Wasted Money
This is a question I hear a lot from a potential new client. How should we buy a market? Well my answer is pretty simple, that's why you hire us…or any agency for that matter. Here is the problem with answering this question – it isn't a simple answer. It is one that requires an in depth needs analysis, understanding how best to negotiate and bring in the market, understanding the medium for which you are buying and why. Let's not forget the target demo and the proper research that goes into understanding how best to reach them. See there are several reasons to hire an ad agency, but at the end of the day it is two things, or at least it should be two things – 1. Creativity and 2. Expertise of the market. There is a ton of waste that is occurring right now in every market in the country, Jacksonville included: DUPLICATED AUDIENCE REACH (DAR). DAR = WASTED AD BUDGET. Did you know that there should always be at least one, if not two rounds of negotiations when it comes to buying a TV or Radio schedule? How much is your seat on the plane worth? To the TV/Radio stations it is worth how ever much they can squeeze from your budget. In radio if you don't know to ask for the “unduplicated” reach you will get a full hour cumulative number on a radio station – which means you are paying for one person counted 4 times. It takes proper understanding and research to craft a proper media plan. Ever more knowledge on how to actually buy the plan…trust me DO NOT try to do this on your own, and please do not try to have a few meetings with some experts and think you are ready to buy the market. It will almost always lead to wasted money!
Making some bold moves – GM
So why do I like these “bold moves” Mr. Ewanick has been making? He is getting some great press for appearing to be a maverick in the advertising world. I agree with him pulling out of Facebook. As a company that has planned and run/currently running Facebook campaigns, I can understand the lack luster results experienced while running interrupting ads on the social giant. There in lies the problem with Facebook and PPC campaigns – they lack interaction for the consumer. In fact they do just the opposite, they interrupt consumers. Think about it for a minute, you go to Google and search for some thing that you know you are looking for, without a doubt you know…then you get bombarded with “sponsored links” and suggested pages…which fewer and fewer people are clicking on each day. So pulling out of Facebook all together? Good idea? Yes, check! Pulling out of the Super Bowl – The jury is still out on this one. I think companies have not truly utilized this massive audience yet. Running a :30 spot during the Super Bowl can sure be memorable, but does it drive sales? I think in the past companies like Monster have been the beneficiaries of these overpriced pieces of advertising real estate, but does Coke, Pepsi, Budweiser, or GM truly benefit from spots that run in this game? I say NO. It is a great platform to “spring board” a new campaign, new product or service, or change a direction with a new corporate branding campaign. So spring board yes, product loyalty – not really. Mr. Ewanick – kudos for these bold moves, I have some ideas that you have to hear…you are becoming a marketing Maverick, and if you want some “non-conforming” ideas presented to you, please reach out to this bold agency.
Upfronts: Selling the Sizzle
You may find yourself asking what in the world is an upfront and why is it important to me as a local business. Well upfronts are a way for the networks to showcase what is new and exciting, and what exactly they plan to highlight as it relates to…well….what they hope national shops will value as a top dollar item. So talking about CBS first…they have the super bowl coming up and will be presenting their usual stables. NBC is getting crazier with Sunday night football and even more crazy is the fact that NBC is pushing to get Super Bowl rates for the Thanksgiving game. ABC is ABC and Fox is Fox (sorry guys). CW will still be catering to a demographic that is a tough nut to crack in terms of ROI. So “blah, blah, blah-ing” all this info to you does have relevance at a local level. What programming is right for you? Of course this can be a loaded question – and this is my point. DO NOT BE FOOLED IN TO BELIEVING THE HYPE THE NETWORKS WILL BE PUSHING OUT AT A LOCAL LEVEL – LIKE THEY DO EVERY YEAR! I have said this before in a few posts, NOTHING IS DIFFERENT about getting results – good creative and strategic buys will yield results, not “let me tell you about the new fall line-up”. Please please please if you are considering spending your ad dollars on inflated “shrink packages” – talk to us first, I promise you will be shocked by what you hear! Did you know you can buy a market strategically in local news, local programming and sponsorships – and reach the same viewers you are trying to reach in a more expensive prime slot? What I am talking about is efficiency and buying the market smart. The same guy or gal watching Two and Half Men, MNF, Modern Family or even the Simpsons, also watches other programming – and wouldn't you know it…you can reach them more efficiently – and some times get a better frequency while you are at it. Research the market and get a better understanding of what your ad dollars are really buying. “Sizzle” rarely equates to sales. Believe me all the TV stations are trying to sell you “sizzle”.
Dedicated Agency
But then I come across some that just make me scratch my head. As such was an article I read where it was saying that “Giant Companies” are starting to use the strategy of a “dedicated” agency, to cut costs and become more efficient. Now I agree that consolidation is the answer to cost cutting measures (in most cases) but efficiency? I can see on paper where it seems more efficient, but to what end? Here is my problem with this model: you fire your dedicated agency after a year or two, then bring them back on a few years after that, and so and so forth. CMO’s listen up! You should have more than one type of marketing firm in your corner, almost every situation requires this! More importantly are you taking advantage of your agency beyond the on it’s face marketing expertise? Are you having your agency full engaged in the sales strategy and how best to derive consumer driven creative from this type of planning? The bottom line is that “giant companies” aren’t doing enough work to seek out and find the right type of agencies, or right number.
Good Idea vs. Good Execution
We came to one major conclusion, some of the best ideas will be shot down if the proper follow through on “going forward” action plan is not followed. For good reason this is the case. Recently I was watching a TV program – The Pitch – there was a brilliant play on words that an agency had developed for a client, in this case Waste Management was looking for a plan that was very social media heavy. Now social media is crucial to the success of companies in today's marketing environment, however, it isn't the end all be all.
The end all be all in advertising a marketing plan is the same it has always been….GOOD CREATIVE. A great idea, with some great copy and great follow through will yield great results. There en lies the problem with this particular case: They had a great idea, but poor follow through action plans going forward. The client clearly expressed a desire to highlight the initiatives the company was getting behind, and how marketing would be the vehicle. The winning agency came up with VERY mediocre creative, but had a “great” action plan – NOT ONE MMM would have suggested, but nonetheless they won the bid. So how does a multi-billion dollar a year company not go with the great creative. Why stop at a plan that can clearly be nurtured with a great idea driving it? These are questions we answer WELL before we actually present to the client. I can assure my company will never give you a bad idea, and especially a poor action plan!