An Ad Agency Tipping Point

Starting any business is a bold move. Not all survive and few truly thrive. Those that do face the challenges of managing growth and staying true to what made them successful in the first place. This is an interesting tension that I recently discovered in working with four advertising agencies.

These businesses had grown to 100 or more staff. Of course, that metric in, and of itself, is not an indicator of sustained success. The good news is the agency leaders know that. In fact, these leaders were concerned because interesting things happen when the payroll hits 100. Here are some issues that arise:

  • Agencies of 15 or 30 or even 75 employees possess a start-up or boutique feel. When you hit 100 this weirdly begins to dissipate.
  • You don’t know everyone any more. Small agencies talk of being saatchi-saatchi-office-funkt-1“family” where everyone has each other’s back. While a strong culture can keep this rolling as staff size grows, it cannot mitigate the realities of being larger. This is compounded when they open up other offices.
  • A bigger payroll and presence prompts new business pressures. This can mean chasing the wrong work to keep the machine humming.
  • Founders and principals move from client service oversight to functional roles. Marketing, people, service and product development and other areas need full-time leadership. This transition can be bumpy and skill-sets are stretched.
  • Specialisms and differentiators begin to lose their luster. You simply cannot make the same claims. Being “nimble”, as an example, gets called in to question.

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Your Brand Story is Your Brand Strategy

So much has been written on storytelling in business that a subset of the marketing community is pushing back against its purported benefits. Yet, increasingly creative agencies big and small are specializing in helping clients better tell their story. More and more conferences are dedicated to the topic. Content marketing and copywriting professionals now fall under the umbrella of storytelling.

All of this activity is taking place with the hope that customers will identify with the story, tell it, and share it. This sounds a lot like the overall purpose of branding and IMG_4556marketing and that makes me a believer in the power of storytelling.

When it works, it really works. I am not a fan of overly simplistic stabs at business storytelling. Those attempts rob brands and businesses of what makes them interesting in the first place, namely, their depth and complexity. This does not mean everything should be “War and Peace” but it certainly should not be dumbed down to a tagline or strive for a one-word association.

I use two different constructs to help build an engaging narrative. The first answers seven questions and generally works better for B2B, professional services, and association clients. These require honest and uncomfortable answers to be successful.

  • Where do we come from?
  • Where is our world going?
  • Who are our communities?
  • What are we like?
  • How do we behave?
  • What is our purpose?
  • What is our brand idea?

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Chief Marketing Officer Turnover Persists

Spencer Stuart, a global executive search and leadership consulting firm, first brought attention to the short tenure of Chief Marketing Officers. In 2004, they reported that CMO’s lasted less than two years (that number now is now four years). Spencer Stuart’s work prompted McKinsey, Bain, and other consultancies to examine the role in papers and articles. All this analysis could be Screen Shot 2016-08-04 at 9.29.27 AMboiled down to two primary reasons for short tenure: too-high expectations and poor cultural fit.

There was a fad-like quality to the early rounds of hiring CMOs. It was like CEOs looked around and said, “Hey get me one of those!” I recently interviewed Chris Hummel, CMO at United Rentals, for my upcoming book, Needs and Wants: The Universal Truths of Marketing. Chris has been CMO at Unify and Schneider Electric prior to his current position. He believes the hiring company often defines the position too broadly or may not know what they really need so it is critical to be specific in what the role is to deliver while ensuring solid chemistry with the company and fellow executives.

Executive Search consultants, Russell Reynolds, recently added to the discussion with their own report on marketing executive turnover. You can access the PDF here: RRA Marketing Moves Q1-Q2 2016 or read it below. You will find that being a marketing leader is not for the feint of heart.

MARKETING MOVES
To better understand current trends in the appointment and turnover of marketing officers, Russell Reynolds Associates tracked and analyzed 175 notable, publicly disclosed marketing-leadership moves in the first two quarters of 2016.

Key Findings

Record turnover. So far, 2016 has witnessed the highest level of marketing-leader appointments and turnover since Russell Reynolds Associates began comprehensively tracking all major appointments four years ago. In the first six months of this year, we recorded 175 marketing-leader appointments, compared to 147 in the prior six months and 134 in the same period of last year.

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Brand Names are Illiterate

The last season of the comedy, Parks and Recreation, finished up in 2015 but was set in 2017. Much of the plot focused on a fictional business named Gryzzl that is a thinly veiled amalgam of Facebook, Apple, Amazon, and Google. Gryzzl employees tout collapsible transparent tablets that can be used as a skateboard, use treadmill desks, and don’t really appear to work. Their tagline is, “It’s the cloud for the cloud.” and the hI773Ke-company mantra is, “Wouldn’t it be tight if everyone was chill to each other?”

People surf free Gryzzl Wi-Fi, communicate through Gryzzl’s social network, and Gryzzl drones deliver creepily personalized gifts. A youthful executive of the company says, “I hope you can see now there is nothing scary about Gryzzl. We just want to learn everything about everyone and track them everywhere they go and anticipate what they’re about to do.”

Satire aside, the reason I bring this up is because of the name, Gryzzl. It alone made me laugh when I saw it. The name captures the silliness in brand naming these days. Granted, it is extremely difficult to find an original name so for the sake of legal ownership and URLs, many companies are bastardizing spellings and meanings.

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Agency CEOs Are Chief People Officers

I recently had lunch with an agency CEO. It was revealing because the content was raw and real. In short, he lamented the lack of hours in the day to deal with everything on his plate. There was little I could recommend short of cloning and ruthless prioritization.

If you are an agency CEO or if you marvel at the responsibility they take on, then you know that it is overwhelming. CEOs have to be a master of the balance sheet, superior in business development, aware of technological developments, substantive in interaction with clients, Biz Mensavvy in the press, excellent public speakers, tireless in the pursuit of growth and profit, and role models for the agency’s brand.
And all of this depends on people. Any variable in performance is due to the collective talent of the agency. What this proves is that the CEO is as much the Chief People Officer as anything. Every industry and business can claim, “Ours is a people business” or “Talent is our greatest asset” and that would be fair, but it is especially accurate and evidenced in the agency world. The loss of a key person can sink an entire office. The right person leading the right team can propel an entire agency to dazzling new heights.

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Stop Writing to Write Better

There are two terms writers detest. The first is, “writer’s block”. The second is. “The bar is closing.” In all seriousness, getting stuck is frustrating. Writing is a complex act. It is self-expression. Writing shares ideas and stories. Everyone has those in the head and heart. We may understand them but putting them down on paper so others do is an awesome challenge.

I believe in the power of persistence but when you get stuck, forcing writing does not always work. Determination is admirable but it often produces an inferior result. When this happens and it can imagehappen with alarming frequency, you have to step away.

Go for a hike, pick up an adult coloring book, wear out a treadmill – anything that will quiet your mind. If you stop focusing on the block often the solution will present itself. One perceived step backwards can take you two real steps forward.

Even if this does not produce an amazing epiphany that miraculously breaks the mental logjam, you will find a few threads that can be pulled. Those will invariably lead you in the right direction. The point is to walk away. You have to stop writing to write better. There are a few reasons why.

Breathe

It can be a blog, novel, annual report or poem. We pour ourselves into the words and ideas. The sentiment and emotion is draining. Just a few sentences in we have lost all objectivity. It is analogous to having a heated argument with a loved one. They have their point-of-view and we have ours. There is a natural give and take but we are not going to budge on the core bits. You have to take some time, breathe, and see it from the other side.

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The Best in Cause Marketing

Swystun Communications contributed to PRNews’ 7th edition of the CSR and Green Guidebook. Our paper, Changing People’s Behavior: 8 Best Practices in Cause Marketing, is included along with submissions from JetBlue and Time Warner Cable. We cover the efforts of Uber, LUSH, H&M and Gucci. You can purchase it here and here is an excerpt on Gucci’s “Chime for Change”…

Building on the survey results and interviews, we looked at a select number of campaigns cited as best practice examples. One we heard repeatedly was Gucci’s “Chime for Change”. Robert Triefus, Gucci’s Chief Marketing Officer describes the investment, ”Chime for Change aims to realize a world where girls and women have the safety and protection they need to 1. Gucci Chime Adthrive.”

It was launched at TED and backed by celebrity endorsements from Salma Hayek and Frida Giannini. It has since thrown a mega-concert headlined by Beyonce, Madonna and Jennifer Lopez. Recently it hosted Chimehack 2, “a female hackathon to develop solutions for relevant challenges in today’s world.” Chime for Change has been lauded for directly engaging consumers using a crowd-funding platform called Catapult.

For all of this they get admirable press. Yet, outside of the fashion industry, precious few people have actually heard of it. Respondents noted that Chime for Change has fallen for two common traps in cause marketing. The first involves celebrity. Celebrities are often used as avatars for the cause and a quick way to raise awareness.

This presents a long-term disconnect as consumers may desire to be a celebrity but they cannot easily relate to them. It produces an artificial association with the cause. Second, the cause leverages big events that generate press releases but questionable results. Chime for Change is an amazing premise executed in a traditional way. One respondent said she would be surprised if 1 in 100 of Gucci’s own customers have heard of the program.

8. LUSH a little does a lot

Sonos: The Brand and the Business

This article originally appeared in Sparksheet.

CoverSonos

Still hungry after thirteen-years, Sonos focuses on innovation, originality and desirability. But in an increasingly connected world, the brand wants to go beyond background music to become the central nervous system of your house. Talk about subversive.

Earlier this year, Sonos contemporized the look of its brand with a new visual theme representing amplification. This was just another step in a long-term plan. Sonos has long been sought after as a purveyor of wireless speakers, but now the company is aggressively pursuing something much bigger. Sonos not only intends to disrupt the entire music business, it aims to be indispensable in how you run your home.

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Why Most Brand Launches Fail

This piece originally appeared in Brand Quarterly.

In the old days of branding, and I am talking of just ten to fifteen years ago, there began a very predictable playbook for launching a corporate brand or rebrand. It borrowed a great deal from traditional public relations. It called for some combination of a press release, an unveiling of a new logo at a largish and often garish event, a fresh website, and a mousepad for each employee. Not much has changed in the interim except the mousepads have been replaced with coffee mugs or USBs.

Make no mistake, a brand or a rebrand is a deep, invasive and jarring intervention in the life of a business Needless to say, this is all very vacuous, fleeting, often expensive, and delivers limited real results. Make no mistake, a brand or a rebrand is a deep, invasive and jarring intervention inWhy-Most-Brand-Launches-Fail-Q1-1 the life of a business. If a company discovers it needs branding, I equate that to a serious call for help. Yet, most continue to launch brands in the most predictable and pedantic ways. It is analogous to conducting complicated surgery and then immediately throwing the patient onto the street. Here are the reasons why the approach is wrong:

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Marketing’s New Myopia

The marketing and advertising world is full of lore. These stories often take on a life on their own and grow with each telling. Many revolve around famous campaigns. DDB’s 1960’s ad, “Daisy”, has been given credit for helping Lyndon B. Johnson defeat Barry Goldwater. It also landed Maxwell Dane, a partner in the agency, on Richard Nixon’s infamous “Enemies List”. This political ad, like the “I Love New York” cam paign have many claiming outright authorship or at least participation i-love-ny-t-shirt-whiteon the team.

New York’s iconic tag line is often attributed to Milton Glaser who is said to have creatively borrowed and built upon the idea from a Montreal radio station. It turns out that CJAD Montreal’s campaign titled “Montreal, the city with a heart” was of great influence and represented the creative spark. Mary Wells of Wells Rich Greene also lays claim in her book to this forty year old, highly successful bit of place branding.

Absolut Vodka made a fairly indistinct bottle one of the most recognizable in the world. The original campaign, which featured print ads showing bottles “in the wild,” was so successful that they continuted for 25 years. It is the longest uninterrupted ad campaign in history and comprises over 1,500 separate ads. When the campaign started, Absolut absolut-vodka-absolut-peak-1207had 2.5% of the vodka market. When it officially ended in the late 2000s, Absolut supplied half of all imported vodka in America.

A few years back while working at Interbrand I heard a grand story about Peter Arnell of the Arnell Group. Both businesses were part of Omnicom. Peter was a noted character and larger than life. In fact, he was quite large in stature and took it upon himself later to lose a significant amount of weight. He was also known to be an exceedingly tough boss but most agree he possesses a brilliance for positioning products and services.

This particular story involved a prospective pet food client who was bemoaning the lack of growth in their industry. They presented Peter with undeniable evidence that pet food was a stagnant market. They could at best hope to steal a couple of points from aggressive competitors. Peter’s eyes may have glazed over looking at the pie charts and bar graphs. At this point, he is said to have made a dramatic pronouncement along the lines of, “I know how to double your market and revenue.” Read more