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Why Bezos Is Good For Advertising

Peter · August 7, 2013 · Leave a Comment

I worked in the newspaper industry for five years from 1995 to 2000. I started the online newspaper New Jersey Online for Advance Internet which went on to use our blueprint to build an additional 10 online entities across the U.S. (Note, I am not responsible for the design of the current website.)

I was hired by Jeff Jarvis who knows more about the business of newspapers and online newspapers that anyone in the industry. So, when I heard about Jeff Bezos buying the Washington Post, I immediately headed over to Jeff’s well-read blog, “Buzz Machine.” While Jeff hasn’t really weighed in in-depth yet, he will and I am going to follow his evolving views on this purchase. As you can see from his “Hot Off The Presses” blog post, he is “hopeful.” I am too. As an early internet publisher, I watched Bezos build Amazon starting in 1995. It was a very exciting time to watch this visionary.

I think that newspapers which have been run by ossified old white men who couldn’t get out of the way of Craigslist and all the other revenue killers, can now sit on the sidelines and watch a real leader move paper-based and online newspapers to the next level.

This will be good for the advertising industry as well.

I think that paper newspapers will be around for the next few years (my bet not much more than an additional ten.) They will continue to play a big role in our local news ecosystem as they have always provided a powerful daily platform for local advertising which online advertising hasn’t yet replaced. Many have pointed out that the Amazon machine has hastened the demise of the local retailer. That may be true. But, local retail has also been hurt by the slow death of local advertising options. Bezos may just be the guy to reverse that trend.

For another take on the Post, head over to Jason Calacanis’ piece, “Why Jeff Bezos Bought The Washing Post Six-Theories.” .

Agency Post: What Is the Publicis-Omnicom Merger Really About?

Peter · August 1, 2013 · Leave a Comment

Agency Post asked me about my opinion of the Omnicom-Publicis merger (well, me and others.)

Below is what I said and here is a link to the article…

I woke up yesterday to Omnicom’s CEO John Wren telling CNBC that the merger will result in a more ‘nimble’ agency. Really? As an advertising man who worked at Saatchi & Saatchi when it was the world’s largest agency, I can tell you that bigger is the enemy of nimble.

While the issues facing huge-to-small advertising agencies are complex, the most painful issue is the reduction in profitability that started in the 1980s. The only advantage I can see from this merger is a reduction in the new agency’s cost structure, which of course means fewer employees. Will this make them stronger in the face of evolving competition? Only if they use some of that cash to be one of the companies that is involved in the evolution itself.

North, Obama And Oregon’s Health Insurance Marketplace

Peter · July 23, 2013 · Leave a Comment

Despite the constant ankle-biting from Republicans about / against Obamacare, Obamacare is starting to roll out.

As a parent with two ex-college kids under 26 and a self-employed lifestyle, I dig the idea of this new healthcare program. The hope that we might (stress might) start to improve our screwed up health care system is also rather appealing.

Obamacare has hit Oregon with the launch of the ad agency North’s Cover Oregon campaign. Of course, there are lovers and haters. Here is an article from our Oregonian on the campaign… the comments are interesting including the ones that sound like they are from Portland agencies that did not win this highly visible campaign.

I’ll let you decide about the TV campaign (its in its early stages.) Me? I dig it. Here are two spots. Its OK to sing along. In fact, these are so representative of the Oregon lifestyle (yes, they are a bit Portlandia), that I think that they will increase the value of my house. Oh, the website is sweet too. That is, if you are a fan of simplifying a complex subject. Maybe the Republicans should read it.

https://www.youtube.com/watch?v=xVUJNEDpEkg

https://www.youtube.com/watch?v=l_LNWsVu7qQ

How to Get Rich In Advertising

Peter · July 18, 2013 · Leave a Comment

I really don’t have to mention that it has gotten harder to get rich in the advertising, design, digital and PR business. The good old days of the 15% commission are long gone (I lived it and it was glorious – Bordeaux anyone?) But, some agencies and agency workers are winning big accounts and are making big money. There are a some smart paths to get there.

Here are a five get rich ideas:

Be creative. Everyone want some creative. But first, some thoughts on being “creative.” I can’t tell you how many agencies are all about being “creative.” That’s their agency positioning (peruse my agency directory to see what I mean.) The problem with this positioning is that its universal, isn’t distinctive, is way too subjective and well, sorry to say this but most agencies are just not creative enough to live up to the promise. That said, some agencies can pull this off. 72andSunny is one of the current crop of creative agencies and they are making real money. They are helped in highlighting their creativity by showing you work for famous clients, i.e. Samsung on the SuperBowl. And, this points to a key issue. There are lots of creative agencies but because we all need that extra kick that come from having a famous campaign (you know, one that runs nationally) many of the creative efforts fail to get noticed. I know lots of small regional agencies that do creative work but don’t get noticed. So, you smaller agencies, you need to add famous to creative to get the moolah.

Be famous. Wow, this is a tough one and it could be the basis for a Seth Godin book (um, maybe it has been i.e. Purple Cow.) The deal here is that most agencies look and sound like all the other B&W heifers. Despite telling all their clients that they need some brand distinction, most agencies can’t muster this up for themselves. So, how to become famous? You are going to have to pay me for that advice. But, here is what not to do. Have a me-to agency positioning and website. Have a navel gazing agency blog. Tweet about your fun party. Spend heavily on cool offices. Have an on again / off again business development program. Don’t write targeted thought-leadership white papers, SlideShare presentations, blog posts. Don’t create a compelling agency story. Don’t build lists of prospective clients and the press to consistently beat your chest (but be cool and respectful.) Don’t have a really creative Creative Director (yikes, a tough one, Ja?.) Don’t understand the shift to mobile. Don’t work really hard to overcome the Accepted Consumer Belief that lives in the hearts minds of you target CMO audience: They don’t really care all that much about you. Unfortunate, but often very true.

Win a car account. According to Ian Beavis, Nielsen’s EVP, Global Automotive Group and ex-auto CMO: “good luck.” But, some agencies, mostly specialists, can get into the door. Do the right thing (a not me-to thing like JESS3 – see next) and you could actually begin to get awareness for your creativity. Do this specialist work in automotive and WPP just might buy you.

Own a segment. I wrote about JESS3 in February. They became famous – and a winner of famous accounts – for being focussed:

“JESS3 is a creative interactive agency that specializes in data visualization. JESS3 continues to push the limits of what creativity and storytelling mean, providing services that range from UI / UX, animation, and social media strategy to developing large-scale installations, data visualizations and infographics.”

You could pluck out a specific specialty and go for it. Why not? I’ve been writing about mobile and Vine. But, there are lots more specialties and many hit the big industry pain-points. Hey, why not just forget about winning the Honda account and become the best B-to-B agency. There is more bordeaux in that than in full-service.

Marry up. I’ve seen this one work well.

Then there is just plain hard work. As Yahoo! Finance reported in “Daily Habits of Rich People“:

“If you think becoming rich is about luck, think again. It may have more to do with how you spend your day, beginning with the hour you wake up.

Financial planner Tom Corley spent five years observing more than 350 “rich” and “poor” people, how they live, work and even sleep and captured them all in his book, “Rich Habits: The Daily Success Habits of Wealthy Individuals.” He defined “wealthy” as earning at least $160,000 annually and holding at least $3.2 million in assets. “Poor” was income under $30,000 a year and less than $5,000 in assets.”

The article goes on to mention: early risers, no long lunches, calorie counting, no gossiping and (my favorite) limited Internet.

Back to rich.

Yes, you can make a decent living (and have fun) in marketing services. But, if rich (like Internet rich) is what you want then you’ll have to have a plan. A critical element of that plan is to have, guess what, a business development plan. This, for some very hard to understand reason, is something that the great majority of agencies do not have.

I had one (at both Saatchi and my own agency) and Corleone can help you get there.

How Clients Find Advertising Agencies

Peter · July 15, 2013 · 2 Comments

I am starting a series of articles on how advertising and marketing clients find and select advertising agencies. My goal is to cover the advertising business development process from when a client first decides that they need a new advertising, design, public relations or digital agency to how they make their final selection.

Having been a global business development director at Saatchi & Saatchi, the owner of my own advertising agency and a marketing services client as CEO of two Internet startups, I know that finding the right agency is not easy. In fact, it is time consuming and a bit nerve wracking for clients of all sizes that have to make the right decision. Wrong is very costly in time and money wasted.

The first article on The Advertising Week Social Club is about Agency Spotter, a new digital solution that helps clients search for and discover the right agency for their specific requirements. Here is Agency Spotter in their own words:

Agency Spotter is reinventing how businesses find and work with creative agencies.

For every business, finding creative agencies takes significant time and is full of risk. Agency Spotter is a new start-up aiming to help change that. Our digital platform makes it much faster to find great agencies that fit your need and provides more information to help you make more confident decisions.

Over the next few months, I’ll cover the subject of advertising agency business development from the client perspective. I will review what clients are looking for, the process, the tools that clients use to find agencies (like Agency Spotter and the 4 A’s), the value of agency search consultants, how agency business development directors interact with prospects and more. Stay tuned.

My next interview in this series is on how to win a car account. Its with Ian Beavis, EVP Global Automotive Group at The Nielsen Company; former VP Marketing at Kia Motors; SVP Mitsubishi Motors USA and agency CEO for his opinions on what might work.

If you have any thoughts on subjects or people I should cover in future interviews, please send me an email – peter@peterlevitan.com

If you don’t want to wait to read all of the articles and would like to have me help you grow your agency (faster) take me up on my Corleone offer.