How To Build An Effective, High-ROI Advertising Agency Business Development Program
Start Here. Ask Yourself: How Is Your Marketing, Digital, and Advertising Agency Business Development Program Going?
What do I mean? Are you getting the leads you want? Are these clients high margin? Do they want great thinking, media planning and creativity from you? Might they be long-term? Do they look cool on your client list?
#1: Tough News From the 2024 RSW/US Agency New Business Report
RSW/US asked agencies: “How Difficult Is Obtaining New Business, Compared to Last Year?”
58% of agencies found it harder to obtain new business in 2023, and 38% of ad agencies reported a decrease in new business opportunities in 2023, up from 26% in 2022.
#2: My Second Book On How To Run And Grow A Kick-Ass Advertising Agency Is being bought by your competitor down the street.
If you want to run a kick-ass advertising, digital, or whatever you call your agency business development program that stands out, makes more money, and is happy, then buy my new book. Its 27 chapters cover every aspect of agency management (including staffing issues), business development, and building critical personal branding. Go here: “How To Build A Kick-Ass Advertising Agency.”
Advertising Agency Business Development Strategies and Tactics
This is an update to “How to Build A Winning Advertising Agency New Business Program.” Your competitors have read it over 50,000 times.
Advertising agency business development is a 24/7 operation that requires the right agency positioning, strategies, action, and efficiency. I help my agency clients get there faster by building them a custom, efficient business development plan. A plan that they will run 24/7.
The post’s popularity is due to three key factors:
1. It directly addresses a major marketing pain point: how to build a winning and efficient advertising agency business growth plan.
2. The post is well optimized for search engines, delivers high value, and, therefore…
3. Google loves it. FYI, my number two trafficked post is, “How To Name Your Advertising Agency – Part One” at 30,000 + views. While always rethinking their website, advertising agencies also obsess about their name. By the way, the How to Name post is also a very good cheat sheet on naming that you can steal if a client ever needs a new brand name.
Your Competiton Is Growing – Be Unignorable
Your potential clients have over 4,000 marketing communications ‘agency’ options (other agencies, new consultancies, freelancers, even your ex-creative director…).
Therefore, any form of business development passivity on your part – sucks. If you think you are doing everything right, you probably are not. How can I say this? I never thought that all was well whilst running business development at Saatchi & Saatchi and when I owned my own west coast agency.
A critical message about not being unignorable… Watch this. I built it for my friends at AAR Partners, the leading ad agency search consultant. By the way, I read this thinking about consultants, “34 Advertising Agency Search Consultants“.
OK, Let’s Go… The 24/7 Business Development Plan
I moved from New York to Bend, Oregon, in 2002 to buy a very successful advertising agency (and raise a family 20 minutes from a ski lift).
Citrus grew to add a Portland office and national accounts including Dr. Martens, Harrah’s, Leagalzoom, Nike, Providence Health & Services, the Montana Lottery, and the UN.
I woke up every day as if a client like Nike would walk out the back door along with its revenues. I bet as an ad agency owner or manager you have rough nights too. One of the things I knew I could and should do was to manage this back-door issue was to have an active, I stress active, new business plan in place.
Here are some (I stress some) of the elements of my marketing plan. They helped me grow Saatchi & Saatchi and my agency Citrus. I hope my insights help you grow your agency.
Execution Rules.
When I set out to write this advertising agency new business post I didn’t think that it would be this long – a warning to the ADHD types. However, advertising agencies’ new business planning is complex and becoming more complex every day due to the rapid changes in our industry and technology. That said, the devil in business development, you know what’s coming, is in the detail. Success is all about execution.
For example, running a successful inbound biz dev program that attracts market attention must be based on a sound strategy and smart agency process if you want to run a 24/7 sales program. Staying the course is critical.
OK. OK. Help Me ChatGPT. Here is a quick FAQ that my buddy Chat created to help you understand the core elements of this missive.
What are the key elements of a successful advertising agency new business program?
- Strategic Positioning: Define clear business and sales objectives, including your agency’s unique value propositions like media expertise or demographic specializations (e.g., mobile advertising, Gen X marketing).
- Proactive Business Development: Employ a dedicated Business Development Director to lead client acquisition efforts, ensuring alignment with agency goals and maintaining regular prospect engagement.
- Inbound and Outbound Marketing: Implement a balanced strategy with targeted content marketing (blogs, white papers) and smart use of social media platforms to generate inbound leads. Complement this with aggressive outbound tactics like cold calling, personalized emails, and strategic ad placements.
- Client Acquisition and Retention: Focus on acquiring clients through thoughtful qualification of leads, engaging pitches, and effective management of proposals and pitches. Post-acquisition, ensure smooth transitions and high client satisfaction to foster long-term relationships.
- Continuous Learning and Adaptation: Regularly update the business development plan to reflect market changes and internal growth goals. Utilize tools like CRM systems to track progress and optimize strategies based on data-driven insights.
How can an agency maintain continuous new business growth?
- Consistency in Marketing Efforts: Regular updates and interactions via high-value emails and social media posts ensure continuous engagement with potential clients.
- Leveraging Thought Leadership: Establish your agency as a thought leader by narrowing your focus to specific niches or industries, thus standing out from the competition.
- Utilizing Advanced Tools and Analytics: Keep track of all marketing and pitch efforts through detailed analytics to understand what strategies work best and adjust accordingly.
What are common mistakes to avoid in agency new business development?
- Overextending Without Focus: Avoid trying to be everything to everyone. Specialize in certain areas to differentiate your agency from others.
- Neglecting Business Development Culture: Ensure that business development is ingrained in the agency’s culture, with all team members actively participating in growth activities.
- Inefficient Use of Resources: Focus on quality over quantity in marketing efforts to avoid wasting resources on unqualified leads or ineffective strategies.
Back To Me: The Advertising Agency Business Development Plan. First Things First.
I have never been able to construct an effective business development program without first having an agency business plan.
The business plan should include (at least):
- Your agency’s business and business development objectives
- An assessment of your current strengths and weakness (I have all of my clients do an internal SWOT analysis)
- A competitive agency positioning (specialization is a good thing)
- An analysis of your space in the world – as in, why would a client hire you?
- Clear target market objectives and target market personas
- A service plan (it might mean adding new services)
- Your inbound and outbound (think Account-Based Marketing) plan
- The very important objective of running unignorable messaging
- A dedication to being consistent and efficient – as in having a process
Your business plan should also help you plan for your future in the evolving world of marketing communications. I think that client confusion with the evolving state of advertising and marketing – this includes big and small clients – makes today a great time to be an agency. Winning agencies are resolving their business challenges, crafting the right services and guidance, and, importantly, are willing to modify their business model to avoid disruption to achieve success.
It is also imperative that you develop a roadmap for how to grow your current agency to become the agency of the future. The market, communication platforms, and client expectations are changing rapidly. Assess your current strengths, weaknesses, and how your agency expertise and personnel are going to stay ahead of change (do an annual SWOT analysis).
Change can be very profitable. What if you could restart your agency using a blank sheet of paper? Would you build a replica of your current agency or would it look dramatically different? If you think that change is in order, you better get started. Here is a powerful mantra from General Eric Shinseki.
“If you dislike change, you’re going to dislike irrelevance even more.”
The Agency New Business Program – Join The 34%
Armed with your business plan you can get ahead of your competitors by having a comprehensive new business plan. Most agencies do not have a plan. Get this industry research…
66% Of Advertising Agencies Report That They Do Not Have a Business Development Plan. This Is Lunacy!
Your plan should include most, if not all of the following: [Read more…] about How to Build A Winning Advertising Agency Business Development Program
