Altered State
About the Company
Altered State Productions is a full-service digital marketing agency that provides a comprehensive range of marketing services. The company's offerings include branding, art design, email marketing, video production, and digital marketing, catering to both business-to-business (B2B) and business-to-consumer (B2C) clients. Altered State Productions stands out as a one-stop shop for marketing needs, simplifying the process for businesses and brands to access high-quality marketing services. The company has made a significant impact by serving diverse industries, from startups to Fortune 500 companies, with a focus on key markets like Dallas, Los Angeles, Las Vegas, and New York.
Altered State Productions is known for its expertise in producing engaging video media for e-commerce brands, particularly for paid media channels such as connected TV (CTV), out-of-home advertising (OOH), and social media. This specialization has helped the agency build a strong reputation for delivering creative media that resonates with audiences and drives results for its clients. The agency's success is supported by collaborations with esteemed clients like New York Style Fashion Week, Dallas Blends, Samsung, Welks Resorts, and Valyou Furniture.
The agency's clientele consists of business-minded professionals and startups seeking content and marketing services across various industries. Altered State Productions' innovative approach and exceptional service quality have driven demand for its offerings, positioning the agency as a leader in the creative marketing space.
Idea Behind Company
Eddie Castillo's fascination with media placements and commercials began in his childhood. He was captivated by Super Bowl commercials, theater trailers, and billboards during long drives. Eddie's interest in media led him to experiment with video cameras, creating short films and improv skits with his brother. This early passion for media taught him the value of hard work, creativity, and investing in his instincts. These formative experiences fueled his ambition to excel academically, participate in student council, manage a job, achieve Eagle Scout rank, and attend Texas Tech University.
Eddie's career path led him to work in commercial print companies for major liquor vendors and take on freelance projects. During this time, he identified a common pain point for business owners: the cumbersome process of finding new service providers. This realization, coupled with his business partner's entrepreneurial vision, inspired Eddie to create a more efficient way for companies to access marketing services. They envisioned a Service-as-a-Product (SaaP) model that would allow businesses to quickly and easily shop for marketing services, akin to the convenience of ride-shares and online retailers.
The SaaP model introduced by Altered State Productions offers transparency, providing clients with clear information on pricing, the scope of work, timelines, and return on investment. This approach empowers businesses to make informed decisions about their marketing needs with just a few clicks. Eddie's innovative mindset and dedication to simplifying the marketing process have been integral to the agency's success and growth in the industry.
Creating the Company
Eddie Castillo embarked on creating Altered State Productions by leveraging his freelancing experience and portfolio, which he recognized as his most valuable asset. To build the first version of the Service-as-a-Product model, Eddie began by defining his target market, identifying their needs, and researching competitors to identify opportunities for differentiation. He developed detailed product offerings and pricing structures, ensuring transparency about the costs and value provided to customers. Testing and refining the offerings based on customer feedback helped ensure the business met clients' needs and operated sustainably.
Initially, the agency relied on a manual process, involving face-to-face meetings, shoot days, and a 30-day turnaround for video editing and delivery. To establish a comprehensive portfolio, Eddie collaborated with artists, offered free services to gain experience, and gathered his best work. This effort allowed him to gain field experience and refine the process of discovery, production, and distribution.
As the agency grew, it developed a more efficient workflow, providing clients with a selection of video media, export options, and additional services such as influencer collaborations and media buying. A member portal streamlined the customer experience, allowing clients to access marketing services easily. Despite lacking venture capital, Altered State Productions thrived by reinvesting revenue into the agency, utilizing savings, and focusing on providing high-quality services to attract and retain clients.
Launching the Business
To launch Altered State Productions, Eddie Castillo focused on assembling a talented team of marketers, creatives, and technicians who shared his vision and values. Collaborating with Dallas' finest producers, the agency aimed to bring creativity and expertise to the marketing industry. Establishing a strong brand identity, including a business name, logo, website, and social media presence, helped build credibility and reach potential clients.
The agency's financing strategy involved reinvesting 80% of revenue into the business and combining personal savings. Eddie considered crowdfunding platforms like Kickstarter but opted against them. Instead, the agency focused on creating a user-friendly e-commerce platform, enabling customers to easily browse and purchase services with clear expectations regarding performance indicators and deliverables.
The launch process highlighted the importance of a strong online presence and building a supportive network of partners and advisors. By offering a range of payment options, maintaining high-quality service, and prioritizing customer satisfaction, Altered State Productions established itself as a trusted partner for businesses seeking marketing solutions. The agency's commitment to excellence and adaptability has driven its steady expansion and success in the competitive marketing landscape.
Earnings
Altered State Productions has experienced significant financial success, with a 30% increase in operating income for the quarter and a 5% rise in gross profit, resulting in record-high operating margins. This growth was achieved despite a decrease in orders, offset by a 40% increase in Average Order Value from the previous year. Since its founding nearly four years ago, the agency has gained a reputation for captivating designs, polished branding, and expert media marketing, expanding its reach and cultivating relationships with affiliates and emerging talent.
The recent launch of a marketing e-commerce store allows customers to purchase services a-la-carte, similar to ordering on "Uber Eats," enhancing transparency and customer experience. Altered State Productions' innovative approach has generated a quarter billion dollars for brands and partners worldwide, solidifying its position as a leading agency in the marketing industry.
Through starting the business, Eddie learned valuable lessons about balancing personal and professional life, managing finances, and leveraging partnerships to drive success. His decision to become a certified agency partner with SEMRush has provided high-quality leads with clear purchase intent, contributing significantly to the agency's success. Hiring an assistant and building a supportive team of marketers have allowed Eddie to scale the business, while taking calculated risks, such as running a successful Snapchat campaign, has further propelled the agency's growth and reputation in the market.
