The Michael Gass Interview
There is one constant in the ever-changing world of marketing agencies – the need to constantly develop new business.
[source: Branding Magazine] To discover out what agencies need to do now to find and win new accounts, we turned to Michael Gass, an author, speaker and leading consultant to advertising, digital, media and PR agencies on new business development (and a prominent blogger with tens of thousands of subscribers to his frequent posts in Fuel Lines.)
Branding Magazine: How do agencies find new clients in today’s fractured, multi-modal marketing environment?
Michael Gass: There has been a dramatic paradigm shift in the way agencies should generate new business leads. Instead of chasing new business using interruptive type tactics such as cold calling, direct mail and email blasts, it is more important to be found. This forces agencies to be more narrowly focused and create a differentiated positioning of expertise.
Working with agencies around the globe there are a lot of common problems with business development. Positioning is foundational to new business and agencies continue to struggle with it because it requires making tough business decisions. Agencies aren’t willing to take the risk and stay in a perpetual state of re-branding, trying to be everything to everybody.
The lack of positioning creates problems:
- Inconsistent new business practices.
- Agencies look and sound just a like (no point of differentiation).
- No appeal outside of their local markets.
- They are “jacks of all trades and masters of none” – no positioning of expertise.
- With no positioning, agencies are forced to use interrupting tactics to try and create new business. These tactics are becoming less and less effective.
BM: Five years ago, Sapient released a research report on the Agency of the Future, including these key findings:
- Marketers are moving to agencies with greater knowledge of digital marketing
- 70% of marketers want their agency to use ‘pull interactions’ such as online communities rather than traditional ‘push’ campaigns
- 30% of marketers expressed interest in leveraging virtual communities (public and private) to understand more about their target audience
- While knowledge of the digital marketing space is increasingly important, pre-requisite skills of successful agencies continue to be based on creativity, knowledge of brands and a thorough understanding of consumers audiences
- 48% of managers felt that expertise in digital and interactive media is critical or very important for marketing agencies
How much of this do you feel has come to pass, in terms of what clients are looking for, and what agencies are now trying to deliver?
MG: Most has come to pass. Traditional agencies have become more adept to the digital space and digital agencies are becoming more full service. So, there continues to be a race between the two that also includes PR firms and even media agencies.
BM: One specific observation of that survey was that clients still most valued “creativity, knowledge of brands and a thorough understanding of consumer audiences” in their agencies. That describes what one might argue is the traditional value proposition of ad agencies – but is it still enough to win an agency new clients, or must agencies offer and integrate a wider range of competencies?
MG: Creativity, knowledge of brands and an understanding of consumer audiences is just one side of the coin. Technology is rapidly changing how we communicate, how buying decisions are made and how purchases are made. Both digital and advertising agencies must be able to more quickly adapt to these changes.
BM: What do you see as the two or three biggest challenges for agencies relative to thriving in the future?
MG: Social media marketing, content marketing and a positioning of expertise. Big Data is looming as another big issue for CMOs and most agencies aren’t prepared to be of much assistance in the future