Today’s Ad Industry Innovator comes from New Marketing Labs, which you may know better if I tell you the name of its founder, Chris Brogan. Chris is the author of the NYT best seller Trust Agents and he’s in the top 3 on AdAge’s Power150. Being some of the most recognizable social media marketers, these guys have a nice niche. Awesome alliteration, ay?
It’s fun to profile a group like New Marketing Labs because they represent those specialists who have stepped in to challenge the traditional agency model and offer unique and much needed services to brands. Anyway, Hanes, Sony, Citrix, Comcast, Molson Coors, PepsiCo, AMD and Microsoft seem to think so.
This is not Brogan!
I spoke to New Marketing Labs’ General Manager, Justin Levy about what makes their firm stand out in the marketplace. Besides his many duties keeping everyone rowing in the same direction, he is the co-organizer of their Inbound Marketing Summit and Inbound Marketing Bootcamp. Prior to joining Brogan’s group Justin was Managing Director at an SEO public relations firm and President of Talent Network. His answer to question # 7 practically had me weeping. In all, it was a pleasure to get the perspective of such a well-rounded gent.
1. What was the aha moment when you realized “our company needs to be doing things differently than we have been”?
New Marketing Labs didn’t go through that period because we were founded to help medium and large businesses either figure out that aha moment or navigate their way through it . We assist our clients with using these online tools to move the needles that are important to them. We help them to enhance their communications, marketing, customer service and PR plans by using these new media tools to reach their prospects, customers and fans.
2. What books are on your nightstand or great blogs on your Google reader?
I am an avid reader and information junkie. At any given time I am subscribed to a few hundred RSS feeds, read a few books per month and read the Washington Post, Boston Globe, NY Times and Wall St. Journal on a daily basis. I love the consumption of information!
Right now I have about 15 books waiting to be read but I am currently reading the following books:
The Audacity to Win by David Plouffe Six Pixels of Separation by Mitch Joel The Back of the Napkin by Dan Roam
You’ll usually find me reading about marketing, business, lifestyle design, politics, productivity or food related books.
3. Give me an example of marketing you think is brilliant and why.
Dell has been doing an excellent job at using online tools to help them market to, learn from and listen to their prospects and customers. From generating $2 million dollars with just one of their Twitter accounts, to IdeaStorm, a website where Dell allows their customers to generate new ideas for the company and then vote those ideas up and down, to how Dell uses the listening and monitoring company, Radian6, to help them be involved in conversations taking place around the web. Dell has also done a great job at showing that they’re human. Dell uses both corporate accounts (e.g. DellLatitude) and personal Twitter accounts with their staff (e.g. RichardatDell). Using the employee name in the Twitter account helps to show the human side of the company and in turn, that makes stronger bonds with their customer base.
4. We’ve all read that the pitch / RFP process is broken. Many agencies aren’t even interested in competing in pitches. Do you see an alternative to this process?
The pitch/RFP process still serves a purpose in that it provides structure and the ability for the prospective client to walk down a check list to compare potential agencies who they’re interested in working with. Where the pitch and RFP process suffer is that they don’t usually showcase the human side of both the agency and prospective client. We have a natural tendency to want to do business with friends. Therefore, I think agencies need to take opportunities to develop relationships with the people who make up the corporations. Try being helpful to them in some way or connecting with them by sending a hand written note.
5. What does the agency of the future look like?
The agency of the future is more of a partner with the company that they’re working with instead of a typical agency/client relationship. The agency of the future will need to ensure that they’re delivering value to their clients and will need to provide hard data to quantify and prove that data. That’s not to suggest that agencies currently aren’t providing value to their clients. But, with budgets continuing to tighten, companies are looking at what hard value they’re receiving from their vendors and agencies. There is a difference in using new media tools that can provide hard data versus data that suggests that an approximate audience size probably saw your message.
6. What do marketers need that agencies are not giving them?
Marketers need data that will help show them the value of what they’re investing their time and budget in. Marketers need an agency that understands the complexities of their responsibilities, their department, their company and their industry and have the tools available to help navigate through it all. Marketers want agencies that provide education, both internally and externally to help them and their staff to grow.
7. Who do you admire and why?
I admire a variety of people from many different industries and for different reasons. If I had to choose one person though, I would choose my mom. Unfortunately my mother lost a long battle with Lupus during my senior year in high school. For the better part of my life my mother struggled to deal with a disabling disease. Lupus, as well as some other factors, closed many doors for my mom at an early age. Even while struggling with a disease that was constantly kicking her while she was down, she did everything in her power to see that her son, me, had everything I could ever need to help position me to be successful now. Whether it was hand-written math books to work on over the Summer, pressuring me to apply myself in school, teaching me how to deal with hardship at a young age, or any of the may other life lessons she taught me.
Trevor Graves is a founding principle and the GM of Nemo Design. I got to know Trevor a bit better recently when they were on the shortlist for a recent ad agency searchI conducted.
NEMO lives Youth Culture. From its roots as a three man shop in Portland, Nemo has grown into an internationally recognized marketing/design firm, with multi-million dollar clients like Nike, HP, ESPN, Fuel Television network, Smith optics, Bell helmets, Timbers MLS soccer, Salomon and Timberline–to name a few.
When asked that makes NEMO different, Trevor says “We never make ads: advertising is fake, it’s clutter, and it’s ignored by most. We touch people through art, we communicate emotions, we engage in genuine conversation, we create real experiences that real people will find interesting, inspiring, useful and memorable. We make the cash register ring, without trying to sell anyone.”
With respect to all the recent “label” discussions about agencies, NEMO eschews labels. They become whatever kind of agency they need to solve problem. I like that.
To everyone who wonders about the future of agencies and whether they’ll stay around NEMO says “We are paid for having vision (we see the invisible) and a Point of View (we can explain what it looks like, what it means, and why it matters). ” In your face, cynics.
What was the aha moment when you realized “our company needs to be doing things differently than we have been”?
Is there ever one defining AHA moment? To be relevant in culture and in business, you need to have AHA moments all the time. We live in the age of change. So, the big lofty AHA may arrive and it’s very subtle. Growing up in action sports, you’re intuitively aware of nuances and you’re constantly moving. You see everything in a shifted paradigm: what can I do with this? What can I make here? What line can I take? This awareness is hardwired into a lot of the people at Nemo and it helps us tremendously; you learn to recognize change in the world and how to creatively embrace it, how to be curious and provoke the new. Our clients constantly look to us to help them see the invisible opportunity and create an impact with it.
What books are on your nightstand or great blogs on your Google reader?
The book that is literally on my nightstand today is “Built to Last” by James Collins and Jerry Porras. One of the dangers in this industry is defining your success and what your stand for through your clients, rather than having a great sense of your own core ideology. As for blogs and such, I am ADD. The snack-sized bites coming through my Tweedeck are in the same vein as things you’d find on the Hitch blogroll.
Give me an example of marketing you think is brilliant and why.
The world I came from, “marketing” was a dirty word and something not to be trusted. Marketing meant fake. The real impact came from the people and brands that were all about adding to the culture: Participating, connecting, and celebrating a lifestyle. I use that filter to judge what we call “marketing” today. Is it real, is it making real change and are people feeling it? Favorite examples are the iPhone, really centering around product as message, and the Obama campaign. The simple slogans of Change and Hope, the use of a logo mark, and the social media was game-changing.
We’ve all read that the pitch / RFP process is broken. Many agencies aren’t even interested in competing in pitches. Do you see an alternative to this process?
I am going to make a Mad Men reference, please forgive me. Season 3, Episode 7. Don Draper is called into talk with Conrad Hilton in his Presidential suite. Conrad asks Don to take a look at some mock up of ads he has on the coffee table.
Conrad- “What do ya think”
Don- “I don’t think you would be working in the Presidential suite if you worked for free.”
Conrad, surprised- “This is friendly”
Don- “Connie, this is my profession, what do you want me to do?”
Conrad smirks, taken aback that Don didn’t just roll over and give him the free advise he desired.
Conrad- “ I want you to give me one for free.”
With a poetic pause, the camera pans low and looks up at Don as he pulls a smoke and lights it with a cool guy style. The camera pans back down to an illustrated mouse dressed in a top hat, and a marker rendering of the exterior of the Hilton Hotel. Don exhales. In a confident straightforward response, he replies.
Don- “I don’t think anybody wants to think about a mouse at a hotel.”
Conrad Hilton is startled and dazed. Don has earned Conrad’s respect and is asked to symbolically sit at the table with him to discuss the advertisements, peer to peer. This is an opportunity we as agency people are asked to do in the RFP process yet we give away our spot at the table by giving our service for free. I think many of us have read Blair Enns “Win Without Pitching” and there are some insights in the work that help the community of agencies to commiserate as victims about how unfair the RFP process can be. We can’t control the world but like Don Draper, we can control our reaction to it.
Let’s look at the RFP process from the client side and see where we as the agency can have our own Don Draper moments. The average relationship between agency and client is about 4 years. What that means for the client is that they are not practiced or even up to speed on what agencies are out there, who is a good fit for their band and even practice on how to “court” a great agency. Like Mr. Hilton, the client can be a bit unsure and wants to avoid what Enns calls Buyer’s Remorse. They don’t want to hire the wrong firm. They ask the agency to pitch free ideas because the execution is very literal and makes it easier for them to compare agency to agency. I get it. What Nemo has done is set up a routine or process around qualifying the lead.
Is this client a good match for Nemo? Nemo is an Action agency and it makes sense for a client to come to us to us for our expertise. A Hotel like the Hilton might not be a good fit for Nemo however a resort like the Black Pearl resort in the Caymen Island would be a good fit for Nemo, http://www.blackpearl.ky/
Budget. If they are not willing to go over a scope of work and budget then they are showing signs of a bad client and we would put up a red flag at this point. If they have a small budget, we ask to work around an actual contest of pitching. Our margin gets sucked up in handing out free work when there isn’t more money to offset the pitch once and if we win the account. $500k is a budget that pitching starts to make sense for Nemo. Smaller than that is a project and handled differently.
We ask whom else are they asking to pitch. I am not sure why all the secrecy around this topic but it is fair to know the landscape. If a client is asking for something for free, I want transparency of who else is on the short list. This is because if we perceive any of the competition is a better fit for the client’s needs, we are the first to endorse their service and save ourselves all the expense and inefficiency of pitching.
If the client has a smaller budget and the work lines up and the client is still in the “Buyer’s Remorse” mode, we suggest doing a small, real project to see how the relationship works first hand. We have also done in depth case study reviews to help clients understand how we have worked with other clients and how we might work together.
We try to have the actual stakeholders present rather than just the marketing department. The territory is not the map.
What does the agency of the future look like?
The agency model I see reflects our vision of what Nemo was born to do. Fast, smart, passionate and well connected. We keep our core team full time to insure our branded look and service, then ramp up around them with experts and freelancers when needed. There are so many talented creatives in the market; it makes managing a business much smarter. We can hand pick a SWAT team of experts to tap for consulting in short bursts. Hollywood works this way.
I also see the best creative agencies contributing more to culture; making their own brands and content, taking more risks and sharing the rewards, collaborating and experimenting. Who wants to play?
What do marketers need that agencies are not giving them?
Marketers need their agencies to offer emerging rates for services that they want to grow into. The old cliché states that you can’t get the job without the experience and you cant get the experience without the job. Your agency understands your brand and with the ability to expand that service you both win. For an example, if you were an interactive shop, extending into a social media service wouldn’t be a huge leap of faith. It is fair to pay that firm less for them to gain the experience on your brand and in return you as the marketers get a deeper service at a discounted rate. A win-win for both parties.
Who do you admire and why?
Amelia Graves. She is our 5-year daughter. I guess I am getting to maturity to be able to observe her world and how she might see it. She is imaginative, curious about the world, she lives in the present with no concern for the future, she has no concept of money, she breaks out in song and dance with no fear of being ridiculed. When she plays with her toys, she is lost in an endless imaginary world. My selfish side wants to bottle that energy up and use it to further my agenda in the real world of constantly needing to invent more creative for clients. The other side of me admires this innocence for what it is and knows that she can own that space and time.
“All children are artists. The problem is how to remain an artist once he grows up.” - Pablo Picasso
I started getting to know HL2 in a recent ad agency search I conducted for a client in the Pacific Northwest. Their clients include HTC, SBC, Microsoft, HR Block, ATT Wireless, Hotels.com
There were a few different long chats with Don Low, one of the founding partners which gave me a lot of insight into this group of 70 creative professionals, but I really started to get HL2 watching the pieces in the 4th chamber–more so than seeing their work.
I’d like to hang out at a Fat Burger or shoot hoops with them (I think I could stuff the TaxCut box) –but apparently they’re also pretty good at that marketing thing. Founded in 1994, they’re more fun than most 15 year olds you know–and they won’t talk back or steal your car. OK, they won’t steal your car.
What was the aha moment when you realized “Our company needs to be doing things differently than we have been”?
My business partner, Tom Horton says, “Only through suffering do we become wise”. While we love new business wins, it usually takes a major loss for us to get pissed off and make dramatic changes. Two years ago we lost a major pitch and in the ‘loser’ call we heard, “We loved HL2 but the other agency just had a stronger analytics methodology”. We now have an analytics group of 8 and every campaign in the office has accompanying KPI’s with a corresponding dashboard for reporting. It’s transformed our business and the new business effort has never been stronger.
What books are on your nightstand or great blogs on your Google reader?
Soldier of the Great War by Helprin, A Distant Mirror by Tuchman and biographies of Mark Twain and Einstein. My personal reading takes precedent when I get home. But I’m also working through a book called Crowdsourcing by Jeff Howe. At work I spend time with a few key blogs – Seth Godin, the Dachis Group, Ad age and the Web Analytics blog.
Give me an example of marketing you think is brilliant and why?
Sprint is giving it a good go. Coke media is extremely focused and disciplined. I like the traction that Bing is getting as a start up brand. The Nike+ Join the Race campaign is experiential and inspirational. Each of these brands has deployed a multi-disciplined approach that spans TV to event promotion and social media.
We’ve all read that the agency RFP process is broken. Many agencies aren’t even interested in competing in pitches. Do you see an alternative to the process?
I actually believe that, for many companies, the RFP levels the playing field and brings new agencies to the table. I believe you win the work you deserve. Either you’re digging deep, investing and setting up your agency to win or your coasting. The RFP process has allowed HL2 access to clients we never would have met on our own.
However, all clients don’t need to go through this formal process (especially the clients we’re currently pitching). Meet with 4-6 select agencies, get to know their culture, see their work, learn how they think and narrow to two. Then ask for proposals and presentations. While this is more legwork for the client initially, the long-term relationship is more likely to stick. It makes no sense to sit in a room and review 20 written proposals in today’s marketing world.
What does the ad agency of the future look like?
Lean, mean, smart, resourceful, marketing saavy, focused on the numbers, uber-creative.
Yes. That about sums it up. With a really cool space and an interest in the client that goes beyond billable work.
The agency of the future will need to spend more time looking for ways to tell stories and exploit technology to deliver great experiences, participate in the conversation and bring real value to consumer.
What do marketers need that ad agencies are not giving them?
Love. They’re not giving them love. Unconditional, immutable love. I’m-waking-up-in-the-morning-thinking-about-your-business kind of love. As agencies are working to wean their business model away from large media commissions and making their nut on fees, they are squeezed for talent–creative, account, planning, production, analytics talent. Larger agencies are no longer able to over-service accounts like they used to because there just isn’t enough money there. Clients stop feeling the love. Today’s agency is learning to be more nimble and is working to create a culture where the every employee is working to deliver superior strategy, creative and service.
Whom do you admire and why?
Winston Churchill. Primarily because he is proof that you can lead when you get old…. (Many historians now think he was suffering from pre-senile dementia while he was the PM. I think Winston; either drunk or affected was better than the rest of us with all our wits). Churchill is history’s portrait of resilience. A drive that never quit, unwillingness to compromise and foresight that saved the world.
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