




Ideas and observations about modern-day marketing
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.
I had hoped that I would begin my first blog talking about how we came to the decision to go virtual. Unfortunately, I'm not in the mood to talk about that right now. I realized that after 14 years in one place, a business can amass a ton of junk. Somehow we were able to store junk in every nook and cranny. The little here and little there has taken three weeks to clean up. I hope this weekend will be my last tour of duty at 777 Sinclair as we remove the furniture that we were lucky enough to sell.
Aside from the cleaning and clearing, dealing with new the technology has been challenging. As Brian mentioned in his post, we've instituted about four major pieces of technology. In each case we've had some challenges implementing them. Nothing major, but all in all, it has caused me a huge amount of stress. We had the opportunity to test it out in our office for the last week and a half and we believe that all the kinks have been worked out. The technology now appears to be working great.
While the new technology is going well, the connectivity from home has been a bit slow and that is why this blog is late in posting. A couple of us, myself and Brandi, have been experiencing technical difficulties to say the least. Brandi as we speak right now, is waiting for AT&T to come fix her dsl line. It's frayed and is causing on and off connectivity issues. I, on the other hand, found myself up until 2:30 am this morning wrestling with a new modem that wouldn't talk to the router. At the end of it all, the culprit was one small field that I had filled out that apparently should have been left empty. I figured this out around 10:30 am. Needless to say, it's been a long first 24 hours of being virtual.
I want to thank all our clients and vendors for their support in this endeavor. We were concerned their might be some opposition or concern with our move, but we have received nothing but well wishes from most and envy from some. I also have to thank my staff for the insanely great work they have been doing. Last week was a crazy week. We had three major creative presentations, a major proposal, packing and working with new technology. Despite a month's worth of work crammed into one week, I am proud to say that not a single ball was dropped. I'm definitely thankful for this team and the work they do.
I know this post sounds a bit whinny, but I'm entitled to whine a little bit, as I have been working endlessly for the last three weeks. I can see the light at the end of the tunnel and I am extremely happy about that. After moving for the last three weeks, I hope that I don't have to do it again for another 14 years.