Peter Levitan & Co.

The New Business of Advertising

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Me As A Sherpa Guide

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SHERPA The Book Is Almost There

Sherpa guideI chose the title SHERPA for my upcoming book because it will soon be the ultimate guide to building and running a kick-ass advertising agency.

I just asked ChatGPT for a definition of Sherpa:

“A Sherpa is a member of an ethnic group of people who primarily live in the Himalayas of Nepal. They are known for their expertise in mountaineering and guiding climbers and trekkers through the mountainous terrain of the region. Sherpas are often employed as guides, porters, and helpers by mountaineering expeditions seeking to climb the many peaks in the region, including Mount Everest, the highest mountain in the world.

The term “Sherpa” has also come to be used more broadly to refer to anyone who serves as a guide or assistant, particularly in a cultural or social context. For example, in business or politics, a “sherpa” may be someone who helps to guide or facilitate negotiations or decision-making processes.”

I’ve guided before via “The Levitan Pitch”.

Yes, I Know.

Calling the book SHERPA and by relationship, me as a sherpa guide might be a bit much. But, hey, it is my book. Stay tuned.

 

Solo Design Agency Makes More Money Than Ad Agencies

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design agencyThis Solo Design Agency Kicks Ass

The design agency Designjoy, a solo practitioner, has a much higher profit margin than most agencies. A lesson for advertising agencies follows.

I am writing a new book about how to build and run a kick-ass advertising agency. An important chapter discusses how an advertising agency can productize its services. To, yes, make more money at a much higher profit margin. Lots of ideas. But, here is a big one.

A Bold Productization Idea… Subscriptions

The design agency Designjoy offers design as a subscription. A design product. Billing starts at $4,995/m.

This one-man shop has reported annual recurring revenues of over $1.5 million. From Brett Williams’s LinkedIn profile:

Designjoy is a one-person premium design service currently serving 40+ clients with a + $1.5M ARR. One guy.

On his website:

        A design agency with a twist.

        Apps, websites, logos & more.

From his FAQ:

“Why wouldn’t I just hire a full-time designer?

Good question! For starters, the annual cost of a full-time senior-level designer now exceeds $100,000, plus benefits (and good luck finding one available). Aside from that, you may not always have enough work to keep them busy at all times, so you’re stuck paying for time you aren’t able to utilize.

With the monthly plan, you can pause and resume your subscription as often as you need to ensure you’re only paying your designer when you have work available for them.”

Big + Big Design Agency Numbers

Brett’s solo Instagram has over 74K Followers. 35K Followers on Twitter. The mega-agency VMLY&R has 57K followers and, get this, 16K employees.

Now the very serious stuff. From a 2023 Tweet at @designjoy:

“Just started tracking my spending habits and budgeting. Designjoy now costs less than $400/m to run. That’s it. That’s my overhead. And half of that is a Shutterstock subscription. Agencies are doing it all wrong.”

Yikes.

Wait. Wait. There’s More $.

You can now dive into Brett’s Productize Yourself course for $99. Of course, you should sign up your design agency, or any agency for that matter, for his productized course.

SmarterChild Beat ChatGPT by 22 Years

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ChatGPTAs BuzzFeed Said About SmarterChild… (way before ChatGPT)

From BuzzFeed 2013: “50 Things That Look Just Like Your Childhood” – “A chat with an online robot”

Did you play with SmarterChild? I was one of the founders and CEO. Was nice to be part of the Internet’s childhood.Who knew then that ChatGPT was coming?

Here is a start-up video … 2000… (Microsoft eventually bought us – ActiveBuddy. And, now they own a chunk of ChatGPT) Yes, that’s me.

Advertising Agency Thought Leadership Distributition

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How To Distribute Powerful Advertising Agency Thought Leadership

advertising agency thought leadershipI am writing a new book about how to build and run a highly profitable advertising agency. Chapters of the book cover the art and science of developing impossible-to-resist, as in unignorable, thought leadership as an account-based marketing and inbound tool.  Here is a quick list of advertising agency thought leadership distribution platforms. You can see more advertising agency resources right here.

Note that anything you produce can be efficiently sliced and diced and put on other platforms. Think content amplification.

13 Advertising Agency Thought Leadership Distribution Platforms

  1. Your website. In a blog post or via a downloadable white paper, webinar offer, or podcast page. The advantage of a PDF offer is that you can ask the interested party for their contact information. Gently, please.
  2. Your company newsletter. Build the list via website offers and gentle outreach. I’ve employed contractors in the Philippines to help build mailing lists.
  3. LinkedIn. Three basic opportunities: 1) Post on LinkedIn (note that LinkedIn loves video). 2) Put your thinking in LinkedIn groups (for example I am a member of Digital Marketing – 2 million members). 3) Use LinkedIn Navigator to make direct connections.
  4. Publish a LinkedIn newsletter. Your connections and followers will be invited to subscribe, and LinkedIn will alert your network whenever you publish new editions.
  5. TikTok. TikTok has become a new gen search engine. It is currently an underutilized ad agency universe.
  6. Video platforms. Australia’s Tiny Hunter agency has over 210 videos. They tell me that the videos help them close deals with the right new clients (right is the operative word), client types that spend time watching Tiny Hunter’s advice. The agency’s founders are more about closing the deal than racking up huge indiscriminate view numbers.
  7. Audio platforms. Build and distribute your own podcast then transcribe it into bite-sized content and roll it out.
  8. Leverage OPA = Other People’s Audience. Guest blog. Guest podcast. Why work to build an audience when you can borrow it?
  9. Paper: Zines and, yes, old-fashioned letters. Hmm, or a targeted very cool (has to be cool) postcard series. So, 1986. However, so 2023 clutter busting. Paper breaks through
  10. Write a book. Both paper and digital. The ultimate proof of expertise. Go self-published. There is no need for a time-consuming traditional publisher to write that B2B book.
  11. Advertising. You use advertising to generate awareness for your clients, right? See What LONDON Advertising did.
  12. Conferences. Go where your next client hangs out. Give that insight talk and make friends. Hand out that book.
  13. Doughnuts? My agency once delivered insights directly to prospects in Portland and San Francisco using a customized and personalized Krispy Kreme box. Free doughnuts to grab attention. The box delivered awareness, actionable insights, and the offer to get some recently launched Krispy Kreme stock. It made us friends.
  14. Write and produce your advertising agency thought leadership and get it out in the world to the right clients. They will love the good stuff.

More to come… in the new book.

Will AI Kill The Advertising Biz?

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AIWill AI Kill Advertising?

I asked ChatGPT… “Will AI Kill The Advertising Biz?”. Here is the answer:

“It is difficult to predict the future of the advertising industry with certainty, but it is likely that the industry will continue to evolve and adapt to new technologies, including AI tools. AI has the potential to greatly improve the efficiency and effectiveness of many advertising and marketing tasks, such as targeting and personalized messaging. However, it is also important for the industry to consider the ethical implications of using AI and ensure that its use is transparent and respects the privacy and rights of consumers. Overall, it seems likely that the advertising industry will continue to exist and play a significant role in the economy, but it may look very different in the future as a result of the adoption of AI and other new technologies.”

OK, not feeling so bad.

Next Question

So then asked about my consultancy…

“Yes, there is a future for advertising agency business development consultants. As the advertising industry continues to evolve and become more competitive, agencies will need expert guidance on how to grow and expand their business. Business development consultants can provide valuable insights and strategies for increasing revenue, attracting new clients, and positioning the agency for success in a crowded market.”

OK, not feeing bad too.