Bylined Article: Why don’t advertising agencies advertise?

By: Frank J. Meyer, Director of Marketing & Business Development, RSW US

The dynamics of the advertising industry are constantly evolving. With a growing fear of an ominous recession rolling in and bringing with it scattered fears of potential budget cuts and apprehension of an overall lagging economy, advertising agencies are taking a more aggressive strategy to secure new business.

A potential dip in demand, coupled with a continual incline in competition would make any company panic as they flounder for the next business-driving strategy- so, why should advertising agencies be any different? Given the increased importance of keeping a consistent stream of new business coming through the door as the number opportunities diminish and the need to stay top of mind, why don’t more advertising agencies advertise?

Simple, most agency principals don’t believe it works, especially in the B2B world. If they did, there would be a flood of agencies utilizing traditional advertising as a viable new business development effort. The collective disregard most agency principals share for advertising as a method to identify new business prospects is evident in the 2007 Annual Report commissioned by Second Wind. A meager 18% of principals polled included traditional advertising as part of their mix, while none of them utilize advertising as their primary method to acquire new business.

So if advertising is not a viable option to acquire new business, what is?

There are a number of different methods agencies use to secure new business- all with differing levels of effectiveness. Efforts range from direct mail to leveraging current client relationships to relying on referrals for new business opportunities. While each may grow an agency’s business in the short-term, these methods are not the solution to ensure long-term, consistent growth. Agencies must become more strategic in their approach and execute a more consistent, multi-medium new business development program to truly differentiate them and uncover new business opportunities.

Direct mail will simply not work as a stand-alone effort, especially in a B2B capacity. While efforts may result in reasonable success, efforts are enhanced when additional mediums are used to magnify frequency and increase the opportunity for prospects to hear congruent messaging across several touch points. Incorporating direct mail efforts into a well-orchestrated multi-medium campaign will increase your agency’s awareness and speak directly to prospects, giving you a more effective platform to uncover new business opportunities.

Leveraging current client relationships to grow business may also prove to be a great solution when you diversify your efforts across a wide range of clients, but most agencies simply do not have the client roster to support this effort. Additionally, trying and doing are two different things; in realty, the opportunity to grow relationships with each client is simply not feasible. Sure it may work for a while, but I wouldn’t go all in with this strategy. Even if an agency is sitting on a whale and work continues to flow in from new departments and initiatives, they run the risk of becoming too reliant on that client. And in a world of CMO shakeups every couple years and numbers of marketing decision-makers looking forward to agency reviews , agency principals simply can’t count on this to grow their business- unless they’re a gambler.

Referrals also do not work long-term for a wide majority of agencies. The lack of consistent opportunities leaves too much to chance. New opportunities sporadically arise, posing agency principals with an operational nightmare stressing their agency’s capacity and cash flow. Additionally, as agencies grow, so does their footprint, categorical experience, and competition.

The most effective method to grow an agency’s business continues to be a balanced and strategic process coupled with a consistent approach. However, for many agency principals, taking an objective look at their agency and developing an ongoing new business development program can be difficult. This difficulty developing a winning new business effort stems from a fundamental flaw in their approach of many agency principals and the lack of the following essential components:

Know who you are. By first taking a non-biased look at your agency, agencies can start to uncover the reasons to believe. These points of difference will clearly set an agency apart from the growing field of competitors. Often times, it takes an outside perspective to look at things objectively to provide an accurate portrayal.

Design a website that works for you. It all begins with the website. Rather than looking as a website as a canvass to display aesthetic abilities, more agencies must view it as a tool allowing them the opportunity to sell clients on their experience, services, and capabilities even before the first word is communicated. While intricate flash sites look great, they often weaken the potential to optimize results and content in search engines which clients are increasing using as a resource for communication partners.

Execute your plan. Let’s face it, it’s difficult to generate strategies as well as execute them- especially when business demands get in the way. Having a vision does not always include a focused look at the path that gets you there. A business development partner can be well worth the investment for agencies as they can not only provide the map to ultimately get you where they need to be, but also help agencies navigate- uncovering new business opportunities along the way.

So, while there are many directions agency principals can move in order to grow their business, it ultimately takes an objective look as well as a balanced and strategic approach to get the job done.

Press Contact Information

Reardon Smith Whittaker
allison@eisenmanagementgroup.com
859-291-4302

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