Search Results for: pitch

4A’s On Advertising Agency Pitching

Peter · June 7, 2022 · Leave a Comment

Some Sage Words From The 4A’s On Advertising Agency Pitching

Here is an interview on advertising agency pitching I did with Tom Finneran, EVP, Agency Management Services at the 4A’s. It’s one of many expert interviews in my book on advertising agency pitching. It comes from the perspective of the 4A’s, its work with hundreds of agencies, and with the ANA – the Association of National Advertisers.

By the way, I am updating the book. Stay tuned. Oh, why update it? Well, let’s just use one newish thing that has revolutionized pitching (to put it mildly) — virtual pitching.

I thought I’d add this interview to my blog for a few reasons. Some to help you and one big one for me.

Your agency’s pitch batting average will increase if you have a solid, smart, consistent pitch system.
You will win more pitches if you put yourself in the client’s shoes.
You should be aware of the 4A’s and ANA agency search guidelines. If fact, share this with the clients you pitch. Here’s a link to an Ad Age article on the guidelines.
You’ll help me because I want you to buy the book. It’s not because I make a lot of bucks from sales (although sales are robust and it is nice to get money from Amazon.) No, I want you to buy the book because many agencies that read the book, see that I actually know what I am talking about, and turn into my consultancy’s business development clients. Duh coming: Books help make people and even agencies look and sound like experts.

On To The 4A’s Interview That Will Help You Win More Pitches

Warning. This is a long interview. Long as in over 3,000 words. Read it if you want to win more new business.

Tom Finneran: EVP, Agency Management Services – The 4A’s

Tom Finneran leads the 4A’s Agency Management Services team, which provides industry guidance, member consultation, and benchmark information in the areas of new business, agency compensation, agency management, and operations.

Tom’s career includes extensive ad agency and advertiser financial management experience. He was executive Vice president/CFO at Jordan McGrath Case & Partners and Arnold McGrath Worldwide, a unit of Havas. He was also Executive Vice President/COO at Grey’s promotional unit, J. Brown/LMC.

PL: While there’s no one-size-fits-all pitch process, do you think that clients are running more professional pitches today than in the past?

Tom: What we consistently hear is that reviews have become less professional and efficient than in the past. This is important because, to a degree clients have taken in-house some of the review practices that have traditionally been managed by industry consultants who were more adept at running professional pitches.

In terms of the efficiency of reviews, some of the things that are less efficient than they should be are cattle calls. You’ll have clients who are not experienced at doing reviews, and they’ll send information requests to far more agencies than should be included in the initial list.

Some of the other inefficient processes are what I would refer to as RFPs from hell. Here is one example. About a year and a half ago, one of our members called irate about an RFP that had 300 questions. And I said, “You’ve got to be exaggerating. It couldn’t possibly have been 300 questions.” So the person said, “Wait a minute. Let me look at this.” Then she commented, “Okay. You got me, I exaggerated. It’s 293 questions.” So this was an RFP that a client-sourcing group used. The RFP was geared to soliciting responses from ingredient suppliers, research and development firms, and contractors of all types. And woven into the 293 questions were a few marketing-related questions that were kind of like packed in there.

PL: So are you seeing these kinds of issues primarily with larger clients or also medium-sized to smaller clients?

Tom: These tended to be from marketers who did not have dedicated, knowledgeable marketing procurement folks. They were taking people who could source corrugated materials and chemical components and things of that nature.

PL: Is there an agency size factor? Is it affecting your large and small 4A’s members?

Tom: It affects members both small and large. [Read more…] about 4A’s On Advertising Agency Pitching

Bob Hoffman | The Ad Contrarian On Advertising Agency Presentations And Pitching

Peter · April 13, 2022 · Leave a Comment

In This Podcast, Bob Hoffman, The Ad Contrarian, Delivers His View On How To Make Smarter Advertising Agency Presentations and Pitching For That New Account.

A slight update to an older post about my Bob Hoffman interview as a way to point out one of my primary expertise zones – how to create winning advertising agency presentations… we are supposed to be a bit self-loving, right?

I have a prospective agency client in Europe. She has a new business pitch to nail before we are going to talk about my services so I sent her a list of my writings on pitching and am telling her to buy my book, The Levitan Pitch (see it at the top of this page).

To help YOU win more business, go to this omnibus page loaded with my pitch thinking and while drinking a milkshake, arak, or a nice red wine, scroll through the list and as I say, Win More Pitches.

Back To Bob and Building Smarter Advertising Agency Presentations

In this podcast interview, we share the A.I. version of Bob Hoffman’s interview with me about the advertising agency pitch process. Bob tells it like it is. He is not known for being tepid. The interview is from my extremely best-selling book, “The Levitan Pitch. Buy This Book. Win More Pitches.”

Bob Hoffman is the Chief Aggravation Officer at The Type A Group, and much more. I’ll just save some time and let Bob tell you about himself:

“Bob is the author of five Amazon #1 selling books about advertising. He is also one of the most sought-after international speakers on advertising and marketing. One of his books, “BadMen: How Advertising Went From A Minor Annoyance To A Major Menace” exposed many of the dangerous data abuse practices that are now making international headlines. It was selected “Best of Marketing 2017.”

He is the creator of the popular “The Ad Contrarian” newsletter, named one of the world’s most influential marketing and advertising voices by Business Insider.”

SHOW LINKS

Bob Hoffman’s Website

The Levitan Pitch. Buy This Book. Win More Pitches.

Do not forget to subscribe to Advertising Stories whenever you Listen To Podcasts. See the handy links to podcast players.

A nice thing for me… Feedspot has already recognized Advertising Stories as being a top 15 advertising podcast.

The Perfect Advertising Agency Pitch

Peter · January 21, 2022 · 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

Sales Pitch Rejection

Peter · July 6, 2021 · Leave a Comment

Ah, Nothing Like Sales Pitch Rejection

Here is a quickie on the wonderful experience of sales pitch rejection (plus my advice – below) and a bit on the also wonderful post-sales pitch chirping sound, lately known as ghosting.

Thoughts On A Recent Sales Pitch Rejection. Me = Pissed Off. But, Twas A Learning Opportunity

The odds good are that your advertising or marketing agency or consultancy will often be rejected. A decent reason: the prospect is looking at more than one option and your batting average, even a good one, might only be 300% (note, a career-high like that would get you into the Baseball Hall of Fame). You mitigate the art of rejection by pitching the right prospects and the great fact that you are an expert in what the client is looking for. Ok, that said, you will still get rejected if you have an active business development program.

But, what you don’t want is a useless rejection that does not help you improve. Here is one example. And, tell me if I am too thin-skinned.

Note: 100% of my leads come as inbound inquiries. That means that the prospect probably heard about me from WOM or read about me (and read my insights) and made the decision to make contact.

This happened a couple of weeks ago with a New York agency. We scheduled a call, I gave them my pitch, discussed their needs in detail and they asked for a proposal. I sent it a day later and then kinda got a bit ghosted, as in they did not respond in a timely manner – here is a definition of ghosting:

Ghosting is a relatively new colloquial dating term that refers to abruptly cutting off contact with someone without giving that person any warning or explanation for doing so. Even when the person being ghosted reaches out to re-initiate contact or gain closure, they’re met with silence. (Source: Verywell Mind.)

Look, I know that people need to take their time. So, I do not get crazed if I do not get a yes or no quickly.

Follow Up Scenario

To keep the ball rolling, I did my 4-day post-proposal email follow-up and after a couple of more days got a reply from the CEO who told me that they had selected another consultancy because I did not share the agency’s “vision and values.” Now, I usually go, “well, OK.”

But the statement that I did not share VALUES kinda pissed me off. I mean, WTF does that personal to me message mean? What values did we talk about? I then sent this email: [Read more…] about Sales Pitch Rejection

Is Advertising Agency Pitch Pain Deadly?

Peter · April 22, 2021 · 1 Comment

I think that agency management has to ask the question – Is advertising agency pitch pain killing your agency?

I kicked off “The Levitan Pitch. Buy This Book. Win More Pitches.“, my book on how to win a pitch (still selling well if you are wondering if books have a long life), with a discussion of the hardships that come from running after every new RFI, RFP, and pitch. We are now in a marketing world where the number of client-driven, post-pandemic (well the worst of the pandemic) pitches are on the rise. However, make sure you know which client-based pitch you should go for.

At best, you have a 30% chance of winning. If you are the incumbent, you might even want to bow out fast. The win rate for incumbents is not, um, great.

Pitching Is Good. Pitch Pain Is Bad.

The good news.

The number of clients seeking new agencies is up. I hear this form agency owners, from pubs like Campaign Magazine and pitch consultants including Avi Dan as he wrote in his Forbes article, “Marketers Plan To Shed Even Good Agencies In The Coming Months.” Here’s a tidbit…

Almost all advertisers that I spoke with are considering an agency change. Surprisingly, only a few are motivated by bad advertising. For most, the issue has more to do with the future than the past. As one CMO put it, “Our agency is doing an OK job, but times are changing and I’m not sure they are ready for what’s next. We need a different type of agency, with different skills than the one we have.”

Why are clients looking for new agencies?:

Clients orgs and CMOs are worried. Worried about their marketing programs in light of the pace of digital transformation. And, they are worried about their jobs. Agency change represents some form of quick solution and a sense of progress.
Clients are looking for more and more digital expertise.
Many incumbent agencies are somewhat somnambulant. Their client contact people have not been trained on how to hold and grow clients. A serious training issue that I will help address this year.
Many clients simply have no clue what they need and want. Let’s politely call it being fickle.

These factors, and more, lead to agency shifts. This can be good for the agencies that “get it.”

The bad news.

The bad news is that agencies will need to figure out what business they should pitch. I’ll get right to the point…. do not pitch everything. Why? Do not pitch every new account prospect that comes your way – it will be a waste of your time, money, and – importantly – agency mental health. Have a plan for what the right clients look like and have a budget (oh, and a process).

I offer this agency CEO mantra:

We will not pitch every account that comes our way. The pitch process is simply too costly. Before we pitch any account we will work hard to determine if the prospective client is a good fit for the agency based on a set of predetermined criteria. Here is a start. Is the client famous? Do they respect marketing? Do they actually know what they want? Do they want us to do brilliant work? Will they pay well? Are they a cultural fit?

Hopefully, you can say yes to two or three of these.

The $$$$ problem.

Writing RFIs, RFPs rather time-consuming and expensive. Understatement. Here is a bit from my pitch book’s chapter: More Painful Math. Clearly, your numbers may vary. But, you’ll get the point that not having a business development plan with objectives and strategies is a loss-leading problem.

From The Levitan Pitch. book…

Agency CEO’s and Business Development Directors occasionally use metaphors to help describe their business development efforts. One of the all-time favorites is how similar agencies are to cobblers and shoes. Cobblers do not have the time to make shoes for their children, and too many agencies don’t make the time to run smart business development programs.

Here’s another metaphor.

Agencies (OK, American agencies) often point to the career batting averages of major league baseball players when they discuss the success rate of their new business programs. As they put it, even baseball Hall of Famers are perceived as victorious if they have a career batting average of .300 or more. That’s only 3 hits for every 10 times at bat. Even the great Hall of Famer Reggie Jackson only had a .261 batting average. In agency think, this would mean that the agency would be Hall of Fame material if they won 3 out of every 10 pitches.

Let’s do some agency math using the 1:3 ratio.

Based on my personal experience, conversations with agency CEO’s, and a review of existing data, on average, small to medium agency responds to 10 RFP’s and participates in 6 pitches per year. Your mileage may vary but let’s go with this.

My estimated cost per RFP is $15,000 based on 150 hours of work at a direct labor cost of $100 per hour. At ten RFP’s per year, that’s a participation cost of $150,000 per year.

A conservative estimate of an average finalist pitch, which includes external and internal meetings, pitch management, strategic planning, writing, creative work, pitch design (as in leave-behinds and supporting digital programs), the pitch itself, T&E, and post presentation follow-up costs an agency approximately $35,000. If an agency does 6 pitches per year that’s $210,000.

Obviously, given the size range between multinational networks and small shops, an agency’s mileage may vary but these numbers seem fair for the average agency, and they help frame the issue.

Using my scenario, the total annual cost for RFP’s and pitching comes to $360,000. This number does not include the day-to-day costs of business development. If you add in management, creative, analog and digital market- ing, and business development director time, an agency could easily top out at over $500,000 in labor and outsourced business development costs per year. I am ball-parking here just to get to a reference number.

It can get much more costly. The search consultant David Wethey of Agency Assessments International reports that the average pitch cost per UK agency was £178,000 in 2010. Channeling Las Vegas, as an agency owner I’ve put my own hard-earned cash on the line to win new business. As I write this book, Microsoft just handed their international account to Interpublic. Just imagine how much it took to win that pitch.

Bottom line… an agency could easily spend $500,000 to have a “Hall of Fame” business development batting average of .300. Given today’s decreasing creative services industry profit margins, these numbers could be considered depressing.

Do you like this math? I don’t.

The People Pain Problem.

Pitch Pain is real… Pitching, too often, results in significant agency employee pain. I started my book by quoting a research study of advertising professionals by Provoke Insights that supports the idea that agency employees are dissatisfied with their agency’s pitch process.

“Approximately half (47% of respondents) of advertising professionals surveyed by Provoke Insights say they are dissatisfied with the current internal approach to pitching.”

And, again from Avi.

During the last year I had been traveling all over the country, meeting with advertisers and CEOs, except, for the fact that I’m not actually traveling physically. I’m still stuck at home, in New York, relying – like many of us – on virtual meetings.

As much as pitches represent a chance for agencies to win some much-needed revenue, they’re also an additional cost. Already short-staffed, in light of cost cuts during the pandemic, agency bosses will need to weigh their chances of winning new business, along with the impact it will have, on work for current clients. It can be a slippery slope for those CEOs struggling to balance short-term gains and the longer-term stability of their business.

One more point. Responding to RFIs and RFPs and pitching takes time away from current clients. need I say more?

The Advertising Agency Pitch Pain Bottom Line?

Look, winning new business is good. However, winning the right new business is very very good.

Running after every “available” account is bad. You will lose more than you win. Have a plan and decision-making criteria for what account you should pitch for.

Back to the main question: “Is RFI, RFP, And Pitch Pain killing your advertising agency?” The answer can be a disastrous – yes.

Give me a shout if you want to have a talk about my perspective.

Even More – Winning The Zoom Pitch

I built a video presentation on how to run a winning virtual advertising agency pitch on Zoom. It is guaranteed to help reduce advertising agency pitch pain. Check it out.