Question

Topic: Strategy

Selling To Advertising Agencies

Posted by Anonymous on 7/20/2005 at 2:34 PM ET 250 Points
I have been working in the 'sales" industry for 5 years. We basically buy or create media space and sell it directly to companies, eg. Nike, Pepsi, P&G. One basic rule is to avoid the potential client's advertising agency unless it is necessary (getting material, and in rare ocassions unfortunately a decision). Many times a potential client likes the idea and wants us to tell the opportunity to their agency. In my 5 years experince 95% of the times the agent takes offence to call. I have heard comments like "if I did not come up with the idea, how can I endorse it". My goal is to learn how to form alliances with agencies. I think there must be a way for me to work harmoniously with them and perhaps (by the way this is contrary to all thinking in my industry) have them as the point of first contact. Please, if anyone understands the minds of the people within the agencies teach me how to sell to them. Thank you.
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RESPONSES

  • Posted by adammjw on 7/20/2005 at 3:27 PM Member
    Mark,

    I do agree with Michael.For a couple of years the company I owned was in a similar position to that of yours.However hard we tried to cooperate with ad agencies it never worked out ok.They want to take the cream and will not accept anybody stepping in what , in their opinion, is their domain.So do not mince your words or beat about the bush, but get to the point with your client.At the end of the day it's supposed to serve your client well and not play up to ad agencies and the clients should be well aware of the situation.

    Regards

    Adam
  • Posted by adammjw on 7/20/2005 at 5:51 PM Member
    Mark,

    You are most welcome to post your respones here.

    Adam
  • Posted by steven.alker on 7/21/2005 at 9:24 AM Member
    I have a number of clients whose chosen route to market is via the advertising, design and creative agencies. Their products are as varied as printed folding media, point of sale materials, and electro-luminescent displays.

    Until now, they have avoided seeking out major accounts because of the management time required to build the necessary relationships within a large organisation if they are going to be successful in pitching for business whist being aware of the economic and political consequences of treading on the toes of the agencies the major accounts use. To my mind it has been a wise decision so far.

    Their marketing to agencies is relatively straightforward, if hard work. There are only about 4000 such companies in the UK and they have identified about 2500 of these to date, established who the key contacts are and put all this information onto one of our Maximizer CRM systems.

    They mail to the key creative directors on a regular basis, converting a respectable (I know the figure but it is client confidential) percentage of enquiries into orders. Until now, it has been to their advantage to develop their relationships with the agencies which make enquiries for real, medium-term projects so that they can provide them with an excellent service and thus secure repeat business from the agencies’ diverse clients.

    Recently, we have identified a number of very large orders where their competitors have succeeded in supplying their product and where my clients have not even had an opportunity to quote, despite being in low-key contact with the agency retained by the ultimate customer.

    The reason why turns out to be that the end users have been directly approached by my client's competitors who have done an excellent sales job and have thus instructed their advertising agency to utilise their products, rather than to put out an invitation to tender to a number of different suppliers.

    They have therefore decided to initiate contact with the large companies which can place this kind of business, seeking out the key executives who are responsible for the use of their products in their internal marketing organisation. At the same time, they establish which agencies these blue chip companies retain and ensure that they are kept in the loop.

    By putting all the information onto the Maximizer CRM system and creating a different category of customer record for key-account end users, they are able to manage these accounts in a very different way to the advertising agencies. By exploiting the ability of the CRM system to relate one record to another, when they are dealing with a large end user, they are aware not only of all the internal staff who are involved in a project but also the agencies which handle the advertising and media relations for that company.

    Ergo, everyone can be kept happy. My clients can secure a decent percentage of the key account business and all politically and economically sensitive areas can be discussed with the retained agencies as the deal and quotations are progressed.

    This is an excellent example of how CRM can have a broader application when it becomes a Partner Relationship Management solution.

    Steve Alker
    Unimax Solutions
  • Posted on 7/23/2005 at 9:27 AM Accepted
    Some interesting perspectives here. Let me add a slightly different slant.

    1. Most good advertising agencies are in the business of selling creative talent. They are into the CONTENT as their primary product, not the medium. Sure, they have media departments and traffic departments, but what they really sell is advertising that works. (Sign on a door to the creative team's office: "I make things that sell stuff.")

    New media opportunities may be interesting, but they are incidental to what the agencies think they do.

    2. Many/most clients give advertising agencies more credit for marketing smarts than they deserve. They wrongly believe that "advertising" is the same as "marketing," and assume that their "advertising" agency is a full-service marketing company. Of course, some are, but most are not.

    3. Most agencies really want to do what's best for the client. They recognize that the way you keep a good client is to overdeliver, bring new thinking to the table, and stay a step or two ahead of the client (and the client's needs). If they are truly enlightened, they'll hire great account execs, account supervisors and management supervisors -- probably with some client-side experience. But those folks are expensive, and in the end the agency is still making its money by selling a creative product. (See point #1 above.) Result? The account folks quickly become "messengers" between the client and the creative team, and have to accept that there is no reward for outside-the-box thinking.


    How does this help you? Well, it explains why you're having the experience you're having with advertising agencies, and it gives you some insight into why it's so difficult to make a sale through the agencies.

    The problem you cite isn't unique, of course. When I was marketing a computer-based service for marketing analysis, we were often sent to the IT department. ("Hey, it's computer based, right?") The IT folks didn't have a clue what we were selling or how it would benefit the company, but they were assigned a gatekeeper role, so they wanted to see the code, assess the impact on company resources, and have a vote on whether or not we'd be allowed in the door.

    Dumb? Frustrating? You bet. But it's the way it was. We had to forge alliances, educate everyone, and exercise more patience than anyone should have, need or want.

    Some good lessons in there ... and no real solutions.

    If you want to read about this syndrome, pick up a copy of Heiman and Miller's Strategic Selling. What you describe is an all-too-typical "complex sale" situation.
  • Posted on 11/19/2007 at 1:28 PM Member
    Hi,
    i'm starting a outdoor advertising business. and i need some tips from experienced marketers like you guys. what is the best way of getting advertisers through agencies or direct with the company. lets say i want nike to advertise, do i contact nike and offer them my service or i call the advertising agency that nike works with? how long does it usually take company's and agencies to buy you ad spaces? does it take them a long time to think about it? how long does it take to reach the advertisers? whats the reaction of the advertising agencies when you offer them the advertising space? Thank you
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