what good Mexican food tastes like (it is better here). Wine? Head to Baja’s Napa quality wines. Beer? Head to the local cantina or corner store. Plus, in a town like SMA where gringos like to eat and cook we have large local food markets and new places like the somewhat insane City Market.

SMA sits at 6,000 feet. As I watch the USA melting in summer 2021, my weather today (in August, is a high of 76 to a low of 58). From the Internet… “The best time to visit San Miguel de Allende is November through April. Though San Miguel’s climate doesn’t vary too much throughout the year (average high temperatures hover between 73 and 88 degrees Fahrenheit no matter the season), November through April experiences less rainfall than the summer months.” Every day is generally clear with no humidity. Yes, it is very different from coastal, occasionally humid, Puerto Vallarta, Cabo, or Tulum. Which are also good places to hang out and settle. I suggest that you explore YouTube and Instagram and check out these towns plus Mexico City, Oaxaca, Queretaro, Chipas, and Guadalajara. There is much more to Mexico than the been-there-done-it Cancun & Cabo scenes.

OK. The crime thing. “Is it safe?” is one of the usual-suspect questions. Answer = most of Mexico is as safe as anywhere in the USA. I never worry here. Yes, I do pay attention and do not hang in the wrong places at the wrong time. Just as I would in New Orleans. However, there is a major cartel/narco problem that deserves the news.

It is very important to realize that these very crazy guys kill each other. Each other. Just like the Corleones and the Barzinis. Not you gringo. Why is this happening? Well, American’s have an insatiable hunger for illegal drugs, the ‘War on Drugs’, a massive billion-dollar and societal failure, only made drug dealing (illegal drugs, not your legal Zanax) rather lucrative. And yup, you know this was coming, our gun manufacturers will sell anyone guns and love doing it. As of this week, the Mexican government sued USA gun manufacturers for dumping weapons into Mexico. Mucho gracias.