
A couple of months ago, Mitsubishi North America awarded its $185 yearly advertising account for strategy, creative and interactive to an agency called Traffic. This item would not necessarily be gamechanging news, except that Traffic is a start-up agency that did not exist before 2008. It was formed specifically for the purpose of winning the Mitsubishi account.
In picking apart the story, one discovers all sorts of threads entwined into the win for Traffic.
Thread #1: Traffic’s co-founders were veterans of the auto industry. Tom Cordner had been the executive creative director for Team One when he introduced Lexus to America in the 1990s, and after that, ran creative for the Ford Motor Company for the J. Walter Thompson Agency. His partner in Traffic, John Powers, had built Lexus’ dealer channels in America. I cannot say it enough: Cast your team well, and you’re halfway toward the objective.
Thread #2: John Powers has a name that implies automotive expertise (akin to power trains and the J.D. Power Awards). A slender thread, yes, but still excellent meta communication that reinforces a theme of reliability that was crucial to Traffic’s win. Likewise the name of the agency itself, Traffic, served Mitsu a steady diet of reminders that they were dealing with industry experts and an agency tailored to the automobile business.
Thread #3: In his pitch to Mitsubishi, Cordner promised a different, more flexible agency model, one that focused on the realities of the market instead of what he called the “empty tricks” of more established (and more rigid) shops. Traffic is, in effect, a ‘hybrid’ model, and everybody in the car marketing biz knows that’s a magic word. Furthermore, the Traffic bid offered Mitsubishi better value for its budget, because it didn’t have to support big agency infrastructure.
All these threads and more spun out of the game devised by Cordner, Powers and their backers at the Cimarron Group, a Los Angeles-based film marketing and post-production company. It was a game that differentiated them from their competitors, and gave them many opportunities to highlight advantages they offered the client. The game was something you could call ‘Build an Agency and They Will Come’.
See, it was the act of bringing the agency into existence that best communicated to Mitsubishi what kind of performance they’d be getting from Traffic. The beauty of this game is that it expanded the context of the pitch into one that Traffic alone of the four agency finalists could own. I can’t say this enough, either: In an age when information is ubiquitous, owning context is more important than owning content.
The context created and owned by Traffic was not confined to storyboards, demos, research, resumes–the usual vocabulary for agency pitches. The context they owned was reality–a reality validated by their very existence. It was the act of forming the agency that elevated Traffic’s pitch from the context of speculative –which is where its competitors would be coming from, where agency pitches usually come from — and into the real.
Cordner and his Traffic team were able to replace ‘This is what we will do for you’ with ‘This is what we are doing’. And that, as the poet once said, has made all the difference.
Tags: Casting, Cimarron Group, Game, GameChangers, John Powers, Mitsubishi, Pitch, Tom Cordner, Traffic, Virtual Agency
Excellent example of being able to create a company to serve an exact need by a specific company.
I am curious when the agency acquired and recruited the necessary talent: before or after landing Mitsbubishi? When did Traffic’s founders make their bets, and how large were their bets? What was their downside if they failed to land Mitsubishi?
(btw, I love the blog, Ethan Bauley pointed you out to me…)
Thanks, Taylor.
I’ll get the ‘official’ answers from Traffic and (re)post them, but here are my guesstimates:
- The pitch team was recruited in the 2-3 months leading up to the pitch, consisted of 15-20 people. The agency will eventually size up to 120- 130 people.
- Bets were made when Traffic was formed for the purpose of winning Mitsubishi. Q4 2007.
- It typically costs $350-500K to compete for an auto account. This was probably the range of Traffic’s investment, though only a percentage of that was out of pocket costs.
- Downside was the bet. It was hedged by a $12 mil Toyota strategy account Cordner and Powers had already landed (status in the wake of winning the Mitsu acct TBD). It was also hedged by the fact that Cimarron could absorb significant production costs as overhead.
- Interesting that they were able to recruit 15-20 people before landing the account, although I’m guessing that it was not too big of a career bet by the 15-20 people given Traffic’s co-founders reputation and success (and the $12 M Toyota account)
- Why is only a % of the $350-500K out-of-pocket? I apologize, but I’m not knowledgeable about the ad account competition process.
Nice comment thread you got going here…
I’d venture a guess that the $350k pitch investment was also covered somewhat by the production company; since Cordner et al have the expertise/connections to get in the room, the production company provides investment capital.
Taylor: maybe the “new entrepreneurialism”/funding model we’re thinking of isn’t about “Gen Y” at all…it’s about old people like Mike B. and Cordner that can *make things happen* without so much risk/inexperience.
Yeah, or you could get some dead people to front for you, and then you’d REALLY be cookin.
; )
LOL
For the record, I don’t consider my nearly-29-year-old self part of “Gen Y”.
Anyways, Thomas Jefferson and I are working up some cloud computing initiatives that are going to be huge.
He really “gets” social media.
@ Ethan you mean a “sugar daddy”?
Didn’t mean to hijack the thread… this example is an interesting analogue to how venture capitalists and entrepreneurs create businesses to take on risks, and I think this is the main reason I found the example interesting.
Being an entrepreneur, taking risks on new ventures, et. al. is nothing new: what could be new is finding new people and ways fund entrepreneurship…