Have you hired a full-time new business hunter/ director/manager (as part of your staff) to prospect for leads for your agency in the past three years?
In the last two years of our survey (‘21 & ‘22), hiring for the new business director position at an agency fell to its lowest level since we started this survey in 2010, with just 32% of agencies hiring a new business director in the past 3 years.
We’re seeing that trend reverse in 2023, although not by much, with 36% of agencies hiring an internal new business director.
To add a further layer to the discussion we also asked agencies, “How difficult or easy has it been for you to hire quality employees for your agency/firm?”
51% of agencies said it was very to somewhat difficult and 39% said neither easy or difficult.
June saw a significant boost in employment across advertising, public relations, and related services, rising by 2,200 jobs, per new Bureau of Labor Statistics data cited in Ad Age. With this uptick, employment in these sectors has reached its highest since 2001.
However, in regard to the business development position specifically, it’s an ongoing saga agency owners must contend with:
85% of Agency New Business Directors last less than 2 years.
Of course, the last three years have had their fair share of unique struggles coming out of the pandemic with an uncertain economy and hiring difficulties.
Beyond these struggles—and those struggles are certainly real—agencies often just don’t know what to look for when trying to hire for the development position.
The process is not easy, but we see some key mistakes up front in the hiring process.
Here are 4 Mistakes Agencies Should Avoid When Hiring An Internal New Business Director
1 Hiring for that person’s network.
If this candidate’s main method of prospecting has been networking events, local happy hours, etc., you need to dig deeper and ask questions around their inside sales experience.
2 Hiring green.
At RSW, we hire new business directors that have 10-15 years of sales and marketing experience.
It makes the process longer and tougher, but it’s the expectation we set.
Agencies will hire green and then think they can train up.
3 Not digging deep enough on the individual’s planned new business process.
Always ask for a top-line version of the process and plan your new business director will carry out.
4 Failing to define the new business position clearly up front.
Is this person responsible for all facets of new business, from top of the funnel all the way through to pitching and RFP responses?
Is that person purchasing prospecting lists, or expected to build those out?
In Part 4 of our series we’ll talk the dollar volume of new opportunities so far in 2023.
https://mlx3vwodbmbw.i.optimole.com/w:auto/h:auto/q:mauto/ig:avif/f:best/https://www.rswus.com/wp-content/uploads/2023/10/4-Mistakes-Ad-Agencies-Should-Avoid-When-Hiring-An-Internal-New-Business-Director-2.jpg529498Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2021/09/Updated-RSW-logo-2021.pngLee McKnight Jr2023-10-19 14:07:172023-10-19 16:13:004 Mistakes Ad Agencies Should Avoid When Hiring An Internal New Business Director
So 2023 has been kicking small and mid-sized agencies around so far this year from a new business standpoint, and in this second post in a series, we explore the question, Why Is It Harder To Obtain New Business?
The first three quarters of this year have been somewhere between a head-scratcher and a dumpster fire — but the rest of it doesn’t have to be.
If agencies stay focused on the spaces where we have a right to win; empathize with the unique pressures our clients are facing and eradicate risk; and capitalize on this moment and create our own luck, then there’s hope for 2023 — and a brighter 2024 yet.
Couldn’t agree more with Jeff and his optimistic take, but as he points out, agencies have some work to do.
So in order move forward and embrace a more profitable 2024, I want to explore the reasons why agencies found acquiring new business to be more difficult in 2023, and look at those areas agencies have control of.
Taken from our RSW 2023 Agency New Business Report, we asked agencies:
Why Is It Harder To Obtain New Business?
In previous surveys, agencies have unilaterally given “breaking through to prospects” as the main reason why it’s harder to obtain new business.
This year, for the first time ever, it comes in third.
So what follows is a breakdown of the top 8 reasons:
Fewer Opportunities Out There (61%):
At the forefront of the challenges identified in our survey is the perception that there are simply fewer opportunities available.
Competition, to be fair, contributes to a more limited pool of opportunities. The ad agency world is a crowded market.
The question I would ask, in the spirit of tough love, is: How regularly did you actually pursue new business in 2023?
I do think for many small and mid-sized agencies, perception, as used above, is the key word here.
If your firm is not actively pursuing new business in some form, then there will, by definition, be fewer opportunities.
That is not to take away from the very real situation of marketers and budgets pulling back in 2023-that you cannot control, but if a plan for new business you can control.
Prospect Budgets Too Small (55%):
It should be noted that agencies in our survey are not referring to client budgets (which also saw reductions) but prospect budgets for potential work. A 2023 report from Survey Monkey (2023 Marketing Report: Top challenges and opportunities) pointed out
33% of marketers say their budgets will decrease or stay the same in 2023.
From our own 2023 New Year Outlook Survey, only 36% of agencies believed their clients would increase marketing spending somewhat to significantly, a 37-point drop at that point from 2022.
So agencies had a gut feeling on this at the outset of the year, and indeed, anecdotally, we did see some pullback from marketers.
And post-pandemic, many agencies were able to pick and choose projects and had it really good. Those same agencies got a jolt around Q2.
So moving into ‘24 would be the time to potentially consider smaller opportunities in the short term, that are, critically, still within your wheelhouse, in order to land and expand.
Harder to Break Through to Prospects (47%):
While no longer the primary challenge, breaking through to prospects remains a significant hurdle.
Without a doubt, it’s never been harder, but at the same time, the amount of useless emails and outreach overall make it harder for you to break through, but it also provides you with an opportunity.
An opportunity to use messaging that does two critical things: 1) Show your agency expertise and 2) how it can help solve their business challenges.
I am continually shocked with the lack of these two elements in prospecting outreach.
You have to remember how busy your prospects are, and how much noise surrounds them-professional and personal.
If this is happening more often that not, here’s a step-by-step “ghosting follow up schedule” to help you stick with your prospects if they’re ghosting you – and more importantly – help you get a clear yes or no from them, so you can move forward or move on.
You’ll find 3 email templates and 1 VM template you can adjust as needed to fit your situation.
Can’t Find the Right Person (15%):
Identifying and reaching the key decision-makers within a potential client organization remains a persistent challenge, and the first key is making sure you’re going after the right titles.
That may sound entirely obvious, but it’s a problem for many agencies.
Key here is to do the homework up front, and be sure to differentiate between who you actually work with ongoing within a client’s company versus the decision maker you’re reaching out to when prospecting.
They’re not always the same person.
No Process in Place (13%):
Establishing clear methodologies for lead generation, qualification, and conversion is, of course, imperative.
We’ve discussed before in our ongoing content, that the first step is forcing yourself to take this first step.
The only one to blame for no process is yourself, but of course that doesn’t mean you may not need help.
The Resources dropdown on our home page has a lot of info to help you get started, or restart.
No Time to Do It (11%):
See above.
As easy as it is to say, time must be made.
Making a plan you can actually stick to is the first step.
Can’t Make the Investment (5%):
This is certainly legitimate, but you also don’t need a large outlay of cash to go after new business initially.
Looking at the 4 key areas of business development( referrals, organic growth, inbound/content, and outbound), you already have the tools to handle all four of those with no additional cash outlay.
As you progress, however, yes, you will need other tools, like a CRM, for example, but an internal business development process (if you’re not hiring someone solely dedicated to the job) does not require a large investment to start the process internally.
In Part 3 of our series we’ll talk hiring for the new business director position.
https://www.rswus.com/wp-content/uploads/2023/10/Why-Is-It-Harder-To-Obtain-New-Business-1.jpg625500Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2021/09/Updated-RSW-logo-2021.pngLee McKnight Jr2023-10-12 15:00:302023-10-12 15:10:09Why Is It Harder To Obtain New Business?
While it paints a somewhat bleak 2023 so far from a business development standpoint, pursuing “new” new business, we’re already seeing some optimistic signs leading into Q4 and 2024.
So now is the time to make a plan-our report should light a fire under you and your team-take a step back and look at the reasons why you’re not bringing in new business at the rate you need to, especially what you can control or improve.
First a few of the key stats from our report:
58% of agencies said it’s been harder or a lot harder to obtain new business this year so far, continuing a now 3 year trend: in 2021, 28% of agencies found it challenging to acquire new business and this number jumped to 43% in 2022, indicating a noticeable upward trend.
And 38% of ad agencies reported a decrease in new business opportunities overall, a significant jump from 26% in 2022.
Ad agencies struggled with new business in 2023-Why?
Let’s look at a few reasons:
Economic Uncertainty: Economic factors play a pivotal role in client decision-making. Uncertain economic conditions lead businesses to tighten their budgets, and unfortunately, in 2023 it seems many marketers let the economy spook them more than it should have.
Larger Agencies Playing Down: Per our Adweek piece:
It should be a good thing for smaller shops, but McKnight Jr. fears large shops are still monopolizing opportunities. Rather than accept disruption, small agencies believe that more large shops should be unwilling to accept the smaller projects. Simply put, the big agencies are “playing down,” a survey respondent wrote in
Increased Competition: The advertising landscape is more competitive than ever, with new agencies entering the market and established players diversifying their services.
No process in place for business development: A recurring theme, and not new to this year, yet, it remains as tough as ever for small and mid-sized firms to create and stick to a process.
The Way Forward
The current scenario seems challenging, and is, but business development always has been.
Ad agencies should view these hurdles as opportunities.
Here are some big-picture strategies agencies should consider heading into 2024:
Who’s driving the train: Someone in the agency needs to own the decision on business development. The core team can and should be involved, but ultimately you must get to a place where decisions can be made and executed upon, however it’s ultimately handled. (And we’ll get into that in future posts.)
Nail down positioning and prospect targeting: I am very aware that this is easier said than done, but if you don’t have this locked down, the effort will flounder.
Establish a presence with content: Especially with AI tools to help this process, there’s no excuse not to be minimally posting on LinkedIn 2-3 times a week to show your expertise.
Just DO It-Ah the old cliché, but it is 100% true. You can iterate it to death, but you have to simply start.
The challenges faced by agencies in obtaining new business in 2023 highlight the need for proactive measures, and we’ll delve deeper into those measures in this series in the weeks to come.
Part 2 in this series: Why Is It Harder To Obtain New Business?
https://www.rswus.com/wp-content/uploads/2023/10/Ad-Agencies-Struggled-with-New-Business-in-2023-So-Whats-Next.jpg16001280Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2021/09/Updated-RSW-logo-2021.pngLee McKnight Jr2023-10-05 15:55:542023-12-21 14:30:50Ad Agencies Struggled with New Business in 2023-So What’s Next?
I just finished a consulting assignment for ADMATIC last week. They are an Australian headquartered agency with offices in Sidney, Melbourne, and Auckland, New Zealand.
The principal gave my work a “Triple A+!” Never received a “Triple” before!
Here is a short clip with the principal’s commentary after my final presentation where he kindly gave my consulting work the: “Triple A+!”
Met the principal at the AMI conference in Chicago this year and he apparently thought enough about my experience working with agencies since 2005 and helping them build sound new business programs to hire me into a consulting engagement to help his agency out.
Didn’t go to Australia, but did spend a lot of time interviewing the principal and their key management team late in the evening my time to catch them early morning their time.
His desires were plentiful and the output was spot-on in terms of giving him what he needed for his firm:
Create an efficient system for new business development that capitalizes on the organizational strengths of the agency.
Develop an organized and compelling marketing and prospecting plan for the agency, which includes an examination of ADMATIC’s positioning relative to competitors, a review of RFP/Proposal responses, and a deep dive into the UX and messaging on their site.
Provide specific tactical examples to help more quickly facilitate the quick start of a successful new business program.
Identify best-in-class approaches, techniques, tools to use when implementing a productive agency new business program. This includes email templates, phone messaging, and LinkedIn strategy.
We examined issues related to culture of the firm and how that influences their relationships with each other and their clients.
We looked at competitors and how they were messaging and positioning themselves to help ADMATIC find a more ownable position in the market.
We identified issues that needed to be remedied relative to the perception and reality of the value of what the agency delivered to clients.
Here’s a look at the final presentation agenda:
Strengths, Weaknesses, Opportunities, Threats
Culture Discussion & Recommendations
Future Look at ADMATIC & Recommendations
Perceptions of ADMATIC New Business & Recommendations for a Structurally More Sustainable and Effective Program
Marketing/Messaging/POD
Competitive Review
Positioning Recommendation
Website Messaging Recommendations
Messaging Recommendations for RFP Responses
Content Recommendations
LinkedIn & the Blog
Outreach Plan Recommendation for Michael
LinkedIn
Email
Website Visitors
Other LinkedIn Recommendations
It was exciting and invigorating to dissect their firm on so many different levels and give them back something that not only helped from a big picture standpoint, but gave them the tools they needed and the roadmap it required to help them activate the program on their own.
So…if you haven’t done anything quite like this before, as we roll out of what has been a rather crazy year for the ad business, you might want to consider taking an objective look at your firm and readying it for what can hopefully be a highly productive 2024 for you.
Want help or want to talk about how we can help? Drop me a line (mark@rswus.com) or give me a call (513-293-6785).
This is the RSW/US 2023 Ad Agency New Business Report: Perspective On The Agency New Business Environment, 2023 and Beyond.
(Download your report at the bottom of this page)
We’ve fielded it since 2010 and present comparable data that is available across all previous editions, providing insight on trends in key areas over the past ten years.
This report is typically heavily downloaded because the answers come from our survey of your agency peers.
This year’s survey and the resulting RSW/US 2023 Agency New Business Report see ad agencies, marketing services firms, and PR firms continuing to struggle with obtaining new business, however, 2023 has also brought challenges in the form of slowing referrals, decreased budgets, and longer sales cycles.
It’s been a tough 2023 for agencies-it’s never been more important to have new business plans in place, especially as you prepare for 2024 and what will ideally be a stronger Q1.
Our hope is the key findings and implications of our report provide value as you develop plans for the remainder of 2023 and into 2024.
This study was commissioned by RSW/US. RSW/US is an outsourced lead generation/ business development firm that exclusively services marketing service firms (of all sizes and types), founded in 2005.
The RSW/AgencySearch model is unique to the industry, with multiple searches managed for marketers across a range of different categories, helping them find better agencies.
The exposure to the agency and the marketer world has armed RSW/US with perspective unmatched in the industry and this perspective is woven throughout this, and every
survey report we release.
———
If this is your first time here, RSW/US is an outsourced lead generation/business development firm that exclusively services ad agencies, PR firms, and marketing service firms (of all sizes and types).
We work with over 50 agencies across the U.S., operating as their outsourced sales and marketing team.
https://www.rswus.com/wp-content/uploads/2023/09/RSWUS-2023-Ad-Agency-New-Business-Report.png1212934Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2021/09/Updated-RSW-logo-2021.pngLee McKnight Jr2023-09-27 09:19:182023-09-28 12:58:06RSW/US 2023 Ad Agency New Business Report
If your ad agency focuses on adventure travel marketing or travel/tourism, you should watch this episode of Marketer’s Edge.
Hurtigruten Group is the world’s leading adventure travel group.
Formed of three main business units – Hurtigruten Expeditions, Norwegian Coastal Express and Hurtigruten Svalbard – they offer unique small-ship and land-based adventures from pole-to-pole.
Why Advertising Agencies Should Watch This Episode-Storm talks:
The most challenging problem in her marketing career and how she solved it.
The difference between marketing high-end travel excursions and products like toys and technology.
Experiences from former jobs that she applies to her current role at Hurtigruten.
What Hurtigruten Group is and what she does as their SVP Global Marketing.
How Storm differentiates the Hurtigruten brand in a crowded travel and cruise market to capture her target audience’s attention.
How content offerings have changed in the travel/cruise space over the past decade.
Advice for marketers working remotely and far away from their parent company.
Advice to marketers considering bringing an agency on board for the first time.
Advice she would give to an agency attempting to win business from her.
If your agency or PR firm is struggling with new business, contact Lee McKnight Jr. at lee@rswus.com for a conversation. That’s our sole focus at RSW/US.
Jeff Graham is President & CMO of Cactus, a 33 year-old independent agency located in Denver, CO, and in this episode of the RSW/US Cut To The Chase series, he talks with Lee McKnight Jr. about mental health, verticals, agency process, and content creation.
Jeff’s 30 years in advertising includes agency and account leadership roles at Barkley, Grenadier, Crispin Porter + Bogusky, Arnold, CORE and TBWA\Chiat\Day.
In part 1, Lee & Jeff talk:
The shared love of early metal and how that ties into an RFP (it will make sense when you see it)
Jeff’s background prior to Cactus, which included runs at TBWA, Arnold, Crispin Porter + Bogusky, & Barkley
The background on Cactus, founded in 1990
The Cactus vertical breakdown amongst 5 verticals: how they structure those on their site, and from a business development standpoint
Every agency seems to have a process: why the Cactus Belief and Behavior Design™ process stands out and reinforces everything the agency does/stands for
How and why Cactus said “yes”, early on, to the briefs so many agencies run away from
Man Therapy-what it is in relation to mental health, why Cactus created it, and what it’s meant to the agency
In 2022, Cactus was named one of the Drum’s best performing agencies, one of Outside Magazine’s Best places to work, and ranked in The One Club, global creative rankings. While so many firms were struggling post-pandemic with maintaining culture and teams overall, Jeff discusses how Cactus remained vital and how the entire team realized success.
In part 2, Lee & Jeff talk:
A piece Jeff wrote in Campaign US called “The Upside of the Great Resignation for Agencies” back in March of ’22 that absolutely still applies, including 4 pre-pandemic pitching rules.
The consistent theme: “Cactus exists to work with brands that help people thrive in their lives”
Cactus’s focus on Mental Health Awareness and the weekly series with Grit Digital Health (discussed in Ad Age)
The Frame of Mind series, featuring some of the industry’s top leaders in conversation with Cactus Founder & CEO Joe Conrad
The Cactus in-house psychologist -Jeff’s content in Ad Week, on podcasts, and appearing at conferences-how that process works and advice to agency principals on content and getting yourself out there
One piece of advice to marketers to make their agency relationships more effective
More about Jeff: Jeff’s account work spans some of the world’s most iconic brands—Microsoft, Volkswagen, Jack Daniel’s, Best Buy, the NFL, Gibson Guitar, Virgin Mobile, Bass Pro Shops, Indian Motorcycle, Under Armour, and Old Navy (where he served as interim CMO).
For decades, Jeff has taught university students and mentored young account professionals on the art of ‘creative account leadership’ – by creating the conditions on their accounts where bold, culture-changing creative ideas can live, the account discipline can play a crucial role in making great work possible.
Jeff is a graduate of the Missouri School of Journalism and St. Louis University’s MBA program.
He’s a classic car nut, cancer survivor, proud dad to 4 amazing girls, board member of One Club Denver, and a past-president of Ad Club Colorado (AAF).
🔔 Subscribe to our YouTube channel for more free content on how to help improve your new business program: https://bit.ly/2Mn0gXy
More about our business development process for agencies and PR firms here.
https://www.rswus.com/wp-content/uploads/2023/09/Cut-to-the-Chase-with-Jeff-Graham-Cactus-Mental-Health.webp7201280Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2021/09/Updated-RSW-logo-2021.pngLee McKnight Jr2023-09-12 14:58:122023-09-12 15:02:34Cut to the Chase with Jeff Graham, Cactus-Mental Health
If your firm pursues clients in biotechnology, health diagnostics, or life science, you should watch this episode of Marketer’s Edge.
Agendia is a precision oncology company headquartered in Irvine, California, committed to bringing patients with early stage breast cancer and their physicians the information they need to make the best decisions for the full treatment journey.
Why Advertising Agencies Should Watch This Episode-Farida talks:
Her 18-year career in the healthcare industry.
Advice she would give to a marketer entering or new to the market.
Her work with marketing agencies and the advantages and disadvantages of in-house teams.
Advice to marketers considering bringing an agency on board for the first time.
The role of AI in healthcare and whether she utilizes it in her role.
The partnerships she forms with companies that develop next-generation treatment tools.
The toughest challenges to marketing the Agendia brand.
How she differentiates the Agendia brand from other companies doing similar work.
How her law degree has helped her in her various roles as a marketer.
If your agency or PR firm is struggling with new business, contact Lee McKnight Jr. at lee@rswus.com for a conversation. That’s our sole focus at RSW/US.
What does Colleen choose to kick things off: answering an RFP or eating a bucket of hot mayonnaise on a beach?
Colleen talks her background and how her brand/advocacy and travel work led to starting OnWrd & UpWrd.
Starting the firm during COVID.
OnWrd & UpWrd’s point of difference (Execution makes all the difference. )
How The Association 100 impacts the firm and what it is. (A bi-monthly newsletter featuring interviews, videos, and posts sent to 30K associations & nonprofits professionals.)
How Colleen and her team take advantage of conventions and conferences post-pandemic to drive new business and thought leadership.
Advice Colleen would give to other principals on attending conferences today and taking advantage of them for business development.
Her weekly Association Insights videos and how the process works. (Tightly focused on one question association-related, each usually 2-3 minutes.)
Advice to PR/agency principals and new business leaders on creating and keeping up with content.
And one piece of advice Colleen would give to a client/marketer to make their agency relationships more effective.
More about Colleen: She uses her expertise in communications and advocacy, media relations, and video and podcast production to help clients enhance their brand as an industry thought leader.
At OnWrd & UpWrd, she works with clients to secure national and local media coverage, develop strategic communications plans and implement video and digital strategies to set them apart from the competition.
She also serves on the Washington Women in Public Relations Board of Directors and the ASAE Communications Professionals Advisory Council.
Prior to joining OnWrd & UpWrd, Colleen was a Vice President at Curley Company, a DC-based brand and advocacy PR firm.
Before that, she was the Vice President of Communications & Research for the Global Business Travel Association where she led and implemented award-winning PR campaigns, launched a broadcast studio, and provided strategic input for the overall direction of the association.
Colleen’s post we discuss at the end of the interview on principles to apply for effective relationships with an agency https://theassociation100.com/2023/04…
🔔 Subscribe for more free content on how to help improve your new business program: https://bit.ly/2Mn0gXy
If you’re interested in financial and local bank marketing, you should watch this episode of Marketer’s Edge.
Signature Bank of Arkansas was established in 2005 by a team of well-respected and experienced local bankers who had the dream of building a bank where decisions were made locally and in the best interests of not only the bank but customers and team members as well.
Why Advertising Agencies Should Watch This Episode-Tori talks:
The void in the banking industry that Signature Bank fills and how they accomplish it.
The biggest challenges in convincing potential banking customers what Signature offers is different and better.
The bank’s newest offering, Banco Si, its origins, and the reasons behind its creation.
Growing up on a rice farm, and how that experience influences her current position.
Her experience working with marketing agencies compared to in-house teams.
Her role at Signature and one of the first challenges she had to overcome.
How her experience in other industries has helped in her current role.
Advice for marketers considering bringing an agency on board for the first time.
If your agency or PR firm is struggling with new business, contact Lee McKnight Jr. at lee@rswus.com for a conversation. That’s our sole focus at RSW/US.
https://www.rswus.com/wp-content/uploads/2023/08/Marketers-Edge-Interview-With-Tori-Bogner-Local-Bank-Marketing.png7201280Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2021/09/Updated-RSW-logo-2021.pngLee McKnight Jr2023-08-10 14:51:182023-08-10 14:54:36Marketer’s Edge Interview With Tori Bogner: Local Bank Marketing
