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Why Advertising Agency New Business Might (Not) Fail In 2014

Peter · January 2, 2014 · 1 Comment

I thought that I would ignore my blog today because I am writing a book on a system that will help all types of advertising and marketing communications agencies improve how they run their new business programs. My goal is to write a book that is so brilliant that YOU will have to buy it because the agency down the street bought multiple copies.

However, my goal on focussing on the book has been thwarted. I was surprised to wake up to lots of incoming traffic from search engines. People, I assume advertising people, must be thinking about how to grow their agency today. Its a very powerful 2014 New Year’s resolution. And, for most agencies, one that will unfortunately fail.

There are lots of reasons that advertising agencies do not run optimized new business programs. ADHD Rules.

The most often cited problem is inconsistency. You know, the on and off again program where agencies get the machine cranked up only to fall behind a few months later. Its kind of an ADHD thing. Why are so many agencies scattered and inconsistent? There are lots of reasons, but let me state a few that I will address over the next few months.

  • The CEO is not involved and does not look or act hungry. She is not leading the charge and has not made business development an agency priority.This leadership failure – its a big one – will drive down agency motivation and will make the best agency employees seek greener pastures.
  • The agency does not have a business development plan. Most of the agencies that do not have a business development plan don’t even have a business plan. WTF?
  • The agency is so busy with current clients that they have not made the time for new business efforts. This is really really bad news. Most agencies will loose AOR and project clients this year (I am certain that this will happen.) Starting up the new business machine when you are spiraling down is absurd. The sales cycle is simple too long to wait.

There are more reasons.

Some are people related like having the wrong business development director (or poorly written compensation plan); or they are outsource-related like handing your new business program to a third-party  and hoping for the best or praying that a poorly planned agency blog will simply draw in the most desirable clients because what you write is so compelling and different. My bet is that one quarter of all agency blogs are not based on a strategic content plan. I think that reviewing agency blogs in an industry that thinks that their under-planned blogs will lead to “win without pitching” scenarios should be revealing, instructive and entertaining.

OK, enough spewing. I am going back to writing my book. Today I am working on the agency compensation chapter. It might just be one of the drier chapters but, at the same time, one of the most important. So, as 2014 stimulation I offer…. a compensation mantra for our first day back.

“Show me the money!”

Oh, and call me, I have a plan for helping you get the money you deserve.

While you are at it… Don’t miss any of my brilliant (LOL, but I mean it) thoughts on new business.

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Great 2013 Music (Not Advertising)

Peter · December 20, 2013 · Leave a Comment

Here are some of my favorite bands of 2013. From London to Minneapolis to Brasil.

Listen and dig deeper into their world’s.

Oh, and a major shout out (yeah, I know) for the BEST music show on TV: Jools Holland & Later. 43 episodes of totally kick ass music.

Oh, back to the music… Play these videos for your kids. Please. Um, age appropriately… Mensa that is.

London Grammer. Lovely. Song #2 is fantastic.

Vic Mensa. Some Chicago for you. OK, LA. CK out the yellow Ford Bronco. My goal? Get my second (red.)

Low. From Minneapolis. Thanks again to Seattle’s KEXP for the videos. What radio is about.

Boogarins. 1960’s acid flashback music from Brasil. Cool, right? And just in time for the World Cup.

Elephant Revival. Colorado.

XXXOOO to all of my readers & Happy Holidays… Buon Natale!

Droga, Esquire And An Advertising Industry Take-Down

Peter · December 10, 2013 · Leave a Comment

drogaIts my guess that the profession of “advertising” is slightly more loved by Americans than “Congress.” It is therefore fascinating that David Droga, an advertising industry superstar (according to the people that make these pronouncements), has chosen to use his access to Esquire Magazine’s Best and Brightest series to tell the other people in his industry that they are lazy. L A Z Y. Cool! And, speaking for the advertising industry, thanks so very much.

I’ve read Droga’s “Where Advertising Will Go Next” a couple of times. I’ve been trying to assess the value of his spew. I can’t seem to find much in it beyond enjoying his art of self-promotion. Lets parse some of the key Droga thinking. Here are the article’s section headlines and my perspective.

The Strongest Story Wins

Droga says that today’s advertising “is more about interruption and intrusion than compelling narratives or a good laugh.” He says, advertising agencies don’t add value. If anything, agencies often take it away.” OK, I’m sorry, is there news here? Have I missed over 70 years of interruptive radio and TV advertising? Did viewers ever want leave their programming to go to a commercial break? And, speaking for the industry, thank you for alerting all of us to the idea that delivering a compelling story is a good idea.

Surprise, Advertising Works When Its Relevant.

Droga rails at today’s lack of creativity. He says, “The ingredients for great advertising haven’t changed since the Mad Men era: Brands win if their advertising is relevant and people like it.”

The fact is most advertising has never been great or even very good, or worse, effective. OK. I’ll give the industry a break and say that 50% is good. We also know that 50% of all advertising dollars are wasted. I’ve always agreed with that ratio and am not sure that the times have changed. So, David, where is the news here?

“No industry works harder at being lazy.”

Why is 50% of all advertising wasted? Droga tells us its because,

No industry works harder at being lazy.

Droga says he can tell the difference between the 50% of advertising that works and the 50% that doesn’t — and, guess what, his Droga5 advertising is in the top 50%! Obviously, Droga5 ain’t lazy. Cue the real reason for the article – its in my last sentence.

Back to the the lazy point. Are lots of ads ineffective because Creative Directors are lazy? No. Its because only 50% are really good at creating compelling, relevant advertising.

I’ve been doing advertising at multi-nationals, my own agency and as a client for 30 years. Creating less than optimal advertising has never been about being lazy; It’s always been about talent. In my experience, most of the people I’ve worked with in advertising have been hard working high-energy types. However, as is the case with all creative endeavors, some Creative Directors are talented and some aren’t. But, in my experience, talented or not, they’ve all worked hard. Lazy? No.

David Versus Goliath (Spoiler Alert: David Wins.)

Droga’s David vs. Goliath rant (essentially that big multi-national agencies suck) has been going on since the mergers of early 1980’s. Do we need to hear more about this internal industry battle? Some clients want and think they need big, others don’t. Are there geniuses at large agencies? Yes. Are there lazy losers? Yes. Ditto for many medium sized agencies.

Figure Out Mobile. Now.

Finally, Droga wants us to please figure out mobile marketing…. Sure thing Dave, coming right up.

Can you spell “duh?” Of course we need to figure out mobile, but we’ll at best get mobile 50% right (only got TV 50% right so far), so be cool. Unfortunately for the ad industry, mobile is about communications and applications and TV is about entertainment. Neither of these mediums have ever been primarily about “advertising.” By the way, has Droga5 figured out mobile? Has it?

PR Rocks

My ultimate takeaway from this Esquire piece? It’s a good “ad” for “Droga5. It will get them more attention from prospective clients (despite talking down to Esquire’s audience and buggering all other agencies) and it proves that Droga5’s PR works at getting ink.

But, did Droga present any new, big ideas? Really, any? No. Did he add to the perception that the advertising industry is lame? Yes.

Thanks, buddy.

____

By the way, I’d rather be Sam Kinison than Droga… Go check out a real good laugh.

While you are at it… Don’t miss any of my brilliant (LOL, but I mean it) thoughts on new business.

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The Advertising Agency Model, New Business, Pitches and CMO’s

Peter · December 6, 2013 · Leave a Comment

displayOnce again some great data on what CMO’s think about advertising agencies and the pitch process from pitch consultant Avi Dan. Head over to Forbes to see the article, “What are 10 great ad agencies of 2013 according to CMO’s?”

Avi conducted an online survey in November, 2013 with 1,850 CMO’s to determine their ranking of leading advertising agencies and to get insights into their views on what it takes to win a pitch. While its nice to see my hometown boy Wieden + Kennedy be ranked as the best agency, I don’t find this information that useful. Maybe it is to a top 100 brand but it isn’t to the other 10,000+ clients out there or the other 4,000 agencies. [Read more…] about The Advertising Agency Model, New Business, Pitches and CMO’s

Advertising Agency Business Development Is Hard Work

Peter · December 3, 2013 · Leave a Comment

If there is anything I’ve figured out in my ad career is that business development is hard work. But, working hard at business development works. Here is what I did yesterday and what it netted.

agency-graphic-300x160I woke up to see that a new guest post of mine was published on the website Business2Community. I wrote the post during the weekend. I chose to post on Business2Community because at a score of 82 it has high domain authority and this authority gets passed on to my own website when I include links in the guest post (read about domain authority and why you want it at MOZ.)

My post, “6 Critical Sales Mistakes Advertising Agencies Make” was targeted to  the advertising and small business communities. Because of a B2C business relationship, my post was also published on Yahoo! Small Business (just imagine the power of Yahoo!’s domain authority.)

In addition to Business2Community, I’ve guest posted on AdPulp, The Advertising Week Social Club and Agency Post (see some links below.) A new post on Talent Zoo is next. Now that I’ve developed some street cred, I’ll soon approach the ad biz website holy grails of ADWEEK and AdAge to see if I can write on ad agency business development for them. They both have very high domain authority and obviously high readership in the ad community.

After my post was published, I followed up with Tweets to my Followers, RT requests to some of my more Followed friends and direct requests to friends asking for article comments. I wanted to generate some Internet juice.

The Net?

I received a bunch of retweets, comments on the article that are slowly streaming in because Business2Community reviews the comments, a very good day for unique visitors (any day I get over 250 uniques to my narrowly focussed website is a good day) and these visitors hit the pages that were linked to within the guest post. According to Google Analytics most of these are new visitors. So far, today is tracking to be another good day for me to make new friends care of B2C.

The Real Net?

The reason for working hard at business development is that it delivers work.

I got 2 new leads from potential advertising agency clients. 2 is good. I close most active leads.

I’ll be writing more about guest posting since I am a believer. Oh, here are the links to some guest posts that show just how hard this stuff is.

AdPulp.

Advertising Week.

Agency Post.

Need help with your business development strategy and program? Need a kick in the butt? Give me a shout.

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