Great video Tim! I currently work at an Ad Agency to learn as much as I can so I can start my own Ad Agency next year. I am a Media Buyer (I manage Facebook & Google Ads for multiple clients) and I have realized that having an Account Manager between the client and the Media Buyers is not very efficient. They basically forward us the messages and requests that the customer sends us, and even though they keep on touch with them often to make sure everything is alright, I am pretty sure that this is something that a Media Buyer could perfectly do. On the other hand, since the Agency has to pay both the Account Manager and the Media Buyer to be able to deliver their services, their margins per client decrease. Therefore they have to sign a LOT of clients per Account Manager and Media Buyer to be able to be as profitable as the shareholders want. These low-margins cause that most Account Managers and Media Buyers are managing way more accounts than they should in order to be able to over-deliver in terms of results, resulting in a high churn-rate. My question is: what do you think about removing Account Managers so we can have better margins per client? This way we could have the Media Buyers managing just a few accounts because the agency now is more profitable and they can focus very well on them to be able to over-deliver? I am also a huge believer on the "small hings swing big doors" mindset and I think that this solution perfectly aligns with it. Let me know your opinion on this!! Regards from Colombia, Felipe
80+ years of advertising agency structure and management has led to having account managers and media buyers and all the other positions. When you're small you must have people who can do multiple positions in the agency. As you grow, an account manager is no longer going to have the time to do a good job managing clients and sourcing channels. And the opposite is true. Someone who's good as a media buyer won't have time to manage clients. Many times the problem lies in not picking great clients. Most ad/marketing/smma agencies lack differentiation and that leads to lower fees. However, they still must have the same people to serve the clients. Their idea of fixing the problem is to get more clients instead of finding a way to stand out so they get more money from fewer clients.
@@TimConley Sooo true!! When starting I will need people who can be both media buyers and account managers, and as I grow I will need to hire people for both positions. Thanks for your wisdom Tim!!
Great convo here . I just wanted to ask Felipe how far has he come from the time he wrote this comment? I am an agency owner myself & am in my starting years. Your progress could be helpful! Thanks.
This info was golden. I haven’t ever worked at an ad agency. I used to apply for jobs many years ago, but after some rejection and lack of opportunities I decided that I need to build my own. After freelancing for the last few years, I’m ready to make the leap.
Love you for your hard work and help. Appreciate it. Thanks a lot Tim. Surely by answering me you will not be getting views but will be winning the audience throughout your youtube journey .Thanks again!
2m30secs in and no part of the question has been answered. Just rants about why it won't get views, which is probably why it doesn't have a zillion views yet ... Meanwhile, absolutely insightful and accurate. Love the content.
Thanks for watching. Back when I posted this I thought I'd do more, but viewers showed they weren't interested in the mechanics of running an agency. However, if you've got a specific question I will answer it in a video.
New fan/sub here, so grateful I came across this video and channel. Now I wanted to ask why isn’t a Designer/Art Director, a copywriter/ content creator in the structure?
#7 is the creative director. Smaller agencies won't have a creative director and an art director. For my audience, not all of them are utilizing copy or creating content for their clients. Also, those roles can be contracted for most projects. However, I think someone in the agency needs to be well-versed in copywriting.
I have a question Tim. As I’m about to start my ad agency, I identify myself as an ideas guy. Brand Strategist/ Creative Director type. I have realized that I need to form a team around me to help with the execution of these ideas and management of the necessary administrative tasks. I already have a Marketing and Strategy person on board. What role (s) do you think are critical in this early stage for us to operate efficiently since we are now building and can’t afford to pay high salaries as yet?
Find amazing freelancers and bill your clients appropriately to cover the cost of your contractors. Internally, you will most likely need someone to handle the day-to-day workflow so a project manager is a key hire for brand new agencies.
Thanks Tim Conley I was definitely veering in that direction. What particular skill sets do you recommend in looking for Project Managers for agencies? Should they be creatives as well, or is it more about their ability to get things organized?
Great video Tim! I currently work at an Ad Agency to learn as much as I can so I can start my own Ad Agency next year.
I am a Media Buyer (I manage Facebook & Google Ads for multiple clients) and I have realized that having an Account Manager between the client and the Media Buyers is not very efficient.
They basically forward us the messages and requests that the customer sends us, and even though they keep on touch with them often to make sure everything is alright, I am pretty sure that this is something that a Media Buyer could perfectly do.
On the other hand, since the Agency has to pay both the Account Manager and the Media Buyer to be able to deliver their services, their margins per client decrease.
Therefore they have to sign a LOT of clients per Account Manager and Media Buyer to be able to be as profitable as the shareholders want.
These low-margins cause that most Account Managers and Media Buyers are managing way more accounts than they should in order to be able to over-deliver in terms of results, resulting in a high churn-rate.
My question is: what do you think about removing Account Managers so we can have better margins per client? This way we could have the Media Buyers managing just a few accounts because the agency now is more profitable and they can focus very well on them to be able to over-deliver?
I am also a huge believer on the "small hings swing big doors" mindset and I think that this solution perfectly aligns with it.
Let me know your opinion on this!!
Regards from Colombia,
Felipe
80+ years of advertising agency structure and management has led to having account managers and media buyers and all the other positions.
When you're small you must have people who can do multiple positions in the agency.
As you grow, an account manager is no longer going to have the time to do a good job managing clients and sourcing channels. And the opposite is true. Someone who's good as a media buyer won't have time to manage clients.
Many times the problem lies in not picking great clients. Most ad/marketing/smma agencies lack differentiation and that leads to lower fees.
However, they still must have the same people to serve the clients. Their idea of fixing the problem is to get more clients instead of finding a way to stand out so they get more money from fewer clients.
@@TimConley Sooo true!! When starting I will need people who can be both media buyers and account managers, and as I grow I will need to hire people for both positions.
Thanks for your wisdom Tim!!
Great convo here . I just wanted to ask Felipe how far has he come from the time he wrote this comment?
I am an agency owner myself & am in my starting years. Your progress could be helpful! Thanks.
This info was golden. I haven’t ever worked at an ad agency. I used to apply for jobs many years ago, but after some rejection and lack of opportunities I decided that I need to build my own. After freelancing for the last few years, I’m ready to make the leap.
The Internet allows us to avoid gatekeepers and glass ceilings if we are willing to pay the price of building our own gates and ceilings.
Do you have a video on how to financially structure your company and revenue?
Love you for your hard work and help. Appreciate it. Thanks a lot Tim. Surely by answering me you will not be getting views but will be winning the audience throughout your youtube journey .Thanks again!
My philosophy with content has always been connection first, clicks second.
@@TimConley Thanks Tim. May I know what's your next video going to be all about ?
@@mailhere356 Client acquisition -- actually, next 3 are on this topic.
Watched your video the second time now!!
we approve of this! brilliant content
I'm glad you like it. Thanks for watching.
Great content!
2m30secs in and no part of the question has been answered. Just rants about why it won't get views, which is probably why it doesn't have a zillion views yet ... Meanwhile, absolutely insightful and accurate. Love the content.
Yeah...I keep working on getting to the point quicker in my vids.
golden. thx very much.
You are a legend 🙌
Thanks. I appreciate you watching.
Amazing!
Thanks
Great video. Keep it up!
Thanks, will do!
Can some of these roles be freelanced in the agency or are these more like full time worker jobs?
They can all be contracted out. An "agency" doesn't have to get locked into having a team of employees.
nice shirt by the way ❤
Thanks.
Love the content Tim
Thanks. I'm glad you enjoy it.
Love this content! Very useful if you could go even deeper on each role would be wonderful
Thanks for watching. Back when I posted this I thought I'd do more, but viewers showed they weren't interested in the mechanics of running an agency.
However, if you've got a specific question I will answer it in a video.
I disagree. A year later and still desperate for someone to branch out and provide more info on the mechanics of running an agency.
I love this video 👍
Thanks
New fan/sub here, so grateful I came across this video and channel. Now I wanted to ask why isn’t a Designer/Art Director, a copywriter/ content creator in the structure?
#7 is the creative director. Smaller agencies won't have a creative director and an art director. For my audience, not all of them are utilizing copy or creating content for their clients. Also, those roles can be contracted for most projects. However, I think someone in the agency needs to be well-versed in copywriting.
@@TimConley I appreciate the time.
@@nicestuff8755 Thanks for watching and subscribing.
i am watching this in 2022
Thanks for watching.
2023
I have a question Tim. As I’m about to start my ad agency, I identify myself as an ideas guy. Brand Strategist/ Creative Director type. I have realized that I need to form a team around me to help with the execution of these ideas and management of the necessary administrative tasks. I already have a Marketing and Strategy person on board. What role (s) do you think are critical in this early stage for us to operate efficiently since we are now building and can’t afford to pay high salaries as yet?
Find amazing freelancers and bill your clients appropriately to cover the cost of your contractors. Internally, you will most likely need someone to handle the day-to-day workflow so a project manager is a key hire for brand new agencies.
Thanks Tim Conley I was definitely veering in that direction. What particular skill sets do you recommend in looking for Project Managers for agencies? Should they be creatives as well, or is it more about their ability to get things organized?
Jason Marcano organization + ability to drive others to complete projects.
Tim Conley Thank you
FIRST!
First😂