After so many years interviewing businesses of all sizes and shapes, I believe I have a finely tuned radar for enterprises that are going to be wildly successful.
I have that feeling about Sabri Suby, founder of digital marketing agency King Kong, which is on track to double last year’s $5 million revenue figure to $10 million this year.
The agency’s results-driven approach is very different to the one used by most marketing agencies. It is a scientific, numbers-driven way of winning business, which is giving King Kong an edge that other agencies may find difficult to compete with in the future.
King Kong is also benefiting from the shift to digital advertising. According to studies from Zenith and eMarketer, Sabri Suby King Kong digital ad spend is set to overtake TV for the first time in 2017. The figures show global digital ad spend will hit $US205 billion this year, while TV will take $US192 billion. That digital figure accounts for more than 36 per cent of all ad spend.
The story is the same in Australia. EMarketer predicts digital ad spend will hit $6.18 billion or 54 per cent of all ad spend this year. TV, by comparison, will sit on just $3.3 billion.
King Kong’s model works by developing a profitable sales funnel using social media. It takes a marketing channel like Facebook ads, and turns leads from ads turn into appointments for the sales team, who subsequently convert appointments into customers.
A cosmetic surgeon is an example. Someone searching for a nose job might be shown an ad that offers the prospect a free report, ‘Five things no cosmetic surgeon will tell you about nose jobs’. Most of the report is useful information, but it also includes an offer for a free consultation. The prospect would be encouraged to contact the business to book the appointment.
Once a sales funnel is established the team directs traffic into the funnel from sources such as Google, YouTube ads or even radio campaigns, directing as many qualified people into the funnel and as many appointments as possible.
“We look at cost-per-lead per channel – what it costs to generate an appointment and how much it costs to acquire a customer,” Suby explains. This is in contrast to other digital marketing agencies, which might measure results in the number of likes or retweets a post gets, rather than using more commercial metrics.