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How to thrive as a second city agency 0

For decades, three markets have consistently dominated the ad sector — New York, LA, and Chicago — yet a growing percentage of industry dollars are coming from other cities that aren’t historically associated with the advertising and media businesses. These are the second cities.
How to thrive as a second city agency
I use the term “second cities” with respect and affection (and in the same spirit as the name of the leading comedy troupe in the country). By second cities I mean markets like Atlanta, Dallas, Charleston, Minneapolis, and Seattle where some strong agencies are based. (San Francisco straddles the line — it is far smaller than the “big three,” yet it is home to a number of major agencies and offices.) This piece is about such agencies — shops trying and, in some cases, succeeding as major national players. Some say second city agencies face different challenges and opportunities. Let’s take a look at what it means to be second city, and whether it matters.

Getting into pitches


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Winning new business has always been a primary concern for agencies, wherever headquartered. For this article, I spoke with 23 people and most acknowledged that being a second city can affect their ability to get into pitches.
A leading pitch consultant, who asked not to be identified, believes the reluctance of some brands to consider second city agencies stems from perceptions about scale and expertise, in addition to vanity.
“It can be hard to convince some clients to consider [a] second city agency because of fear they lack the resources [and] expertise to serve major accounts. They may also question whether an agency keeps up with digital innovation. Sometimes it comes down to emotional factors, like wanting to feel ‘big time’, or reluctance to travel to ‘Omaha’ for meetings.”
Quite a few of the folks I spoke with acknowledged that they get their share of questions regarding resources. Most believe that this sort of concern is an issue of perception versus reality.
Tamara Bousquet, Executive Media Director for San Diego-based MEA Digital, said:
“I’d bet my job that our work, our people, are better than most that come out of leading cities and shops.  Our clients, who have been working with us for 4 plus years, 8 plus years, are getting better work than they’ve received at other agencies. These long-standing partnerships are proof of our staff and agency’s excellence.”
Smart second city agencies recognize opportunities to take advantage of their location by differentiating themselves from the dozens of medium-sized New York shops. Consider Richards Group — it’s spent years selling Dallas as a reason why they are so adept at persuading Middle America.  

Recruiting and retention


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When you run an agency, you need a host of skills sets. Many people with desirable skills choose to live in leading ad markets. That being said, a number of great people are unable or unwilling to live in Chicago, Santa Monica, or Chelsea.
Such people are not evenly distributed in every city and town. It’s certainly no accident that many agencies locate in tech hubs and college towns with strong technology and marketing programs. Steve Parker, Jr., co-founder and managing partner of Levelwing, pointed to Charleston as a perfect example: 
“Our largest office is in Charleston, SC. Although many see Charleston as a destination for vacation, it is home to some large and highly sophisticated technology businesses such as Blackbaud, Benefitfocus and Boeing.  Additionally, many software companies are based here. Colleges such as The Citadel, Charleston Southern University and College of Charleston are part of our community.  Close-by Clemson University and the University of South Carolina have strong mathematics, engineering and technology programs.  In December 2009 Forbes rated Charleston as the 8th Smartest City in the World.”
This leads us to the subject of salaries and retention. There’s an urban legend about an AMP who started in Manhattan making $13,000 a year, lived with 11 others in a studio, and ate nothing but ad-network-branded Tic-Tacs for a year. In reality, ad people in the top markets make significant coin. But when you buy your Tide at Gristede’s, the “fat” paycheck doesn’t go far. Most second cities are far less expensive. The chart below calculates the cost of living equivalent to $75,000 a year in Manhattan.
Those I spoke with emphasized that rather than offering people a precisely equivalent salary, they pay people to have a better life. Credit altrusim and the reality that an Atlantan wouldn’t be willing to live in an apartment where they can stand in the center and touch all four walls.
No one I interviewed said that being in a second city automatically made for greater employee commitment, but several said that the issues facing major markets don’t reflect their daily experience. According to Bousquet:
“I’m not dealing with the ‘entitled’; those who think because they’ve worked in this business for 6 months they deserve a raise and a promotion.  Our folks appreciate the opportunity to do great work on great brands with great people; we don’t deal with the ego of younger employees that many large agencies in large cities say they deal with daily.  In fact, our average employee tenure is 3+ years and that’s something we’re proud of.”

Second cities and specialization


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Detroit and Las Vegas are two markets highly focused on business verticals. While agencies there work across many sectors, they are most known for auto and hospitality respectively.

Shawn Rorick, President of LVIMA, suggested that hospitality defines a big part — but not all — of Vegas.

“It’s a safe bet that an agency in Las Vegas is going to really understand the travel business. There are many world class experts in that sector here. Las Vegas marketers in particular can be more adept in getting insights through data collected by the casino/resorts.  Recession made our community of professionals even sharper because it requires the utmost sophistication to maximize ROI.”
Lissie Heinkele, a long time Detroit agency leader, considers regional expertise as particularly relevant.
“In auto, the three tiered marketing environment — national, dealer associations, dealers — is absolutely central to the business of moving metal. But there’s more than that. Auto marketing is some of the most sophisticated in digital. You can more readily find uberexperts here. There’s also a passion — many of us are true “gearheads.” When you’re amping up for a major launch, having that passion for cars brings out the best in programs.”
Being known for a segment has its challenges. “Sometimes people think we are all travel, all the time,” Rorick said. “That can be a hindrance when you are working toward broadening your category base.”“It can be challenging for agencies to overcome the ‘category town’ perception. But many Detroit agencies have clients far afield from the auto world. They serve these clients very well,” Heinkele said.

oing business with partners


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Many agencies in smaller markets report that fewer vendors visit them. These agencies experience fewer phone calls, “drop bys,” and requests for meetings. Thus, it is arguably harder for second city shops to keep abreast of important developments because the companies creating them don’t come knocking as often. While the internet certainly eases the strain, second city folks have to be more proactive about pursuing knowledge.
From the sell side, there appears to be great business in serving second city agencies. “It costs you a little more to get a rep to Dallas. But it’s worth the expense. When you make the effort you find a high level of ‘engagement’ from the agency teams in those markets.” said John Durham, CEO of Catalyst S+F and a long-time digital solutions sales leader.
Durham also notes that there is also a perception that second city professionals are better mannered.
“I appreciate manners. Agencies in smaller markets generally show a high level of professionalism. Mutual respect. It runs the gamut, but when you call on an agency in a second tier market, chances are the people will show up and engage.”

 
Adam Bergman, Senior Account Executive for Yume, emphasized that there is real money to be made in such markets:

“Some of these agencies are a heckuvalot bigger than they seem. Being in New York doesn’t necessarily mean a shop is big; being in a ‘second tier’ market doesn’t prove that an agency is small. Additionally, many of these agencies are careful to stay at the bleeding edge of the industry — to ‘prove’ that you don’t need to be in Midtown to be redefining and shaping the industry.”
More sellers are seeking local people to serve these second cities. Lynn Ingham, a leading digital marketing recruiter, argued that it’s harder — but not impossible — to find great people in these markets.
“Many top-notch digital sellers are in the big three markets. There are a few in the other cities, but you need to dig deeper to find them. Over time we’re seeing more great sellers native to these markets, and leading sellers trained in the big three markets deciding to move to other cities for a plethora of reasons.”
Lori Xeller, Director of Digital Sales at Republic Media in Phoenix, believes the talent is definitely out there.
“It’s true that the total pool of digital sellers might be smaller than a major market like LA or San Francisco, but they ARE out there. We’ve built a strong team by constantly keeping our eyes open for great talent and creating real career paths to keep our A players satisfied and growing.  I’ve found that our digital sellers are focused on being long-term digital consultants for their clients so they have deep relationships.  They are loyal to their clients and with their internal teams.” 

Managing the exit


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Many second city shops are independents, and some hope one day to sell to a holding company. Proximity helps when you are trying to make your business known to would be acquirers. Mark Naples, managing partner of strategy and communications firm Wit Strategy, underscored the importance of developing a prominent agency profile. 
“There are so many solid agencies out there.  Getting noticed by would-be acquirers requires a clear strategy that will generate a distinct identity, rather than more broad awareness.  For example, at the height of its powers a few years ago, CP+B had Alex Bogusky as the tip of its spear, smirking to us knowingly from the covers of national magazines.  But, what is CP+B’s identity today?  For non-New York based agencies, it’s harder to pull off getting the right kind of notice because proximity within a roughly 50 block radius drives a large measure of perceived importance to the trades and the holding companies. If the cool kids aren’t seeing you on their playground, it’s harder for them to accept that you might be cool too.”

What clients say about second city agencies


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When asked to draw some general distinctions, most of the clients I spoke with were careful not to make assertions beyond the experience they had with a particular shop. Most said that location had no real impact on the quality of work and relationship and that it’s about the agency, not the city.
One acknowledged that the out of town “thing” did affect the perceptions during the pitch, but that daily experience with the team quickly mitigated their concerns:
“You always have vibes, gut feelings, and concerns when you are picking an agency. During our last RFP, we questioned whether a non-New York agency would ‘get’ fashion. We ultimately chose them because they seemed like they’d be great to work with. They really are.”
Perhaps that’s a fitting conclusion. After all, we are in the perception business. Although it may not be a “real issue,” it is a genuine concern for some. Despite this, many second city shops are succeeding because ultimately what matters most is the quality of the team, not the address.ty shops are independents, and some hope one day to sell to a holding company. Proximity helps when you are trying to make your business known to would be acquirers. Mark Naples, managing partner of strategy and communications firm Wit Strategy, underscored the importance of developing a prominent agency profile.
Thanks to for publishing this first.

Posted on: 04-7-2012
Posted in: Oldest Living Digital Marketer

Mr. Manners Answers Questions From Buyers and Sellers 0



Dear Mr. Manners,
I get more than two dozen calls
per week from media sellers, and more than 50 emails. Must I answer every one?

-Inundated in Irvine

Dear Inundated,
Perfect manners would require a
response for every message. But Mr. Manners is a realist, and instead suggests
that your obligation is to respond to any message from someone who respects you
enough to be communicating with you personally.
You do NOT have the
responsibility to respond to any message that:
1)     
 Is delivered as an HTML newsletter or similar.
2)     
 Was clearly spammed to dozens or hundreds of
people, without regard to information that they might reasonably obtain before
contacting you. For example, your role, title, or responsibilities.
3)     
 Does not include a Dear…. salutation.
4)     
 Does not provide a capsule explanation of why
you should be in touch with this person. For example, information on how their
offering fits your brand(s).
You do have a responsibility to
respond in a reasonable timeframe to a message from:
1)     
 Someone with which you have or have had a
business relationship.
2)     
 Someone you have RFPed.
3)     
 Someone you told to check back with you later,
and who has followed the time suggestion you outlined.
4)     
 Someone you have asked for a favor, or you have
met with.
5)     
 Someone who has clearly made an effort to do
research on your company and role, and who explains how that information has
led them to believe that they have a solution appropriate for your business.
The depth and timing of your
response relate to the amount of relationship you already have with that
person, coupled with the amount of effort they made prior to contacting you. Existing
partners, especially those who “go the extra mile” deserve a response within 24
hours, even if it is to tell them that a more thorough response will be
forthcoming. Past or minor partners deserve a response within 72 hours. Companies
you have RFPed deserve an explanation of why you didn’t purchase from them
within a week.
In these instances, manners guide
both good behavior and help protect and enhance your career. Sellers know and
remember who makes an effort to respond to their messages. And a bad reputation
will limit your career later.
Dear Mr. Manners,
Lately certain vendors have been
going around my agency and reaching out directly to the client. How can I stop
them while demonstrating good manners?

-Worried on Wacker

Dear Worried,
Mr. Manners believes that we must
first answer the question WHY they are going client direct. It’s not a problem
per se. If direct conversations between vendors and your clients endanger your
relationship, then you have problems much larger than aggressive vendors.
The second question you need to
ask is whether your interest in closing these information paths is actually in
your interests and those of the client. Ultimately, agencies need more and better
ideas from sellers, and engaging strong vendors in three way dialogue along
with the client often makes for better effectiveness. If you’re trying to lock
away your clients from information avenues, you’ll probably find that you aren’t
in charge of the door before long.
In my experience there are four
common “client direct” scenarios:
1)     
 Your client specifically requests that you
prevent vendors from contacting them. Here you should communicate that request
to vendors so that they know that they must work through you. When the client
is contacted directly, ask them to forward messages to your team so you can set
things right.
2)     
 A vendor you work with is asked for information by
the client. Here your goal should be to become part of the conversation, as it
may reveal client goals or needs with which you are unaware. You should not
discourage the information sharing, but should ensure that you and your team
are part of the dialogue. It is well within good manners, however, to scold a
vendor for communicating with your client without making you aware first. And
finally, you need to ask yourself WHY the client went vendor direct instead of
talking to you, because it may signal an issue in your relationship.
3)     
 A vendor that you work with sees an opportunity
to get more business by going client direct. In effect to circumvent the agency
or to drive client demands for greater partnership. Relatively few companies
will try this, mostly companies that have huge market share or importance such
that you cannot “punish” their bad mannered behavior. In these instances, ask yourself:
a.     
 Does the vendor have a point? Would the client
benefit from their suggestions? If so, work with the vendor to address the
opportunities through the agency channel.
b.     
 Is it just a power grab? I suggest you confront these
vendors directly, and work in concert with the client to ensure that their bad
behavior is recognized as counterproductive.
4)     
 A vendor you don’t buy from goes client direct
to try and force their way into your buy. Most of the time, your client will
rebuff the effort outright. If they instead ask you why you aren’t working with
a vendor, simply explain your rationale and in most cases that will end the
problem. The quality of that rationale will in turn encourage them to rebuff
such efforts in the future.
Ultimately you aren’t in control
of vendors, even those you work with. But if your client relationships are
strong, efforts to engage clients directly won’t be a problem. In fact, communication
between clients and sellers may well lead to productive dialogue and a better
informed, more digital-savvy client.
So, breathe. Either have
confidence in your strong relationships with your clients, or work to address
the relationships. Further, by treating sellers fairly and with respect, you benefit
from their expertise and drastically reduce bad mannered behavior.
Dear Mr. Manners,

My team worked hard on an RFP
response, and the agency never got back to us on why we didn’t win. How can I
respond while still demonstrating good manners?

-Mad on Madison

Dear Mad,
Not providing you feedback for an
RFP response is the height of bad manners, particularly if you were asked to
respond on crash timing or spent a great deal of time and effort creating a
customized solution. Buyers who don’t provide feedback usually fall into one of
two buckets:
1)     
 Shotgun planners that RFD a huge list of sites
because they have failed to pre-screen possible vendors to a subset that have a
reasonable chance of winning.
2)     
 Selfish planners that simply “can’t be bothered.”
In either case, I suggest you
politely but firmly contact the most senior member of the team and point out
the need for feedback. If they don’t respond to your request, I suggest you refrain
from responding in the future to RFP requests from that person or team. If they
ask you why you didn’t respond, tell them that you can’t invest the time and
effort without understanding what might drive the buyer to make a purchase.
This is a polite way of demonstrating the importance of well mannered behavior
on their part. While not responding may feel like a difficult decision, the
reality is that you have better things to do that shoot in the dark. Focus
instead on finding real opportunities.
One more thing. If your RFP
response was a piece of crap, sending it was bad manners. The recipient is
therefore under no obligation to demonstrate good manners in their dealings
with you.
Dear Mr. Manners,

A rep has offered me a very high
value gift. Is it good manners to take it?

-Tempted in Texas

Dear Tempted,
You are confusing manners and
ethics. In my view, accepting high value gifts is unethical because it implies
or seals a quid pro quo. Any personal gift that makes you feel obligated to buy
is clearly unethical. Further, acceptance of it may run counter to your company
policies, and may even be against the law.
Which raises the question of what
is “high value”? Many companies have set a policy on a dollar figure, and it is
not my place to question those figures. Where no such policy exists, you need
to make a decision that reflects your values and the law.
Some people see no problem with
accepting a gift from a vendor that will be bought anyway, but in my view this
is AT LEAST as unethical. You are paid to make business decisions based upon
the best interests of your client. We don’t live in, nor should we encourage a “soft
economy.” And the cost of that gift is ultimately “baked in” to the buy, so
your acceptance of it is ultimately theft from your client.
Further, acceptance of such gifts
sullies your reputation – something that no amount of good manners can resurrect.
Manners govern how you turn down
such a gift. Do so politely, but ensure you make clear your reason for doing
so.
Got a question for Mr. Manners?
Post it in the comments area, and he will respond.

Posted on: 12-22-2011
Posted in: Oldest Living Digital Marketer

Start-Up Watch COD: Legolas lets you to buy audiences like you buy context – pub direct 0

Audience buying has made a huge difference to so many brands. The idea of zero-waste planning and execution holds tremendous appeal, especially in an era in which we all need to drive more results from the same dollars.
Exchanged based buying has its limitations, however:
  • Planning challenges of buying impressions real time versus in predictable quantities
  • Limited range of creative options
  • Concerns about environment and brand safety
  • Preponderance of “bottom of the barrel” leftover inventory
To be sure, some exchanges and DSPs have been making headway on these issues. But there are still plenty of hurdles, ESPECIALLY for brand marketers who are focused primarily on brand metrics.
Enter . Legolas bills itself as the first audience futures marketplace, using a unique media sales platform to help brands and agencies buy audiences in advance from publishers they like and trust.
Instead of focusing on leftovers and RTB, Legolas offers a sort of automated RFP process – only its focus is on audience-based media transactions. Here’s how it works:
  1. The buyer identifies the audience they want to purchase. To do this, they can use first and third party data, including site visitation data.
  2. Legolas forecasts the amount of inventory they can buy from specific pubs during a given period.
  3. The brand identifies a ceiling price for the campaign, and the platform “rfps” the approved list of pubs, inviting them to bid on a campaign. If a pub chooses to participate, they set a price they are willing to sell at (below the brand-set campaign max.) Other approved pubs also make their bids.
  4. The timed reverse auction expires, and the Legolas platform develops five possible spend combinations from the bids.
  5. Brand chooses one of the approaches, or makes certain changes to the recommended allocation, and makes the buy.
For pubs, the process is self service. Brands/agencies can choose a self serve option or work with the Legolas account team to formulate their plans.
Let’s talk for a moment about the advantages that this system offers for brands and pubs.
Brands: The opportunity to buy high quality inventory of all types – in set quantities by pubs – restores a sense of control to the planning and buying process that has been lost in some exchange-based buying. Further, because the brands identify the sites that interest them, they have much greater control over site and page quality, as well as true transparency about where the ads will run. And they can do all this for AUDIENCE, meaning that zero waste buying can be a reality for brands with even the very highest quality standards.
Pubs: Legolas lets pubs capture the true value of their inventory because they can earn rates that reflect the quality and composition of their audiences. While the exchanges offer a value advantage over the rates that pubs were getting from networks, they only did so for very standardized units, and only for last minute buys. Further, they can pre-sell inventory as they would with context. Finally, because the pubs are RFPed by named brands, each site can set its proposal prices without the fear of undermining their direct sales efforts. If a brand RFPs them that is already buying contextually from them, they can set prices in Legolas auctions accordingly.
I am a big fan of anything that helps pubs get the true value for their audiences. I am also a big believer in the power of environment to enhance or attract from the BRAND BUILDING VALUE of advertising. With Legolas, brands and pubs have a win-win. Both buyers and sellers benefit from a transactions system that gives each group what they need most. Hard not to like that.

Posted on: 09-25-2011
Posted in: Oldest Living Digital Marketer

The Companies That Interest iMedia Agency Summit Attendees – Part Four of Four (Tra-Z) 0

Thanks to for publishing this first.

In this fourth installment, I’ll continue to provide capsule descriptions of the companies that iMedia Agency attendees expressed excitement about in a recent survey. Before anyone contacts me wondering why their company wasn’t on the list: If your company is on the list, its’ because you were listed in at least one survey response. If you aren’t, it’s because no one listed you in their survey response.

Traffiq is a web based media management platform that automates many of the processes of planning, buying, reporting, and optimizing digital media. Using TRAFFIQ you can:
• Discover the best sites for your effort
• Distribute and manage RFPs
• Buy inventory
• Bid on audiences in real-time
• Deliver and serve campaigns
• Analyze performance
• Consolidate billing

Transis also promises to simplify the media planning, buying and reporting process. A significant area of focus for Transis has been automating the RFP and negotiation process by eliminating the emails, faxes and spreadsheets that fill a planner’s day and inbox.

Tube Mogul offers a variety of video distribution services, from content to advertising. All the services share a foundation level of tracking and analytics that helps provide marketers greater understanding of the impact they are driving with their efforts. TubeMogul’s core business is a video DSP service that they say offers greater analytics and transparency than other video options available. Many know the company as a video distribution platform that helps brands distribute their own content across the web. The company offers both a free distribution service (OneLoad®) and an ad network (Playtime) that generates views of brand videos by featuring them as standalone content on players across the web. Both services offer extensive analytics to understand who, how, and where videos are being watched.

Visual IQ is a marketing analytics and intelligence products company that promises to improve marketing performance. Their Visual IQ Marketing Intelligence Platform is an online based set of analytics tools that help transform raw marketing data into actionable intelligence.

Posted on: 01-3-2011
Posted in: Oldest Living Digital Marketer