Why Hawke Media Says Agencies Who Focus Soley on CAC are Doomed to Failure

Rich Ad Poor Ad

Hawke Media founder and CEO, Erik Huberman is in the business of growing and transforming businesses for clients like Red Bull, Verizon, Evite, Planet Blue, Stories by Kelly Osbourne and others. He is also Founding Partner of Hawke Ventures, Managing Director of Nest Equity Partners, and Operating Director of Arrowroot Capital. Prior to that he was owner of Erik Huberman Consulting which he founded while earning his BS in Business Administration - Management at the University of Arizona.

TAKEAWAYS
Why 99% of ad agencies aren’t helping their clients -- and how to be among the 1% that actually does
The massive financial red flag clients try to fly that you should run from like the plague.
How to float your client’s ad spend boat and make money doing it.
The biggest thing agencies need to be concerned about with their clients (and it’s not CACs).
Why today’s super low interest rates let you make a better case for getting ad spend bucks up front.
RESOURCES/CONTACT:

https://www.linkedin.com/in/erikhuberman/
https://www.erikhuberman.com/
https://hawkemedia.com

TRANSCRIPT

Speaker 1 (00:02):

On this episode, Eric founder and CEO of hock meeting, I'd dive into land Rover's COVID-19 campaign, where they have a picture of a land Rover out in the, out, in the boonies, out in the wilderness. And this has practicing social distancing since 1948. He does a great job of breaking down why this campaign worked when it worked. Plus you're also going to hear about the underbelly of these larger mid-market and enterprise level ad agencies that are actually floating. Their clients is ad spending, meaning they're actually paying to the tune of tens of millions, of dollars for their clients in ads, and then waiting sometimes upwards of 90 to 120 days to get that spend back plus their agency fee. And you'll hear about why this is absolutely ludicrous and how you should avoid this at all costs and how you can actually make money by solving this problem for your clients. So without further ado, let's dive in to another episode of the rich dad, poor ed podcast.

Speaker 2 (01:06):

Yeah. So I'm going to start with that asterix that like, I think 99% of that ad agencies don't help their clients. And so let's just take them off the table. So I don't think like the future of agency, I think is the same as it is now, because I think it's mostly, uninnovative like, or we run businesses, but the ones that are doing really good work that are going to come ahead. I think I have, and we'll think about the whole business of their client, not just the CAC that they're getting on Facebook.

Speaker 3 (01:47):

[inaudible],

Speaker 4 (01:47):

You're listening to the rich and poor ed podcast where we break down the financial principles that rich advertisers are deploying today to turn advertising into profit and get tons of traffic to their websites without killing their cash. These advertisers agencies, affiliates brands are responsible for managing over a billion dollars a year in ad spend. You'll hear about what's working for them today. They're rich ads and we'll roast their Epic failures and crappy ads on the internet with core ads. Let's get into it.

Speaker 1 (02:15):

Welcome to another episode of the rich add poor ed podcast. We've got a phenomenal, uh, well-known guests, uh, today I'm super excited to have on Eric Huberman, CEO and founder of hock media who really needs no introduction, but Hawks been around the game for almost seven years now, I think, um, based out of LA managing, I think I want to say over a hundred million dollars a year in ad spend and works with clients across dozens of different verticals, scaled a ton of e-commerce brands. I'm excited to dive into it. Eric, welcome to the show. My friend. Thank you for alchemy. Yes, yes, yes, yes. So give everybody a little taste of what you're up to these days. I think most of the people listening on the show, you know, understands that that Hawk is, uh, uh, an outsource CMO for your marketing agency, uh, or as a marketing agency as your outsource, uh, CMO. But what what's the latest for, with you guys? Like what, what are you doing now and where are you taking things, uh, to the next level

Speaker 2 (03:19):

We're scaling growing, thankfully like, you know, we are, we're built to be remote, so we weren't remote before all this, but it hasn't really done anything but helped us. And so we're actually bringing people on, in a lot of major cities around the country and really scaling up our team, uh, building out more offerings, you know, outperforming what we had done before, which was already pretty good. So things are going really well. We're growing fast.

Speaker 1 (03:46):

That's awesome, man. So I, uh, I, I want to know why you started an ad agency. I, I feel like we've, we've got a large audience of ad agencies listening here, and a lot of them aspire to build an ex, uh, Hockney to hear this all the time from folks that are maybe doing, you know, seven, uh, maybe starting to approach eight figures, but talk to us about like how, how, how did you end up starting Hawk? And, um, and why is it, why are you still doing it today? Seven years is a long time to be doing, uh, uh, anything.

Speaker 2 (04:21):

Yeah, I think masochism is a part of it. You know, I just like, I know it, honestly, it came from bill, I built installed two e-commerce companies. I just frankly hate most agencies out there. I think 99% of them are full of . And I have no idea how to actually scale a business. And this is coming from someone that has actually done it for myself. And so I was advising and consulting for a bunch of businesses and just found that everybody deals with this problem, that the agency landscape out there sucks. And so decided to do something about it and, uh, started building my own little SWAT team to help companies and then just scaled from there. Now, now seven years later and 170 people later, good place, you know,

Speaker 1 (