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Anatomy Of An Advertising Agency Pitch: Part One

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Anatomy Of An Advertising Agency Pitch

brandThis interview with Tony Mikes, Founder of the Second Wind Network, is a first-person perspective by an advertising agency management and business development leader who sat on the client side of an important ad agency pitch. It is an enlightening review of how advertising agencies performed, or didn’t, in a new business pitch for the National Aquarium in Baltimore.

Frankly, A Must Read

The interview and perspective on agency new business pitching will be highly instructive for small, medium and large agencies… to say the least.

The interview first appeared in my book, “The Levitan Pitch. Buy This Book. Win More Pitches.”

It is very rare to have an advertising agency veteran sit on the client side of a pitch and give his impressions of the process and how the agencies performed. You will hear about what the winning agency did and what the losers failed to do.

The interview is over three thousand words so I broke it into two parts. I urge you to read both.

At the end of part two, I will give you my impressions on the lessons that every agency can learn from Tony’s experience and insights.

Tony Mikes

Tony Mikes was the Founder and Managing Director of the Second Wind Network, which today has over 800 small to mid-sized agency members.

Tony consulted with and advised advertising agencies and their leadership on best practices for almost 20 years. He provided members and clients with ‘old school’ agency wisdom and combined it with cutting-edge strategies. Before starting Second Wind, he was President of Pennsylvania’s Mikes & Reese Advertising from 1972 to 1988.

My Portland agency Citrus had been a member of Second Wind, and Tony was one of our advisors. Tony was an experienced mentor that could always help me resolve an agency-related issue or grab an opportunity and turn it into success. Sadly, Tony passed away in 2015.

The Anatomy Of An Advertising Pitch Interview

PL: You were on the client side of the agency selection table recently. How did that go? [Read more…] about Anatomy Of An Advertising Agency Pitch: Part One

Is Your Agency Going To Wipeout? Stop Being Complacent.

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Advice From An Advertising Agency CEO – Learn How To Ride The Waves

So, how is the agency world doing? Are you guys happy? Worried? Running smart advertising agency business development programs? Have a big new business pipeline? Not?

I recently asked one of my advertising agency owner friends what he thought was going on in the advertising agency world.

Here are his answers and my comments. Note, I changed his name and the mega-agency network his agency is a member of to protect his brand.

Insights from an advertising agency CEO:

I called a couple of my XYZ Network colleagues (the ones I like) to gauge what’s going on with their business (pretending that I’ll be going to the annual meeting, which I won’t be).

Then I was at the ANA’s AIMM (multicultural and inclusive marketing) think tank meeting at P&G and asked people what they’re doing about new business and agency business, in general, this year, how it was going and all of that.

Everybody was BUSY in 2018!

Lots of new business happening, more work than they could manage so their focus veered away from biz dev, most not using biz dev folks or other advisors as they have in the past because they’ve been included on RFPs and or winning organic business. This is from a couple of general market XYZ Network agencies and a mix of agencies at the AIMM meetings (only 100 people in total invited so good opportunities to have these conversations).

However.

There are concerns at the agencies that this won’t last; there is a lot of talk about a recession, or at least a slowdown, coming in the next few months. They are asking themselves, should they hire up or hold off or keep working in the business instead of on the business? So, it’s good, really good now for most of the agencies I talked to but there is also fear about what’s ahead.

Advice for ME from the CEO guy:

A thought for you – why don’t you do a blog about these last 2 years that have been pretty good for agencies and how to prepare now for what might come? Just a thought – I don’t want to pretend I know what’s best, but it was an emotional topic for all.

And, it sure seems that many agencies have forgotten to run their sales program.

My advice for you? Stop advertising agency insanity:

Get back on your advertising agency business development surfboard and find the big wave.

I have counseled agencies, agency clients and on this extensive blog, for six-plus years about a simple fact: your agency is going to get fired (by small project clients and your largest client) and if you haven’t been proactively working on filling your new business pipeline every day you are insane.

Both at Saatchi and my days as an agency owner, I rode the big exciting waves of good new business wins and have felt the pain of that gnarly “your fired” call from the client.

The ONLY solution, that is both a business and an emotional cure, is to have that 24/7 business development program running.

Your Advertising Agency Will Get Fired

Take a read of my recent blog post — Your Agency Will Get Fired  It speaks to the inevitable and offers some help to reduce the pain by bringing new clients in the front door.

 

 

Is Your Advertising Agency Underpaid?

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This post is about the underpaid advertising agency. As in, your advertising agency is probably underpaid – or under managed. Or both. Believe me, they are connected.

To be cute, this post is about the three P’s…

Profit, Process and Podcast.

Don’t forget to scroll down and listen to the podcast. In the meantime…

I recently had the opportunity to meet with Michael Farmer, author of Madison Avenue Manslaughter. Michael’s is a disturbing must-read book on the business of advertising agencies. Michael covers the reasons for the advertising industry going from high profit to low profit. From being paid almost too well (as in the 15% commission on media) to underpaid for its value (as in cost-plus or fixed fees). Mega-point, agencies do not know how to manage SOW — scope of work. I urge you to read the book.

To further one of Michael’s major points, I recently got an email newsletter from him where he discusses the “agency of the future” – a subject I have written about. Michael points out, and titles his email, “The First Step for The Agency of the Future: Become a Well-Run Business”. His point:

Much has been written about the “Agency of the Future.” It is integrated, digital, efficient, agile, analytical, creative and effective. It is adaptive and reflective of clients’ needs. It is completely transformed. It walks on water. However, the Agency of the Future cannot be created unless it first becomes a well-run business that generates the necessary financial resources.

So, Is Your Advertising Agency Underpaid & Undermanaged?

You are undoubtedly underpaid. I am not going to belabor this unfortunate point. However, other than charging correctly for your work (a yikes if I ever heard one), I suggest that many agencies are simply undermanaged.

Or, poorly managed. Or, without a sound process. A process that goes from the master business plan to execution. [Read more…] about Is Your Advertising Agency Underpaid?

Amsterdam Is Fun

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KesselsKramer Makes Amsterdam Fun

Yeah, you know Amsterdam is fun. I’ve just had that confirmed: spring weather; the gorgeous canals; tall blondes; really fine design; marijuana is legal (but, I am from Portland so who cares.) And the two best photography museums I’ve been to. Foam and Huis Marseilles. I’ll put links to them at the bottom.

Getting to the real point… there is an Amsterdam agency that has never been boring. Never been unignorable. From their website history to their publications, they act different.

Different in a world of zillions of agencies. This is a good thing.

KesselsKramer

On my first day in Amsterdam, I took a random walk and found an excellent photography bookstore that had books by Erik Kessels, one of KesselsKramer’s founders. I already own a couple from his series In Almost Every Picture. My books include a flat-headed rabbit and a woman that never gets out of her car. Erik’s books are mostly sold out but you can find some on the KesselsKramer website and on Amazon.

Back To Fun

I’ve written about KesselsKramer’s approach to acting and looking and sounding different (rare in the agency world). This was way apparent when they had an ever-changing website plus an absurdist angle. You can see my take on their approach here.

The agency’s current website is tamer. However, take a hard look and you’ll see that these guys understand the power of the different thing. This makes it way easier for a future client or employee to want to make contact. Yo, good vibes and contact are what an agency website is all about.

Why is fun excluded from the way most agencies represent themselves? This has always baffled me. Sure agencies need to be serious as they help marketers market and have to be prudent with client budgets. But, unlike accountants, agencies can offer a bit of humor, fun and even sound a bit over the top creative. Afterall, creativity and fun are what the client organization does not have.

Things I like:

Clean, simple graphic approach.

To the point agency description: “Established in 1996, KesselsKramer is an independent communications agency in Amsterdam, London and now in Los Angeles with about 50 people of 10 different nationalities. We bring brands and communities together by creating meaningful experiences in every media imagined.”

Need more? Here is what the L.A. office says (Hmm, I’d like to meet and eat with these guys.): “KK Los Angeles is a communications agency, original content studio and art gallery all under one roof. We set up shop in the heart of gallery row in Chinatown and promise to blur the lines between culture, commerce, content and collaboration.”

KK leads with the work. (Though, I am not a huge fan of carousels.)

Their work + cases make me want to work with them. Here is one sweet client case + work. It’s for ONZV, a healthcare insurer. Not the usual.

The Exhibitions and Publishing sections deliver proof that this is not your ordinary agency. Please dig in. When many agencies think that brewing their own beer is the cool thing to do, KK has been a serious member of the Amsterdam art scene for years.

Read their 100 FAQ’s.

The Photography Bookshop & Museums

Foam and Huis Marseilles.

PhotoQbookshop.

Yup, Amsterdam is fun. Especially the art.

Will You Sell Your Advertising Agency?

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The Big Question: Will You Sell Your Advertising Agency?

Will you be able to sell your advertising agency someday? The simple answer… probably not. That said, see below for two Portland “advertising” agencies that just got bought.

I Know You Want It

Most of the advertising agencies I talk with want to get bought – sooner or later. Who wouldn’t? However, most will not. There are a range of reasons. But here is the big (rather obvious) one:

Most agencies have not created enough value for a second party to want to buy them. A key question I ask agency owners is, “Would you buy your agency?” You can imagine the general answer once the CEO puts her thinking cap on.

Value is created by having one or more of the following:

  1. Your agency is a revenue powerhouse and is very profitable.
  2. Your specialty is unignorable. Example: you are a brilliant mobile marketing agency or specialize like this Boise agency.
  3. Your client list is spectacular.
  4. Your strategy and creative chops are notable and world-class.
  5. Your leadership is super smart.
  6. You are in a geography that a major agency network needs to be. This benefit has been diminished over the years but can still generate interest. How is your Saigon office doing?

OK, On To Portland

I’ll start with me. I sold my agency six years ago. I did this because I was realistic. We were not cool enough for WPP or large enough for Publicis or special enough for MDC. But, we were very attractive to another Portland agency that needed to grow faster. They bought our revenues, clients (from Nike AOR to major healthcare, to a lottery and casinos and hospitality accounts), our very sharp staff (all of them) and it was all made easy since we were in town. I also wanted to get the fuck out of the industry (I had been it for close to 30 years) and did not want to go through another reinvention so I took a reasonable offer.

Instrument Bought By MDC Partners

Here is the first paragraph of the press release.

MDC Partners announced today that it has acquired a majority partnership interest in Portland, Oregon-based digital agency Instrument. Founded in 2002, Instrument is one of the largest independent, digital brand and experience innovation companies in the U.S. The agency’s 175-person team of strategists, producers, designers, engineers and content creators helps drive businesses and engage consumers. This new partnership accelerates MDC’s growth and builds its portfolio of modern, innovative and digital-first agencies.

WPP’s POSSIBLE Acquires Digital Agency Swift

The press release…

WPP announces that its wholly-owned company, POSSIBLE, the global creative digital agency that is part of WPP Digital, has acquired The Swift Collective, Inc. (“Swift”) in the United States.

Swift’s revenues for 2014 will be over US$13 million and its clients include HTC Corporation, Starbucks, Nestle USA and REI. Based in Portland, Oregon, Swift employs over 70 people. Swift is a digital agency that specializes in creative and strategy, branded content creation and social media.

The acquisition continues WPP’s strategy of investing in fast-growing markets and sectors such as mobile and digital.

OK, What’s Up?

A few things.

  • Portland is a hot “creative” geography.
  • These are both VERY digital shops.
  • They each have strong client lists. Google, Sonos, Levi’s.
  • They have decent (higher than most independents) revenues.
  • They are run by smart people.

So, you want to sell? Create value that someone else wants to buy. Start today and make creating agency value an objective. This goes beyond just adding clients. It means standing out in a sea of advertising agencies.