Why Every Series B Startup Can Benefit From an Ad Agency Relationship

Stytch’s founders and their internal team worked closely with Division of Labor Advertising to create their hugely successful first advertising campaign.

The people who work at ad agencies are generally not Rhodes Scholars, rocket scientists, or Mensa members. They didn’t graduate from Stanford, Penn, or MIT. And if you’re the CEO of a Series B startup, you may be smarter than many of them. But intelligence doesn’t make great advertising. Insight does. And ad people know how to connect emotionally with people and make them want things.

Yes, it’s sometimes hard for really smart people to relinquish control, but if we could give you one piece of advice when running a Series B start-up it’s this: Stop solely collaborating internally on how best to market your product and bring in an ad agency to help you and your team get the job done.

If you have the money to build an internal agency, that works too. Keep them independent and hire experienced talent and internal agencies are amazing. But before you spend the millions, spend a few thousand. Why?

We don’t know everything

And that’s a good thing. You all know too much; about the product about the market about the technology about the details. Your target audience doesn’t think about your product 1/100th as much as you do. Neither do we. But an agency can help find that little piece of truth, that one thing that will make people sit up and go, “Ooah, what’s that?”

Strategic Planning: Sure, you can draft a business plan, but can you craft a campaign strategy that weaves seamlessly beyond just digital and social clicks? An ad agency does more than just draw pretty pictures; they map out the entire journey, sorta like a GPS with a PhD in marketing.

Copywriting: Anyone can string a few adjectives together, but crafting copy that’s actually memorable is an art form. Your product or service may be as exciting as watching paint dry, but in the hands of the right creative team, even insurance can be entertaining.

 Design: Product design is not graphic design or art direction. You probably have great product designers and UX designer on staff. But that’s not the same as a conceptual art director or a designer who can bring a campaign to life and create a brand that’s unignorable. 

 Media Planning: Buying Ad Space is Not a DIY Project. Ad agencies are like real estate agents for your content, securing prime advertising spaces and negotiating deals that make your budget stretch further than your yoga instructor doing downward dog. We’ve seen countless campaigns get messed up because the wrong media is bought or the timelines aren’t clear or the specs are wrong or the assets are shipped incorrectly. Yes, you’ll pay a small commission. But do it right or don’t do it.

 Data Analysis: Ad agencies don't just throw darts in the dark and hope for the best. They dive deep into the data, analyzing the performance of your campaigns. They can adjust the messaging and adjust the target media to get the absolute most from your media spend. At the same time, we do not blindly follow data. We use it to craft holistic campaigns. If advertising was pure science, we would have written the algorithm and retired a long time ago.

That’s it. What an ad agency does for you isn’t exceptionally complicated But it’s a skill like any other best left to the experts. You trust them to know their craft and you’ll benefit from their perspective.

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The Small Agency Blog is produced by Division of Labor; a top San Francisco ad agency and digital marketing firm that’s been named Small Agency of the Year twice by Ad Age. The award-winning creative shop services clients on a retainer or project basis. They also offer brand consulting services and hourly engagements for startups and smaller brands. Click here for a free consultation.

Ad Campaign Killed Following Feedback From CEO’s Wife’s Book Club.

Pictured above: Beth Clutterbuck’s Book Club eating chips, dip and passing judgement.

Production of a major advertising campaign was abruptly halted today following negative feedback from the CEO’s wife’s book club. Word came down at the start of day two of a three-day-shoot as the crew and ad agency gathered near the craft services truck to feast on breakfast burritos and kale smoothies.

The company’s CEO, Dwayne Clutterbuck, had just called with instructions to shut the commercial production down as a result of feedback he’d gotten from his wife Beth, and six others in her book club. Five of the six book club attendees had made negative comments about the advertising campaign after hearing it described by Ms. Clutterbuck while they were waiting for Margie and Dale to get back from the bathroom.

Clutterbuck’s company, Clean GreenTopia, had spent nearly four months, and invested more than $250,000 in consumer research for the ad campaign. But the random musings of six, mildly-intoxicated people who are not in the target market really made Clutterbuck rethink his marketing team’s approach.

“When you get a perspective of people that aren’t actually seeing the finished campaign but are reacting to one person’s third-party description of what she kind of remembers the campaign to be, you have to take it seriously,” said Clutterbuck. 

The book club attendees spent a full 15 minutes dissecting Tara Westover’s best selling memoir, Educated, before conversation veered in another direction. “We were talking about her family’s tincture business, and this lead into a discussion of alternative wellness products, which then dissolved into us tearing apart Gwyneth Paltrow’s company Goop,” says Beth Clutterbuck. 

Three of the dozens of titles kind of talked about, but mostly glossed over in Beth Clutterbuck’s book club.

“It really is a stupid name for a company. But it also lead us into a bigger discussion about corporate responsibility. And, well, that’s when I mentioned Dwayne’s new global ad campaign for organic bleach.” 

Ms. Clutterbuck, initially gave the ad campaign idea the thumbs up, lauding its light-hearted and whimsical approach to dirty laundry.  However, when she explained the premise to the book club, they weren’t having it. “There is no place for humor when you’re dealing with the destruction of the planet.” said Kathy Taylor who is currently unemployed but took some marketing classes in college. “Why would you make light of something as serious as global warming?” she asked seemingly unaware the advertising campaign has nothing to do with climate change.

After processing their feedback, Mr. Clutterbuck became concerned that the professionals he’d put on the project, who had nearly 500 years of marketing experience between them, just didn’t get it. “Sometimes you have to question people who do advertising and marketing campaigns for a living and go with the gut instincts of people who consistently offer opinions on things they know little about.”

The book club attendees, who meet quarterly, have two master's degrees in art history, a PHD in French cuisine and a certificate in canine grooming among them. Along with global marketing decisions, the group regularly advises the Clutterbucks on topics ranging from vacation destinations, gluten free restaurant options, or what to do when your child gets lice.

With regards to the latest digital marketing debacle, the group advised Clutterbuck to keep it simple. “Don’t waste time being clever or funny. When people want humor, they can watch a funny movie. When they want bleach, they just want to know how the manufacturing process affects our carbon footprint,” said Jill Friedlander, the one in the club that never bothers to read the book. 

Anita Milton also voiced concern. “There’s too much money influencing our kids today. Corporations need to do a better job of focusing on responsible practices,” she explained without offering details on what her gripe has to do with a bleach commercial. 

The one dissenter was Janelle Patterson. She actually thought the ad campaign was memorable and effective. “I thought it was hysterical,” says Patterson. “It made a boring product feel hip and cool.” 

At press time, there were unconfirmed reports that Patterson would not be invited back for next quarter’s book, Where the Crawdads Sing.

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The Small Agency Blog is produced by Division of Labor; a top San Francisco ad agency and digital marketing firm that’s been named Small Agency of the Year twice by Ad Age. The award-winning creative shop services clients on a retainer or project basis. They also offer brand consulting services and hourly engagements for startups and smaller brands. Click here for a free consultation.

Seven essential tips for an effective OOH campaign

In the digital age, the growth of traditional advertising, print, tv, radio—has  stagnated with one notable exception. Out of home advertising (OOH), a catch-all term for billboards, transit wraps and point of sale signage is actually going gangbusters. According to the research firm, Magna Global, OOH spending grew 4.6% in 2018, a record high.  But, of course, not every billboard campaign will yield record results for the brand. So how do you make sure your OOH money is spent wisely? Of course, a well thought out, efficient outdoor buy is crucial. But great placement with a boring, wordy, generic message is worthless. Consider these seven essential tips for an effective OOH campaign.

#1 — Strategy First

Start with honest, human insights. An outdoor campaign for the San Francisco Museum of Modern Art, for example, targeted visitors to the city. The assumption is that people use social media to plan their trips, research their destination and ask for recommendations. But research found that 85 percent of vacation itinerary decisions are actually made at the destination. This one statistic was the driving force behind the See Them Both campaign.  Rather than compete with some of the more iconic tourist destinations, the museum chose to capitalize on their fame by promoting the museum alongside, Alcatraz, Fisherman’s Wharf, the Golden Gate Bridge and other bucket list faves. Following a three month campaign, museum traffic increased 48 percent while the average ticket sale increased 14 percent. So not just more people visiting the museum, more people spending more money. 

# 2 — Put Google to Work

Don’t try to explain everything while someone is driving 60 miles an hour. Compel people to do their own research. Ninety percent of Americans are proficient with the same research tool that got you to this blog post. If they drive pass something intriguing on their commute, they’ll Google it.  This approach proved successful for Comedy Central, which in 2018 ran an OOH campaign with messaging that read: #CancelSouthPark. Fans rushed to the internet for confirmation only to discover that it was the creators themselves pushing for the show demise, capitalizing on past viral Twitter campaigns which successfully saved the tv shows, Brooklyn Nine-Nine, and Lucifer both slated for the chopping block. 

#3 — Invest in Multiple Executions

OOH is meant to build brand awareness. And the best way to do that is to stick with one unifying message and then create varied executions that people won’t get sick of. According to the 23 Below Media Group, Multiple OOH executions improve lasting impact by 14 percent thus extending the overall life of the advertising campaign. This was the strategy used to help launch Roku back when awareness of streaming was only at 7 percent. Despite being a superior product, they were having trouble stealing market share from brand leader Apple TV.  Before we explained why our small, black box was better than the other small black box, we had to equate Roku with streaming so that when people did decide to jump into the streaming market, Roku would be top of mind. We blanketed communities with out-of-home messaging around the holidays that was funny and simple, but also varied. So it remained entertaining like the TV shows they love.  By the time the campaign was over, we had established brand awareness on-par with Apple TV and increased Roku sales by 30 percent.

#4 — Give Them Something to Talk About

People hate boring advertising. They love things that are funny, compelling or worth talking about. And, of course, outdoor advertising needn’t be static. Just recently, for example, Kelly Services needed a digital video execution for the Times Square facing side of New York City’s landmark NASDAQ building. It’s a fabulous location in terms of eyeballs. But because there are 26 windows smattered throughout billboard it’s a design nightmare. Most companies ignore the windows, which then breaks up the type and makes the images look pretty crappy.  But Kelly, a temporary staffing agency, incorporated the windows into their creative concept seizing on the adage: “Every time a door closes, a window opens.” In this way, the windows went from distraction to focal point and dovetailed with their overall brand message that no job is permanent. And because we knew the installation would turn heads, we even hired a production team to record people’s reactions when it went live in Time Square, which prolonged the life of the campaign by allowing it to proliferate on social media.

# 5 — Keep it Simple

Less is more.  We promise. Per research uncovered by  23 Below Media Group, OOH ads are 23 percent more likely to get noticed when they have fewer design elements. The billboard’s purpose is to build brand awareness. In the case of Metro Mile, for example, we cut right to the chase: Insurance for People Who Don’t Drive Much.”  The message, coupled with a playful illustration, is a way to pique curiosity, not close a deal.

# — 6 Pay Attention to Placement

If a board or location is super cheap, there’s a reason. Is it behind a tree? In a bad part of town? Blocked by construction? Also essential: Pay attention to what’s being advertised on adjacent OOH real estate as it can negatively impact your brand.  A billboard purchased by Burger King in Louisiana went viral, but for all the wrong reasons. The billboard was created to promote the fast-food giant’s meal deal—two sausage and cheese breakfast sandwiches for three dollars. Nothing provocative about it.  However, it was placed alongside a billboard purchased by the American Heart Association (AHA) which read: One in three people will die from heart disease. No further explanation is necessary.

# 7 — Quit asking your agency to make the logo bigger

The logo should be visible, but not so visible it’s the first thing people see. No one gives a crap about your logo without a compelling idea. Give them a reason to WANT to know who is doing the message. If all you had to do was make the logo bigger, we would have done that years ago for all our clients and retired by now. Apple’s “Shot on iPhone campaign” embodies this approach. The company used crowdsourced photos shot with the iPhone to demonstrate the power of the product’s camera. The Apple logo is dropped quietly and tastefully into the lower left hand corner of each billboard.

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The Small Agency Blog is produced by Division of Labor; a top San Francisco ad agency and digital marketing firm that’s been named Small Agency of the Year twice by Ad Age. The award-winning creative shop services clients on a retainer or project basis. They also offers brand consulting services and hourly engagements for startups and smaller brands. Click here for a free consultation.