How Entrepreneurial is your agency?

Ad agencies are rethinking what it means to be entrepreneurial and according to an article in the Evening Standard,  are considering two interesting ideas for increasing revenue and winning new business:1. Taking share options in a client's business in lieu of fees
2. Retaining some of the intellectual property (IP) rights of an ad campaign, rather than letting the client take everything.
Although these two ideas are not extreme, they are unconventional for an industry which typically generates revenue from a client remuneration system. This system is reliant upon fixed fees or man hours and very little on campaign results.
The two new trending ideas show great new business potential and are inextricably linked. An advertising campaign (based on IP) ultimately contributes to the success of your client's business (sales and profit) which naturally suggests that agencies should retain IP rights and pocket some of the business share.

However the article didn't really reference the value based model pioneered by Coca Cola which is founded upon performance related pay. Such models would incentivise agencies meaning the best agencies will earn the most.  The flaw with performance-related pay is the complex nature of determining the actual value of a campaign so I think there is room for a model which is based on both performance and fixed fees.

Another factor which has encouraged this wave of new business models is increased competition from smaller specialised digital agencies. Consequently the Evening Standard reported that traditional agencies will need to develop more commercial models which point towards new service offerings or venturing down a non-advertising route such as brand start-ups. Part of me thinks agencies should be stepping outside of the traditional service offerings as it encourages entrepreneurial spirit, but conversely I don't think they should try to offer and claim to be experts in everything. Demonstrating expertise in one or a few services is far superior than being mediocre at everything.

All-rounder vs one expert talent - What do you think?

New Business: Charmingly Persuasive Bulldog

If I was asked 2 days ago to outline the role of new business within a media or advertising agency I probably would have blagged my way through a very brief description which would have said “it's just about trying to win new clients for the agency”.

However having spent the last two days on an IPA New Business course I am confident and more knowledgeable about what hides under the umbrella that is ‘New Business’.

One thing that has been embedded in my mind is the attention to detail and its significance. Whether this be in the initial prospect email, the chemistry meeting or the actual pitch; if you miss something or make the smallest of mistakes it will be the first thing the client notices and the one thing that will deter them from considering your agency!

The line-up of speakers on the course represented a breadth of notable talent and represented key new business figures including: 4 Marketing Directors of various advertising agencies, the Director of Client Account Team at the COI, CEO of the AAR (Client-Agency Relationship Consultancy) and our very own Business Development Director, Cormac Loughran from MEC.

When thinking about trying to win New Business we were asked to consider the process we would follow if we were spending £56 million on building our dream house. Where would we begin our research? What do we want to know? How do we want to be treated? What factors are going to sway your decision? etc.
A pitch could be won within the first two minutes but equally it could be lost. First impressions are crucial as the ultimate deciding factor for a client is the people and team they are going to be working with. The success of New Business is reliant upon relationships whether with the trade press who write about your agency, the intermediaries between you and the client, the chemistry between members of the client account team, and finally the relationship between your client team and the client themselves.
The pitch process is like dating, no date is ever the same so you can't apply the same formula, however before giving the client any piece of work or information be sure that it is relevant and ask yourself is it useful, interesting and entertaining?

Our learning on the course was assessed by a chemistry meeting with the actual MD of Heineken so it was challenging and daunting to say the least. In teams we worked into the night to generate the content and strategy for our meeting and put together a 15 minute presentation only being allowed to use the medium of voice and a flip chart! The following morning we held our chemistry meeting in front of all the course attendees and presented our initial view of the prospective business and how we were going to create initial standout in a cluttered market. Our idea was to completely defy the trend of the market and create standout by creating silence and we proposed a strategy based around long-term gain vs short-term presence. To top off the last two days I was over the moon when our team got crowned as the winner!


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Typical Is Relative

Did you know that the World's most typical person is a 28 year old Chinese male and that there are 9,000,000 of them! This fascinating fact was posted in an infographic video produced by the National Geographic who investigated the typical statistics that characterize our human population.

The video triggored my thoughts about the most typical UK media agency as I have recently moved into the New Business team at MEC. Part of my role whilst rotating in this department is to look at our agency both internally and externally, including how MEC is publicised through PR, our social media presence and what people are saying about us, how our website is performing and what our company credentials say to potential clients.
When sending out prospective letters or pitching for new client business, credentials are used as an introduction to the agency so the client can distinguish between all the competitors. Credentials are pretty standard but because there is so much competition I am trying to re-invigorate MEC's credentials in the hope that we stand a better chance of impressing and remaining at the forefront of the client's mind. The pace of change and digital advancement in the media industry has forced agencies to change their business model to reflect full integration. Consequently this has enforced an industry standard where agencies have become typical. They increasingly integrate all communication and creative services, have all the best research resources, own all the tools in the box, and have the best people in the industry. I started to think about how typical MEC is and whether there is such thing as a USP anymore?

I think the key to creating standout is not to prescribe standard credentials as I'm sure most clients would prefer to look through company info in their own time. Instead we should facilitate the 'New Rules of Marketing' -  nudging clients to actively seek and engage in our conversation via our blogs, social media, to create and post our own video thought-pieces in order to enhance our profile. All these elements together will naturally communicate the agency's credentials without the need for stating them in a typical list and thus creating standout and demonstrating our USP.

Just a thought:
Typical is stating your USP. Atypical is encouraging your USP to be found and witnessed by the client.


This blog has moved to www.laurarobinsonblog.com