Selling Advertising The Agency Perspective


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Selling Advertising The Agency Perspective

  1. 1. Selling Advertising: <br />The Agency Perspective<br />
  2. 2. Understanding How Agencies Think Will Lead to Greater Sales<br />Agency process<br />Budgeting<br />Planning<br />Agency timeline<br />Annual cycle<br />Periodic adjustments<br />Agency decision-making<br />Who to address<br />Who to copy<br />2<br />
  3. 3. Understanding How Agencies Think Will Lead to Greater Sales<br />Importance of RFPs (Request For Proposal)<br />Agency compensation – how are they motivated?<br />Types of Agencies<br />Full service – mega, independent, and boutique<br />Creative service<br />Media service<br />Is there a common thread?<br />3<br />
  4. 4. Understanding How Agencies Think Will Lead to Greater Sales<br />Agencies are lean and mean when it comes to staffing<br />Larger agencies and media service companies are preoccupied acquiring or maintaining lucrative agency of record (AOR) accounts, frequently heavily TV oriented<br />Many advertisers are fixated on tv as primary vehicle, with all other media forms often termed ‘secondary’<br />Always looking for thoughtful strategic partners not just order takers<br />4<br />
  5. 5. Current Conditions<br />Equal, or reduced, budgets<br />More options<br />More goals<br />Higher expectations<br />5<br />
  6. 6. Agencies Check List<br />Lower than advertised pricing<br />Strategic and appropriate marketing partnerships<br />Early opportunities<br />Want to be ‘first’ to know, have chance at<br />On flip side, often are lemmings, following versus leading the crowd<br />6<br />
  7. 7. When do you Attempt to Intersect the Agency Process ?<br />Budgeting<br />Generally occurs 3-6 months pre-planning<br />If multi-media account, occurs during tv upfront budget allocation<br />Especially important in categories with large AOL accounts<br />7<br />
  8. 8. When do you Attempt to Intersect the Agency Process ?<br />Planning<br />Those with advance planning usually use RFP device<br />Getting closer and closer to buying cycle<br />Buying<br />Some annual schedules/programs negotiated early<br />Often tied directly to negotiating pricing<br />8<br />
  9. 9. How do Agencies/Clients Address Mid-year Budget Cuts?<br />First protect what they want to keep<br />Elements involving programs, not just insertions<br />Then look at what’s left<br />9<br />
  10. 10. Long-term Results Requires Changing the Axiom<br />Strategic selling of annual schedules must get out in front of the budgeting/planning process<br />20% of your sales effort should be addressing NEXT year’s sales<br />Sell program for next year, and settle for the strategically-placed insertions this year<br />Demonstrates client-oriented benefit (why a program will help their business) vs. vendor-oriented benefit (making your current number)<br />10<br />
  11. 11. Do you know what constitutes client/agency budgeting?<br /> Client budgeting<br />big picture from client<br />looks at overall market share, potential growth, competitive situation, product changes<br />Client/agency strategic planning<br />review communication needs; address media types<br />budget allocated by above needs<br />creative process begins<br />11<br />
  12. 12. Do you know what constitutes client/agency budgeting?<br />Media planning<br />individual media vehicles examined<br />alternative plans developed for client <br />Media negotiating<br />Client presentations<br />12<br />
  13. 13. Brand Planning<br />Develop media objectives, strategies, and plans<br />Determine print buying guidelines<br />Create RFP (request for proposal)<br />Submit planned schedule to AOR, or client, as well as possible alternative options<br />Review and incorporate negotiated pricing into media plans<br />13<br />
  14. 14. Media Planning/Buying Process<br />Fact finding<br />Developing alternatives<br />Evaluating alternatives<br />Making recommendations<br />14<br />
  15. 15. Media Planning/Buying Process<br />Making modifications<br />Executing (negotiating/purchasing)<br />Stewardship<br />Next cycle fact finding, etc …<br />15<br />
  16. 16. Fact Finding (Analytical Base)<br />Marketing Strategy<br />Creative strategy<br />Audience targets<br />Seasonality<br />16<br />
  17. 17. Fact Finding (Analytical Base)<br />Geographic targets<br />Brand purchase cycle<br />Competitor’s strategies<br />Research (primary and syndicated)<br />17<br />
  18. 18. Media Plan Documentation<br />Objectives: Marketing and Media<br />Budget guidelines<br />Media strategies<br />Plan development<br />Demographic, Geographic, Psychographic profiles<br />Cost efficiencies, composition/coverage/user indices<br />18<br />
  19. 19. Media Plan Documentation<br />Recommendation/Schedule/Time Requirements<br />Comparison to previous year<br />Other considerations<br />19<br />
  20. 20. Stages of Plan Development<br />Initial list consideration<br />Target audience rankings<br />CPM, composition, coverage<br />Application of modifiers<br />Audience skews, user/purchaser habits, lifestyle activities<br />20<br />
  21. 21. Stages of Plan Development<br />Eliminate/shorten list<br />Priorities against goals/objectives<br />Scheduling/flighting<br />Reach/frequency goals<br />Purchase cycle periods<br />Special issues/bonus circulation<br />21<br />
  22. 22. Print Buying<br />Establish buying objectives and strategies<br />Submit RFPs to all proposed AND any alternative publications<br />Meet with representatives for initial round of discussions<br />Negotiate most favorable buys (individual and/or corporate if applicable)<br />Uncover special opportunities<br />22<br />
  23. 23. Work Flow is Circular Year-Over-Year<br />Brand business situation<br />Sales<br />Competitive<br />Marketing objectives/strategy<br />All forms of company communications<br />Media objectives<br />Budget, target audience, geography, seasonality, communication levels, creative requirements, priorities<br />23<br />
  24. 24. Work Flow is Circular Year-Over-Year<br />Building blocks<br />Last year’s planned vs actual; applicable lessons <br />Media inflation, and cost by type/element; competitive spending<br />Alternatives and Comparisons<br />24<br />
  25. 25. Compensation Issues<br />Based on mutually fair value and incentive based approaches<br />Many client/agency contracts are based on hours-spent, so personnel become less available to outside vendors<br />Marketers will pay well for great ideas and superb media management<br />Often interpreted by agencies as ‘get more for less’ from vendors<br />25<br />
  26. 26. Selection Criteria <br />Environment (strong editorial appeal)<br />Precise targeting (right prospects)<br />Audience coverage (reach significant portion of potential)<br />Audience composition (minimizes waste)<br />Product/service usage<br />Efficiency (combines circulation and cost)<br />26<br />
  27. 27. Unexercised Axiom<br />How would you change your approach if you believed:<br />Most media is bought, not sold.<br />Most agency (and client) personnel ‘know’ what they want to put on client schedules before seeing sales representatives<br />27<br />