December 24, 2009

Ad agency lies: who listens and why

Filed under: Advertising Agencies, Business owners — admin @ 10:39 am

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In the advertising agency business, one of the most difficult things to do is acquire new clients without lying. This is because when two or more agencies are presenting to the same client, it is often the one that makes the biggest promises that wins the business.

Most ad agencies stay within the ethical boundaries of truth, even if it’s embellished in a “dog and pony show” presentation. Some, however, willingly cross the line.

The question then becomes, why does a smart, successful business person buy into false promises and what can he or she do to avoid it? Here are four reasons why blatent exaggerations are believed and what you can do to keep from falling for them.

THE FORTUNE TELLER SYNDROME
The advertising category is the only consulting service a business uses that deals with the future. Everyone else: the attorney, accountant, even the insurance agent, is a historian. The entire premise of using an ad agency is built around shaping a better tomorrow. Therefore, the client is already in a state of mind to accept predictions before a single word has been uttered.

What to do
Go into your agency review knowing that these people are mere mortals. A good agency will be able to explain the fundamentals of good marketing and why it works. But, combine an unkown future with the variables of human behavior and no one can actually predict an outcome. There are industry expectations for response to marketing. Ask what the avearage response rate is and resist the temptation to believe anything outside of those standards.

I CAN GET IT CHEAPER
One of the most effective ways to win a client is to convince him or her that the agency can buy media cheaper than anyone else. This line of reasoning fits perfectly with a business person who is fine tuned to getting the best wholesale prices on products they sell. They understand the concept immediately and very little explanation is required.

What to do
There is no other business where manipulating numbers is so easy and convincing. To illustrate this, we recently presented three plans to a client, all with the same rating points per week. But, at the end of the year, there was more than a $100,000 difference in actual cost. The difference was not based upon the ability to buy cheaper, but was based upon a multitude of other variables when making the buy. Your best tactic with regard to this claim is to completely ignore it as a reason to choose an agency. Rather, ask them what their media strategy would be for your particular business.

THE MISTIQUE IS GONE
Like it or not, this business carries with it a certain cachet that others find a bit fascinating. When an ad agency has been around too long, what they do becomes so familiar that it’s like knowing how the magician does his trick. The bit of mystery that makes ad agencies different isn’t there any more. In a client’s desire to “see what’s out there”, there is also an expectation that there is something special they’re not getting.

What to do
This expecation sets the stage for believing claims that are lofty or just plain false. To complicate things, we are in a period of time when on-line marketing is being integrated into agency capabilities. Because of the different levels of competency agencies have in this fairly early stage of on-line marketing, you may find actual differences. The key here is to remain objective with regard to actual capabilities. If one agency can provide Facebook ads or keyword search and the other can’t that’s cut and dried. But, if it gets down to how one agency can do it better because of some secret forumula, that’s the time to stop listening.

POOR SALES
If a company’s sales are lagging, there may be many reasons why. And, if an ad agency is involved, I guarantee that it will be called into question. The client may not even blame the agency directly. But, there is the desperate hope that a new marketing approach will save the day. And, it is in that desperation that the business person clings to the belief that what is being said is worth taking a chance on.

What to do
This is the hardest one of all to deal with. Low sales can cause panic in the best of us. In a situation such as this, it is best to bring in a trusted third party who has some experience in marketing, or choosing an agency. Having a sounding board to modify your instinct to go with the biggest promise can help to keep your emotion from overruling your logic. But, you must be willing to listen and question your motivation.

If you find yourself in a position of hiring a new ad agency, be careful about what you believe. Don’t get distracted by colorful charts and shallow claims. And, check yourself against the four states of mind listed above before you believe something.

Rob Charlton



August 25, 2009

The first rule of advertising: It’s about them, not you.

Filed under: Business owners, advertising, creative — admin @ 4:15 pm

I read this phrase in a marketing book a number of years ago, and unfortunately, I don’t remember the name of the book or the author. But, of all the pieces of advertising advice that I’ve accumulated over the years, this is the most direct and universally useful.

It’s about them, not you.

In my 30+ years of helping people advertise their businesses; one of the most recurring issues is the owner providing reasons for customers to buy based upon the owner’s perspective. This is both completely understandable, and completely wrong.

When an entrepreneur throws his or her life into an effort to create a product or service to sell, it’s all-consuming. Not only is your investment and income on the line, but you tend to live your business every waking hour of the day. So, when you explain what you sell to potential customers, it’s only fitting that you describe all the things you do to make your product valuable.

What you should be doing is describing the benefits of your product from your customer’s point of view. Will it make your customer feel better, look better, richer or happier? How hard you work, your experience, how much you’ve sold, your education: none of that matters in an ad. It might matter later in the sales process, but not at the point of first contact, which is your ad.

It’s about them, not you is a great phrase to measure your ad copy against. It’s easy to be distracted by clever double meanings and playful ideas. But, if they don’t pass this test, don’t use them. Be fanatic about connecting more directly with your customers’ real needs and you’ll be rewarded with more effective advertising.



June 2, 2009

Do You Hate Advertising Agencies?

Filed under: Advertising Agencies, Business owners, marketing — admin @ 8:06 pm

There have been a number of occasions where I’ve met with business owners and managers who state flatly that they don’t like ad agencies and don’t think they can add any value to their marketing efforts. It’s always left me somewhat speechless, because these people have formed strongly held opinions that were shaped by some experience they had. And, there was no amount of persuasion that was going to change their minds.

In reflecting upon why such negative feelings are held by some, I recounted some of the things I’ve seen over the years. Following is a list of five things that can turn a viable client into an anti-ad agency evangelist.

1. SURPRISE BILLS
Nothing will lead to a lack of trust faster than a bill that is not expected. Reasonable clients will expect a bill for work done. But, I have seen bills from some ad agencies that are completely out of line with the work that was performed. Once a business owner feels burned by an ad agency, it is almost impossible to gain their trust again.

2. UNDER SERVICE THE ACCOUNT
This takes a little longer for the client to recognize. But eventually, if they aren’t given enough attention, they will believe that no matter how little they are charged, it is money wasted. Ironically, this problem usually comes from the agency charging too little so it has to take on more clients than it can effectively handle just to make a profit.

3. GET CAUGHT UP IN THEIR OWN CREATIVE IDEAS
I’ve seen wonderful work for a client, expertly executed and complete. And, completely off the mark. I worked with a pizza company whose previous agency’s branding efforts were so completely off the mark that people came in thinking it was a slot car store. Small wonder they’re still gun-shy.

4. OVER PROMISE IN THE BEGINNING
In this highly competitive business, many agencies resort to unrealistic promises of success in order to land the account. Then, of course, the results are never even close. Sometimes, if the agency can create a personal bond fast enough, they can modify client expectations back to something reasonable. But, often they can’t, and the business owner feels burned by the whole experience.

5. CREATIVE ARROGANCE
It isn’t as prevalent as the movies would have us believe. But, it still happens too much. Some young creative guy teams up with some young AE, and suddenly they think they are the only ones with answers that matter. The truth is, business owners often have much to offer and create a much better team when included. Not much will turn off a business owner who has worked his or her tail off to get where they are faster than some arrogant outsider who gets a boost from trying to make his client look inferior.

Thankfully, most agencies are not like this. They are hard working, insightful, talented groups of people who can add lots of horsepower to a businesses success. And, sadly, many who got burned once continue to get burned because they lose a competitive edge by doing it themselves.