A Time for Performance
October 9, 2008 by OA Group · Leave a Comment
We are witnessing history right now, the past six consecutive days have seen three digit drops in the dow each day. Because of this I’ve received countless emails from friends asking if we’ve seen a decrease in ad buys, and my answer is: yes AND no. We have seen drops in traditional marketing (tv and radio) and traditional display (CPM banners). However our gross revenues and profit are up by over 30%. How is this possible? Companies are starting to migrate their advertising budgets to performance based campaigns. Performance based marketing campaigns consist of:
- Cost per Click
- Cost per Lead
- Cost per Action.
And since these marketing mechanisms are low risk to the advertiser, they are actually getting one of the highest return on their marketing investment in years! Regardless of how poor the economy is, companies still need to make sales and in order to make sales they need to market their product and brand. In an effort to ensure our clients remain profitable with their ad campaigns, we have progressively been moving our clients to performance campaigns. Right now is the time to be smart with your marketing dollars and there are plenty of outlets for you to cost-effectively reach new customers.
The Deadly Quick Dollar
August 18, 2008 by OA Group · Leave a Comment
I was reading Advertising Age this morning as usual and saw that Chipotle, the healthy fast-food mexican chain, has put their marketing account up for review. Companies switch between agencies on a regular basis for a myriad of reasons, however Chipotle made an interesting remark when they announced the event. Chipotle’s CEO Steve Ells said
“We are looking for an agency that wants to develop a long-term relationship with Chipotle and our current marketing partners.”
Notice his subtle phraseology, they are looking for someone that wants to develop a “long-term” partnership, reading between the lines of the release Ells is saying that their current agency is not interested in a long term partnership. One of the most frustrating components of being in the advertising agency ecosystem is when I see other agencies going after the quick dollar as opposed to focusing on developing a solid business relationship. With every client that I work with directly, my first priority is helping to create marketing vision for the next 3-5 years.
The majority of agencies do not have deep social media experience, and lack the fundamental knowledge of how to execute digital advertising campaigns. I can’t tell you how many times I’ve encountered a client who showed me the pricing their former agency was charging for certain campaigns, where I’ve discovered they were paying 2 to 10 times too much! This means that if the firm had performed a full due diligence process they could have gotten 2 to 10 times the exposure for their client. I can’t say the exact reasons why Chipotle left their old agency, but I can tell you that the top goal for any business relationship needs to be developing a long-term, mutually beneficial partnership. Working hard and lean in the beginning will pay both parties great results for years to come.
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Obsessive Agency Group Companies
