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Client Thoughts On The Advertising Agency RFP Process

Peter · February 13, 2020 · 1 Comment

The Advertising Agency Client RFP – Go Or No Go

As an agency owner and business development director at Saatchi, I received many RFP’s — Request For Proposals. The reaction to receiving an RFP ranged from delight (YES, a big brand and client is interested in us) to dismay (a brand is asking us to respond to what is clearly an assignment that is not predicated on the client’s understanding of what we do for a living (example, asking us to build Android apps when we didn’t).

Responding to an RFP can be very time consuming and expensive for any agency. The costs include direct labor, out of pocket costs and the cost of deflecting staff attention from existing client and business development work. I outlined the cost of responding to RFI’s, RFP’s and actual pitches in my book “The Levitan Pitch. Buy This Book. Win More Pitches”. Believe me, the costs can easily go into the thousands.

The bottom line is for your agency to have a clear set of rules that dictate when you should respond to an incoming RFP. Swinging at every ball is not a great way to hit home runs and manage your business.

Some RFP Related Expert Opinions

I am a member of a primarily senior client Slack group. I asked the group for their thoughts about the RFP process. My question was about how many agencies are sent an RFP for a given program.

The Peter RFP Question:

“Here’s a quick question for people that have asked advertising / design etc. agencies to respond to an RFP… How many shops did you ask when you sent out the RFP? I have an agency client that is now sitting on 3 RFP’s and is a bit overwhelmed. I’m helping them cull the list but have this general question. Thank you in advance for any help.”

Answers:

Note, in the interest of privacy, I scrubbed out the name of the group members.

Typically you go to 5-6, then cull to 3 agencies for a proposal. If it was a mailed RFP with no calls or capabilities first, don’t go after it.

You can also ask the client how many RFP’s were sent out and they should respond to you. But when a client sends out to 20 shops for proposals, you can typically smell that out and it’s highly recommended an agency does not play in that space OR requests a more intimate process.

Usually easy to spot the mass outreach RFP’s, they’re often sloppy documents with not much thought/consideration. Big red flag in my experience. Worth identifying which feel as though they have had most time invested in them for a measure on how ‘real’ the opportunity is.

I’d also add from the agency side — try to get an intro call with the prospective client to talk through the RFP before you decide to submit and put the team through the proposal rigor. Sometimes once you get them on the phone — you often get a much better sense if you’ll be successful with each other.

Also, it’s telling if they won’t speak to you before receiving a proposal

Agree. Clients should do their homework and find the shops that they respect, thinking or work you admire vs. a fishing expedition. I usually advise around sending in the area of 6-7 with the expectation that 1-2 agencies will drop out / decline

I agree. Somewhere in the 5-8 range feels right for an RFP. As a client, it is too much work to do more than that. If the client is not invested to really spend the time to determine if the fit is right, that tells you something. Personally, I have always liked our agency partners to feel like an extension of our team and respect what they bring to the table and the effort required to do the work.

Peter Again

I agree that it is up to agency management to really look hard at an incoming RFP and determine if this is an account you really want, can get and is worth the big effort. As my friends mentioned, it is incumbent on agency leadership to learn more from the prospective client before answering the RFP. If the client does not have the time for a call… drop it.

Being Mr. Nice Guy…

If you have an RFP on your desk today and are not sure if you should respond, give me a shout. I’ll spend a few minutes helping you make that decision. Gratis.

How Clients Find An Advertising Agency

Peter · February 8, 2020 · Leave a Comment

How Do Clients Find Their Next Advertising Agency?

One of the more challenging questions I ask my advertising agency business development clients is, “How do your prospective advertising, design, digital or PR clients find your advertising agency?”

In most cases, the number one answer is referrals or WOM. Of course, of course, this is a wonderful way to gain future client interest. However, the referral route is rather passive unless an agency has a highly active referral program. Even with a proactive in-house referral program, counting on referrals is not a high numbers game and is a bit too passive.

I am not a fan of passivity and think that an advertising agency needs to be everywhere a prospective client might look for them.

Everywhere.

In the old days, that even included having a Yellow Pages ad. Call me if you do not know what the Yellow Pages were.

Back to the question… “How do your prospective advertising, design, digital or PR clients find your advertising agency?”

The general list of responses goes like this. I’ve included links to some previous thoughts on some of these front doors:

Through direct referrals from clients, friends, and family. General word of mouth. Read: Six Business Development Referral Strategies.
Clients find us using a Google search. Read: Google Will Screw Your Ad Agency.
We run ads on Google.
We are on third-party advertising agency lists. Read: The Ultimate Advertising Agency List
We have won creative and marketing awards that increase our brand awareness. Clios help.
We get press from advertising industry publications.
We get press from client category/industry publications.
A future client saw one of our ‘great’ existing client ads or programs and contacted us.
Our social media programs attract new client interest. Read: Does B2B Social Media Still Work?
Our account-based marketing sales program directly targets the clients we want.
We get RFI and RFP requests advertising agency consultants. Read: 34 Advertising Agency Search Consultants.
We are listed on the local advertising club website.

So, How Do Clients Find Their Next Advertising Agency? As in, like yours?

First, let’s agree that you want to be found (maybe not by every potential client. But, you still want to out there.)

The only way to do that is to be everywhere a potential client will look for you. If this sounds simple and you are already doing this, Great. If not and you need an actionable strategy and tactics to solve this formable problem/opportunity…

Let’s talk about how to grow your business. You are in a hurry, right?

**Contact me and take me up on my free Vito Corleone offer.**

Getting Advertising Agency Sales Pitch Attention Via Hello Sir

Peter · February 3, 2020 · Leave a Comment

How Your Advertising Agency’s Sales Pitch Is Like An Indian Shopkeeper

I was in the Indian states of Rajasthan and Uttar Pradesh and Delhi and Mumbai for the month of January. As a tourist, my attention was desired by many shop keepers, solo tour guides and taxi drivers.

The usual sales pitch come-on, the way for me to be enticed to turn and make eye contact, were questions. Essentially two: a questioning “Hello Sir?” or “Where are you from.”

While I always heard the question, I learned not to make eye contact in most cases as the ultimate offer being made was usually the same. I was being asked to enter a shop to buy something, generally, pashmina scarfs or a new suit, to receive an offer of transportation or some form of guidance. In some way, I was sad that I did not speak with everyone. That I dismissed their personal ‘pitch’ through silence. But, really, I had no choice if I wanted to get on with my daily plans.

Advertising Agency Business Development, It’s Sales Pitch And “Hello Sir”

Over the years, I’ve noticed that many advertising, design and PR agencies do little more than what the Indian shopkeepers did. These agencies simply find a way to wave their hands to say “Here we are” to prospective clients.

The agency sales message can be effective in getting attention for a fleeting moment, but the next set of words or information looks like all the other hand waving from other agency competitors. The agencies offer little in a customized sales pitch or insights that would help the client want to turn their head and want to hear more.

Sameness, or worse, being ignored, is a space that many agencies business development programs live in.

I’ll talk more about building strategic and action-oriented brand and message differentiation in the next couple of weeks. OK, I have actually been writing about this for years. But, I’ll deliver more direct ideas and collation of past thinking.

Most agencies have to get past, “Hello Sir.”

Hello Sir

Ask me how your agency’s sales pitch can break you out of the “pashmina” pack.

Gary Vaynerchuk Loves You And Your Ad Agency

Peter · December 2, 2019 · Leave a Comment

Contrary to (some) popular belief, Gary Vaynerchuk actually loves you and your advertising agency. He wants to help you grow. Here is my take on today’s Gary Vaynerchuk plus a rather inspiring B2B marketing video.

FYI: One of my best-read blog posts is “Gary Vaynerchuk Is Full Of Shit.” It is a response to his early damning of the advertising industry. Take a read. By the way, it has been read over 5,000 times. Why? Well, putting “Gary Vaynerchuk’ and “Full Of Shit” in your headline gets Google’s attention and speaks to my audience.

My original sense of Gary being full of shit stemmed from Gary’s 2015’s “Do you know the problem with Marketing?” episode of the Ad Age Digital Crash Course:

Here’s the ‘shit’ part. In the video, GaryVee pontificates in ‘Gary Speak’ about how advertising agencies don’t care about selling products (only about winning awards); that emotion does not sell (tell that to Apple’s “Think Different”); that ‘traditional’ advertising is inefficient (like much of digital isn’t); that creatives might want to consider shooting 10 spots for $300K each vs. one for $3 million (this is a new idea??? what world is he living in?) and that maybe we should think about testing advertising before we run it (hmm… that’s a new one).

I love self-promotion. And I get railing at the old ways of doing business to further one’s cause. But, please, cut the way too obvious crap and don’t be insulting.

Gary Vaynerchuk Is Not Full Of Shit – He Wants To Love You (And Your Ad Agency)

OK, that was Gary in 2015 when he was building Vaynermedia and needed some service differentiation. Let’s cut to 2019. He recently spoke to a meeting of the Association of Independent Mortgage Experts. Watch the speech and Q&A below. Gary has both mellowed and has a lot of insight to deliver – to any B2B marketer. Just like your advertising agency.

A couple of Gary’s key points:

Buy underpriced attention for your agency marketing. This includes hammering underutilized LinkedIn. Hammer. Post like 40X a day.

Create longer content, like Gary’s videos, and cut them up for distribution. Amplify everything.

Don’t go out and hire a “social media expert” to run your program. YOU spend the 50 hours to learn it before you can ever judge the value of the freelancer/expert. I remember asking advertising agency CEO’s at Advertising Week if they ever placed a Google ad. The answer was no. I was like, are you kidding me? Do you even know WTF is going on?

Gary was asked how he finds the time to get things done. His answer – you probably waste three hours a day on really stupid shit. That 1-hour meeting should be 15 minutes.

If you run a local advertising agency, let’s say in Raleigh Durham, create a local show. Do a podcast, a local newsletter, a blog… just become known locally for your agency voice.

Big One: Romance your clients. Ever say thank you? Call up a client one year later to discuss that great project you did 12 months earlier? Send an unexpected gift? Call back a prospect that has fallen off your A-List? Find a good reason to say, Howdy.

The GaryVee Video…

The Secrets of Advertising Agency Business Development

Peter · November 12, 2019 · 1 Comment

The Not So Secrets of Advertising Agency Business Development

Do you think that advertising agency business development is hard? Try getting featured on Spotify or on stage at Coachella or Carnegie Hall.

OK, so how do you get to Carnegie Hall? Well, you know the answer: Practice, Practice, Practice.

That really means having objectives, strategies, executions, assigned roles, timetables and analysis. In other words, a plan.

Back to practice because business development is a skill set that gets better over time.

The 10,000-Hour Rule

Here is a definition from Wikipedia of the 10,00-Hour rule as discussed in Malcolm Gladwell’s book, Outliers.

A common theme that appears throughout Outliers is the “10,000-Hour Rule”, based on a study by Anders Ericsson. Gladwell claims that greatness requires enormous time, using the source of The Beatles’ musical talents and Gates’ computer savvy as examples.

The Beatles performed live in Hamburg, Germany over 1,200 times from 1960 to 1964, amassing more than 10,000 hours of playing time, therefore meeting the 10,000-Hour Rule. Gladwell asserts that all of the time The Beatles spent performing shaped their talent and quotes Beatles’ biographer Phillip Norman as saying, “So by the time they returned to England from Hamburg, Germany, ‘they sounded like no one else. It was the making of them.’

Gates met the 10,000-Hour Rule when he gained access to a high school computer in 1968 at the age of 13, and spent 10,000 hours programming on it.

Is Your Advertising Agency Willing To Work (Hard) At Business Development?

If it isn’t, it will fail.

Try This Agency Road Map

Have a master business plan that is reviewed at least annually. The marketing environment, especially in advertising, is changing on a monthly basis. Know how you will make the big bucks and plan for it.
Have clear business development objectives. Not, “I want to work with Nike or Google.” Be real.
Have an in and outbound marketing plan. It must be an easy plan to follow and run – or you will join the 60% of advertising agencies that do not run their plan.
Your plan must be smart but not too complicated. Process rules here.
Be slavish to your agency’s brand positioning. Make it something clients want.
Have a business development leader that is 100% responsible for making sure the Biz Plan runs like clockwork. I suggest that for at least the first 6 months that it be the CEO or COO. She is a feet-to-the-fire person. If the top person isn’t committed to putting agency time and assets towards business development 24/7 – fuhgeddaboudit.
Biz Dev has to become part of agency culture. And, yes, it can be fun, too. Winning business because your plan is working is super fun.
Biz Dev must a job on your daily project list like every client job. You are your agency’s client. If you don’t support the program, then what you do for paying clients will not matter when you shut down.
If you have a dedicated (or part-time, for that matter) aim her or him at the sales target. Here is how to manage that process.
This is a pan-agency challenge. Distribute the workload to responsible people in the agency. Make it part of their compensation plan. If they don’t do their part – they are not rewarded for their client work. They are not going get a large bonus.
Be everywhere your future client looks for new agencies. This includes agency lists, directories, in web searches, award shows, etc. Where would you look for an advertising agency? Are you there?
Have a marketing calendar and be slavish to it.
And… Whatever you do, make sure it’s Unignorable. Boring sucks.

Go do it. From Mario Andretti: “If everything seems under control, you’re just not going fast enough.”

Don’t Go! Yet…

I have over 600 blog posts dedicated to you and your agency’s business development success. Check them out right here.

If you are in a hurry… email me – peter@peterlevitan.com