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The New Business of Advertising

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Best Advertising Podcast List

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advertising podcast listThe  Advertising Stories podcast program publishes smart, funny, and useful interviews with advertising and marketing leaders. There are a LOT of podcasts out there. So, to make life a bit easier, here is my very own best advertising podcast list.

I have produced 40 episodes since June. And, As you know WOM rocks, so tell your friends all about Advertising Stories. Thank you.

Oh, and please subscribe via Apple Podcasts or use the subscribe links on this page.

Here Is The Best Advertising Podcast List – Handy Dandy.

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The Best Advertising Agency Podcast Ever

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best advertising agency podcastI am so unbiased. Therefore, I can say without any hesitation that this is the best advertising agency podcast interview. How do I know this? I was recently interviewed by what I consider the best (well in addition to Advertising Stories) advertising agency podcast and host. Full stop. Great interviewer and I was, on that day, a brilliant speed-talking guest.

I discuss my loooong New York, London even Oregon advertising career, how to pitch (I wrote THE pitch book – see the top portion of this page), and how to buy and sell an advertising agency (get this 57-page freebie by subscribing to my occasional newsletter).

The Best Advertising Agency Podcast? It’s Aqui: The Businessology Show

The Businessology Show is a podcast about the business of design and the design of business It is hosted by CPA/coach Jason Blumer. Jason is a leading financial and accounting consultant for the advertising and marketing communications industry. I said expert, right? Also, a really cool interviewer.

 Here is the show – go here: “Pitch It.”

About this show… from Mr. Blumer

Businessology is a platform to help designers, developers, and agencies run more successful businesses. One of the greatest things about the web industry is that we have the desire to share the most valuable tips and tricks of our trade with our “competitors.” When it comes to business, however, that knowledge seems to be kept behind closed doors.

This podcast was started because we want that information to exist in the open. We talk about what to charge for your work. We talk about how to do great work that your clients value. We talk about business models. We talk about managing projects. We talk about growing. We talk about the business side of design and how you can most effectively design your business. We coach real owners of real agencies working through their own growth complexities.

Guests have included Tim Williams; Matt Faulk (here is my interview on winning Webby Awards with Basic’s Matt); and, Drew McClellan of The Agency Management Institute (AMI).

Go listen…

 

The Richards Group And Your Advertising Agency

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The Richards Group – A Teachable Moment

The Richards GroupNo, I am not going to comment on Stan Richard’s big mistake that had The Richards Group, the leading Dallas agency, quickly lose major accounts including Motel 6, Keurig Dr. Pepper, HEB, Motel 6, The Salvation Army, and The Home Depot. These are huge account losses that could destroy virtually any agency – in weeks.

But, What About Your Agency?

I was interviewed this week by ADWEEK’s Doug Zanger for my take on what the future might hold for The Richards Group. Specifically, what could they do to hold on to existing accounts and if and how they could find and land new business. I suggested that job #1 is for the agency to work hard to maintain the accounts they still have. Here is my quote:

What it might take to get back in the game

According to agency business development consultant Peter Levitan, the first step is to look inward.

“A part of business development that many agencies don’t understand or spend time and energy working on is growing existing accounts,” said Levitan. “In the case of The Richards Group, they have to save as many accounts as they can, and be totally upfront in dealing with the problem. There are sharks in the waters circling the accounts, so the pressure is on holding what remains.”

Your Agency – The Learning

I counsel my advertising and digital agency clients that the single best, and most efficient source of new business, read that as incremental profits, comes from existing client relationships. Why? Well, you already have the client in-house; you are well beyond the initial cost of pitching; you know their business; objectives, and opportunities inside and out; and, I assume that they love you.

Also, note that account retention is critical. In our land of doing specific projects vs. long-term agency of record relationships, it is imperative to be a client’s ideas and tech go-to leader. Keep the client’s marketing moving forward. Happy clients stay put.

This is clearly logical. However, I need to point out two recurring agency fails. One is complacency. You have the account, think that it will stay put and leadership moves their focus to landing that new account.

The other fail is the universal issue of not training agency account management. When I started in the business, I was trained in how to run accounts, how to communicate with clients, how to build long-term relationships, how to think of new ideas, how to present those ideas (and sell them)… Sadly, too many 2020 agencies do not stop to train their account managers. Believe me, the cost of losing an account is much higher than a few hours of training.

Back To The Richard’s Group

As I stated in ADWEEK, The Richard’s Group should, today, have a total focus on retaining the remaining clients. A well-trained account services team and involved media and creative departments should be having the right business-growth conversations and be perceived as brand builders. Agency staff will need to reinforce the reasons the client works with the agency in the first place and be looking future-forward. Client’s can be like lemmings willing to join others and jump off the cliff. While the team focuses on the future, agency management should allay any client concerns. Proactivity is critical. Split up the duties.

OK, one more …. the agency has to make sure that everyone is on message. “We are all sorry about what Stan Richards said and it does not reflect our agency culture”… and, on. Get on the same page and get on with business as usual.

 

 

A New Business Plan For An Advertising Agency

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An Advertising Agency Business Plan Thought Starter.

advertising agency business planTen years ago I was the owner and CEO of Citrus, a Portland and Bend Oregon advertising and digital agency. Just so you get the picture, our clients included AOR work for Nike; the Montana Lottery; Harrah’s; Providence Health & Services (5 states), and lots more. As you will see below, I knew that we needed to change our approach to the business. We needed a new advertising agency business plan. A radical shift from what was starting to look like a way too traditional advertising agency business model. My team and I looked at different approaches and ultimately, I determined that I (that means me) did not want to make the required revisions. At that point, I decided to craft the agency for sale. I wrote about how I sold the agency in my 57-page PDF, “How To Sell An Advertising Agency.” Links to it are on this page.

2020. Is It Time For You To Invent A New Business Plan?

I talk to lots of advertising agencies. Many are looking very hard at how to reinvent their agency. This is driven by ongoing factors like waves of recessions; clients asking for more and more for less money; lower profits; unhappy and overworked staff and, of course, the results of the pandemic. I talked yesterday with a New York agency buddy that is shutting down his office, asking his landlord for rent concessions, and will go full-time virtual. He is not alone. Again, in many cases, the need for a new business plan is being forced on agency leaders. Being forced is OK. Not changing is not OK.

Back to my past as one model for the future.

10/12/10: Twas Time For A New Business Plan

Before I sold my Portland agency, I spent some time thinking through what a new, an evolutionary, a smarter, competitive, and higher profit advertising agency business plan might look like. Simply put, how could we make more money? This is what I was thinking a few years ago.

I think that my thought process at that time might help you think hard about your agency’s business plan.

A bit of background. Citrus was a successful Northwest agency. We had offices in Portland and Bend, Oregon. Our clients included Nike (we were an AOR agency for major league baseball and college sports); Oregon State Football, Harrah’s Las Vegas; Wildhorse (a large Oregon casino); the Montana Lottery; LegalZoom; a couple of major west coast banks and Providence Health and Services (a multi-state hospital and healthcare company) and a range of leisure accounts.

Background

I bought the majority share of Oregon’s full-service advertising agency Ralston Group in 2002. I had just left being CEO of ActiveBuddy, a serious natural language company that proceeded Siri and Alexa. It was time for me to get out of New York and get some fresh air. Over the course of the next 8 years, we bought Portland’s Citrus, renamed the agency, and grew our account base across the USA.

However, by 2008, after the horrible recession, clients driving down profits, the increase of workload from digital and social media, the increasing cost of running a marketing company (ala healthcare costs), I decided that we had to either reinvent the agency or I’d move on.

The Birth Of “Portland”

Ok, what should we do? I needed to reinvent the agency via a new advertising agency business plan to be more competitive; leaner; more nimble; lower cost; and NEW. As in, new and improved to get the attention of more of the high-profit clients we wanted.

Here is the document, the 2010 think-piece that I used to help guide me. I hope you find it, um, maybe inspiring.

My 2010 Plan – A New Agency Model: Food-For-Thought For Your Agency

Citrus needs to change.

The agency industry (especially full-service agencies) knows it must explore new business models. The old 15% commission + 16.5% mark-up is so long gone. Plus, we know that finding a way for clients to pay up for “big ideas” is difficult.

Within this context, clients are confronted by fast-paced changes, are skittish and are understaffed. Media options have grown exponentially, clients are asking for program metrics, they need smart digital solutions, can’t figure out how to manage integration and do not fully understand social marketing. They still want big ideas but want all of this for less. All of this is compounded by the view that “agencies” are costly and inefficient. Many prospects don’t even want to take our calls.

To further compound the issues, a sea of agency industry sameness and lack of clear brand and service differentiation confronts us. It is very difficult for small full-service agencies to stand out from the crowd. Defining a unique and focused agency brand for a non-specialist agency isn’t easy.

Citrus shares these issues and at present does not have a clear and compelling brand story. We have our “Move” positioning but we need to express this beyond just words.

There must be a new way.

An idea…Move To Small + Smart.

In my mind, a Small + Smart Citrus is the smartest customized agency in the world.

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How To Build A Profitable Advertising Agency

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It Has Become More Difficult To Run A Profitable Advertising Agency – Here Is How To Do It

profitable advertising agencyThe marketing communications world started shifting in the 1990s when clients moved advertising agencies from a 15% commission basis to fees; from TV, radio, print, and outdoor to an ever-increasing number of digital media options; a couple of recessions and, well, I’ll stop here. I know this because I grew up in the heady high-profit days and sold my digital agency when it became more difficult to run a profitable advertising agency of any kind.

The Michael Farmer Interview… Michael has advised virtually all of the leading advertising agencies from WPP to Omnicom to you name it to help them grow profits by using smarter agency and staff management. Michael also wrote the book: “Madison Avenue Manslaughter: An inside view of fee-cutting clients, profit-hungry owners and declining ad agencies.” Sir Martin Sorrell wrote the forward.

Over the years, Farmer & Company, the acknowledged expert of Scope Of Work (SOW) management has worked with Ogilvy & Mather, Wonderman Thompson, VMLY&R, The Martin Agency, Saatchi & Saatchi, TBWA, and McKinney to name just a few.

A Bit Of The Interview.  From 360 Deliverables To 15,000.

The only true metric in an agency is the profit margin. That’s profit margin by client, which agencies have a hard time doing. And then profit margin for an office and then for a global client. In order to do that, they have to use timesheet data to figure out what their costs are. And everyone knows that the timesheet data is at least 30 to 40% incomplete. And they do not measure and document their scopes of work. When I worked with Ogilvy in the 1990s, they had 50 creatives and they were doing about 360 deliverables, 360 ads. It was all original work, TV, radio, and print. Even then it took us seven weeks to figure out how much work they were doing for each client today. I just did work with a similar office of 50 creatives. Today they are doing 15,000 deliverables for clients because of email marketing, social posting, Instagram, Facebook, you name it.

And, 90% of that work is adaptation work as opposed to origination work. The workload has exploded in volume and diminished in individual importance. Each little thing that they do is pretty small and doesn’t have a big impact on the brand. The agency and clients still don’t know how much of it is. I’ve worked with, Ogilvy, Gray, VMLY&R, BBD, you name it. I’ve worked with them all. I don’t know of a single holding company agency that has yet developed a methodology for measuring the amount of work they do so that they can better negotiate fees and resources with our clients.

Note, I think that this interview is so Important for any agency of any size that I will put the entire transcript in a separate post.

Profitable Advertising Agency Links

Madison Avenue Manslaughter – The Book.

Farmer & Company

Go here and sign up to get my free book, “How To Sell An Advertising Agency.”

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