Expect Orange County’s largest advertising shops to bring in more business this year.
Local executives say they’re off to a good start.
Most are expecting billings gains in the single to double-digit percentages in 2006. Their strategy: bringing in new work or convincing current clients to spend more.
But it won’t be easy.
There’s increased competition, not only to nab the work but hire the right people to run those accounts.
The Business Journal asked some of OC’s advertising executives what they’re facing in 2006, including billings growth, advertising trends and a look at their favorite TV spots.
Here’s what they had to say.
What’s your outlook on billings growth for the year?
JIM HARRINGTON
President
O’Leary and Partners
Newport Beach
We are anticipating an increase of about 10% in 2006 because of the full-year effect of some of our late 2005 business wins, plus increased spending from some of our existing clients.
RAY BAIRD
Principal
RiechesBaird Inc.
Irvine
With double-digit top-line growth in 2005, RiechesBaird is predicting the same results again in 2006.
The majority of the growth stems from the new business consulting division we have added to our branding strategy and integrated marketing services.
WILL JOHNSON
President, creative director
Johnson Gray Advertising Inc.
Johnson Gray came out of the gate early this year with the acquisition of two new clients: Maxon Furniture, a global office furniture manufacturer, and GreenHomes America, a division of the Linc Group.
The addition of these two clients and, more specifically, the manner in which they were won (Johnson Gray was named GreenHomes’ agency of record from a review of 40 agencies) has put the agency in position to achieve an increase of 20% in billings this year.
JON GOTHOLD
Partner, executive creative director
DGWB Advertising Inc.
Santa Ana
We are projecting billings for 2006 to be flat or a slight increase of 1% or 2%.
Going into 2006, DGWB has seen a slight decrease in client spending. However, new business gains have outpaced the decreases. The diverse list of clients and new business wins will enable DGWB to grow at a modest rate in 2006.
DIANA MARSHALL
President, executive creative director
Marshall Advertising & Design Inc.
Costa Mesa
We’ve experienced quite a bit of growth this past year,about a 20% increase in billings. I expect our billings to remain the same for 2006.
DAN HOOVER
Chief executive
Estey-Hoover Inc.
Newport Beach
Consumer confidence is up and so are billings. We are anticipating a 7% to 8% rise this year, much of that coming from existing clients and some from new business that we already landed early in the year.
New business inquiries have been way up the first few months of the year, which indicates a lot of enthusiasm in the market.
GEOFFREY GRAVES
Graves Advertising
Lake Forest
We’re looking at a 5% increase in billings this year. We work with homebuilders and developers in the Western U.S., and with the housing market slowing down a bit, we’re already seeing a more aggressive approach in terms of budgeting and campaigns from our clients.
I would expect to see this ripple effect into real estate sections of newspapers, new housing publications, direct mail programs and other media.
TIM BLETT
President
W. B. Doner & Co.
We’re looking for aggressive growth this year. Our organization has centered around growth, and in this climate we’re well suited to grow.
How are you addressing the shift to online advertising in the work you do for clients?
Harrington of O’Leary
We’re putting our clients’ messages in the places where they will resonate most with their particular target audience, which means that we are utilizing all the appropriate communication channels on a case by case basis.
We have significant online activity for several of our clients, usually in combination with other media.
Baird of RiechesBaird
As far as the overall brand goes, interactive media is probably one of the most powerful shifts we’ve seen in our business. It has been a huge trend shift in the branding industry.
RiechesBaird is constantly attending seminars and educating our staff to stay on the forefront of interactive marketing techniques.
Johnson of Johnson Gray
The recent trend toward new and alternative media is one that we anticipated and prepared for as an agency early on. We have invested time and resources to ensure we are up to date on the latest and greatest technologies and options for our clients’ advertising dollars, regardless of the media.
We offer our clients numerous new media solutions to either drive their marketing initiatives, or supply support to initiatives based in traditional media.
Our solutions, new or traditional, were not implemented as a result of market pressure or trend. They have always been part of our approach to successful integrated media approaches.
Gothold of DGWB
All of our clients have strong Web presences, but we are taking them to the next level with a series of campaign-specific Web sites, personalized URLs within direct mail campaigns and viral Web-based campaigns.
Marshall of Marshall Advertising
Our online advertising has increased, but not really at the expense of any other media. Perhaps the only media that has been affected is newspaper. Online has allowed us to be more selective and strategic.
We are using television to direct consumers to our clients’ Web sites.
Hoover of Estey-Hoover
Online buying continues to grow. It is having an impact at all levels of advertising, from the Yellow Pages to broadcast.
However, most of our customers see it as an added tool, not a replacement. Traditional media is a major driving force to send visitors to Web sites but high search engine rankings and “sponsored sites” are coming on fast as key resources.
Graves of Graves Advertising
As markets age, boomers and zoomers and X’ers and Y’ers are all computer literate. The older they get, the more important Web marketing becomes.
Blett of W.B. Doner
Online advertising depends on the client. Some people jumped on online advertising right away. The Web site is a very important part of the brand. But it’s not just having a Web site. It’s really about upgrading it.
What’s the most innovative, creative TV commercial you’ve seen recently?
Our new spot for the Kawasaki ZX-14. We use special effects to highlight the incredible power of our new bike.
By far, in terms of cohesive messaging solutions and quality creative executions across multiple mediums, Mini Cooper has developed a campaign approach which has been not only innovative and creative, but has been delivered successfully within print, broadcast and guerilla executions.
Unfortunately, none come to mind immediately. Perhaps the VW “My Fast” TV campaign.
This one’s not on TV. Saw it in a movie theater waiting for a movie to start. Annoying guy sitting in a seat, bothering everybody, and a giant M & M; falls on him.
Target. They’ve brought design to the masses. You think Kmart and you think Target and get a very different impression.
Advertising markets in New York, Detroit and Los Angeles have their challenges. What are the biggest issues facing Orange County?
Harrington of O’Leary
The challenges for OC agencies are no different than they are for good agencies anywhere,develop strategic consumer insights, execute great creative work and act as the steward of your clients’ brands.
We service clients with headquarters in Texas, Mass-achusetts and San Diego from our Newport Beach office.
I think the biggest challenge in the OC advertising community right now is talent. Finding the best thinkers in the overall marketplace is a difficult task in OC, mainly because the cost of living versus talent ratio is offset here, and the talent pool isn’t as big as in big cities.
Johnson of Johnson Gray
Some of the challenges facing the OC market today is the vast amount of competition for advertising inventory. There’s outdoor, print, new media and other types of advertising that creates an overwhelming number of messages being presented to consumers daily.
We actually don’t think there’s been a better time to be an ad agency in OC than now. Thanks to TV shows like “The O.C.” and MTV’s “Laguna Beach,” there seems to be a renewed interest in the area.
We’ve seen it play out in the business world: OC is a magnet for innovators and entrepreneurs who’ve chosen to make a go of it here.
Most of our media buying is regional and national. However, when we do conduct local campaigns, OC is not as independent a media market as we would like it to be.
Certainly we can isolate the market with newspaper, direct mail, magazines and cable TV, but broadcast TV and most of our radio resources are not very efficient for the market.
The media reps will argue the depth of the coverage in the market, but a local business isn’t going to benefit much from the broad reach of these stations and the associated prices that come with it.
Graves of Graves Advertising
There’s no electronic media to call our own, for the most part. It’s hard to segment out OC, without paying for all of Southern California, which is why builders do very little television advertising.
Blett of W.B. Doner
I don’t look at OC as anything like New York, Detroit or Chicago. I consider it Los Angeles.
Half my people live in Long Beach or Seal Beach. But one challenge is the cost of living (here) and recruiting people from Chicago to Los Angeles because (of the cost of living).
