RSW/US has helped 300+ agencies build disciplined new business programs since 2005. These articles cover outsourced prospecting, pipeline strategy, and what separates agencies that grow from those that stagnate.

Financial Services

In this episode of Marketer’s Edge we’re talking financial services and credit unions with David Eldred, the Chief Experience Officer for Solarity Credit Union.

If your agency pursues clients in the financial services or credit union space, you’ll want to watch this episode.

With over $1 billion in assets under management, Solarity Credit Union’s digitally focused community-centric co-op currently serves more than 50,000 members and offers a comprehensive range of products and services to meet ever-evolving financial needs.

Membership is open to everyone who lives, works, worships, or attends school within a Washington State school district.

Why Advertising Agencies Should Watch This Episode-David talks:

  • His experience with RVM (Relationship Value Management), an approach that proved invaluable in developing relationship-based pricing strategies.
  • Aside from mobile banking, the biggest changes in the industry he has experienced.
  • And what he thinks the financial services and credit unions space will look like 3-5 years out.
  • What it means to be a “Chief Experience Officer” at a credit union and how that’s different than being a CMO.
  • What he likes most (personally and professionally) about the financial servives and credit unions space, an industry he’s operated in his entire career.
  • The advantages of in-house teams and the advantages of working with an outside agency.
  • Any advice he would give to marketers thinking about bringing a new agency on board.
  • And lastly, if an agency was trying to knock down his door and attempting to win business from him, the advice he would give them.

 

How Do Prospects Find Your Agency

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For the marketer’s perspective on this same question, see our survey data on how marketers discover new ad agencies and which channels are driving the most agency introductions today.

Ad agencies specialize because it establishes the agency as an expert in a given vertical, or verticals.  92% of marketers say expertise will be very/moderately important when considering new agencies. Specialization also helps establish a strong agency brand, and aids business development efforts by making it easier to find new, desirable clients.

Stats below are taken from our 2023 RSW New Year Outlook Report (download here at no cost).

Why Should Ad Agencies Specialize: Specialization Myths

(I don’t know that “myths” succinctly applies here, “misconceptions” is probably the better word, but myths fits into a subject line better than misconceptions.)

It’s often groan-inducing when an agency hears “you need to specialize in order to get the clients you really want”.

We’ve certainly talked about it before (right here actually: Don’t Be Scared Of Specialization.)

But any groaning aside it is important:

92% of marketers say expertise will be very/moderately important when considering new agencies in 2023.

Let's Talk About Ad Agency Specialization Myths

Horizontal and Vertical Positioning Definitions

Before we get to the myth, if you will, it’s important to establish the forms that specialization, and your resulting positioning, can take.

And to do that, I’ll refer to David C. Baker, who wrote an insightful post on the subject for us a few years back and still holds up quite well.

From David’s Pros And Cons Of Positioning Your Firm Vertically Or Horizontally:

A vertical positioning is centered around an industry category, such as NAICS 541430–Graphic Design Services.

Or it could be very broad, like marketing for manufacturing, but it’s usually narrower than that.

So it might be credit unions, specialty physicians, non-profits, or high-growth tech.

A horizontal positioning defines your target in another way by spanning most of the verticals.

You could define your horizontal by a demographic segment, like millennials, Hispanics, women, or even around employee alignment.

It could be as specific as helping B2B leaders at disruptive transitions. You could also define it by a practice area, like investor relations.

The Ad Agency Specialization Myth

So let’s get to the main myth, if you will, about specialization: specialization doesn’t mean you have to focus on just one vertical.

David’s initial definition begins that explanation.

Agencies, understandably, don’t always take the time to think through the nuances of positioning, and what specialization could look like in reality for their agency.

If you’re struggling with this, I suggest reading David’s entire post, but here’s further, helpful explanation from it:

The most powerful positioning combines both, in something like a crosshairs, but you always lead with a horizontal or a vertical focus.

So you might target credit unions but with a particular focus on social media.

That would be a vertical positioning, primarily, but with a bold narrowing on top of it.

Or you might be a public relations firm specializing in investor relations with a particular strength in tech.

That would be a horizontal positioning, primarily.

Ultimately, it’s important for you to remember, your prospects are looking for expertise, and a certain level of specialization, but it doesn’t mean you have to paint your agency into a rigid corner.

Another related stat from our report:

72% of marketers say an agency’s site is important/very important in helping determine whether they’ll entertain an initial meeting.

Let's Talk About Ad Agency Specialization Myths

Ad Agency Specialization-Make It Clear On Your Site

A final note on specialization: if you do the work to craft your positioning and specialization, it can’t end there.

And that may sound glaringly obvious, but too often agencies nail the positioning down, but leave out an important step-updating their site to reflect it.

In one of our new questions in our new year outlook survey, we asked marketers, “How important is an agency’s website in helping you determine whether you’ll entertain a conversation with an agency?”

The agency site is typically the first thing a prospect sees, right?

But how important to your prospects is it really?

As our stat above points out, it’s important.

This is probably not a great shock to agencies, but it should be something of a wake-up call, or at the very least a reminder.

Your agency’s site is a visual elevator pitch, yet many agencies don’t consider this when creating or updating their sites.

Your site is typically the last thing you get to because it takes time to update it, but here’s further proof you must attend to it.

Even if that means an initial copy update to reflect your updated positioning, and/or updates over time.

To help drive more new business for your firm, look at it as soon as you can and make a plan for those updates.

And if you need help, that’s what we do.  Contact us here.

In-House Agencies in Flux Maybe not Always

Oh in-house agencies, we’re forever riding your carousel , and by “we”, I mean all the agencies out there.

From our 2023 New Year Outlook survey, unsurprisingly, agencies and marketers are not aligned.

We like the way this in-house trend is going!

In-House Agencies in Flux? Maybe not? Always?

Similar to last year’s report findings, overall, signs point towards marketers’ reliance on in-house teams waning — at least, according to agencies.

We initially asked agencies:

What percent of YOUR current clients have in-house agencies/do agency-like work in-house?

To provide some perspective, in 2021, 14% of agencies indicated that 51%+ of their clients brought agency work in-house, which rose slightly to 17% last year, and now in ‘23 drops to 13%.

But otherwise, agencies overall report less reliance by clients on in-house teams in 2022.

However, in a corresponding question, we asked marketers,

What percentage of your marketing/advertising activity is managed by an in-house marketing/advertising team?

Last year, 39% of marketers indicated that 51%+ of their marketing/advertising activity occurs in-house.

In 2022, it rose to 47%.

In-House Agencies in Flux? Maybe not? Always?

Here we go again

So we see agencies and marketers at odds here, with 13% of agencies reporting clients doing work in-house, but 47% of marketers reporting the same thing in 2022.

And when we asked agencies, “Looking ahead to 2023, do you see your clients moving more or less marketing agency-like work in-house?”,  66% of agencies expect either no change or a reduction in the amount of work being managed by their clients in-house.

Last year’s report saw that number at 77%.

Be prepared

The need to co-exist and work with in-house groups continues to be important, but more than ever in 2023, being proactive with your clients, having an organic growth plan, and making them aware of all the things you can do for them are key.

And from a Mediapost article that mentioned our report (Bringing Agency Work In-House: Best Practices For Tough Times):

The swings between acceleration and slowdown of in-housing leaves the function with an unsettled role. We know that industry sentiment will ebb and flow. We know that getting an in-house agency off the ground is a complex process that takes time, thought and planning — whether the strategy is motivated by cost-savings or broader marketing transformation. We know that there are no one-size-fits all solutions.

Your agency mindset in 2023 should be to treat your clients like ongoing prospects, in terms of the value and thinking you can bring, along with your work.

The in-house carousel will continue, but you can at least control the way you structure your new business strategy to bring in more new clients.

Marketer’s Edge Interview With Pete Buscani: Restaurant Chains

In this episode of Marketer’s Edge we’re talking restaurant chains and marketing with Pete Buscani , the EVP of Marketing at LaRosa’s Pizzeria.

If your agency pursues clients in the restaurant, restaurant chains, or franchise space, you’ll want to watch this episode.

A bit of background: After serving our communities and its guests for 65+, LaRosa’s continues to be the leading pizzeria and Italian restaurant in the Greater Cincinnati area. We know a restaurant is only as good as the food it serves, and thousands of our Guests agree that LaRosa’s food simply can’t be beat.

LaRosa’s truly is your neighborhood pizzeria. Families in Ohio, Indiana, and Northern Kentucky have been enjoying LaRosa’s original recipe pizzas for generations, with many of them making LaRosa’s a weekly tradition. Of course you can choose from other LaRosa’s favorites like calzones, hoagies, pasta, and more.

Why Advertising Agencies Should Watch This Episode-Pete talks:

  • What he feels is key to maintaining a solid agency-client relationship.
  • What some of the toughest challenges he’s faced marketing the LaRosa’s brand to consumers and how he has overcome them.
  • Advice he would give to marketers thinking about bringing a new agency on board.
  • The degree to which LaRosa’s has had to adapt to changing consumer preferences over the 22 years Pete has been at the marketing helm.
  • What he did during the pandemic to keep sales strong and that he found useful continuing post-pandemic.
  • How his advertising experience (prior to joining LaRosa’s) has helped him.
  • And lastly, if an agency was trying to knock down his door and to win business, the advice he would give them.
Marketer’s Edge Interview With Kasey Moss: Sustainable Retail

In this episode of Marketer’s Edge we’re talking sustainable retail with Kasey Moss, the Brand Director for Chomps.

If your agency pursues clients in the food retail or sustainable food space, you’ll want to watch this episode.

A bit of background: Chomps is a better-for-you meat snack brand with products made from the highest-quality, sustainably sourced proteins and no hidden, harmful ingredients.

Chomps beef and venison are 100% grass-fed and finished, our turkey is free range, and all of our proteins are hormone free, antibiotic free, and humanely raised.

Chomps meat snacks never contain added sugar, artificial preservatives or colors, MSG or fillers and are free from the top 8 allergens.

Our mission is to inspire a healthier way of snacking by providing high-quality, protein-packed snacks with simple, real food ingredients. At Chomps, there are no compromises or cutting corners – our products are delicious and nutritious.

Why Advertising Agencies Should Watch This Episode-Kasey talks:

  • Advice for other marketers looking to build their social presence and better take advantage of the space.
  • How there are a lot of “good for you” brands that use philanthropy or other approaches to strengthen their perceived “purpose” in the market and among employees and how Chomps efforts have benefited their brand and company.
  • Why she has focused her marketing career on “good for you” foods. Prior to joining Chomps, Kasey spent 9 years working for Enjoy Life Foods.
  • How marketing products like Chomps differs from marketing a more mainstream food product. We discussed other things marketers need to be considerate of – other ways they need to think about how they message or market a brand like Chomps.
  • How they make certain that the equities that exist in the brand today aren’t compromised as they expand the brand in the future.
  • And of course, advice she has for marketers looking for a new marketing agency and advice for agencies looking to bust down her door and work with her.

A little bit about Kasey:

Seasoned, yet scrappy marketing professional with several years of experience of CPG brand building experience.

Extensive experience in brand marketing and a strategic leader with a focus on data and behavior-driven results and continuous brand growth across all consumer touch points resulting in omnichannel growth.

Digital fatigue-it’s a thing. 

Our inboxes are full to bursting and our eyes glaze over with ubiquitous digital ads. 

Forrester Consulting released a study based on insights from 158 business-to-business (B2B) marketing leaders in North America on analog versus digital touchpoints, and although not technically, directly related to your business development efforts, it’s critical you pay attention to the key takeaways. 

Kicking things off from a Business Wire summation: 

. . . the majority (80 percent) of respondents recognize that the pandemic has increased their reliance on digital touchpoints. Resulting from the overdependence on digital, 76 percent agree that engagement with digital tactics is dropping, while 78 percent of respondents report that analog touchpoints such as direct mail have seen a performance boost. 

 80% recognize the pandemic increased digital reliance 

This applies to your agency business development effort as well, although it was happening well before the pandemic. 

Sending an email is easy, versus making a phone call, for example.  

You click send and there’s no personal interaction. Fear of rejection is minimized. 

But the pandemic, as this study makes clear, and we can most certainly all agree on, has increased our digital dependence from a business development standpoint and increased your prospects’ digital fatigue.

It was understandable as the pandemic really kicked in, or at least many agencies told themselves that. 

You can’t reach anyone by phone, everyone’s working from home.

 I heard that a lot, and it was 100% not true, not after those first few months. 

We actually set more meetings by phone during the pandemic. 

 76 percent agree that engagement with digital tactics is dropping 

We’re awash in sales emails, and they’ve gotten progressively more ineffectual, ineffective, and voluminous. 

As a company, we’ve been fortunate in that our process has always involved multiple touchpoints across multiple channels: phone, email, social and physical mail. 

Another quote worth reading from the Business Wire summation: 

 Since the onset of the pandemic, businesses have significantly over-rotated on their use of digital engagement strategies to reach audiences. Unfortunately—but not unexpectedly—the reliance on digital channels alone has led to increasing levels of fatigue. The new engagement challenge for B2B marketers revolves around establishing authentic, personal relationships with audiences to counter this fatigue and forge connections that drive business value.

 The word “authentic” in the prospecting/outreach context has become patently overused, but the point still stands.  

Your outreach has to be personalized (to an extent at the top of the funnel) and personal in it’s messaging-meaning it doesn’t read like a bot or an ad, but rather that another human being wrote it.

78 percent of respondents report that analog touchpoints such as direct mail have seen a performance boost. 

 Here’s an example of a mailing piece we created and sent out to our agency prospects recently. 

Your Prospects Have Digital Fatigue

 This one was a little silly and a little different, with the message on the front, “Thinking of You”, meant to be a throwback to a greeting card. 

And so far it’s working. Although we’re in the early stages, we’ve seen it just in the amount of meetings I’ve set with agency principals.  

4 key takeaways I’ll leave with you as you look to increase new business amongst all the digital fatigue: 

  1. You don’t know what’s going to resonate with a prospect, so you have to give yourself every opportunity, by using multiple methods/channels in order to stand out 
  2. The study gets into the use of SaaS platforms to track and accompany your direct mail campaigns. While that’s great, that probably isn’t in the budget, and it doesn’t have to be. Simple QR codes will work, for example. 
  3. Email is still valid, but it’s all about the messaging. Most sales emails are not written well and are not informed.   
  4. It’s not about any one channel/method. Our tech stack is also critical to our performance, for example.

I’ll often send a simple letter on RSW letterhead, that I personally sign.  

It’s about mixing up what you’re doing, and most importantly, following up. 

The Top 3 Reasons It's Harder For Ad Agencies To Get New Business

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Frequently Asked Questions

Why is it harder for ad agencies to get new business?

Based on RSW/US research, the top three reasons agencies struggle to win new business are: it’s harder to break through to prospects (cited by 55% of agencies), there are fewer opportunities in the market (cited by 39%), and agencies can’t find the right person to drive new business internally. These challenges compound each other. A shrinking opportunity pool demands better outreach, but the right talent to execute it is scarce.

Why do ad agencies struggle to hire good new business directors?

New business directors at ad agencies last an average of just 18 months, one of the shortest tenures of any marketing role. The job is difficult, results take time to materialize, and agencies often set unrealistic short-term expectations. This high turnover makes it hard to build momentum and is one reason many agencies turn to outsourced new business programs as a more stable alternative.

Are there fewer new business opportunities for agencies today?

39% of agencies reported fewer opportunities in the market according to RSW/US survey data. Contributing factors include tighter marketing budgets, a rise in in-house agency capabilities, and longer decision-making cycles at brands. However, agencies with strong positioning, consistent outreach, and a clear value proposition are still winning new business. The market is more competitive, not closed.

What’s the most effective way for an agency to break through to prospects?

The most effective approach combines relevance and persistence. Outreach that references a prospect’s specific business situation, recent campaign activity, or industry challenge outperforms generic capability pitches. Paired with a consistent multi-touch follow-up sequence over 60 to 90 days, relevant outreach is still the most reliable way to convert a cold prospect into a first meeting.

Ad Agencies Are Finding New Business Harder To Drive in 2022

Ad Agencies Are Finding New Business Harder To Drive in 2022, and you can look into the reasons why in our latest RSW/US report.

Download it now at no cost: RSW/US 2022 Agency New Business Report: Perspective On The Agency New Business Environment.

(And you can read the Adweek feature on it here: Obtaining New Business Is More Difficult for Agencies, Report Finds)

Our first question to ad agencies:

How Difficult Is Obtaining New Business, Compared to Last Year?

After an unprecedented 2021 survey report, where only 28% of agencies reported obtaining new business (compared to the previous year) as harder or a lot harder, this year we see the cyclical nature of the ad industry rear its head again.

In 2022, 43% of agencies report that obtaining new business (compared to the previous year) is harder or a lot harder than it was in 2021.

Ad Agencies Are Finding New Business Harder To Drive in 2022

Looking at the responses from this question dating back to 2008, 2021 was a high point for many agencies, with only 28% saying it was harder to obtain new business that year.

Following the lockdown, budget freezes, and the overall extreme uncertainty of 2020, agencies needed that respite–and thankfully many firms got it.

But as you’ll see in our report, business is inevitably becoming harder to acquire again in 2022.

Looking at the data from another angle, only 17% of agencies said it was easier or a lot easier to obtain new business in 2022, versus 38% in 2021.

And in a follow-up question, “Relative to last year, have you seen the number of opportunities for new business decrease, increase, or remain the same?”, we saw that-

32% of agencies said the number of opportunities for new business increased, versus 51% last year.

As if agencies weren’t already exhausted from managing the pandemic and workforce disruption, the remainder of ‘22 and ‘23, with inflation and recession concerns, reaffirms
the need for agencies to make sure they have an actual new business strategy in place.

We’ll have a series of  posts on our report, covering each major stat, and what it means for new business moving forward.

Marketer’s Edge Interview With Renee McIntyre: Property Management Services

In this episode of Marketer’s Edge we’re talking property management services, multifamily real estate, localized marketing, and multi-location property management with Renee McIntyre, Director of Sales and Marketing at Scully Company.

If your agency pursues clients in real estate, and specifically property management services, you’ll want to watch this episode.

A bit of background: Scully Company specializes in multifamily real estate in both ownership and management capacities, currently managing over 7,000 units consisting of large-scale garden, mid-rise and high-rise apartment communities for institutions, private investors and our own portfolio.

Scully Company manages properties in Florida, Pennsylvania, New Jersey, and Connecticut. Operating in diverse locations with a keen focus on strategies specific to local markets, Scully Company has achieved recognition as a leader in the multifamily industry.

Why Advertising Agencies Should Watch This Episode-Renee talks:

  • The degree to which technology plays a role in the overall management and maintenance of properties or in the overall management of Renee’s marketing activities
  • How Renee differentiates Scully’s offering in the eye of the investor – whether it be an institution or a private investor or the consumer
  • The biggest challenges she faces as the director of marketing and sales for this multi-location property management group.
  • How she addresses the need to localize marketing for each property yet still maintaining efficiencies in her overall spend.
  • Any advice Renee would give to marketers thinking about bringing a new agency on board
  • And lastly, if an agency was trying to knock down Renee’s door and attempting to win business from her, what advice she would give them.

A little bit about Renee:
As Director of Sales and Marketing, Renee McIntyre leads development of all real estate sales and marketing strategies for Scully Company, along with each of the individual brands within our portfolio.

A true team player, Renee lives her life by the motto “how you do anything, is how you do everything”. She strategically aligns every project with the company’s overall mission while overseeing portfolio occupancy and developing supplemental strategies to maximize revenue.

During her 12 minutes of spare time each year, Renee loves unwinding with a fine glass of wine, crushing it at family game night and beating last years’ time at the Broad Street Run.

Renee is a Certified Training Facilitator for the National Apartment Association and has a Bachelor of Science in Tourism and Hospitality from Temple University in Philadelphia