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An Advertising Agency Survival Guide

May 16, 2022 By Peter 3 Comments

The Advertising Agency Survival Guide. 2022 “Recession” Version.

Advertising Agency Survival GuideI am republishing and updating my pandemic Advertising Agency Survival Guide blog post. It was originally written in 2020 when we all realized that we were heading into some Covidland hell. At that time, The Association of National Advertisers, the ANA, passed the article along to its membership. Why am I modifying the article for 2022? Because I think (not alone here) that we are heading to some form of recession. Recessions are not great for advertising agencies as marketing is one of the first line items that clients cut from their budgets.

Note: While we are not sure if a recession is heading our way, we do know that company valuations are down and that is not a good thing for marketing budgets. The odds on their being that full-blown recession … This from Bloomberg.

The probability of a recession over the next 12 months is now 30%, the highest since 2020, according to the latest Bloomberg monthly survey of economists. That’s up slightly from 27.5% in April and double the odds economists predicted just three months ago.

This from ADWEEK on Sir Martin Sorrell:

S4 Capital issued its 2021 Annual Report this week and company executive chairman Martin Sorrell in his letter to shareholders strenuously sought to manage growth expectations given recent huge reversals on the macroeconomic front.

Sorrell said that events and circumstances have developed to create a “perfect storm” that will dampen the “strong bounce-back previously expected this year and over the horizon in 2023 the clouds look even darker.”

Sorrell noted that GDP forecasts have recently been cut by the IMF and others to 3.6% from 5% just six months ago. “Less robust economic growth is important as it’s one of the drivers of S4 Capital’s growth,” Sorrell cautioned.

At S4 Capital, Sorrell added, “we’ll trim our sails accordingly and won’t be blown off course. But navigation will as ever, be challenging.”

Tough Question. Will Your Advertising Agency Survive This New Recession?

Here is my educated take on how advertising agencies will survive the big dip and how they will make lifeforce happen. It is my take on an Advertising Agency Survival Guide.

Having gone through the 2007 – 2008 recession as an agency owner, I saw approximately one-third of advertising agencies shrivel. My current survival advice is based on my having navigated financial storms as well as recent deep conversations with small and medium-sized agencies. I did not choose to rush out these thoughts. I actually thought about my thoughts. LOL.

Plus, this article is not short and sweet. You will actually have to read all of it. OK, it is sweet.

Two Quick & Very Important Points.

How long will the shit-storm last? I am talking about the inevitable/impending reduction in client spending.

Like you, I have no clue when any semblance of normality will return. I have to assume it will. Plan accordingly.

Chamath Palihapitiya is one of my most respected “advisors”. He has said that companies should be able to adjust and make new plans to survive 36 months. 36! Yes.

He says, think like this is a form of depression. Whoa. Yikes. Are you ready?

This is what I do know… If you want to be in the top 1/3, you can’t lose all or even some marketing energy or brand awareness. Why make your voyage back to the land of happy clients too uphill?

You will get my marketing recommendations below. But first, the big question.

Will Your Advertising Agency Fail?

Here is what an advertising agency principle should be doing right now. I admit that this is generalized given the diversity of the types of advertising agencies. But generalized does not mean its not an effective how-to for virtually any agency.

First – Two Definitions

  1. “Advertising Agency”: This is my universal term for most types of communications marketing firms.
  2. “The Good Client”: A client is a company that has consistently used any form of advertising or digital marketing. In your case, it is a client that meets your target criteria (you have that, right) and you think would want to hire you.

OK, Advertising Agency… What Are You Going To Do About it?

I am going to be tough here. At least 30% of advertising agencies will fail or falter in the next twelve to eighteen months.

This post provides my take on how to survive. For the winners, how to set yourself up for growth.

6 Advertising Agency Pain Points – I Know You Know This. But, It Is Worth Restating.

  1. Your current and future clients are starting to freak out. This goes from their business perspective (increases in consumer debt, lower spending by their B2C or B2B customers, that supply chain pain) and their own worries about their life savings.
  2. Some current clients have already reduced or canceled advertising and project spend.
  3. Growing agency profitability has been getting more difficult.
  4. You could be too slow in managing your costs.
  5. Agencies, too many, are already poorly positioned, do not stand out, and worse, are unbelievably ignorable.
  6. Many prospective clients “probably” do not want to hear from you. Well, they might if you have the right messaging.

Advertising Agency Survival Guide Strategies

I know what I am talking about. I’ve won and lost. My advertising agency survived the 2007-2008 recession. My $30 million VC funded ActiveBuddy digital business did not survive the 2001 dot-com bust. Don’t feel bad for me, Microsoft eventually bought our technology.

Existing Client Opportunities

[Read more…] about An Advertising Agency Survival Guide

11 B2B Email Marketing Statistics (2022)

April 19, 2022 By Peter 2 Comments

Yup 11 B2B Email Marketing Statistics – A Sweet List Just For Your Advertising Agency Business Development Program

B2B email marketing statisticsI just got off a long business development planning call with an advertising agency in Canada. We spent a good deal of time discussing the value of building and running an advertising agency email newsletter. I have written about email newsletters before but just built a set of statistics that supports my email advice that your agency should think hard about getting that newsletter out there (if you have a newsletter, good for you), Bottom line = email marketing should be a key element of your business development program.

My email marketing statistics list is below. But, just for the hell of it, here are a couple of earlier email marketing blog posts. Worth a read.

  • Frozen emails and business development 
  • A marketing email program with personality
  • Should you use email marketing for ad agency new business?

My 11 B2B Email Marketing Statistics (2022)

  1. 81% of B2B marketers use email marketing newsletters for biz dev. (Content Marketing Institute, 2020)
  2. B2B marketers send email marketing newsletters every 25 days. (SuperOffice, 2020)
  3. 31% of B2B marketers use email to nurture leads. (Content Marketing Institute, 2020)
  4. 87% of B2B marketers say email is one of their top free organic distribution channels. (Content Marketing Institute, 2020)
  5. 90% of content marketers say email engagement is the top metric they track to measure content performance. (Content Marketing Institute, 2020)
  6. 89% of all B2B email campaigns are sent from a company name. (SuperOffice, 2020)
  7.  85% of marketers say they work with email marketing platforms. (Content Marketing Institute, 2020)
  8. The highest email click-through rate goes to the consulting services companies at 25%. (Constant Contact, 2021)
  9. Marketers who segment their campaigns see as much as a 760% increase in revenue. (Campaign Monitor, 2019)
  10. Over 80% of marketers said they’d rather give up social media than email marketing. (Litmus, 2020)
  11. YIKES!!!! You better be good at email marketing  – 306 billion to be exact. And this number is expected to reach 361 billion by the end of 2024. (Constant Contact 2022)

And Now – B2B Email Marketing Guidance

[Read more…] about 11 B2B Email Marketing Statistics (2022)

Advertising Agency PR 1.0

February 20, 2022 By Peter Leave a Comment

How To Drive Advertising Agency PR – As In Getting More Fame

advertising agency prImagine that your advertising agency is so unique, so well positioned, so good at messaging, so unignorable that it stands so far out from the vast pack of other agencies that your agency gets press and praise from Advertising Age, ADWEEK, The Drum, Marketing Week, Fast Company, and Forbes. And the trade press that your future clients read.

Do it and you’ve hit the advertising agency PR jackpot. A jackpot that gets attention. This is way cool since, in New York alone, WINMO says that there are over 1,500 advertising agency options. And your agency is just one of them and needs to be found – not easy. PR helps getting found. I know, I know you know this. But… are you getting found?

Now imagine the New York wine market where the New York Daily News estimates that wine buyers have themselves over 1,500 wine store options to choose from. A similar marketing and advertising clutter problem to the agency world.

How Orange Wine Kicks It

I was in New York’s lower east side this month and stumbled upon the wine shop Orange Glou. A shop that is so unique, so well positioned, so unignorable that it stands out from the vast pack of other wine shops. In fact, so special that they have received praise from The New York Times, Saveur, Food & Wine, Punch, Money, and Fortune. Even local New York TV (see the video below.)

From The New York Times:

In November 2019, Doreen Winkler started selling orange wines by subscription. Its success led her to open a wine shop specializing in the wines, which are white wines given enough skin contact to add a ruddy blush to the color. Orange Glou, the shop, is opening Friday with 100 different wines from many regions priced from $19 to $99. She points out that these “exciting” orange wines tend to be low in alcohol and great with food. Her inventory also includes some pet-nat bubbles. She said her audience tends to skew younger, under 50, and she’s pleased that chefs are among her fans.

Why Wine And Advertising Agency PR?

Why point out the success of Doreen and Orange Glou? Because Doreen has accomplished what many advertising agencies seek. She has a specialized passion; is a recognized expert; knows how to market her product; gets national attention and is clearly an expert at knowing how to drive PR.

Orange Glou’s press page has some, understatement, cool publications that help drive Orange Glou awareness.

What Can An Advertising Agency Do To Drive Awareness?

Here is a quick list of actions that you could take to get that “free” PR action. No this isn’t easy. But if you try sometimes you will get what you need. [Read more…] about Advertising Agency PR 1.0

The Advertising Earth Is Flat

February 10, 2022 By Peter Leave a Comment

Yes, The USA Advertising Earth Is Flat

The advertising earth is flatFrom Scott Galloway’s newsletter, a chart about the “high intelligence” of Americans. OK, get this, many think that the earth is flat. That’s 1/6th of y’all. That’s 55 million Americans.

If any of these 55 million are your advertising/marketing targets, you’d better figure out a really cool and compelling message for them. A message based on, that reflects, how they process information.

David Ogilvy Knew That The Earth Is Flat. Um…

Here is the famous quote from Ogilvy on not underestimating the “consumer”.

“The consumer isn’t a moron; she is your wife. You insult her intelligence if you assume that a mere slogan and a few vapid adjectives will persuade her to buy anything. She wants all the information you can give her.”

So, What To Do? Matzo Anyone?

I like the information point of Ogilvy’s quote. And, this is where your agency’s creativity comes in. Can you craft the “information” message to cure, or even leverage, the idea that the earth is flat? Hey, why not go after the Streit’s Matzo account. I think that the ad copy could write itself.

Of course, you’d have to deal with the fact that 98% of matzo eaters know that the earth is round.

Oh, is the Metaverse round? From Ogilvy itself… 

 

 

Deliver An Advertising Agency Newspaper

September 30, 2021 By Peter Leave a Comment

Really? An Advertising Agency Newspaper. Peter, You Must Be Joking.

advertising agency newspaperWebsites are ephemeral. Social media is like the wind. Email. well email, just fades away. Same for LinkedIn messages. But paper, well paper sticks around. So, here is a suggestion. Consider having an advertising agency newspaper. Whoa… A newspaper? In 2021 or beyond. Yup.

Just to get the conversation going… that’s one of my photography series newspapers over there from my Mexico LaGente photo series.

I Am A Photographer. I Use Newspapers To Give Back.

I photograph communities (and dozens of people) around the world. I have created ‘newspapers’ as a follow-up for photo series I’ve done in San Miguel de Allende Mexico and Selma Alabama. It is a way that I give back to the community. People dig it. I’ve even gotten hugs in Mexico when I’ve given a newspaper to a person that has their photo in it. Hugs. Doesn’t your ad agency want a hug? See some pics of ‘hugs’ below.

Yo, Be Unignorable = Get attention = Creat An Advertising Agency Newspaper Or Zine

Ok, getting past that ephemeral digital problem. Go newspaper, or if you prefer a more modern approach – call it a zine.

Smart words get attention. Groovy imagery gets attention. Smart insights get mucho – repeat – attention. So, if you are going to the trouble of doing all this outreach work to get attention… why not try to really get attention. Go 1990’s and put it in ink. Let people touch your brilliance.

I Use The Newspaper Club

Go to the UK’s Newspaper Club for inspiration and, hey, why not use them to produce your groovy print work.

OK. One More.

Minneapolis’s video production company Current Resident also uses print / zines / newspapers…. whatever you want to call it.

Issues? Sure.

Yes, it is paper. Go green and make it eco-friendly paper.

Need addresses? Now that many businesses are back at the office – at least some of the time – mail is getting delivered to the right person. Or, you know what… ask people for their home address. I often send one of my The Levitan Pitch. books to people. They gladly supply their real address. These days, getting anything in the mail is like Christmas.

Paper in action. Hugs from my neighborhood. A FB post from a community leader.

advertising agency newspaper

 

 

 

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