Business Development in Agencies

1. Business Development in Agencies adv 4312

2. Organization for BD • Depends on size • Larger agencies may have separate departments • Headed by a VP / Director • Department consists of servicing and planning / research staff. • Creative / media support requested on need basis • BD reports to Agency President / CEO adv 4312

3. Functions • Create a new business plan • Spot new business opportunities • Present the agency in the most favorable light • Make speculative pitches • Discuss & negotiate contracts and rate cards • Finalize contracts & turn over account to the servicing team adv 4312

4. Create a new business plan • Set targets • Quantity of new business • Type of new business • Business that is off limits (conflict of interest, non-competitive issues) • Culture matching • Minimum acceptable account size • Costs of BD adv 4312

5. Spot NB opportunities • Keep your nose to the ground • New products, companies • Accounts likely to move • Network with businesses and even competition • Create “brand champions” in industry (third party recommendations) • Research – company / brand performance, sales & profits, advertising problems adv 4312

6. Spot NB opportunities (cont.) • New ideas – apply new ideas to brands you want to pitch for • Initial discussions with potential client always carried out discreetly. • Note: BD responsible only for new accounts. More business from existing accounts – account service team. adv 4312

7. Present agency credentials • What sets you apart from other agencies • Reach • One-stop-shop vs. deeply specialized • Business focus (b2b, b2c, retail, infotech, hitech, etc.) • Values and Beliefs • Track record • Quality of staff • Hard data (e.g. cap. billings, size, staff, past campaigns and results) • Soft data (core competencies, values and culture) adv 4312

8. Present agency credentials • What strengths will you bring to the table • Policy on bringing creative & media talent to presentations • Customize presentations (canned presentations are less effective) • Initial presentations do not address client’s advertising problem • Based on agency credentials, client may give a “go ahead” adv 4312

9. Speculative pitches • Policy about spec. pitches (make/don’t make, free/at cost, etc.) • New ideas for old brands • Often done without a complete client brief • Pitches for new products always preceded by a client brief • Comprehensiveness of the pitch (include only strategy or plus creative or plus media, etc.) • Always identify and present the account team adv 4312

10. Speculative pitches • Only agency vs. compete with several • If past agency-client relationships have been a problem, client may open the account for review • If you compete with several, clients try to assure a level playing field. Same client brief shared with all competing agencies • Your effort directly proportional to how much you want the client. adv 4312

11. Contracts and rate cards • Used to be standard – not any more • Open to negotiations • Important clauses • Length of contract and termination clauses • Ownership of advertising materials like raw stock, four color positives, photographs, etc. • Agency compensation • Creative fees, consulting fees, material costs adv 4312

12. Contract & Rate Cards (cont.) • Important clauses (cont.) • Agency & client responsibilities and scope of work • Privacy, conflict-of-interest clauses • Minimum billing stipulation (if any) and ‘make-good’ clauses if minimum billing is not achieved • Penalties / liquidated damages for underachievement of objectives • Bonus for overachievement for objectives. adv 4312

13. Finalize & turn over to servicing • No premature announcements • Open champagne bottles only after client signs on the dotted line • Especially important in case of accounts moving from one agency to another • The work is only just beginning adv 4312