New Business

Advertising Age and The Future Of Advertising

Peter · January 25, 2016 · Leave a Comment

The Future of Advertising

Advertising Age recently ran two very interesting and insightful articles about the current and future state of advertising. It’s that time of the year.

In Part One, I offer my take on what I think are the most salient points in The Industry Speaks: 2016’s Top Priorities that delivered a range of industry leader perspectives on issues and opportunities. I’ve edited the original copy and briefly discuss what it means for you Ms. Advertising Agency CEO.

Part Two comes later this week. I’m feeling too cluttered right now.

One big takeaway… clutter. Advertising clutter, technology clutter, social clutter, content clutter, SEM clutter, even personal blog clutter and on.

Article 1: The Industry Speaks: 2016’s Top Priorities

“What’s the No. 1 issue that the overall marketing and advertising industry needs to deal with in 2016? Advertising Age surveyed executives from throughout the business, and heard a surprising range of answers.

Jeff Charney, CMO, Progressive

Everyone’s so concerned about ad blocking and time shifting, but we see a very different threat. Everybody is flooding the web with their own content, hour-by-hour, minute-by-minute. We’re not just competing with our top competitors, or even other brands outside of our category, we’re competing with people’s friends, mothers and self-made celebrities on YouTube, Facebook, Twitter, etc. And it’s just getting started.

PL: Yes!!! So much stuff. So much competition for your eyeball and ear. I am currently advising an L.A. based fashion agency and have been digging into fashion and luxury marketing trends. The fashion and cosmetics marketing world has shifted. For example, Revlon’s mindshare competition is now coming from personal tastemaker sites like The Blonde Salad — not L’Oreal and it’s Vogue ads. That was Revlon’s old school competition. But, cosmetics buyers attention is now whipped snapped by dozens of new eyeball options.

Martin Sorrell, CEO, WPP

So number one on the agenda is encouraging companies to take a longer-term, less risk-averse view of the world, predicated on the fundamental truth that marketing is an investment not a cost.

It’s clear from BrandZ analysis that investing in brands works. In the last 10 years, a measurement of the strongest brands from the BrandZ Top 100 as a stock portfolio shows their share price has risen over three times more than the MSCI World Index and almost two thirds more than the S&P500.

PL: Ah, the old argument. Advertising spend is a long term “investment.” OK, yeah, we’ve heard this before. But, Sir Martin backs it up with some facts.

Lori Senecal, global CEO, CP&B

Convention won’t challenge itself. As an industry, we need to help marketers really take control of the technology solutions that unlock opportunities to offer consumers truly inventive, additive, and welcome experiences. But clients, agencies, and consumers will only benefit – and our industry will only thrive – if together with CMOs we can control the necessary technology from start to finish.

PL: A nice wish. Will agencies control the technology food chain? No. Will some savvy agencies build their own technology? Sure. but, the agency world will not be in control.

Maurice Levy, chairman and CEO, Publicis Groupe

Mobile and data.

6 Critical Elements Of A Sales Pitch

Peter · January 18, 2016 · Leave a Comment

6 Critical Elements of An Ad Agency Sales Pitch

If there is one thing you must do when selling a BtoB service (as in your ad agency’s services; a tech solution; a great media or creative idea…) it is making sure you understand the needs and motivations of the person you are selling to when you craft your sales pitch. Sounds obvious, right? Believe me, after interviewing a wide range of clients and ad agency search consultants for my book on pitching I have to say that many agencies do not follow this golden rule. We are simply not spending enough time really thinking about the buyer and her perspective.

A Sad Ad Agency Sales Story

I had this lesson hammered home at my first media to agency pitch when I moved from Saatchi & Saatchi New York to launch the brand new newspaper website NJ.com. I figured I’d start selling the new fangled idea of internet advertising to my friends at my old agency (this was 1996). I knew the agency inside and out and had worked with its Executive Media Director Allen Banks for years. My pitch included a hockey puck graph of projected Internet usage and a discussion of digital advertising that touted our news website’s newfound ability to track how website visitors viewed and interacted with online advertising.

Sounds like a great digital media pitch, right? Was Allen smiling? No. His reaction?

“Are you f*cking kidding me? We have made a fortune not really knowing how, when and for how long consumers have been looking at our ads. I manage hundreds of millions in advertising media placement. Knowing how much of it doesn’t work will kill our golden goose.”

My point in telling you this story is that I didn’t really think through Allen’s motivations and potential objections before I delivered my early online sales pitch about tracking and analytics. I had only thought about how wonderful the Internet advertising solution was. By the way, Allen was right. The Internet sure seems like it killed some parts of the golden advertising goose.

Here’s some more advice from the world of sales…

Yes, some of these 6 elements may seem obvious (and yes, I am repeating myself) — however, I know for a fact that not everyone in your agency truly understands these simple rules. Many of your colleagues, even the folks on your new business or creative idea pitch team, probably do not have much direct sales experience.

Think like the client. The presentation (it’s a sales presentation!) must be written from the client’s perspective. What are they asking for, and what do they need and want to hear? You want to win them over, not your colleagues. This is the key reason why you have to learn about the individual clients, and if you have time, create personas for any new to you decision makers before you ever meet them.
Involve them. Don’t make the presentation one-sided. Try to involve the client in a discussion. You might be able to motivate the stone-faced clients by asking them a few questions at the right time.
Answer their questions. If the client has specific questions, stop talking and listen. Make sure you answer the question and confirm with them that you have. Think all agencies do this? I know for a fact that they don’t. Sometimes in the heat of the pitch, agency presenters will consciously or unconsciously deflect and even ignor the client’s question so that they can get on with their scripted presentation. This can be a major lost opportunity for dialog and might put off the client.
Deliver value. The client has invited you into their world. Return the favor by giving them something of value in return. In most cases, this might be a serious insight or a creative solution. This is your chance to demonstrate why this client couldn’t possibly live without you.
Be dynamic. Clients want agencies that are passionate about their work and ideas. Show your passion, and find a way to show passion for the client’s brand and/or quest. In a new business pitch, you might want to actually ask for the job.
Be different. Again, if you are in a new biz pitch, know that the other agencies that are pitching are good, smart and could probably do the job. You have one chance to look and sound different. Think very hard about how you will stand out from the pack.

6 simple rules. They work.

Head over to this link to see my post on the 12 worst mistakes agencies make when pitching. You’ll like the cartoons as well.

Pinterest Advertising Agency Directory: Help Please

Peter · January 13, 2016 · Leave a Comment

I Need Your Help: Should I Continue Updating The Advertising Agency Directory?

A couple of years ago I created a Pinterest directory site that lists advertising agencies – the ones I could find. I did it as a way for prospective advertisers to easily locate and compare agencies and as a thought-leadership-oriented-business-development-lead-generator for my consulting business.

As you can see, the directory organizes agencies by city (primarily major cities) and uses a screen grab of the agency homepage and a brief description to help visitors see the range of agencies in each town.

FYI for you thought leaders worried about the time required to thought lead: this directory was very low-cost endeavor as I had an assistant in the Philippines build it using my template and instructions.

The Help Me Please Part…

Today the Pinterest advertising agency directory has well over 1,000 Followers and I get some incoming every month from agencies that would like to be listed or have their information revised. I am going to keep the directory up – why not. However, I am just not sure if I want to maintain it beyond adding agencies that request a listing. I am not sure of its value for the ad industry – as in agencies and clients seeking an agency.

OK, one clear value for you agencies. This is a great way to study your competition in just one place. Agencies change / revise their websites every couple of years. The directory provides some great ideas worth, um, contemplating.

My questions to you.

You can answer by adding a comment below or by emailing me at peter@peterlevitan.com. Thanks.

Do you think that this advertising agency directory via Pinterest is valuable to advertisers and you?

Were you aware of it?

Any other thoughts? Things that I could do to enhance the advertisier experience?

By the way: If you are not listed, would you like to be?

That’s it. Thanks for your help.

Keep It Simple Stupid

Peter · January 5, 2016 · Leave a Comment

KISS. Keep It Simple Stupid Is One Of My Mantras

Too often advertising and digital agencies overstuff their messaging with the goal of telling future clients that they can do anything that the client needs. It goes from the idea of the full-service agency (we do ads, TV, radio, brochures, websites, SEO, content, social, PPC, and on…) to we do digital (PPC, SEM, landing pages, mobile, social, content, analytics, remarketing and on). This kitchen sink approach tends to overwhelm the agency’s messaging, reduces any sense of focus and is often perceived as mission impossible by clients who do not think that a mobile agency can also be an expert at programmatic buying and eCommerce management and — pick more.

That’s Why I Preach: KISS

Keep your agency brand positioning focused. Keep your messaging focused. Keep focussed on business development. Focus your social media and thought leadership. Focus on the type of clients you want and can get (that isn’t every client in the universe).

Speaking of KISS — Tim Ferriss’s weekly broadcast email turned me on to this story from Rhode Island’s late George Germon – a very special chef and restaurant owner. I had the pleasure of dining at Al Forno, his fantastic Providence restaurant. Read on to get a taste of the power of simplicity.

George Germon On The Power Of Simplicity

George Germon (co-owner of the famed Al Forno restaurant) recounts an experience that he says he’ll never forget. “I was visiting some people in England who had a four- or five-year-old daughter. They weren’t around, but I was in the kitchen and the little girl pulled a chair over to the stove and started heating up a pan, saying she was going to make tomato soup,” he remembers. After getting the little girl’s assurance that her parents allowed her to do so, Germon says he watched her heat some butter in the pan, then take out a knife and cutting board and chop some tomatoes. She cooked the tomatoes in the butter for about 3 minutes, and then added a little salt and a little cream.

“Would you like some?” she asked Germon, who politely replied, “Sure!” Once he tasted it, Germon says he was absolutely floored. “It was unbelievable,” he says. “I couldn’t believe that something tasted as good as it did with so few ingredients.”

Al Forno’s menu features a potato soup that’s equally simple. “It has just four ingredients: potatoes, onions, butter, and water. That’s it,” says Germon. “And when our cooks first made it, they kept asking, ‘What’s the next step?’” Johanne Killeen remembers, “They found it impossible to believe that anything wonderful could result from four ingredients!”

So… What’s your tomato?

Is There Life After Advertising?

Peter · December 22, 2015 · 2 Comments

Is There Life After Advertising? Yes.

FYI: This was originally written in 2015. As of July 2016, I now live in San Miguel de Allende, Mexico. This is one of North America’s coolest towns and I can still run my ad agency consultation business c/o the sweet waves of Wi-Fi.

December 22, 2015. Sayulita, Mexico.

This is a personal story.

I’ve been asked about life after advertising by many of my clients. And, why not. Advertising owners (my case) wonder if and how they can sell their agency and then wonder ‘what’s next?’

Ad workers see that they will probably age out of the industry by their late forties (a fucking huge problem for our industry’s brain drain that is exacerbated by the absurd notion that it’s a young person’s industry. However the BIG fact is that the margins are so slim that agencies can’t afford to pay their older employees decent salaries and associated benefits).

In other cases, people just get fried crisp or get fired and want out.

In the interest of speed, here are my two lives after advertising. If you have a few more minutes, check out my It’s Me page to read a bit more about my global and local advertising and client side Internet experience.

Life After One – From Saatchi to Internet

1995 – 2001. I left Saatchi in 1995 to work for Advance Internet, a division of The Newhouse’s Advance Publications. I was an early CEO in the reinvention of online news. I then went on to found and run ActiveBuddy. You might have played with our SmarterChild natural language bot / app.

Life After Two – From Owning Citrus to Peter Levitan & Co.

2001 – today. After SmarterChild (a long story) and 9/11 (I was fairly close to ground zero), my wife and I decided that we’d move to Oregon (Bend and Portland) after I bought the ad agency Citrus. I ran that for 8 years. I enjoyed selling it. The experience reminded e of selling my sailboat. The two best days were the day I bought it and the day I sold it.

I started this advertising agency business consultancy after I sold my agency and was asked by a couple of friends to help them craft a new business program. Citrus had done quite well. I’ve been applying my Saatchi and Citrus knowledge to help dozens of agencies build growth strategies during the past four years.

OK. What’s The Point?

I took my skills and founded a consultancy. I’m not unique. But, people love it when I tell that I can work from any part of the world (thank you WIFI and Skype). I kinda lucked into this new career, but I recommend that you do some planning because… you will have a life after advertising.

Here are some links that might deliver food for thought and guidance.

Smart Passive Income: Check out the guru on the idea of earning passive income. Pat Flynn’s Smart Passive Income is a simply brilliant how to start a live-anywhere make real-money business. He made $108,000 last month! Online! In his jammies! Ok, not that easy but… read him.

Grow Supply: Ali Mese tells you how to succeed and if you go right here you can get links to many many free tools and websites that will help you build your new business.

How To Sell Your Ad Agency: A link to my blog posts on selling your agency.

The Bottom Line?

Take my Corleone Offer and call me up. It’s an offer you should not refuse and a faster path to —– how to make the cash to get to What’s Next.