Insanely Great vs. Insane

This seems to be the most fitting tile for our going virtual endeavor. Over the last month as I have been talking to people about going virtual, I seem to get two different reactions. There are those that think the plan is ingenious, and there are those that think we are insane.

The fact is, there is only a hairline of a difference separating the two. At Estipona Group we’ve made doing insanely great work a corporate mantra. That leaves us very little room for error. The rewards, however, are plentiful and worth the effort for both our clients and ourselves.

While saving money played a role in the decision, going virtual wasn’t simply a cost cutting measure. It was also part of an historic evolution of our industry and this company. In 1993 when I founded the company, the advertising industry was just starting to embrace the computer. While the computer had played a role, it really didn’t take hold until that year. I saw a lot of talented people lose their jobs as staff needs were diminished and some refused to change the way they worked. Suddenly, a senior art director, art director, junior art director and production artist could be one person. That worked to the advantage of my one-man agency just getting started and using technology as part of my strategy for growth.

In the 90s the Internet, like the computer, was a major game changer for our industry. It has replaced or supplemented many of the traditional media such as TV, Radio and Print. These media have traditionally provided these agencies with the bulk of their income, media and print commissions specifically. As their share of the marketing budget has shrunk to support online marketing, agency revenue derived from TV, Radio and Print has also shrunk.

Fast forward to today. About 50% of our services revolve around the Internet. Consequently, our revenue from other media has decreased. So, even as we grow, the work we do has lower margins in comparison to traditional media. One might conclude that we just need to charge more for our services. But I don’t believe across the board fee increases are prudent, sustainable or even possible in the current economic climate.

Internet and email, web-based servers, ichat, video chat–communication and collaboration technology has evolved to the point where now we can work very effectively in a virtual world, and it is pretty much seamless for our clients. We can even do interactive presentations over the web as if the client was in front of us.

At the end of the day, the choice to go virtual seemed logical. Still does. I do not have a crystal ball to tell me what’s around the corner. All I have is history and experience to go on and everything points to another major shift in our industry. While going virtual may not be the only answer it is at least a new strategy and course. A course I’m willing to try for the next 6 months because as you know insanity is doing the same thing over and over and expecting a different result.