Виктор Ишков BBDO | Unpacking Ads

Introduction

In this section, the speaker introduces himself and the topic of discussion.

• The speaker mentions that he has not had a meeting with clients in the last 5-6 years where they did not say that his proposal was the most expensive.

• He talks about how he does not need to calculate profitability for each project and manage the business from speech.

Background Information

In this section, the speaker talks about his background and how he got into advertising.

• The speaker talks about how he opened his own agency in Ukraine and Kazakhstan.

• He mentions that he started as a content manager and eventually became a business director at an agency.

• The speaker discusses how he became interested in advertising after working on a digital project for an agency.

• He mentions that there were few resources available to learn about advertising at the time, but he learned from colleagues, industry events, and classic literature on marketing strategy.

Getting into Advertising

In this section, the interviewer asks the speaker about his entry into advertising.

• The interviewer asks how a successful DJ ended up in advertising.

• The speaker explains that it happened by chance when a friend invited him to work on a project for an ad agency.

• He mentions that his first salary was $100 as a content manager.

Developing Interest in Advertising

In this section, the speaker talks about how he developed an interest in advertising.

• The speaker explains that working on digital projects for an agency sparked his interest in advertising.

• He says that he began absorbing everything related to advertising because of his deep interest.

• The speaker mentions attending industry events like KMFestival and learning from colleagues like Igor Krylov.

Transition to Management

In this section, the speaker talks about his transition from a creative role to a management role.

• The speaker mentions that he was interested in management more than creativity.

• He explains that he became an account manager for British American Tobacco and eventually became an executive director at Ogilvy & Mather.

• The speaker discusses how he managed various agencies and eventually became managing director of Michael.

Working at Ogilvy

In this section, the speaker talks about his experience working at Ogilvy.

• The speaker mentions that he worked at Ogilvy for 10 years and considers it a significant part of his life.

• He discusses how the agency won numerous awards during his time there, including Cannes Lions.

• The speaker reflects on the talented people he worked with who have gone on to achieve great success in advertising.

Conclusion

In this section, the speaker concludes by discussing his current position as managing director of Ukraine and Central Asia.

• The speaker mentions that he currently manages Ukraine and Central Asia for Michael.

• He reflects on his career goals and how becoming a director was once a pinnacle achievement for him.

• The interview ends with the interviewer thanking the speaker for sharing his insights into advertising.

How I Got Into Video University

In this section, the speaker talks about how he got into Video University and what led to his selection.

Getting Recommended for a Position

• The speaker was recommended by someone who knew him.

• He had experience in talent management and creative business.

• He understood international business and network agency management.

Making Changes at the Agency

• The speaker was brought in to make changes at the agency during a crisis.

• His changes were successful and improved the agency's reputation among clients.

• The agency became one of the top three marketing agencies globally.

Attending Baby Harvard Business School

• The speaker attended Baby Harvard Business School as part of an initiative by BBDO Global.

• He had to read 500 pages of material before attending.

• The program focused on strategic thinking, finance, and account management.

What Happens at Baby Harvard Business School?

In this section, the speaker talks about what happens at Baby Harvard Business School and what he learned there.

Attending Classes with Top Managers from Around the World

• Attendees are selected based on their achievements within their company or group.

• Attendees come from all over the world, including North America, Europe, Asia-Pacific, Mexico, Australia, and New Zealand.

• Attendees attend classes taught by professors from Babson College.

Learning About Strategic Thinking

• Attendees learn about strategic thinking through case studies on companies like Netflix and Cainiao Network Technology Co., Ltd.

• Attendees also learn about global account management through case studies on Renault-Nissan-Mitsubishi Alliance.

Reviewing Results with Professors

• After two years of attending classes and completing assignments, attendees write a strategic business plan that they present to professors.

• Attendees then attend a final review session where they share their results with other attendees and professors.

Impressive Energy of Business Professors

The speaker is impressed by the energy and liveliness of business professors in their 60s, 70s, and even 75 years old. They are up-to-date with current business events and have a wide range of knowledge.

Business Education

• The speaker is impressed by the energy and liveliness of business professors in their 60s, 70s, and even 75 years old.

• These professors are up-to-date with current business events and have a wide range of knowledge.

Definition of Creative Agency Product

The speaker discusses what a creative agency product is, how to define it, and how to determine its value.

Definition of Creative Agency Product

• A creative agency product is a strategic visual tool used to solve specific business problems.

• It is one part service and one part product.

• It is an intellectual product that results from joint or individual work between creative agencies or strategic agencies.

• Creativity is not pure art because it has a specific business purpose.

• The value of an intellectual product cannot be determined using a formula; it depends on the market's perception of its worth.

Unfair Competition Between Advertising Agencies

The speaker discusses unfair competition between advertising agencies that pay taxes for their employees versus those who do not. He also explains why paying taxes is important for civilized interactions between businesses.

Unfair Competition Between Advertising Agencies

• Some advertising agencies do not pay taxes for their employees while others do.

• Paying taxes for employees ensures that they receive social benefits from the government.

• Not paying taxes creates an uneven playing field between companies that follow the law and those that do not.

• Paying taxes is important for civilized interactions between businesses and society.

Importance of Pricing for Clients

In this section, the speaker discusses the importance of pricing for clients and how it affects their decision-making process.

Factors Affecting Pricing

• The price is a key factor for clients when making decisions.

• Babydeal's business is mostly local, with around 70% of its clients being local businesses in Ukraine.

• People are also a significant factor in determining pricing. The cost of personnel can affect the price offered to clients.

• Reputation and brand value are also important factors that determine the value of services provided by an agency.

Value Creation and Market Dynamics

This section focuses on how value creation and market dynamics affect pricing.

Value Creation

• People are the most significant asset involved in creating value for any agency.

• The cost of personnel and hours spent on creating value determines the price offered to clients.

Market Dynamics

• Market dynamics play a crucial role in determining prices.

• The same product or service can have different prices depending on various factors such as location, target audience, etc.

• Relationships with clients can also impact pricing. For example, if a client takes longer to make decisions or requires more revisions, it may increase costs.

Objective Evaluation of Creative Products

This section discusses how creative products are evaluated objectively.

Evaluating Creative Products

• Unlike other products like cars or tires, creative products cannot be objectively evaluated based on their features alone.

• Instead, creative products' value is determined by internal perceptions such as reputation and brand image.

Determining Hours Spent on Creating Value

This section focuses on how agencies determine the number of hours spent creating value for their clients.

Determining Hours Spent

• The number of hours spent on creating value for clients is determined by the cost of personnel and the time spent on a project.

• Big data can be used to determine how many hours are required to complete a project based on past experience.

Relationship Dynamics and Pricing

This section discusses how relationship dynamics between agencies and clients can impact pricing.

Relationship Dynamics

• The relationship between an agency and its client can impact pricing.

• Clients with more decision-making levels or longer approval processes may require more time, which increases costs.

• Strong relationships with clients can lead to lower costs in the future.

Cost and Project Management

In this section, the speaker discusses how to determine project costs based on local factors and logistics. They also talk about the importance of managing projects with a long-term perspective.

Determining Project Costs

• The cost of a project should take into account local factors such as hiring local actors for certain markets.

• Different markets may require different formats, so separate products may need to be created for each market.

• It is difficult to give an exact cost for a project since it depends on various factors such as the client's needs and the complexity of the project.

Long-Term Project Management

• If a client is difficult to work with, it may be necessary to adjust the cost of the project accordingly.

• Managing projects requires a balance between creativity and manageability. A good balance creates stability within the company.

• Companies should plan their activities with a long-term perspective in mind rather than focusing solely on short-term profitability.

• Long-term planning allows companies to adjust their plans if necessary without making drastic changes that could negatively impact their business.

Importance of Revenue Planning

• Revenue planning is important for managing cash flow and ensuring that there is enough money available to cover expenses.

• Companies should have a clear understanding of how they will behave in each quarter and what they need to do in order to achieve their goals.

• Having a long-term plan helps create stability within the company, which can lead to better creativity and productivity.

Planning for Success

In this section, the speaker emphasizes the importance of planning and budgeting for long-term success.

Importance of Long-Term Planning

• Companies often fail to plan for the long-term, leading to financial difficulties.

• It is important to plan actions on a quarterly and yearly basis to achieve success.

• Working with brands over a longer period allows for more strategic advertising campaigns.

Agency Tenders

In this section, the speaker discusses agency tenders and their approach towards them.

Agency Tender Approach

• The company rarely participates in project-based tenders as they prefer working with brands over a longer period.

• The decision to participate in tenders depends on various factors such as business or project type.

• Price is often a deciding factor in procurement evaluations, but other criteria such as creativity may also be considered.

Value Proposition

In this section, the speaker talks about how value proposition affects client acquisition.

Client Acquisition through Value Proposition

• Winning clients is not always about being the cheapest option but rather providing value that aligns with their needs.

• The company prefers working with mobile operators because they see it as an opportunity to add value.

• A strong value proposition can make up for higher costs compared to competitors.

Competitors and Market Segmentation

In this section, the speaker discusses competitors and market segmentation.

Competitors and Market Segmentation

• The company competes against agencies that work with small businesses up to premium segments.

• Local agencies are also competitors but are not seen as direct threats due to different target markets.

• Market segmentation is based on client segmentation which can vary from low-cost options to premium services.

Case Study

In this section, the speaker provides a case study to illustrate their approach to client acquisition.

Case Study: Ternopil Winery

• The company worked with a small winery on a project they were passionate about.

• Despite the project's potential high cost, the company found ways to make it work due to their passion for the project.

• A strong value proposition and passion for projects can lead to successful client acquisition.

The Agency and its Employees

In this section, the speaker talks about the agency's employees, their archives, bonuses, and performance.

The Agency's Employees

• The agency has seven employees who have been working together for seven years.

• None of the employees have left during this time.

• The speaker has deep respect, love, and gratitude for these people.

Music Collection

In this section, the speaker talks about his music collection.

Music Genres

• The speaker listens to electronic music starting from downtempo to progressive house music.

• He also buys vinyl records and has a large collection at home.

Recommendation

• The speaker recommends listening to music while at home.