“You have a big budget that buys you the right to yell the loudest [but] where are you if you don’t have a large marketing budget?  Marketers need options that don’t break the bottom line.”

Today’s Ad Industry Innovator, Claudia Batten hails from Victors & Spoils. Victors & Spoils is a new agency Claudia founded with partners Evan Fry and John Winsor from Crispin Porter & Bogusky.  The big news, besides their bench being A-team advertising super heroes, is that V&S is based on the principles of crowdsourcing. ”We plan to prove that crowdsourcing can be expanded from what we know now into a scalable, manageable and strategic approach to advertising” Batten says.

The merits and flaws of crowdsourcing have been debated all over the web but I was more interested in hearing directly from the source:

What was the aha moment when you realized “our company needs to be doing things differently than we have been?”

Everyday, don’t you think?  I think it’s dangerous to ever think you have it 100% right.  Victors & Spoils launched about three months ago with the mantra that we would deliver a new ad agency model, so we really are setting out to do things differently.  Ultimately we are trying to solve some of the issues we believe to exist in the application of crowdsourcing to Big-Brand Marketing or Advertising Strategy.  I guess the aha moment here is the belief that the rise in digitally savvy consumers, combined with a need for reduction in operating costs from Big-Brands (with marketing budgets being immediate targets), would create room for a new model in the advertising agency world.

What books are on your nightstand or great blogs on your Google reader?

I am reading Hemingway’s The Sun Also Rises, and The Diamond Cutter by Geshe Michael Roach … but I also have a pile of fashion mags too if that helps me redeem myself.  The Diamond Cutter is a great take on how to be generous in your life and business, which is something I am passionate about.  The former – I just love Hemmingway.  Blogs, well there are a lot but I have to say I am more into Twitter at the moment; faster pace and more relevant.  I am trying to get better at posting myself, but I find that I’m too busy reading.

Give me an example of marketing you think is brilliant and why.

I am really into gilt.com right now – super clever.  There are many smart aspects to it, from the fact you don’t sign up to the site but ask for your application to be considered (so snobby, but it does makes it feel that little bit more exclusive, or maybe I am just an easy target) to the fact that they have timed sales, so you are motivated to log in at a certain time each day.  But most clever, to me, is the limited amount of items they have at one time.  You have this pressure to purchase.  It’s just smart – they have figured out their demographic beautifully.

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?

Well from what we see I think there are a few forces at work. First up, we are moving in a much faster pace and rapidly changing world, so RFPs can start to feel irrelevant as soon as they go out the agency door. In addition, I think we are all so busy these days working on actual work, there’s definitely a resistance to switching gears to go through the somewhat agonizing process of responding to an RFP. However, with procurement and financial departments getting more involved in marketing decisions, there is definitely still going to be a desire for compliance overall and some form of benchmarking for what a brand is spending with agencies. So I would offer that the process is just now really changing shape as both agencies and marketers realize that the current version isn’t working, and there might well be experimentation with several alternatives before either side is happy with the outcome.

What does the agency of the future look like?

Victors & Spoils.  I have to say that.  We do believe it though, if we do our job right.   I think what is key is to help brands connect with their consumers in a more cost-effective way.  I think the future is in having conversations with your customer – like two-way conversations, where you listen and stuff.  Novel, huh?

What do marketers need that agencies are not giving them?

What I hear a lot is that you either have a big budget that buys you the right to yell the loudest, or you need a large budget so your agency can come up with some super-smart “no one’s come up with it before” solution so you can break through all the yellers.  So where are you if you don’t have a large marketing budget?  Marketers need options that don’t break the bottom line.

Who do I admire and why?

I recently moved to Boulder, Colorado and when I look up at the immense mountains I live below and realize what the pioneers must have gone through to get here, its pretty humbling.  I really admire any version of that kind of pioneer and there are still people taking huge risks and embarking into the unknown. I find it hard not to respect that.  Maybe it’s coming from New Zealand, our founders sailed around the world to the promise of a new beginning.  I wish I was actually that gutsy or, lets face it, that hard-working!

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EDITOR’S NOTE: Claudia is only the second woman to appear on this series and that needs to change. I wanted to track down Anne Bologna but we all know that sad story. If anyone knows Mary Wells, Nancy Hill or Natasha Jakubowski, let me know. Click here to nominate your favorite female Ad Executive–the testosterone is thick in here and the diversity is down, so help me out readers.

Hitch is a consultancy that helps marketers hire the right ad agency.

Citrus is a northwest ad marketing agency with 26 people with offices in Portland – Bend – Whitefish, MT (yup, handles the Lottery plus) and soon Memphis. Peter Levitan is its founder. I first met Peter in a recent ad agency search I conducted.

In their capabilities presentation, they were the only firm who actually sent in questions for the prospective client to consider. That was impressive. Let’s see if their answers to our 7 questions are equally impressive. I have to admit, I like the answer to question # 4 and no coaching was required! I also loved their “Dear Agency“ self promo piece.

What was the aha moment when you realized “our company needs to be doing things differently than we have been?”

We didn’t have an “a ha” moment so much as an “a ha” evolution.

In recent weeks, we have gone thorough an internal agency positioning review. We’re finally taking the time to do for ourselves what we do for our clients. This is not easy in the advertising/marketing/digital space because agencies tend to say the same things. Seems like it’s always the same blah blah. I suspect no one knows this better than Hitch.

During this process, we examined a range of positions that came from our brains as well as from the craniums (crania?) of other agencies. We also did quantitative online research with clients and learned that most think that all agencies are full of it. Just kidding. Well, sort of. Truth is, many clients and prospects think all agencies sound the same—no matter what we say.

So we decided to do something bold. Something different. Something a little crazy. We decided to tell the truth. We decided to tell the world what we really do for our clients: We move people. We move people through rational and emotional messaging. We move people from apathy to emotion, inertia to action (a purchase is among our clients’ favorite actions).

I guess you could say that our “a ha” moment revolves around the concept of MOVE.

What books are on your night stand or great blogs on your Google reader.

I believe I’m part of a dying breed: the magazine reader. I am committed—to the point of being slavish—to reading at least 30% of all New Yorker issues (near-impossible if you work), The Atlantic, The Economist, the last issue of Gourmet and stolen copies of Communication Arts.

The last great book I read was, in fact, a picture book. It was a look at how Avedon shot his famous series and book “In the American West.”

Works from the Blogosphere include Jeff Jarvis’s BuzzMachine (we invented the Internet together), random Blogs from the AdAge Power 150 blog list and “Things marketing people love.”

Give me an example of marketing you think is brilliant and why?

I always admire the speed of New York umbrella salespeople to hit just the right intersections when it starts to rain. Super targeted. Well-timed. Compellingly stated. Isn’t this what we all strive for?

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’d like to make three points on pitching, all of which are derived from years of pitching as director of Saatchi’s business development group and now as the owner of a small agency.

First, most clients don’t have a clue about what they’re really looking for. It’s not their fault. They’re just trying to select an ad agency based on what are ultimately subjective criteria. Do I think that the agency is smart? Do I believe that the work is strong? Do I like them? Unless we’re talking about digital or direct response agencies that can deliver quantitative stories that directly relate sales increases to marketing activities, these traits don’t help selection a whole helluva lot. Ditto most case histories.

Point two: clients should use an agency search consultant. Selecting an ad agency is an important decision. Chances are, Bob in sales or Margo in procurement just aren’t going to cut it. (No offense, Bob and Margo.) Neither will a CMO who does a search every ten years. Hire an expert, please. I beg of you.

Finally, a note to agencies: Get. Over. It. Most industries use RFP’s. Just get past your egos and decide if pitching the potential client is a sound business decision. Determine if you have a chance based on your work and category experience. Look at the odds and decide if it makes financial sense. Did it make any financial or rationale sense for 1,284 agencies to pitch Zappos?

What does the agency of the future look like?

The agency of the future employs robots and goes to meetings in flying cars. Kidding.

Here’s something I’ve been thinking through for a while. I live in Portland. Portland has one of the highest populations of strategists, creative thinkers, copywriters, art directors and digital magicians in the country—maybe the world. What if we found a way to harness this creative and strategic power under the umbrella of brilliant management to deliver the new agency: Portland, Inc. I’d love to pitch Portland against Goodby, Weiden, Crispin and Ogilvy. Why not— they all use Portland freelancers anyway!

What do marketers need that agencies are not giving them?

Marketers need more smart ideas that will drive sales.

This dearth of sales-driven thinking isn’t due to agencies’ oversight. Marketers have made their own bed by deflating agency profit margins and reducing timeframes. (I just had a major hotel chain ask for a proposal to develop a new website for launch “late this year.” Um, its mid-October [when I'm writing this].) Simply put, clients have reduced our ability to spend the time required to develop the big ideas that are required to really win in today’s complex media space. Period.

Who do you admire and why?

Paris Hilton. I mean it. I have never seen someone build such a strong brand on so little. It was magical.

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Thanks for waiting patiently on the next installment of Ad Industry Innovators.  It was a busy summer  for Hitch as I finished up new projects and started new ones.

Today’s Ad Industry Innovator # 16 is Norfolk, Virginia-based, Grow Interactive.  Grow got on my radar thanks to my old friend, Alan at Platt Hollow Road.  While they do work directly with clients, the bulk of their work is done for agency partners.  Digging in a bit you’ll see they’ve worked with nearly everyone from Goodby, Silverstein & Parners and Wieden + Kennedy, to Crispin, Porter + Bogusky and Mother.  These guys are good, and everybody knows it.

Grow has racked up their share of awards and recognition lately, including a 2009, Cannes Lion, two One Show Pencils, two Webbys, and a Clio shortlist.  They were also listed as one of the top 10 interactive production companies by Creativity in Aug 2008.

Everyone, meet Drew Ungvarsky, President of Grow Interactive.  Drew, meet everyone:

What was the aha moment when you realized “our company needs to be doing things differently than we have been”?

A few years ago, we made a conscious decision to take more risks – both in our work and in our efforts to connect with bigger clients and projects.  We’d done plenty of solid (but safe) local and regional work at that point, but we thought if we could just put ourselves in the game by any means possible, we had the talent to compete on a much larger level.

I later heard a better summation of that mindset, which was: “Do what you’ve done and you’ll get what you’ve got.”  We keep that in mind with each opportunity we get and try to constantly remind ourselves not to become complacent.

What books are on your nightstand or great blogs on your Google reader?

At last check, I’ve got 85 sites in my RSS.  Beyond keeping up with the latest and greatest digital advertising, I follow tech and culture blogs to spot emerging technologies, trends, and cross-platform ideas we can bring into future projects.

Sadly, my attention span is too short for books right now, but I’ve been trying out audiobooks recently.  I’m currently listening to Ken Robinson’s “The Element” about the great things that can come when your work is your passion.

Give me an example of marketing you think is brilliant and why.

Whopper Sacrifice was definitely a favorite this year.  It was a perfect execution that clearly stood out on an otherwise crowded platform.  A close second was Boone Oakley’s YouTube site.  With both of those sites, I knew they were hits the moment I saw them.  I also really liked Dunkin Run as a great example of utility marketing, and it worked perfectly for the brand.

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 process works best when the relationship is open and everyone’s respecting each other’s time and effort.  If a potential client gives us clear expectations and transparency regarding the obstacles we’re going to face, it then falls fairly on us to decide how much time and effort we can afford to put towards a potential engagement… and everyone can sleep well at night.

What does the agency of the future look like?

The strongest agencies are the ones who are embracing digital as an axis to their campaigns instead of just another outlet within them.  Whenever we can work with agencies as partners and help shape a concept from the beginning (as opposed to just jumping in to execute), the resulting work is always stronger and more cohesive with the technology.

What do marketers need that agencies are not giving them?

We’re lucky enough to work with a number of the agencies who I think “get it”, so I’ve got a bit of a skewed view in saying things are pretty good.  If anything, I’d say that we sometimes see people putting the technological cart before the horse – be that an app, a widget, or the other buzzword of that day.  Clients need strong ideas, and they need to live in the spaces most suitable to their brands.

Who do you admire and why?

I’m constantly trying to be a better leader for my company, so I soak up inspiration and ideas anywhere I can get them.  Recently, I’ve been trying to steal from the playbooks of Tony Hsieh and Steve Jobs, both of whom demand great respect in different ways.  I admire anyone who can earn the respect and trust of their employees.

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Alan Brown is one of the founders of DNA-Seattle.  Just starting its second decade of business, North-Westerners will know them by their recent campaign for PEMCO Insurance.  The spots are as good as anything I’ve seen nationally in their category (or out of category, for that matter).  The campaign is smart, uniquely relevant and successful, judging by the commitment CMO, Rod Brooks has made to the work.

DNA-Seattle’s focus, according to Alan is to “help our clients achieve meaningful results in the short-term while building their long-term brand asset.”  They’re the 6th largest agency in Seattle (by billings) and employ a staff of 40 to produce work for clients ranging from BECU, University of Washington, American Express Publishing, Avon Foundation, MultiCare and, of course, PEMCO Insurance.

I’m proud to profile them in this series!

1.  What was the aha moment when you realized “our company needs to be doing things differently than we have been”?
The industry has been changing fast over the past 8-10 years.  Technology, media choices and the shift of power to consumers through social media are driving a lot of it today.  But a big moment for me was last year when my mom (who is 75 and lives in Ohio) friended me on Facebook.  The “aha” was seismic.

2.  What books are on your nightstand or great blogs on your Google reader?
I’m a political and news junkie – so I read Andrew Sullivan’s blog, the Huffington Post, FiveThirtyEight and TalkingPointsMemo.  I also check out agency news at Agency Spy.

3.  Give me an example of marketing you think is brilliant and why.
The work that Crispin is doing for Burger King has been pretty phenomenal.  Their latest promotion (Sponge Bob Square Pants) is getting quite the buzz (not all of it good) – but they’ve really found a way to make BK relevant and talk-worthy – from Subservient Chicken to the BK King – they’re using creativity, social media, promotions, event and non-traditional media in interesting ways that are really having an impact on their business.  Right now, BK has committed to increasing their media spending to get a 20-25% lift in their brand impressions.  I don’t know of anyone else who’s doing that!

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?
Well, first let me say that we’re still interesting in pitching business, and do respond to RFPs that are a good fit for our agency.  However, the point is right on.  RFPs are expensive, and in many cases create an environment that isn’t best suited to finding the right agency/client match.  We try to avoid them by building our reputation with prospective clients and hopefully by getting invited to meet (or even handle a project) without a review.

5.  What does the agency of the future look like?

Right now, we’re seeing a thinning of the herd.  Larger agencies are being gutted as a result of the economy and their clients cutting back.  But I also think that it’s time for agencies to re-think what they’re doing and what their value proposition is.  I think the successful agency of the future will be smaller, more nimble, creative and versatile.  They’ll work in traditional and new media almost seamlessly – guided by a keen ear from the marketplace.

6.  What do marketers need that agencies are not giving them?
An outside perspective, insight and leadership.

7.  Who do you admire and why?
It might sound trite, but I can’t think of anyone I admire more than Barack Obama.  His campaign spoke to me on a level that none other ever has.  I believe in his message of hope, and find great inspiration in his leadership.  I also admire how his campaign utilized social media and a grassroots movement to beat all odds.  He has also reached my 5 year old, bi-racial son – he looks up to President Obama as a role model – and I hope that he has experiences and opportunities that are different because of the path President Obama has blazed.

I’ve  been invited to co-author a book with John Winsor from Crispin, Porter& Bogusky, one of the best ad agencies in the world.  I’m thrilled.  What an opportunity.  I’d like to thank everyone at CP&B  for working with me and say what an honor it is to….

Oh, hi, John.  You’re wha?  Crowd…what? CROWD sourcing it.  

Oh.

Apparently, John Winsor from Crispin, Porter & Bogusky is crowdsourcing the next edition of hisbook Beyond the Brand, which he’s also renamed: Flipped: How Bottom-Up Co-creation is Replacing Top-Down Innovation .  Another bold step from a bold, innovative agency.  

 You can participate too.  

Watching the comments roll in and tracking the evolution is very interesting.   Can’t wait to see how this turns out.

And stay tuned to the Ad Industry Innovators series right here on the Hitch blog,      C, P & G is coming up soon!

All kidding aside, John, it’s still pretty cool.  And we don’t have to tell my Mom what crowdsourcing means do we?