Small to mid-size ad agencies need to protect their own backyard

September 9, 2011

This guest post is written by Bret Giles, president of agencyside, which offers training and consulting to sell and implement digital marketing services. It’s all exclusively designed for small to mid-size advertising, marketing and PR agencies. One of the premier agency side events is BOLO 2011, October, 9-11, Scottsdale, AZ. A discount for Fuel Line readers is available by using the code MGass. I hope you’ll plan to join me there.

Bret Giles

My backyard is afoul with these pesky rodents intent on ruining what I’ve spent so much energy planting.  They just won’t go away; in fact, I fear they grow in number while their teeth become sharper and their devastation more obvious.  They are invading my space and I’ve done little to prevent it.

Until now.

As an owner of a mid-size agency, I’m ready to passionately protect my turf and start a little invasion of my own. 

Media companies are not agencies – they have hidden agendas and a distinct bias in media selection.  Technology companies like Google are not agencies – they protect their valuation by positioning themselves as a technology to investors, yet they pretend to our clients they are creative strategists capable of pulling off complex campaigns.  And unfortunately they have found a strong ally in procurement offices across American companies.

They are invading our space because their own backyards bear less fruit than needed to sustain juggernaut growth (or prevent death in the case of some media companies).  They know that as marketing budgets are wrestled from people who look beyond the numbers, they will continue to win plum assignments and perform adequately to the expectations of the unsuspecting buyer.

As the story goes, the buyers commoditize our agency offerings and we are relegated to discussions of efficiency against the likes of Meredith, Hearst and Google.  And yet we have some tricks up our sleeve, right? 

By focusing our energy in owned and earned media we feed ourselves, as these media are mostly fee-based (money to us) rather than the media-based alternative of paid media.  As an added bonus, we lessen our reliance on the very entities that invade our turf, thus cutting off their food supply.  On top of that, we can infiltrate their backyards by becoming publishers on behalf of our clients.  After all, conventional media no longer controls the media and conventional wisdom no longer holds value.

It’s time to protect our backyard and organize a small invasion of our own. 

In addition to co-founding an agency, I also helped start agencyside, an organization dedicated to serving small- to mid-size agencies and the issues we face.  We put on an annual conference called BOLO that will further discussions around the role of the small- to mid-size agency and where we can truly add value in a vastly changing backyard.  There is actually tremendous opportunity right now and I think we’ve lined up some great talent to lead forums around that opportunity.

I hope you will join me and about 175 other independent agency owners and executives to further this discussion.  You can get a full account of our agenda at www.BOLO2011.com.

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Posted by Michael Gass

Is Advertising a Respected Profession?

August 31, 2011

A lack of respect is bad for ad agency new business. You might not be able to change the perception of our industry but you can control the perception of your agency.

Over the last decade, the advertising industry has become one of the least liked by Americans. In a recent Gallup Poll Advertising and Public Relations ranked 10th on a list of the least respected industries in the nation.

Author Tim Williams is an author and consultant, closely associated with the advertising industry. In a recent article, that is generating some buzz, he raises the question: “Is Advertising a Profession?

Tim writes, “By referring to advertising people as “professionals” and advertising agencies as “professional knowledge firms,” I’m stating my belief that advertising and marketing is – or at least should be – a “profession” in the same league with law, accounting, or architectural firms.”

He goes on to state that the true definition of a profession presents a much more rigorous standard than just being good at your job. Standards such as:

  1. Professionals are accredited
  2. Professions require continuing education
  3. Professions are based on the study and application of science
  4. Professions adhere to “higher aims” than self-interest or economic benefit

Given the above standards, is advertising a profession?

Tim’s opinion is that the advertising industry isn’t there yet but it should be.

“To be respected as a profession, the advertising and marketing business must take a much more evidence-based approach.” 

” … after over a hundred years’ experience with modern marketing, advertising agencies should be a lot more conversant and knowledgeable about what works, what doesn’t work, and why. we should be a lot less focused on deliverables and a lot more focused on outcomes.”

Jason Falls, educator, speaker and author of the book “No Bullshit Social Media”, in the world of digital marketing and social media, was blunt in his response to Tim’s article that I posted on my Facebook page:

“ Uh … Thousands have made a living for their whole lives doing nothing but. That guy’s full of it and just looking piss people off.”

Douglas Burdett, president of Artillery, a full service advertising agency in Norfolk, VA, had just the opposite reaction:

“Great post – have shared it w/my local AAF chapter!”

Do you agree or disagree?  

Click on the following link to read Tim’s complete article, “Is Advertising a Profession?” and share your opinion by taking this  twt Poll: Is advertising a profession?  or weigh in with your opinion in the comment section below.

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Posted by Michael Gass

The Future of Ad Agency Promotion at Events Through Social Media

April 1, 2011

 

Social media can enhance your special event experience and make networking for new business easier.

Without a doubt an industry trade show or conference has been a beneficial professional networking event for business opportunities. Social media has transformed these events and taken them to a new level.

“I think social media is changing the nature of interaction surrounding conventions,” said Steven Paganelli, vice president of business development-DMOs/CVBs for the Washington, D.C.-based, TIG Global. “Certainly, the opportunity to connect on a higher, more meaningful level face-to-face has always been at the heart of meetings and conventions, but social media tools and new technologies are making it easier for delegates to move beyond their comfort zone to meet new contacts, share ideas and engage in these events in deeper ways.”

In an American Express OPEN Forum article, Scott Belsky, Founder and CEO of  Behance, shares insights from his 4-day experience at this year’s South By Southwest Interactive Conference. I’ve taken Scott’s main take aways regarding the future of advertising and self promotion to highlight the future of ad agency promotion at events through social media for new business:

1. Curation is a great tool for agency self-promotion.

Scott identifies one company that stood out above all others at this year’s SXSW event by serving as a curator of of  event information.

“AOL set up a booth where they sorted through the day’s news at the conference and streamed channels of information for particular interests. In effect, AOL was serving as a curator of the overwhelming amount of stuff, and people gravitated toward the booth.”

This is a great social media strategy for ad agency promotion. Become a curator of information by allowing your agency blog and website to be a repository of helpful information for your prospective clients. Scott says, “If people like your taste—or just the way you display information—they will tune into your message.”

I was able to interact with attendees of Ad Age’s first Small Agency Conference. From my social media interactions I was able to create this article: 50 of the Best Insights from Ad Age’s First Ever Small Agency Conference.  The amazing thing – I wasn’t there!

I was able to create this list of the 50 Best Insights in an article for my blog and propagate it through my 50,000 + followers on Twitter before the conference was even over.

I also helped spread the word of the conference, create buzz and assisted in generating traffic for the conference sponsors: AdAge andAOL Advertising.

It put me on Ad Age’s radar: @adage And it’s not even over! RT @michaelgass 50 of the Best Insights from Ad Age’s First Small Agency Conf #smallagencyhttp://bit.ly/bTZqhL

2. The Future of Advertising (networking) is Education.

I wasn’t able to attend this years SXSW event, but according to Scott, the future of advertising was one of the main topics of discussion.

“With brands in the hands of the people, a new genre of advertising will arise that is more authentic and borderline educational. Companies will tap their expertise as a way to win people over. For example, GE knows a lot about the future of energy and jet engines, Pepsi knows a lot about marketing and beverages, The New York Times knows a lot about journalism.

While you would likely skip over any commercials from these brands, you might be interested in their perspectives in areas where your interests intersect.”

Social media can play an important role in defining your agency’s brand. To be successful with social media you are compelled to lead prospective client engagement with benefits and value rather than agency capabilities and credentials. Check out these “Top 10 Benefits of Social Media for Ad Agency New Business.”

Education provides a great networking platform to build value for your prospects and positioning of leadership for you and your agency.

3. The value of attending conferences lies with personal connections, not panels.

Some people believe that we are so connected online that offline conferences, seminars and trade shows are losing their importance. Scott’s takeaway is just the opposite:

“In a world of increasing remoteness and virtual relationships, the benefits of physical engagement only increase. I would argue that conferences will become MORE essential as our lives become more digital.”

Social media has transformed offline events and can maximize the personnel connections with prospective clients. Your involvement with blogging, Twitter, Facebook and LinkedIn can change your whole experience. You can “get to know” many of the exhibitors, speakers and event attendees from your online interactions that will propagate and enhance meeting them in person.

I recently received this note from Tom Matter, CEO of MAX Advertising in Atlanta. Tom’s agency specializes in law firm marketing and had this to say after attending the Legal Marketing Association’s Conference in Orlando:

“I wanted to tell you how fast we have been noticed by the national legal marketing community. We are easily the most talked about new marketing strategy and creative shop in the business.

All the blogs we followed last year to get started are all now following me for content ideas! They told me this themselves. I

had women stop me and ask to get my picture taken with them because they love The Matte Pad!! No joke. So many people read it and follow it with their RSS reader.

It was great validation for all the hard work we are putting into it. MAX Advertising is a great social media success story. We will get so much work from the conference it’s not even funny.”

Tips for participating in special events using social media:

  • Include a banner for the event in your blog’s sidebar.
  • Information about the event in your email newsletter.
  • Invite one of the event organizers to write a guest post.
  • Write your own article prior to and/or after the event.
  • Find out if the event already has a Twitter #hashtag set up. If they don’t suggest one to the event organizers. Use the hashtag for Twitter posts about the event, before, during and after.
  • Use the time to network
  • Conduct interviews. Use your iPhone to video and edit podcasts that you can share on your blog.
  • Act an a reporter for the event with live updates via Twitter, Facebook and LinkedIn.
  • Set-up “meet-ups” from your online networks of people

Click on the following link to read Scott’s article, “SXSW Interactive Takeaways: The Future Of Advertising & Self-Promotion.” If you are an event speaker, you might find the  “7 Traits Event Organizers Need From Speakers” helpful.

9 Comments | Agency Networks, Best Practices, New Business Tactics, New Business Trends, Social Media, Speaking, Special Events | Tagged: , , , , , , , , , , , , | Permalink
Posted by Michael Gass

MAGNET Global Network for Ad Agency New Business

March 4, 2011

Ad agency networks provide a wide variety of  benefits plus be a boost for new business opportunities.

The MAGNET advertising network collectively bill more than $2.7 billion dollars and the organization’s 39 members are located in major markets across the United States and around the world including Tokyo, Hong Kong, Ireland, London, Dubai, Moscow, Munich and Paris.

“It is so exciting to work and assist these talented independent advertising agencies achieve their goal. In a matter of 24 hours, I can connect an agency in London with an agency in California, to Boise, Idaho to Houston, TX for collaboration and work on a specific project. It’s amazing to see the cooperation and work among the agencies.” – Cheri Gmiter, Executive Director, MAGNET Global Network

“I’ve been in MAGNET for over 20 years and it has been my MBA program. I’ve learned so much from my fellow independent agency CEOs and made many life-long friends. My agency and I are better from being a part of this global CEO network.” - David Littlefield, CEO, Littlefield Brand Development

I recently spoke at MAGNET’s Winter Conference at the beautiful Turnberry Resort, Aventura, Florida, near Fort Lauderdale. After traveling in harsh wintry conditions since early November, the conference location was a welcomed relief.

Just like I needed a respite from the snow and ice, agency principals need an occasional break from their isolation, to meet with other agency principals who face the same issues of running a small to midsize advertising agency. There’s usually too much competitiveness for agency owners to ‘let down their hair’ with other agency owners within the same market.

Networks such as MAGNET, provide personal and professional refreshment.

Here are a few of the benefits that I see MAGNET, and similar agency networks,  provides its members:

  • Seminars and workshops on a variety of agency functions: I was part of their New Business Seminar last year. Other educational events would include future trends, planning and strategy, leadership, account planning, digital, media, social media, etc.
  • Research. MAGNET conducts 3 annual surveys on behalf of its members: CEO and staff compensation, Agency costs analysis and billing and agency statistics.
  • Legal counsel that is on a retainer for Network members.
  • Sister agencies that can assist in RFPs and Pitch opportunities. At dinner, one of the members shared that if they had an opportunity to pitch their state’s lottery, a sister agency, with lots of lottery and gaming experience could provide invaluable consultation.
  • A global network of assistance. At our dinner table was an agency owner from Hong Kong who was having a conversation with two other agencies who had clients with interests in China’s market. She offered talked about some of the cultural differences and customs that would be important to know about and offered for her assistance and networks on the ground there. An agency’s global affiliations and networks are becoming more important to clients.
  • Continuing education to improve agency operations and best practices. An agency owner shared with me that he had been a member of MAGNET for over 22 years. He said, “This has been my MBA. All of the training that comes from events such as this and the information that is provided from other members has been a huge help in our success.“
  • The camaraderie among the agency owners is what impressed has impressed me the most on the occasions I’ve had to be affiliated with their seminars.  There were friendships that go back over 20 years and the newest members seemed to be as welcomed. Affiliations such as this allow agency owners to tap into the expertise and specialized capabilities of their network partners.

For additional information about MAGNET and the other top agency networks click on this link: The Top 14 List of Advertising Agency Networks

I’m sure that Cheri Gmiter, Executive Director, for MAGNET, would be glad to answer any questions you may have about their group.

Here’s a quick listing of the MAGNET agencies for you to explore:

North America

EUROPE

ASIA

2 Comments | Agency Leadership, Agency Networks | Tagged: , , , | Permalink
Posted by Michael Gass

Large Ad Agencies Coming Out of the Recession in Good Shape for New Business

December 7, 2010

Small to midsize ad agencies should take note of how the big agencies have reconfigured themselves to take advantage of the changing advertising landscape and make some changes of their own.

If you thought the big advertising agencies like Omnicom, the WPP Group, Interpublic (IPG), and Publicis are going the way of the dinosaur, you would be sadly mistaken. The demise of the big agencies has been widely perceived but is far from reality.

Big agencies have felt the wrath of the great recession just like agencies of all sizes. Like us all, they have also watched the disappearance of 15% media commissions and dramatic shifts in marketing budgets to digital and the rabid rise in popularity of social media. They didn’t bury their heads in the sand or rest on their laurels, big agencies have been busy preparing and plotting throughout the recession, not just to remain as a necessity but to gain even more market share.

In a recent Bloomberg Business Week article, “Don Draper’s Revenge”, staff writer, Felix Gillette, shares the advantages larger agencies are having over their smaller counterparts. This should be a wakeup call to all of the small to midsize advertising agencies and creative shops.

“The big guys with their lumbering overseers at the holding companies are not only dumb, they are also as good as dead. It all sounds great, at least to the Technorati. The only problem is, it’s not remotely true.” Felix Gillette

Here are some of the highlights from Felix’s article:

  • In October, the Big Four advertising agency holding companies—Omnicom, the WPP Group, Interpublic (IPG), and Publicis reported their quarterly earnings. Across the board, revenues were up.
  • Looking at decade-long period trends, there is little evidence of the big agencies decline.
  • All of the Big Four are hiring, prompting columnist Jim Edwards to write a recent post on BNET with the headline: “Help Wanted: Madison Avenue Is Hiring Like Crazy and Bonuses Are on the Rise.”
  • During 2009, the Big Four combined brought in $16.71 billion in revenue in the U.S., according to Advertising Age, more than double the $8 billion spent on digital display advertising in U.S. in the same year, across all companies.
  • The global holding companies continue to tinker with the mix of services in their portfolios and aren’t shy about using their resources to acquire little artist colonies to plug holes in their offerings.
  • In addition to stockpiling talent such as search engine optimizers, social media strategists, and Web developers, the big 4 are adding creative digital talent. “We’re adding guys that come from some of these small background places. They come here to paint on a bigger canvas,” says David Lubars, chairman and chief creative officer of Omnicom’s (OMC) BBDO North America.
  • All of the big agencies are working on multiple fronts to integrate their technology teams more deeply into every aspect of the creative process.

Felix writes, “In the darkest moments of 2009, with ad budgets withering away amid the global recession, the age-old despair of the creatives was at fever pitch and the din of the futurists at a near-deafening roar. But as the global ad market continues to thaw, the descendants of Madison Avenue not only are alive but are looking as well positioned as anybody to capitalize on the digital market moving forward.”

Read Felix Gillette’s article “Don Draper’s Revenge”

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Posted by Michael Gass

The Top 14 List of Advertising Agency Networks for New Business

September 24, 2010

A network of  advertising agencies can improve your agency’s new business through collaboration, strategic alliances and  training.

Whenever I speak, I’m often asked to recommend an agency network. There were very few online sources that had collected this type information in one place, so I decided to compile my own list that I hope you find helpful. I’ve included a brief synopsis of information, along with web links, contact information and Twitter accounts for each.

Feel free to share others you would like to see included.

A strong agency network can:

  • Help with new business introductions and attract new business internationally
  • Provide new business training for agency staff
  • Enhance best practices
  • Provide peer groups
  • Improve agency operations
  • Create channels for outsourcing work
  • Assist in implementing research
  • Provide  access to common media and research s
  • Arrange annual conferences, workshops and seminars
  • Provide access to the expertise and specialized capabilities of network partners
  • Arrange for group insurance plans, legal services, etc.
  • Create and share results of business and salary surveys

The Top 14 List of Advertising Agency Networks:

4 A’s (American Association of Advertising Agencies)

Headquarters: New York, NY

Website: www.aaaa.org

Mission of AAAA: To improve and strengthen the advertising agency business in the United States by counseling members on operations and management, by providing the collective experience of the many to each, by fostering professional development, by encouraging the highest creative and business standards,and by attracting excellent people to the business.

Nancy Hill, President and Chief Executive Officer. For more information on membership, benefits or events, click here

Follow the 4As on Twitter: http://twitter.com/4As

AMR (Agency Management Roundtable)

Headquarters: Surprise, AZ

Website: www.agencyroundtable.com

Helping Agencies Grow to the Next Level

Agency Management Roundtable (AMR) is a management consulting business that specializes in helping owners of small- and medium-sized marketing communication companies (less than 30 employees) move up to their next performance level—and keep improving.

For additional information you may contact Dave Wood, email

Visit AMR’s Blog

AMIN  (Advertising and Marketing International Network)

Headquarters: Viola, KS

www.aminworldwide.com

AMIN is a global alliance of independently owned advertising agencies. The alliance spans the globe, with member networks in North America, Europe and Asia.

For additional information contact, Janna Sperry Sundby, Membership Manager, AMIN Worldwide: jsundby@aminworldwide.com

The AMIN Network Blog

Follow AMIN on Twitter: http://twitter.com/AminEurope

ComVort Group

Multi-national clients demand and expect a full breadth of services from their global agencies. The ComVort Group is the only marketing communication organization that offers capillary services on a global scale.

Headquarters: Barcelona

Website: www.comvort.com

Our agencies leverage the ComVort network’s unique structure – as well as their own extraordinary commitment toward their clients – to create custom-tailored solutions that helps our clients succeeds.

If you want to get more general information about the ComVort Group, in English, Spanish and German you can contact ComVort’s Global COO | Brando Brandstäter

ICOM

Headquarters: Rollinsville, CO

Website: www.icomagencies.com

ICOM is one of the world’s largest networks of independent advertising and marketing communications agencies.

  • Revenues: (US) $2.4 billion
  • Members: 70+ agencies based in 50+ countries
  • Coverage: 95% of the world’s markets
  • Clients: 2000+
  • Offices: 87

Curious about membership? Have some more questions? Click here for the contact page

in’ agencies

Headquarters: London

Website: www.in-advertising.com

in’ agencies work for more than 1500 brands on a domestic, regional, multi-domestic or global basis.

10 out of the 20 most famous brands, as named by Interbrands, work with one or more IN agencies. Many brands use a local IN agency for their domestic business, and other agencies from the IN network for work abroad.

For contact information: click here

INBA

Headquarters: Farmington, CT

Website: www.inba.com

INBA is a global network of independently owned, mid-size, marketing communications firms. INBA is represented by 23 members and affiliates in 25 countries.

INBA is international. But not global. That may sound like a contradiction, but we think it’s a distinction. We’re located in key markets around the world. That makes us international. But, unlike mammoth global agencies, we aren’t mirror images of each other. Each of our member agencies has its own personality and capabilities. Each is steeped in the culture and business practices of its home country.

For additional information contact: Peggy Thompson

Intermark Agency Network (IAN)

Website: www.intermarketnetwork.com

A different concept in agency networks.

IAN (Intermarket Agency Network) is a forum for leaders of noncompetitive marketing agencies to openly exchange knowledge in a collaborative setting. A nationwide association of carefully selected agencies, its members meet twice annually to freely discuss important issues like new business, financials, HR, creativity, growth and much more. No topic is off limits.

For details about joining IAN, contact Ed Kleban, Executive Director, at ekleban@juicecoms.com

MAGNET Global Network

Headquarters: Pittsburg, PA

Website: www.magnetglobal.org

MAGNET is a collaborative network of the world’s top marketing and advertising agencies. MAGNET and its member agencies represent more than 800 clients worldwide with total annual billings of more than $1.6 billion USD.

For additional information, contact Cheri Gmiter, Executive Director

Follow MAGNET on Twitter: http://twitter.com/MagnetGlobalNet

Second Wind Network

Headquarters: Wyomissing, PA

Website: www.secondwindonline.com

Second Wind is a powerful information resource designed with one thing in mind – helping smaller and midsize advertising agencies, design firms and related businesses to be better.

Second Wind was founded by former agency owner and entrepreneur Anthony P. Mikes. Mr. Mikes owned and operated design studios and agencies for twenty-five years before launching Second Wind in 1988.

Follow Second Wind on Twitter: http://twitter.com/secondwindbuzz

TAAN

Headquarters: Boston, MA

Website: www.taan.org

We are one of the world’s oldest, largest and most successful networks of carefully selected independent advertising agencies. Today there are TAAN member agencies operating on every continent, in more than 47 markets worldwide.

TAAN is an association of carefully selected, highly talented, independently operated marketing communications agencies in the U.S., Europe, South America and Asia/Pacific. Each TAAN agency is well-recognized in its home market and represents leading marketers in its area.

The TAAN network is built with the concept that shared knowledge and intelligence creates powerful insight in addressing the goals of agencies and marketers throughout the world.

For additional information you may contact TAAN President, Peter Gerritsen

Follow TAAN on Twitter at twitter.com/TAANnews

T-CAAN

Headquarters: Toronto, ON

Website: www.tcaan.ca

T-CAAN is the oldest and largest network of independent Canadian agencies and has developed strong working relationships with similar groups in the U.S.A., U.K., Japan, Jamaica, Europe and Hong Kong.

Every agency within the T-CAAN network operates as a branch-office, providing fast, top-quality and dependable service for all member agencies. Assistance can vary from the provision of backup services and field assistance to the exchange of creative ideas, research data, or financial information. The objective is to make each member stronger through the free flow of information and resources.

For additional information you can contact the Executive Director (Alice Zaharchuk) by e-mail at marketingmonkey@sympatico.ca

thenetworkone

Headquarters: London, England

Website: www.thenetworkone.com

We provide the major advantages of belonging to an international agency network, at a price every agency can afford. Membership benefits include: access a custom-built international network on-demand; an insurance policy, don’t lose pitches because you can help the client in other countries; a proactive opportunity to target new international prospects and receive partnership requests from other member agencies.

The major part of our activity will continue to be the introduction of new business to independent agencies.

For questions you may contact Julian Boulding, President julian.boulding@thenetworkone.com. For membership info, click here

TheNetworkOne Blog

Worldwide Partners

Headquarters: Denver, CO

Website: www.worldwidepartners.com

Founded in 1938 the Worldwide Partners network now the world’s largest owner-operated agency network: $3.4 billion in billings, 93 agencies, 55 countries across Asia, EMEA, Latin America and North America.

Our mission is clear: We’ll give you more leverage, resources, out reach and firepower than you have as a stand-alone shop without giving up ownership. Whether you have international business or not, we can help you with virtually every aspect of your business.

For additional information contact, Al Moffatt,  WPI’s President and CEO, alm@worldwidepartners.com


Missing Opportunities:

I found that most of these groups are missing a prime opportunity in utilizing social media to enhance communications and collaboration within their “ready-made network” of agency members. But hopefully they’ll soon see the what a valuable communication’s channel they are failing to tap into.

Click here to view a list of Independent International Advertising, Direct Marketing, Media Buying, and Public Relations Networks

If you feel that any other agency association/network should be added to this list, please add them through the comments below.

23 Comments | Agency Leadership, Agency Networks, New Business Trends | Tagged: , , , , , , , , , , , , , , , , , , , , | Permalink
Posted by Michael Gass