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Friday
Nov192010

Turkey

When I ran Business Development for Saatchi & Saatchi, we had a rule of thumb: we never pitched an account with less than $10 million in billings. It wasn't smugness. While smaller agencies, with a flat structure, can make a profit on a $5 million account, it is next to impossible for one of the big agencies, with their multi-layered structure and high overhead to eke out a living from small accounts.

That is why I was astounded that Y&R picked up the Butterball Turkey account. Butterball spends $300,000. That's not revenues. Billings!

There is another reason that chasing a $300,000 account for an agency of that stature can be harmful. It can damages the agency brand and is likely to be counterproductive for fighting parity, or at least the perception of parity.

Happy Thanksgiving.

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