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Cures For Poor Advertising Agency Profits

Peter · November 26, 2018 · Leave a Comment

Cures For Poor Advertising Agency Profits

I work to provide cures for low advertising agency profits. That is my specialty. I do not get many calls from super successful, as in high-margin agencies unless they are very very hungry to expand.  I LOVE those call from the relentless.

Here Is A Key Question

Within the range of the business questions that I use at the start of an agency business development assignment, there is one simple, but revealing question:

Why do you run your advertising, PR, digital agency?

This question generally yields a somewhat standard answer…

The marketing communications industry (advertising, digital marketing, PR) is fun.

No surprise here. Marketing hits many sweet spots including working with a wide array of clients and their issues (great for advertising people with ADHD); delivering marketing that drives sales is fulfilling; the daily use unique skills; being paid for creative thinking; working with fun people; it beats owning a dry cleaner shop. I don’t usually get told that people make a pant load of money. For most ad shops, those days are (unfortunately) over.

Super high-profit days are in the past due to the move to fee-based compensation; absurdly competitive price cutting; the art of giving services away for free; incessant cost-cutting; increasing workload; increasing advertising platforms; staffing issues; the commoditization of services; claiming the impossible to own “we are creative”; not zeroing in on the most important client need of all… business results.

OK, OK, Enough!

Elemental Cures To Grow Advertising Agency Profits

[Read more…] about Cures For Poor Advertising Agency Profits

What Ad Agency Clients Want

Peter · November 19, 2018 · 1 Comment

The Client Need-Scape = What Ad Agency Clients Want

There is no single type of client. But, most clients want a similar array of attributes and deliverables from their ad agency. From an agency business development perspective, clearly enunciating that you understand the client need-scape, the what ad agency clients want from you, is critical in the early stages of your marketing.

So, What Do Ad Agency Clients Want?

I believe that although clients range from “I want to be cool and plugged into the culture” to “I need measurable incremental eCommerce sales”, they all have at least these three core needs. These are the needs that you must address in your outbound and inbound ad agency business development program.

Here’s my list. Your mileage may vary. But, I bet that you have to hit all or some of these points sooner or later.

The Need For Results – Think ROI

Many ad agencies lead with the ‘we are creative’ story. As an ex-agency owner and client, I fully understand this lead point. This is, without question, a key requirement for virtually any client that is trying to get there marketing noticed and break out of their competitive pack.

However, just saying that your ad agency is creative is simply not going to cut it. After all, being creative is a highly subjective point (like, how do you prove this to a wide range of clients – yes, awards do help) and even worse, being perceived as creative can be fleeting. Yesterday’s creative agency is quickly replaced by today’s. This happens every year. Remember when Crispin Porter + Bogusky was the hot shop?

Having a results-oriented – think ROI – positioning or just a serious and clear agency brand statement about meeting this need is a must have in 2018. Marketing is a tough game.

CMO’s come and go based on their sales success.

Procurement departments want measurable returns for less.

CEO’s want increased shareholder value and to make their performance bonus.

Owners want more cash in their pocket.

Therefore, address these results-oriented needs and pain points. At issue, is understanding your target market’s or brand’s definition of positive results in your marketing will be a bit tricky. Tricky? Yes, because the definition of results will vary by client type.

Some clients just need more qualified leads. Think B2B.

Some need measurable sales. Think eCommerce.

Some just need more targeted digital traffic. Think the travel category.

Some want engagement. Think fashion brands.

Some want to improve their image. Nike anyone?

Regardless of the type of results – clients want to hear you talk about how you know that they know that you will deliver a high return on investment. Need an example of a digital agency that gets it? Visit HawkSEM and see how they immediately message ROI. Of course, they are a type of agency that can put ROI right in your face. But, you get the idea.

Last point. Ad agency leaders worry about inroads by marketing consultancies. They should. Why? Well, one point. These guys fully understand what the ad agency client’s want…  Here is a direct quote from McKinsey’s About Us page.

We help our clients make significant and lasting improvements to their performance and realize their most important goals. With nearly a century of experience, we’ve built a firm uniquely equipped to this task.

You Have To Understand The Client’s Business And Industry

Prospective clients want to know that you understand their market, consumers and competitive landscape. They do not have much time for your education. [Read more…] about What Ad Agency Clients Want

Your Ad Agency Name And Getting Found

Peter · October 30, 2018 · Leave a Comment

Your Ad Agency Name

I am about to make two points. One is about the value of an ad agency name. The second is how to get future clients to find, notice and love you.

How is your ad agency name doing for ya? Is it memorable? Does it create some brand power? Does it describe what you do? Does it just sound ‘cool’? Does it help grow your agency?

Frankly, I do not think that a name matters that much. Sure, it probably shouldn’t be too complex, or too cute (though many are very cute) and it should be memorable in some way (there are, after all, 4,000 plus “agenceis” to choose from.)

By the way, head over to my two-part post on how to name your agency (or even help a client with their name). This post has been read over 31,000 times. Crazy!

An ‘Ad Agency Name Generator’ = Borrowed Interest To Get Found

I don’t know about you, but I get a few emails a month from people asking me if I take guest posts on this blog. This week I got a request from an ad agency name generator. I said no – but I like the website.

The ad agency name generator. Actually, it is called Business Name Generator. Like most automated web-based generator tools it is kinda fun to play with. That said, it could actually offer you some (LOL) branding ideas.

I played with the tool and came up with a few names just for you should you want to rename your agency or need a fresh one for your new gig. Here are a few for inspiration or just laughs.

I got to these random names by searching on: “ad agency”…

  • Poke
  • Woop
  • Velocity
  • Surge
  • Gorilla
  • Rogue
  • Tiger
  • Kick
  • Quicksilver
  • Ricochet

OK, I’ll stop (and, yes, some of these are already in use). Hey, go play.

Drive Traffic

The Business Name Generator tool is interesting since it is really a website designed to sell domains – not ad business names. The Name Generator is just a smart traffic generating hook. The website also has these other name generators: Blog Name Generator; Podcast Name; Startup Name; Product Name, etc. to target people looking for these other names. Of course, hopefully, once they find the name they’ll go buy the URL.

I love the idea of using a list, or relevant resources or some other form of bait to get people to pay attention to what you are selling.

A ‘Leadership’ Idea

No question: a clear way to own a marketing or brand category is to look and sound like the leader. The right name could do this (maybe not.) Blogs do this, kinda. Well, if you can actually break out of blog-subject-clutter and are willing to commit to single expert subjects. However, this takes a lot of time to get traction.

A suggestion… Build the go-to data-driven category directory – possibly a stand-alone website/microsite. Become positioned as a leader that is the category information resource. This acts as a nice magnet.

Consider doing what tiny Growth Supply does. This simple information website  delivers “All Free Tools For Entrepreneurs and Startups”. This directory get views — as a result, it has a very high USA Alexa ranking at 152,734 vs., for example, the New York agency Barton F. Graf at 348,470. By the way, what is your ad agency rank?

Think about your agency and a resource tool. An ad agancy brand that actually owns a category via an information resource a can rule.

What could it look like? Build a database marketing / brand category / industry directory & resource that lists:

  • The ultimate resource for news on database marketing
  • Industry news websites.
  • Industry events. Global and regional.
  • Industry awards.
  • Related ‘ marketing idea’ websites.
  • Review websites.
  • Industry research – primary and secondary.
  • Category advertising history websites.
  • And, on…

Keep it up to date with new listings. There is something new every week that a brand might find interesting.

Pay an intern to do this ‘fill in the blanks’ work.

Become THE resource… a resource that gets shared.

A brand that actually owns a category like database-marketing can be the ultimate resource.

Just food for thought.

By the way, I have a resource list – and it gets viewed and shared: The Big Advertising Agency Resource List.

 

 

How Do Clients Find Your Advertising Agency?

Peter · May 7, 2018 · 1 Comment

How Do Clients Find Your Advertising Agency?

Let’s start with some defining and extremely important questions that you should be asking at least twice a year. OK, every month. In this case, I am aiming these questions at your advertising agency website.

  • How do potential clients find you? What was the path?
  • When they found your website, what did they look at?
  • What percentage of your visitors contacted you?
  • What percentage made some other actions like signing up for a newsletter or downloading a white paper?
  • Are you happy? Are the right clients making contact? Need to make adjustments? What’s your success metric?

Let’s break these down a bit.

How do potential clients find you?

First, let’s get referrals out of the way. Advertising agency business development research has indicated that referrals can account for over 80% of agency new client inquiries. While I love referrals and have written about the importance of having a documented active referral strategy, there is no question that referrals have become the default new business attractor because most agencies are not doing a stellar in or outbound sales job. Referrals then must drive the majority of leads. Not that there is anything wrong with referrals. They work. But, they can be a bit random.

The easiest way to determine how prospects found you is to ask them. Of course, many people will have forgotten their first intro to your world. They simply forgot or they used multiple ways in including a search, your LinkedIn page, that conference you spoke at, your tennis buddy, etc. But always ask this question – quickly before you get lost in sales speak.

Second, in respect to your website, use your Google or WordPress analytics to see where they came from. On Wednesday, 30 April, my individual visitors came to me via Google 116; direct 47 (where a user probably entered the URL); LinkedIn 5 and Bing 1 and other 9.

These numbers suggest that my content-oriented inbound sales strategy is working. Most people find me on Google because I have dedicated the past five years to writing over six hundred blog posts on the specific subject of advertising agency new business.

What did they look at? Did you help them get to the good stuff? Do you have a funneling plan?

Using Google and WordPress analytics, I know exactly what people are looking at on this website. Obviously, since my blog is so focused on one subject, my visitors are looking at my posts about ad agency business development. I mix this up occasionally by promoting edgier posts, like Gary Vaynerchuck Is Full Of Shit. But, the bottom line is that I am slavish to one subject. Frankly, most agencies have some trouble with being this focused and keyword conscious. It would also help if they had a focused positioning. Here are some thoughts on that rather important goal.

The typical advertising and communications agency website has a defining Home Page; an About page; Our Work; News or a Blog and a contact page. Is there a flow you want the visitor to take? A place you want them to end up? Are you funneling them towards an action? If they get lost or bail, are you tracking your exit pages?

If you are a B2B marketer, and that folks, is what an ad agency business development program is, you need to funnel the visitor to your contact page. Or, at least, have them ask for something like that brilliant white paper on a subject that supports your agency positioning and sales proposition. I build my mailing list via an offer of this paper: “22 Ways To Run A Highly Profitable Agency”. I admit that it comes to you via an ugly home page pop up. But, again, hey, it works.

What percentage contacted you and what’s your success metric?

Do the basic math. How well do you convert your visitors into sales prospects? Frankly, when I look at the number of visitors I get every day, I could get worried that I am not converting as many as I should. However, here is what I know:

First, I give a lot of information and insights away for free. Many agencies tell me that they often get all they can eat just by reading my stuff. This drives good vibes.

Second, I know that my sales cycle takes a long time. Many of my clients tell me that they have been reading my stuff for over a year. It takes most advertising agencies a long time to admit that they need business development advice.

Third, I am meeting my personal sales goals. Sure, I could dial up my website. But, it works. I am a lone ranger consultant. Given your agency’s overhead, you should be way focused on delivering a website experience that drives a high volume of the right leads.

What is your success metric? Without a metric, you will never know that your website is working.

So, give me a shout. Maybe its time for you to get some outside expert advice.

 

Wowzer Content Marketing & How To Own TripAdvisor

Peter · January 23, 2018 · 1 Comment

Content Marketing Delivers London’s #1 Restaurant

This week, please watch this crazy video from Vice. Content marketing at its finest or, maybe, worst. Funny and scary.

Nonetheless, wowzer!

BIG QUESTION… If this guy can market (ok, with a bit of cheek) his way to number one, why can’t you market your agency to be perceived as number one?

(By the way… did you watch last week’s L2 video?)

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