1. Selling Advertising: The Agency Perspective

2. Understanding How Agencies Think Will Lead to Greater Sales Agency process Budgeting Planning Agency timeline Annual cycle Periodic adjustments Agency decision-making Who to address Who to copy 2

3. Understanding How Agencies Think Will Lead to Greater Sales Importance of RFPs (Request For Proposal) Agency compensation – how are they motivated? Types of Agencies Full service – mega, independent, and boutique Creative service Media service Is there a common thread? 3

4. Understanding How Agencies Think Will Lead to Greater Sales Agencies are lean and mean when it comes to staffing Larger agencies and media service companies are preoccupied acquiring or maintaining lucrative agency of record (AOR) accounts, frequently heavily TV oriented Many advertisers are fixated on tv as primary vehicle, with all other media forms often termed ‘secondary’ Always looking for thoughtful strategic partners not just order takers 4

5. Current Conditions Equal, or reduced, budgets More options More goals Higher expectations 5

6. Agencies Check List Lower than advertised pricing Strategic and appropriate marketing partnerships Early opportunities Want to be ‘first’ to know, have chance at On flip side, often are lemmings, following versus leading the crowd 6

7. When do you Attempt to Intersect the Agency Process ? Budgeting Generally occurs 3-6 months pre-planning If multi-media account, occurs during tv upfront budget allocation Especially important in categories with large AOL accounts 7

8. When do you Attempt to Intersect the Agency Process ? Planning Those with advance planning usually use RFP device Getting closer and closer to buying cycle Buying Some annual schedules/programs negotiated early Often tied directly to negotiating pricing 8

9. How do Agencies/Clients Address Mid-year Budget Cuts? First protect what they want to keep Elements involving programs, not just insertions Then look at what’s left 9

10. Long-term Results Requires Changing the Axiom Strategic selling of annual schedules must get out in front of the budgeting/planning process 20% of your sales effort should be addressing NEXT year’s sales Sell program for next year, and settle for the strategically-placed insertions this year Demonstrates client-oriented benefit (why a program will help their business) vs. vendor-oriented benefit (making your current number) 10

11. Do you know what constitutes client/agency budgeting? Client budgeting big picture from client looks at overall market share, potential growth, competitive situation, product changes Client/agency strategic planning review communication needs; address media types budget allocated by above needs creative process begins 11

12. Do you know what constitutes client/agency budgeting? Media planning individual media vehicles examined alternative plans developed for client Media negotiating Client presentations 12

13. Brand Planning Develop media objectives, strategies, and plans Determine print buying guidelines Create RFP (request for proposal) Submit planned schedule to AOR, or client, as well as possible alternative options Review and incorporate negotiated pricing into media plans 13

14. Media Planning/Buying Process Fact finding Developing alternatives Evaluating alternatives Making recommendations 14

15. Media Planning/Buying Process Making modifications Executing (negotiating/purchasing) Stewardship Next cycle fact finding, etc … 15

16. Fact Finding (Analytical Base) Marketing Strategy Creative strategy Audience targets Seasonality 16

17. Fact Finding (Analytical Base) Geographic targets Brand purchase cycle Competitor’s strategies Research (primary and syndicated) 17

18. Media Plan Documentation Objectives: Marketing and Media Budget guidelines Media strategies Plan development Demographic, Geographic, Psychographic profiles Cost efficiencies, composition/coverage/user indices 18

19. Media Plan Documentation Recommendation/Schedule/Time Requirements Comparison to previous year Other considerations 19

20. Stages of Plan Development Initial list consideration Target audience rankings CPM, composition, coverage Application of modifiers Audience skews, user/purchaser habits, lifestyle activities 20

21. Stages of Plan Development Eliminate/shorten list Priorities against goals/objectives Scheduling/flighting Reach/frequency goals Purchase cycle periods Special issues/bonus circulation 21

22. Print Buying Establish buying objectives and strategies Submit RFPs to all proposed AND any alternative publications Meet with representatives for initial round of discussions Negotiate most favorable buys (individual and/or corporate if applicable) Uncover special opportunities 22

23. Work Flow is Circular Year-Over-Year Brand business situation Sales Competitive Marketing objectives/strategy All forms of company communications Media objectives Budget, target audience, geography, seasonality, communication levels, creative requirements, priorities 23

24. Work Flow is Circular Year-Over-Year Building blocks Last year’s planned vs actual; applicable lessons Media inflation, and cost by type/element; competitive spending Alternatives and Comparisons 24

25. Compensation Issues Based on mutually fair value and incentive based approaches Many client/agency contracts are based on hours-spent, so personnel become less available to outside vendors Marketers will pay well for great ideas and superb media management Often interpreted by agencies as ‘get more for less’ from vendors 25

26. Selection Criteria Environment (strong editorial appeal) Precise targeting (right prospects) Audience coverage (reach significant portion of potential) Audience composition (minimizes waste) Product/service usage Efficiency (combines circulation and cost) 26

27. Unexercised Axiom How would you change your approach if you believed: Most media is bought, not sold. Most agency (and client) personnel ‘know’ what they want to put on client schedules before seeing sales representatives 27