Insights

Four Reasons For Advertising Agencies To Want A Car Account

Peter · August 14, 2013 · Leave a Comment

… And One To Help Go Get That Car

As an addendum to my Advertising Week Social Club “Dreaming of a Car Account?” interview with Nielsen’s Ian Beavis, I offer some more thoughts on why you should go after a car account.

Big Bucks

Not that you didn’t know this but these guys spend big bucks. According to Kantar Media, in 2013’s first quarter alone, automotive manufacturers spent $1,971 billion and $1,381 billion respectively on manufacturer and dealer advertising.

According to Ad Age, General Motors spent $3.59 billion on advertising last year while Toyota spent $2.86. For contrast, Hyundai and Kia spent only $776 million and $1.26 billion.

Big Media

Again, no surprise that auto accounts use all types of media, which offers agencies of all stripes the opportunity to customize services for manufacturers and dealers. According to Ads24’s most recent Path to Persuasion (P2P) Wave 4: Automotive (passenger cars), “Usually, the most effective media mixes include media formats that play differentiated roles across the Path to Persuasion.”

Big Noise

Just as a reminder… Has anyone not seen Audi’s “Prom”?

https://www.youtube.com/watch?v=ANhmS6QLd5Q

Or, Volkswagen’s “The Force” (with 58 million YouTube views)?

https://www.youtube.com/watch?v=R55e-uHQna0

Or, Kia’s “Hamster Rap”?

Or… Chrysler and Eminem?

https://www.youtube.com/watch?v=SKL254Y_jtc

Big Love

Toyota has been with Saatchi & Saatchi (nee Dancer, Fitzgerald, Sample) since 1975. Car accounts are hard to move.

“A car account always has been a rite of passage in the world of agencies,” said Jon Bond, co-chairman of Kirshenbaum Bond Senecal & Partners. “It’s like being a made man in the Mafia, but … today, you can get whacked the next week.”

Big Need

Two of the more interesting questions and answers from my interview with Ian Beavis, EVP Automotive at Nielsen and ex auto CMO point to the fact that agencies can find a wedge service into auto accounts. Go for it boys.

Levitan: A final question. Agencies have a hard time creating a competitive agency brand positioning. Any insights and advice you can give to the agency world on how to be distinctive in this highly competitive category?

Beavis: You rarely hear of an agency being a business solution provider, as it just doesn’t sound cool or creative. A good agency solves a client’s business issues and is a partner. Very few qualify and even fewer truly embrace this challenge.

Levitan: What are the current digital hot buttons at car companies?

Beavis: Quality lead generation and follow up. It is the top priority with all OEMs

So, be smart, be distinctive, be a problem solver… get going.

Beer For Advertising Agency New Business

Peter · August 13, 2013 · Leave a Comment

I’ve been on an interview trip lately. I’ve done a couple of soon to be published interviews with industry leaders for Advertising Week Social Club and Agency Post. More are on the way.

One major point I keep hearing is that advertising agency specialization is key to breaking out of the me-too agency positioning malaise. Specialization is one way to get to a more powerful (i.e. relevant, impactful, efficient) new business program.

In my Advertising Week interview with Ian Beavis, Nielsen’s EVP Automotive, on how agencies can win an auto account, he mentions that most advertising agencies do not act as a business solution partner,

“You rarely hear of an agency being a business solution provider, as it just doesn’t sound cool or creative. A good agency solves a client’s business issues and is a partner. Very few qualify and even fewer truly embrace this challenge.”

In another for Agency Post, Rich Sullivan, the CEO of Alabama’s RedSquare Agency, discusses how RedSquare has specialized in casino marketing with growing success.

I’ll let you know when both of these are published.

Time For Beer

On to today. I was looking at a new list of Seattle’s largest agencies and noted that Taphandles, the fourth largest agency in Seattle, specializes in, get this, beer. I’m not sure that I’ve ever heard of Taphandles and I am just down the road in Portland. I was intrigued.

Seattle’s Taphandles

Taphandles’ Twitter profile @taphandles describes the agency as:

“We know beer. Logos, taphandles, signs, displays, package/label/web design, glassware and all things POS… Let us help you sell more beer.”

There are a few things that work with this positioning. A key factor is that Taphandles has zeroed in on a fast growing category. Here are some stats from the Brewers Association.

Growth of the craft brewing industry in 2012 was 15% by volume and 17% by dollars compared to growth in 2011 of 13% by volume and 15% by dollars.
Craft brewer retail dollar value in 2012 was an estimated $10.2 billion, up from $8.7 billion in 2011.
The craft brewing sales share in 2012 was 6.5% by volume and 10.2% by dollars.
2,347 craft breweries operated for some or all of 2012, comprised of 1,132 brewpubs, 1,118 microbreweries and 97 regional craft breweries.
As of March 18, 2013, the Brewers Association is aware of 409 brewery openings in 2012 (310 microbreweries and 99 brewpubs) and 43 brewery closings (18 microbreweries and 25 brewpubs.)

Taphandles is well positioned to, yes, tap into the market due to its strong support for their beer expert positioning. They started out designing and manufacturing taphandles for most of the major beer brands. I love their concise story that has to grab the attention of beer clients.

“Since we opened our doors in 1999, we have worked with almost every beer brand worldwide, which has given us comprehensive understanding of competitive landscape, and appreciation for what it takes to build a successful brand. This experience makes us uniquely able to help breweries tell their stories effectively through the brands we design, and the merchandise we make.”

A Message

Clearly Taphandles has grown into a full-service provider by building on their taphandle design experience. But, there is something instructive here for all agencies.

Pick a growing category, learn it, own it and then you’ll be able to hammer it on your home page.

Emotional Marketing As An Advertising Agency Positioning

Peter · August 8, 2013 · 1 Comment

I am talking with one of my clients about an agency positioning that positions them as an expert on emotional marketing. As in, the agency is an expert at triggering an emotional response in the consumer. Yes, they have the right chops for this. And, they live in the right country. And, clients, well some, Ok some, understand the emotional vs. the uber rational sell. Kiss me and I’m all yours.

As such, I am sensitized to emotional pitches these days. Here are two examples of emotional marketing in action. One is a movie trailer (from the great Spike Jonze) and the other a Google Nexus website and really sweet video (a really sweet story.)

Why is Google’s advertising getting so much better than Apple’s?

https://www.youtube.com/watch?v=rS8zOLOcPMQ

Here is the Nexus website. Watch the video.

I did some personal math the other day. I’ve been positioning agency’s for over 25 years. I’ve got another 13 really smart positionings up my sleeve. If you are interested in separating your agency from the pack, start here…

Why Bezos Is Good For Advertising

Peter · August 7, 2013 · Leave a Comment

I worked in the newspaper industry for five years from 1995 to 2000. I started the online newspaper New Jersey Online for Advance Internet which went on to use our blueprint to build an additional 10 online entities across the U.S. (Note, I am not responsible for the design of the current website.)

I was hired by Jeff Jarvis who knows more about the business of newspapers and online newspapers that anyone in the industry. So, when I heard about Jeff Bezos buying the Washington Post, I immediately headed over to Jeff’s well-read blog, “Buzz Machine.” While Jeff hasn’t really weighed in in-depth yet, he will and I am going to follow his evolving views on this purchase. As you can see from his “Hot Off The Presses” blog post, he is “hopeful.” I am too. As an early internet publisher, I watched Bezos build Amazon starting in 1995. It was a very exciting time to watch this visionary.

I think that newspapers which have been run by ossified old white men who couldn’t get out of the way of Craigslist and all the other revenue killers, can now sit on the sidelines and watch a real leader move paper-based and online newspapers to the next level.

This will be good for the advertising industry as well.

I think that paper newspapers will be around for the next few years (my bet not much more than an additional ten.) They will continue to play a big role in our local news ecosystem as they have always provided a powerful daily platform for local advertising which online advertising hasn’t yet replaced. Many have pointed out that the Amazon machine has hastened the demise of the local retailer. That may be true. But, local retail has also been hurt by the slow death of local advertising options. Bezos may just be the guy to reverse that trend.

For another take on the Post, head over to Jason Calacanis’ piece, “Why Jeff Bezos Bought The Washing Post Six-Theories.” .

8 Point Ad Agency New Business Check List

Peter · August 2, 2013 · Leave a Comment

Advertising – Digital – PR agency new business isn’t hard to do. Its just hard to do… it. Here’s a check list to help.

I talk to a couple of agencies every week that tell me that they can’t seem to get their new business engine cranking. Unfortunately, the one thing that really gets them moving is when they lose an account. Well, guess what, its a bit late if you wait for fear to get motivated. This might help… ask yourself how many months you can run your agency on your credit line and the cash you currently have in the bank? If its less than six, get going.

The 8 Point Ad Agency New Business Check List

1. Determine what clients you want. Make a short, manageable list using a set of decision making criteria. The criteria could include client categories, size of account, geography, clients that have demonstrated a love for what you do (as in advertising or PR), clients that could use your speciality (assuming that you have a specialty as in mobile or millennial marketing or Instagram) and decide if the account is too much of a long-shot like Coke.

2. Build a detailed contact database of your Group A clients and then a Group B that includes all the others that you should stay in touch with via automated tactics like monthly emails. Use compiled databases like The List Inc. (well worth the $) and brute force using international workers from oDesk or a local intern to build and manage the list.

3. Have something valuable to say. No, this does not mean sending your latest work. This means sending things that might be of value to the client. OK, if you are targeting Intel in Hillsdale and your new CD worked for Intel in San Jose then send her related work and a case history. Or, if you are really bold… tell them you repositioned your agency to meet their needs like my friends at RedSquare. Click on this link before mid-September to see how they exploded their agency to become more competitive.

4. Get the word out at a scheduled pace. More personalized outreach to Group A and once every month or two to Group B. Be top of mind when the client wakes up and needs a new agency.

5. Make friends. Don’t be passive. Its OK to call up Group A for a chat and maybe invite then to a local gig or online seminar if they are far away. Here is my take on cold-calling, um, warm-calling.

6. Be social. Smart social media marketing will work to bring leads in. But, by smart I mean that you have to build an active social media plan based on meeting your target market’s needs. Do not write tons of content about what interests you or your staff party. Write about what interests the prospect and hit their pain points. Learn to really love LinkedIn and Twitter (use your prospect’s hashtags to subtly get noticed by them.) Facebook is for your employees, your future clients and you mom. And, I love the ease and Google friendliness of Pinterest — is your agency in my agency directory?

7. Be consistent. Have a master calendar and stick to it. The good news here is that the other agencies are not doing this with any consistency.

8. Be active. Passive does not work.

–> Oh, here is a bonus #9: If you really need a kick in the biz dev butt or hand-holding and/or the advice of someone who has been there and done it globally at Saatchi and locally for his very own agency… contact me.