The Fear and Loathing of Advertising (Part 3 of 3)

In Parts 1 & 2, (Fear and Loathing of Advertising (Part 1) (Fear and Loathing of Advertising (Part 2), I talked about fear that resulted from changes in the economy and the media. In Part 3, I'm going to discuss the failures of my own industry. Sad to say, after 45 years in this business, it doesn't surprise me that advertising agencies are often loathed. (Why Advertising Doesn't Work) Let's start with a problem that's become prevalent in today's economy:

The Proliferation of Advertising Agencies

The downsizing of larger agencies has often led employees who were let go to start their own "agencies". They may be talented graphic designers, IT people or even copywriters, but does that make them an advertising agency? Do these ambitious new "agency heads" possess a thorough understanding of marketing - or do they offer only their own, limited perspectives? Can they show you resumes of successful campaigns and explain the strategic rationales that went into them, or are their portfolios merely "cool stuff that won awards for creativity" (but not necessarily business for the clients)? (Can a Grease Monkey Build a Spaceship?)

Poor performance here can sour the most forgiving client. Is this caused by a lack of knowledge of proven advertising principles, as might be the case of a start-up agency, or is it pure laziness, sometimes displayed even by larger agencies? Good Advertising takes work.

There are agencies that prefer to dive right into developing clever creative rather than taking the time to explore the benefits of the client's offerings and how they align with their customer's needs and wants.  (Forget Madmen, Hire the Corleone Family)

Which brings me to poor performance. It would be like hiring an architect to design you a house, and rather than listening to your needs, he designs what he likes because "he's the expert." Then you come to realize, after spending lots of cash, that the house doesn't function like you wanted it to.

The same sort of thing has happened, unfortunately, to companies I've interviewed. They've hired pompous ad people who promised more than they delivered. I can't tell you how often potential clients tell me that they spent $$$ on advertising and can't tell me what they got from it. Please! No matter whom you're working with, demand a return on investment. If You Can't Measure It, Don't Buy it.

The most loathsome of all of  ad agency sins is overcharging.  I'm not sure when or why it's happened, but it is a reality. Greed certainly has played a role. Because they could get away with it, many agencies have charged exorbitant rates. They found they could charge outrageous markups and that retainers didn't have to correlate with time and materials. And their clients didn't challenge them. Then the recession hit. I think every business should be accountable for their charges and fees. Sure, surgeons don't charge by the hour, but for their knowledge and skill. Ad agencies rarely save lives. Hell, most don't even save companies! I wish that at advertising award ceremonies, the campaigns that win would be judged by what they accomplished rather that the cleverness of the approach. There, I've said it. Please don't get me wrong. There are some great agencies and ad people out there. The ones worth their salt are truly special and should be rewarded accordingly. You can find them. It means doing your homework. It's too bad there's not an Angie's List for ad people.

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The Fear and Loathing of Advertising (Part 2 of 3)

The Fear and Loathing of Advertising (Part 2 of 3) In Fear & Loathing of Advertising Part 1, we discussed changes in advertising over the past several years. Part 2 will explain why today's business operators are afraid of advertising. It's not the world of TV's Bewitched anymore. In lead character Darryl's time, advertising was a lot simpler. Companies hired professionals to plan a strategy, build a brand, choose media outlets and deliver results. Of course there was less competition, fewer media outlets, and the economy was booming. Today, with the opportunities (and challenges!) provided by the Internet and Social Media (So How's Your Social Life?) , marketing decisions are more confusing and difficult.  Scared yet? Your competitors can now easily research your company and its products. You're not isolated any longer; they can copy and implement your most vital information. This allows them to narrow any product or service advantage you may have achieved. Former employees of downsized companies in your industry have created even more competition. Start-ups get up to speed faster and more efficiently than ever before. Social media gets these companies into the minds and hearts of your customers faster and at less expense than ever (Email Marketing and Social Networking). Often these smaller companies are biting into your market share. I'm guessing plenty of marketers would want Samantha to twitch her nose and eliminate the Internet, smart phones and tablets.    Witchcraft isn't the answer. What can you do to overcome the fear of losing out to changes in our world? The first step is to embrace change. Learn the basics of today's advertising options. These include social, viral and Internet marketing. You don't have to master the technology - there are professionals who can do that for you. You don't have to be a plumber to know when your toilet needs to be flushed. Don't be afraid to consult and work with advertising specialists who work in the new media and understand Direct Response and can show you what they've done for others (Can a Grease Monkey Build a Spaceship?). Look for a real understanding of your branding and messaging - the things that will separate you from your competition. No matter the choice of media, it's how you communicate with potential customers that will win the battle of the brands. Imagine you're trying to build a great ball team. You'd want specific talent in every position. The same should apply to your selection of marketing partners. You can position yourself for more wins by doing a little research before hiring your team (Forget Mad Men, Hire the Corleone Family). Know your Product.  Know your Competition.  Know your Customer. We hope we've opened your eyes a little about today's advertising challenges and that perhaps you've begun to consider a more effective marketing approach.  This is the end of Part 2. Part 3 will be coming to you soon. Part 3 will cover the loathing of advertising today. Sign up for future emails and share your comments with us by clicking here.