#89 David Ogilvy Confessions of an Advertising Man

In "Confessions of an Advertising Man," David Ogilvy candidly recounts his unconventional journey from an ambitious, argumentative student to a world-renowned advertising executive. Disinherited for potential wealth, Ogilvy's eclectic early career ranged from chef to farmer, until he ultimately founded his own agency, Ogilvy & Mather. He attributes his success to hard work, extensive research, and a commitment to excellence, rejecting mediocrity and conventional teamwork in favor of individual creative genius. Ogilvy's approach to advertising prioritizes clear communication, candid advice, and advertisements that sell without drawing attention to themselves. His philosophy, emphasizing knowledge over ignorance and talent over toadying, propelled his agency's revenues to surpass even those of the British government. Ogilvy's insights, shared with both humor and gravity, offer timeless guidance for aspiring professionals in any field.

• David Ogilvy's mother was Irish and disinherited him, believing he would acquire ample wealth without her help.
• At age nine, he attended an aristocratic school in Eastbourne, where he was noted for his originality and tendency to challenge authority.
• He later attended a Scottish school with strict disciplines established by his great uncle.
• Ogilvy went to Oxford but was expelled for lack of effort during the 1931 depression.

"At the age of nine, I was sent aboard at an aristocratic school in Eastbourne. The headmaster wrote of me, he has a distinctly original mind, inclined to argue with his teachers and to try and convince them that he is right and the books are wrong."

This quote highlights Ogilvy's early display of original thinking and his propensity to challenge conventional wisdom, traits that would later define his approach to advertising.

• Before advertising, Ogilvy had a variety of jobs including chef in Paris, door-to-door salesman, social worker, research associate for Dr. Gallup, assistant in British security, and farmer in Pennsylvania.
• He expected to become prime minister but instead became an ad agent on Madison Avenue, surpassing the revenue of the UK government with his 19 clients.

"I adventured about the world, uncertain of purpose. I was a chef in Paris, a door to door salesman, a social worker in the Edinburgh slums, an associate of Dr. Gallup in research for the motion picture industry, an assistant in british security coordination, and a farmer in Pennsylvania."

This quote encapsulates Ogilvy's diverse experiences prior to his advertising career, suggesting that a varied background can contribute to a successful career in advertising by providing a wide range of perspectives and skills.

• David Ogilvy is known for his book "Confessions of an Advertising Man" and for his advertising agency, Ogilvy & Mather.
• Warren Buffett praised Ogilvy as a genius and invested in Ogilvy's agency.
• Ogilvy's agency was initially doubted by Americans but quickly became a success.
• He wrote "Confessions of an Advertising Man" to attract clients, condition the market for public offering, and increase his fame.
• Ogilvy's confidence and expertise in advertising are evident throughout his work.

"My agency was an immediate and meteoric success."

This quote reflects Ogilvy's self-assured nature and the swift success of his advertising agency, highlighting the impact of his confidence and skill on his professional achievements.

• Ogilvy believed in the importance of specializing in one craft, attributing his success to being exceptionally skilled in advertising.
• He was critical of institutionalized learning and valued self-directed learning and specialization.
• Ogilvy's approach to advertising was rooted in research and understanding consumer behavior.

"I am a miserable duffer in everything except advertising... But when it comes to advertising, advertising age, this is a publication, says that I am the creative king of advertising."

This quote emphasizes Ogilvy's belief in the power of specialization, acknowledging his limitations in other areas while asserting his dominance in the field of advertising.

• Ogilvy had a set of principles, or 'Ogilvyisms', that he repeated to instill his agency's culture.
• He emphasized the importance of selling, interest over boredom, knowledge over ignorance, big ideas, and the inefficiency of committees.
• Ogilvy discouraged haggling over agency compensation, focusing instead on sales results.
• He believed in the value of studying the product and promising consumer benefits.
• Ogilvy noted the similarity of human behavior across countries and the importance of simplicity in campaigns.
• He stressed the longevity of good campaigns and the constancy of human nature.

"We sell, or else."

This quote succinctly captures Ogilvy's core principle that the ultimate goal of advertising is to sell products, and all efforts should be directed towards that end.

• Ogilvy applied lessons from various professions to his advertising agency management.
• He observed high standards and the value of rare praise from a head chef in Paris.
• Ogilvy advocated for hiring competent professionals and setting high service standards.

"Mr. P taught me exorbitant standards of service. For example, he once heard me tell a waiter that we were fresh out of, it's a french dish."

This quote demonstrates how Ogilvy translated high standards of service from his experience as a chef into his advertising agency practices, ensuring excellence in all aspects of his business.

• The importance of fulfilling what is promised to the customer, even if it requires extra effort due to unpreparedness.
• The responsibility of a business to avoid penalizing customers for its own mistakes.
• Ensuring customer satisfaction by delivering the promised benefit, regardless of internal challenges.

"We're making a promise to the customer by putting this dish on the menu, and it's our fault that we were not prepared."

This quote emphasizes the accountability of a business to deliver what is promised, highlighting the commitment to customer satisfaction and the ethical responsibility to rectify internal errors without impacting the customer.

• Being indispensable to a client ensures job security.
• The value of being so integral to a client's operations that they cannot afford to let you go.

"If you can make yourself indispensable to a client, you will never be fired."

The quote underscores the concept of making oneself so valuable to a client that they would not consider terminating the relationship, thus ensuring job security.

• The primary responsibility of a company's leader is to create an environment where creative individuals can thrive.
• The importance of hiring talented people and allowing them to work independently without micromanagement.

"Hire people who are better than you are and then leave them to get on with it."

David Ogilvy suggests that leaders should recruit highly capable individuals and trust them to perform their roles, fostering a culture of independence and respect for talent.

• The role of a leader in shaping company culture through consistent communication of values and expectations.
• The importance of hard work, intellectual honesty, and professional growth within an organization.
• The negative impact of nepotism and workplace politics on company culture.

"Once a year, I assemble the whole brigade [...] and give them a candid report on our operations, profits and all."

David Ogilvy describes his practice of transparently sharing company performance with employees, reinforcing the company's values and promoting a culture of openness and hard work.

• The preference for pursuing excellence in service rather than merely expanding the size of the company.
• The challenges and rewards of focusing on quality over quantity.
• The similarity in the anti-bureaucracy sentiments between David Ogilvy and Warren Buffett.

"The pursuit of excellence is less profitable than the pursuit of bigness, but it can be more satisfying."

This quote reflects David Ogilvy's philosophy that striving for high-quality work is more fulfilling than simply aiming for a larger organization, even if it may be less profitable.

• The belief that talent is often found among nonconformists and those who challenge the status quo.
• The importance of keeping an open mind and nurturing curiosity to foster creativity.
• The role of a leader as a formidable individual who can inspire and direct a creative organization.

"Talent, I believe, is most likely to be found among nonconformists, dissenters and rebels."

David Ogilvy expresses the idea that true talent and creativity are often found in those who think differently and challenge conventional wisdom.

• The power of setting ambitious goals, even if they seem delusional at first.
• The success story of David Ogilvy's rise from an obscure tobacco farmer to the head of a leading advertising agency.
• The strategy of targeting desired clients and working towards securing their business.

"We are going to make it a great agency before 1960."

David Ogilvy demonstrates the importance of setting specific, ambitious goals, as he did when establishing his own advertising agency with a clear timeline for success.

• The cyclical nature of businesses becoming complacent and being overtaken by new, ambitious competitors.
• The inevitability of change and opportunity in the business world.

"Once every few years, a great new agency is born."

This quote captures the essence of the business cycle, where established companies may become stagnant, providing opportunities for new, dynamic businesses to emerge and succeed.

• The effectiveness of personal solicitation and providing value to potential clients.
• The importance of being proactive and resourceful when starting a new business with limited resources.

"Following Henry Ford's advice to his dealers, I started by soliciting advertisers who did not employ an agency at all."

David Ogilvy shares his approach to acquiring his first clients by personally reaching out to advertisers without representation, following the advice of Henry Ford.

• The significance of taking the responsibility of managing client accounts seriously.
• The approach of treating the search for new clients as a sport, to avoid stress and enjoy the process.

"Handling accounts, once you have got them, is deadly serious business."

David Ogilvy stresses the gravity of managing client accounts responsibly, while also advocating for a light-hearted approach to seeking new business opportunities.

• The value of having a point of view and not fearing the loss of big accounts.
• The belief that fear can undermine the ability to give honest advice and lead to subpar performance.

"I have never wanted to get an account so big that I could not afford to lose it."

David Ogilvy explains his philosophy of avoiding dependence on any single client to maintain the freedom to provide candid advice and maintain integrity in business practices.

• The ripple effect of setting high standards in one area of business on the entire organization.
• The importance of acknowledging imperfections and building trust through honesty.

"I always tell prospective clients about the chinks in our armor."

David Ogilvy advocates for transparency about a company's weaknesses, believing that this honesty can build trust and confidence among clients, similar to the strategy of an antique dealer pointing out flaws to win a customer's trust.

• The effectiveness of advertising can be significantly influenced by small changes.
• A change in a headline alone can boost sales significantly.
• Television commercials can vary greatly in effectiveness, even when created by the same person.
• Advertising has the power to increase or decrease product sales.
• Bad advertising can have a detrimental effect on product sales.

"Mail order advertisers have found that a mere change of a headline can increase sales ten times. And I've seen a television commercial sell five times as much of a product as other commercials written by the same person."

This quote emphasizes the importance of headlines and the potential variability in the effectiveness of advertisements, even when produced by the same creator.

• Advertising agencies face challenges in making profits.
• Traditional commission systems may not be the most effective for agency profitability.
• The flat fee system may offer better results for both agencies and their clients.
• Incentives play a critical role in the relationship between agencies and clients.

"It has become increasingly difficult for agencies to make any profit at all. On every $100 spent by agencies on behalf of their clients, they now make an average profit of rate. The game is hardly worth the candle."

This quote highlights the financial difficulties faced by advertising agencies under traditional commission-based fee structures.

• Incentives are crucial for aligning the interests of agencies, clients, and shareholders.
• Agencies may not provide objective advice if their profits are tied to commissionable advertising.
• Aligning incentives can lead to better outcomes for all parties involved.

"It is unrealistic to expect your agency to be impartial when its vested interest lies wholly in the direction of increasing your commissionable advertising."

This quote points out the conflict of interest that arises when agency profits depend on commissions from specific advertising channels.

• Warren Buffett aligns his incentives by investing significantly in his own company.
• CEOs with substantial personal investment in their companies are more likely to make decisions that benefit all stakeholders.
• Understanding and studying incentives is important for predicting behavior.

"Warren put 99% of his net worth in his company. His incentives were in line."

The quote illustrates the concept of having "skin in the game," where personal wealth is tied to company performance, ensuring aligned incentives.

• Clear communication is essential for effective client-agency relationships.
• Clients should provide direct feedback to their agencies to improve advertising quality.
• Setting high standards and praising exceptional work can lead to better outcomes.

"Speak your mind loud and clear. Disastrous consequences can arise when a client pussyfoots in his day-to-day dealings with his agency."

This quote underscores the necessity for clients to communicate clearly and directly with their agencies to avoid misunderstandings and poor advertising results.

• Time is a critical factor in profitability.
• Quick action and regular review can lead to faster success.
• Emulating successful approaches can be beneficial.

"Most big corporations behave as if profit were not a function of time."

This quote criticizes the common corporate disregard for the importance of time in achieving profitability.

• Genius is rare and often comes with difficult personalities.
• It is important not to stifle creative individuals, as they can provide tremendous value.

"Mediocrity knows nothing higher than itself... Tolerate genius."

This quote suggests that while genius may be challenging to manage, it is crucial for innovation and success.

• The goal of advertising is to sell the product, not to draw attention to the advertisement itself.
• Effective advertisements focus the consumer's attention on the product.

"A good advertisement is one which sells the product without drawing attention to itself."

This quote defines effective advertising as that which emphasizes the product rather than the creativity of the ad itself.

• Studying successful practices in one industry can provide valuable insights for application in another.
• Mail order advertisers, due to their direct feedback loop, offer particularly useful lessons.

"First I study from the experience of mail order advertisers. This is the elite core of advertising."

The quote highlights the value of learning from mail order advertisers, who have a clear understanding of advertising effectiveness due to the direct response nature of their business.

• Ambition and extensive knowledge in one's field can accelerate career progression.
• Going above and beyond in research and understanding can set individuals apart.
• Teamwork is not always the key to successful advertising; individual contributions are often critical.

"Set yourself to become the best informed man in the agency on the account to which you are assigned."

This quote advises individuals to become experts in their area, suggesting that deep knowledge and ambition are the keys to career success.

• Individuals who excel in their roles and are unique in their abilities become irreplaceable.
• Being the best and only person at what you do provides job security, even during economic downturns.
• Differentiation from the majority is key to maintaining employment in challenging times.

"You become immune to the threat of dismissal in times of scarcity."

This quote emphasizes the value of being exceptional and unique in your job role, as it provides a level of security against being laid off during economic hardships.

• Josh Wolf, an investor with a unique mindset, focuses on investing in areas with high scientific and technical complexity.
• The rationale behind this strategy is to avoid competition by tackling difficult challenges.
• Seeking competitive advantage through complexity is a counterintuitive approach that can attract talent and resources.

"He's like, we want really high scientific and technical complexity, and this is the main point. Why would you do that? Not because we want to tackle things that are really hard. It's because we don't want competition."

The quote outlines Josh Wolf's investment strategy of pursuing complex ventures to avoid competition and create a competitive advantage.

• Undertaking challenging tasks can be easier than perceived because they deter competition.
• Attracting dedicated talent to a unique and difficult venture can be simpler due to the lack of alternatives.
• Making life intentionally more challenging can be beneficial, as it leads to personal growth and less competition.
• The example of Elon Musk and SpaceX illustrates the point that high barriers to entry can be advantageous.

"If you're doing something truly unique and truly, really hard, it means it's still going to be really hard. But it's probably easier than other people think, because you can attract talent and resources to the one thing you're doing."

This quote explains that the difficulty of a task can be mitigated by the ability to attract dedicated talent, which is easier when there are few competitors in the field.

• David Ogilvy suggests that doing extensive research and work can set one apart from competitors.
• By going above and beyond, such as writing a 167-page report instead of a 5-page one, an individual can distinguish themselves and reduce competition for advancement.
• The desire to avoid competition motivates individuals to take on more challenging tasks.

"He's not doing that because he wants to make his job harder. He's doing that because he doesn't want competition."

The quote highlights that the motivation behind undertaking more work than necessary is not to increase difficulty, but to stand out and reduce competition.

• David Ogilvy shares various aphorisms that encapsulate his beliefs and principles.
• The aphorisms cover topics such as the value of hard work, simplicity in ideas, honesty, and treating people well.
• These aphorisms are intended to provoke thought and can be applied to various aspects of life and work.

"Men die of boredom, psychological conflict and disease. They do not die of hard work."

This aphorism suggests that hard work is not detrimental to one's health, contrary to other factors such as boredom and stress.

• The podcast relies on voluntary support from its listeners.
• A unique approach is taken by offering half of the podcast episodes for free and charging for the other half.
• The "Misfit feed" is a premium offering for those who value the podcast and want to ensure its continuation.
• There is also a separate offering, "David's notes," which provides distilled insights from various talks and lectures.

"I put a lot of damn work into this. There's hours and hours and hours of preparation I have to do before I sit down to record."

This quote explains the effort that goes into producing the podcast and justifies the rationale behind offering premium content for those who wish to support the work financially.

• The podcast plans to cover books influenced by Warren Buffett and Charlie Munger in the coming weeks.
• Books such as "Poor Charlie's Almanac" and Jim Clayton's autobiography will be discussed.
• The podcast aims to provide in-depth knowledge about entrepreneurship and the wisdom of successful individuals.

"I think if you just listen to that, it would pay for years of the subscription fees for the misfit feed."

The quote suggests that the insights gained from the upcoming podcast episodes will be valuable enough to justify the cost of subscribing to the premium content.