Insights

Advertising Agency Process and Profitability

February 27, 2022 By Peter Leave a Comment

Get This Right – Your Advertising Agency Process

Warning: While not as sexy as a new TikTok marketing plan, this in-depth 3,500-word post is all about creating and running a killer advertising agency process that will help your agency make, here it comes, more money. Process, as in managing and controlling your time, costs, and being efficient will deliver greater profits — and much happier clients and staff.

Process, having a process, is one of the key elements of my business development and client management consultancy. I get into the weeds on this every day with my clients. You cannot be efficient and a money-making machine if you do not have a clear path – a plan that you repeat for each client and every element of your agency sales plan.

By the way, if this post is too long for your online perusal, I’ll send you a PDF version. Just email me at peter@peterlevitan.com

Process = Big $$$$

A bit of background. When I worked at Saatchi & Saatchi one of the accounts I ran was Northwest Airlines. At that time, a time when airlines spent big bucks, their media budget was $60 million per year. At the standard 15% commission, we generated $9 million in agency revenues. $9 million! Ah, the good old days. Days when an agency minted bucks even if some of our processes were a bit wanky.

This isn’t the case anymore.

Today, process: the art and science of managing client relations, agency staff, expenditures, and time, is critical to profitability.

A Wonderful Advertising Agency Process Plan = $$$$$

I have a Texas advertising agency client that isn’t anywhere near as profitable as it should be. Their problem isn’t having the right clients or clients that want great work, or clients that spend money. Their problem is not having the right workflow process to ensure that these clients are profitable.

And, worse, because the agency appears to be always overworked, they don’t have the time or energy to run a smart and consistent new business program. A 24/7 program.

I built this client process plan for them and thought, why not share it? To protect the innocent, this full-service ad agency has been renamed… Wonderful Advertising. I think that these general principles and actions can be applied to any communications agency type.

The Wonderful Agency: Background

Wonderful is an integrated marketing communications agency based in Dallas. Wonderful describes itself as (from Wonderful’s Twitter profile):

“A full-service advertising and marketing agency blending traditional and non-traditional media with digital services, graphic design, and social media.”

A bit boring, but at least they’ve made a statement.

Wonderful: Management Issues

Wonderful is entering a next-stage business phase where it would like to add larger national clients to its roster. In order to do so, it would like to set up client management systems to improve its workflow efficiency and improve and manage its client relationships, and most importantly… increase agency profitability. The agency must also build a business development system that will help them entice and land the type of clients that they need for agency growth. [Read more…] about Advertising Agency Process and Profitability

Advertising Agency PR 1.0

February 20, 2022 By Peter Leave a Comment

How To Drive Advertising Agency PR – As In Getting More Fame

Imagine that your advertising agency is so unique, so well positioned, so good at messaging, so unignorable that it stands so far out from the vast pack of other agencies that your agency gets press and praise from Advertising Age, ADWEEK, The Drum, Marketing Week, Fast Company, and Forbes. And the trade press that your future clients read.

Do it and you’ve hit the advertising agency PR jackpot. A jackpot that gets attention. This is way cool since, in New York alone, WINMO says that there are over 1,500 advertising agency options. And your agency is just one of them and needs to be found – not easy. PR helps getting found. I know, I know you know this. But… are you getting found?

Now imagine the New York wine market where the New York Daily News estimates that wine buyers have themselves over 1,500 wine store options to choose from. A similar marketing and advertising clutter problem to the agency world.

How Orange Wine Kicks It

I was in New York’s lower east side this month and stumbled upon the wine shop Orange Glou. A shop that is so unique, so well positioned, so unignorable that it stands out from the vast pack of other wine shops. In fact, so special that they have received praise from The New York Times, Saveur, Food & Wine, Punch, Money, and Fortune. Even local New York TV (see the video below.)

From The New York Times:

In November 2019, Doreen Winkler started selling orange wines by subscription. Its success led her to open a wine shop specializing in the wines, which are white wines given enough skin contact to add a ruddy blush to the color. Orange Glou, the shop, is opening Friday with 100 different wines from many regions priced from $19 to $99. She points out that these “exciting” orange wines tend to be low in alcohol and great with food. Her inventory also includes some pet-nat bubbles. She said her audience tends to skew younger, under 50, and she’s pleased that chefs are among her fans.

Why Wine And Advertising Agency PR?

Why point out the success of Doreen and Orange Glou? Because Doreen has accomplished what many advertising agencies seek. She has a specialized passion; is a recognized expert; knows how to market her product; gets national attention and is clearly an expert at knowing how to drive PR.

Orange Glou’s press page has some, understatement, cool publications that help drive Orange Glou awareness.

What Can An Advertising Agency Do To Drive Awareness?

Here is a quick list of actions that you could take to get that “free” PR action. No this isn’t easy. But if you try sometimes you will get what you need. [Read more…] about Advertising Agency PR 1.0

How To Get On Page One On Google

February 11, 2022 By Peter Leave a Comment

Four Ways That Got Me On Page One On Google

There are thousands of blog posts about how to get on page one on Google. I did the right stuff and am on #1 for many of the search terms that my advertising agency clients search on – see the image over there. Go ahead and click on it.

Why is being on Google’s page one important (yes, an LOL duh coming):

From Search Engine Journal:

Over 25% of People Click the First Google Search Result

A study of billions of search results finds over a quarter of Google searchers click on the first organic result.

Here is just one more blog post about getting that number one position because I have the number one position for people searching for my expertise: “advertising agency business development.” And, other related terms. And… yes, you should aim for this as well.

Here is how I did it.

I’ve cranked. I have written 810 blog posts since 2012 about, you guessed it, advertising agency business development that is targeted directly to agency decision-makers. I have been very focused. I give lots of useful information out for free – read it here. People like that.
I am a good writer and even have my well-read, best-selling book The Levitan Pitch. Buy This Book. Win More Pitches. to help me look like an expert/leader and get me even more street cred.
I use the right keywords. I study my market, their needs/wants/pain points, and (importantly) what works for my competitors. I use tools like Ubersuggest to help me make my keyword and subject decisions.
I point to my blog posts on LinkedIn and Twitter. And, if you do a podcast like my Advertising Stories, the podcast world will find you too. I am also a guest on lots of marketing podcasts that point back to me.

That’s it. Yes, it helps that I started this blog in 2012 before like trillions of blog posts hit the metaverse. But, you can do it. Yup, get on page one on Google. Be patient.

Be savvy, focus on your audience, be keyword smart, write well, and be consistent. Oh, add value to the universe.

All of this activity begets incoming agency leader inquiries.

But you??? OK, do some account based marketing too – if you do not have 810 blog posts. Like a lot of direct marketing.

The Advertising Earth Is Flat

February 10, 2022 By Peter Leave a Comment

Yes, The USA Advertising Earth Is Flat

From Scott Galloway’s newsletter, a chart about the “high intelligence” of Americans. OK, get this, many think that the earth is flat. That’s 1/6th of y’all. That’s 55 million Americans.

If any of these 55 million are your advertising/marketing targets, you’d better figure out a really cool and compelling message for them. A message based on, that reflects, how they process information.

David Ogilvy Knew That The Earth Is Flat. Um…

Here is the famous quote from Ogilvy on not underestimating the “consumer”.

“The consumer isn’t a moron; she is your wife. You insult her intelligence if you assume that a mere slogan and a few vapid adjectives will persuade her to buy anything. She wants all the information you can give her.”

So, What To Do? Matzo Anyone?

I like the information point of Ogilvy’s quote. And, this is where your agency’s creativity comes in. Can you craft the “information” message to cure, or even leverage, the idea that the earth is flat? Hey, why not go after the Streit’s Matzo account. I think that the ad copy could write itself.

Of course, you’d have to deal with the fact that 98% of matzo eaters know that the earth is round.

Oh, is the Metaverse round? From Ogilvy itself…

The Perfect Advertising Agency Pitch

January 21, 2022 By Peter Leave a Comment

How To Run A Perfect Advertising Agency Pitch

Avi Dan followed me as the guy running Saatchi & Saatchi Advertising Worldwide’s business development program (and, I think did a better job than me as by the end of my tenure all I could think about was the growing Internet space). Avi just wrote the following article on LinkedIn about the subject of the good, bad, and ugly advertising agency pitch. I thought that I’d respond a bit to his thinking because I wrote the New York Times best-selling book on how to run the world’s most powerful, new business-delivering ad agency pitch.

From Avi’s bio… “Avi Dan is a columnist for Forbes, a former CEO and board member of 3 major agencies, and a highly regarded agency pitch consultant. By his own estimate, he has been involved in over 200 pitches in the past 30 years.”

From Avi…

Q&A With A Pitch Consultant: “Don’t Hire The Agency That Inspires You, Hire The Agency That Is Inspired BY YOU”

In 2019, the year right before Covid, a Morgan Stanley analyst had reported that a record $35 Billion of advertising spending was up for review. That was almost more money hanging in the balance than the amount under review during the previous two years, combined. With the economy picking up now, advertisers are, once again, rethinking their agency relationships. Ad Age had recently reported that one-third of all advertisers stated that, they plan to put their business into a pitch.

Peter: One-third? Crazy. This really can only mean one of two things. Either advertising agencies are doing a shit job or clients have no clue what they really want from their agency. A smart client should be able to get smart thinking and service out of their own — current — agency. I have been an agency owner and a client. Good clients know how to manage their agencies. Well, most. It is absurd that one-third should think they have a failing relationship. Too high.

Q: Why do you think there are so many reviews lately?

A: If those numbers tell you anything, it’s that, advertisers aren’t happy with their agencies, even the good ones. For example, Wieden had lost KFC and Droga5 had recently lost IHOP. Marketing is much more complex these days, and very few agencies are capable of evolving fast enough to keep up with the needs of their client. What’s surprising isn’t that so much is in review, but, that it didn’t happen sooner.

Peter: Avi says… “very few agencies are capable of evolving fast enough.” OK, possibly true for many. But not Droga5 and Wieden. These best-of-class agencies are just too good, big and well-managed. So, I’ll point to clients as a failure point. By the way, how can anyone be expected to dramatically increase pancake and waffle sales during a pandemic?

Q: How are pitches different now?

A: The briefs for pitches that we see coming through to us now, are more transformational. Clients are deep into the digital transformation, and so is the consumer and the media. Technology, cloud services, eCommerce, data, and virtual CX are becoming critical issues for the enterprise.

Peter: The marketing world has been way about the idea of digital transformational since I left Saatchi in 1995 to put major newspapers online (and invent website advertising – yes, I did that) or in 2000 when my company Activebuddy invented interactive chatbots including SmarterChild and commercial bots for clients like Radiohead. Is Avi saying that the zillions of agency people that live and breath digital do not understand transformation? Could they be worse at it than a marketing director at IHOP? Side note. I have been a consultant in a few advertising agency pitches lately and every agency talks transformation or related subjects. How could they not?

Q: You are very critical of the pitch process. Why? [Read more…] about The Perfect Advertising Agency Pitch