{"id":618165,"date":"2023-03-15T09:48:43","date_gmt":"2023-03-15T14:48:43","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/15\/marketing-briefing-with-all-eyes-on-the-silicon-valley-bank-collapse-marketers-and-agency-execs-assess-their-risks\/"},"modified":"2023-03-15T09:48:43","modified_gmt":"2023-03-15T14:48:43","slug":"marketing-briefing-with-all-eyes-on-the-silicon-valley-bank-collapse-marketers-and-agency-execs-assess-their-risks","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/15\/marketing-briefing-with-all-eyes-on-the-silicon-valley-bank-collapse-marketers-and-agency-execs-assess-their-risks\/","title":{"rendered":"Marketing Briefing: With all eyes on the Silicon Valley Bank collapse, marketers and agency execs assess their risks"},"content":{"rendered":"

This past weekend, after Silicon Valley Bank collapsed due to a bank run on Friday and the shuttering of another bank, Signature Bank, on Sunday, the uncertainty of the situation had venture capitalists stirring up a frenzy on Twitter<\/a>. On Monday, President Biden aimed to instill confidence in the banking system with a short speech telling Americans<\/a> that the government would protect depositors but that the move was not a taxpayer bailout of the banks.<\/p>\n

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For agency execs and marketers who work with startups \u2014 which Silicon Valley Bank was known for doing \u2014 the past weekend was an \u201cexistential experience,\u201d explained Katya Constantine, CEO of DigiShop Girl Media, a performance marketing agency that works with startups and emerging direct-to-consumer companies.<\/p>\n

Marketers and agency execs say they spent the past weekend analyzing their potential risks and ties to the collapse, a situation that they will continue to closely watch in the coming weeks.\u00a0<\/p>\n

\u201cFor the past 10 years, we have specialized in working with growth-stage tech startups and tech-enabled businesses,\u201d said Mack McKelvey, founder of strategic marketing shop SalientMG. \u201cThe SVB collapse was particularly shocking, given the extensive integration the bank has in the whole start-up ecosystem. While we don\u2019t bank directly with SVB, my immediate thought upon hearing the news last week is that many of our VC-backed clients do.\u201d<\/p>\n

McKelvey wasn\u2019t alone in thinking about potential impact. \u201cOur agency over the weekend was focused on understanding any risk exposure, putting measures in place to mitigate further risk and being available to clients that required communications guidance,\u201d said Marisa Ricciardi, founding partner and CEO of strategic marketing agency Ricciardi Group, and former CMO of the New York Stock Exchange. \u201cOur clients are super focused on their own employees and customers in order to create and instill confidence in the market.\u201d\u00a0<\/p>\n

While the collapse of Silicon Valley Bank in particular has put a spotlight on startups, agencies that work with startups say they aren\u2019t reconsidering doing so now.\u00a0<\/p>\n

\u201cWe aren\u2019t re-thinking any current relationships and we don\u2019t intend to stop working with interesting emerging brands, but will definitely monitor those decisions very closely,\u201d said Ricciardi. \u201cHowever, it\u2019s a good reminder to stay focused on the importance of having good agency financial hygiene (i.e. accounts receivable management, clear payment terms, rolling financial projections, working capital reserves etc.)\u201d<\/p>\n

McKelvey, meanwhile, explained that SalientMG \u201cwill always work with innovative and disruptive startups\u201d as it is part of the company\u2019s DNA but that the shop is \u201cwatching the whole banking sector this week and we\u2019ve been in touch with several of our VC-backed clients and their VCs.\u201d When asked about potential plans to mitigate risk with changes in payment terms, McKelvey said, \u201cwe aren\u2019t immediately changing our payment policies, but we aren\u2019t ruling anything out either.\u201d<\/p>\n

Marketers and agency execs say that they expect CEOs and CFOs to be going through financials \u201cwith a fine tooth comb to make sure I\u2019m not faced with the same existential risk again,\u201d noted Constantine.\u00a0<\/p>\n

The collapse also put into perspective the ripple effects of a collapse \u2014 even if an agency doesn\u2019t work with a failed institution they could work with clients or vendors who may be then unable to pay them.\u00a0<\/p>\n

\u201cPeople are awake to the risk of having all their eggs in one basket,\u201d said Constantine, who added that for agencies who rely on a few clients it makes clear that \u201chaving operations dependent on one or two clients is a huge risk for an agency. The need to diversify will be clearer.\u201d\u00a0<\/p>\n

3 Questions with Brian Killingsworth, CMO at fitness company F45<\/h2>\n

After more than a decade in business, F45 recently launched\u00a0its first-ever brand campaign. Why now?<\/strong><\/p>\n

The brand is continuing to expand like crazy and we\u2019re looking at North America as a really emerging market for us that we don\u2019t think we\u2019ve really truly penetrated yet. The company has been really successful in selling franchises and cultivating an incredibly tribal member base. We want to really amp up our awareness level for those fitness consumers that are looking for a solution. This is the year to do it and kick it off the right way.\u00a0<\/p>\n

How is F45 working to meet its marketing goals?<\/strong><\/p>\n

We did a lot of research as to who our core consumer is of our brand from a target perspective. That consumer over indexed on a lot of the social channels. They over index on streaming. They over index on podcasts and so it was important for us to deliver across those mediums, and be as efficient as possible with this buy.\u00a0<\/p>\n

We looked at [the media mix] a little bit differently. We looked at three types of media. We allocated 55% of the budget to what we call high efficiency and that includes our social and digital platforms. We look at some of our high reach video platforms as well. Meta, Google all fall under this high effective bucket. Then, 25% of our budget is allocated to high premium. High premium for us is looking at podcasts, Spotify, Hulu, Amazon and that\u2019s a big bucket for us. Lastly, 20% is allocated toward what we call high impact. Those are looking at strategic partnerships that help elevate our brand. A lot of those you\u2019ll see in the third and fourth quarter as we continue to lock down strategic brand fits for us. Specific tactics across those three buckets include YouTube, Meta, Google, Amazon, Spotify [and] digital display, just to name a few.\u00a0\u00a0<\/p>\n

What\u2019s the biggest change in this year\u2019s media channel mix versus last year?\u00a0<\/strong><\/p>\n

I still think digital is king for us. Our member base does such a great job of amplifying our brand. So just looking at the digital assets we own and operate, we have our own website, we have our own social channels obviously. \u00a0\u2013\u2013 Kimeko McCoy<\/em><\/p>\n

By the numbers<\/h2>\n

The first-ever global live-streamed Netflix show, a comedy special from Chris Rock, is a promising signal of what may lie ahead in the advertising and live-streaming industries as consumers become more and more interested in social media and live content. As per\u00a0GWI<\/a>, an audience insights company, consumers in the U.S. like Gen Z are actually less likely than older generations to engage with brands through television ads or online TV shows, which suggests a need to modernize and optimize live streaming platforms and content. In addition to this, GWI found that:<\/p>\n