Selecting the Right Advertising Agency
Here are a few considerations when deciding if an ad agency is right for you.
The mere thought of interviewing and selecting an advertising agency can be a pretty scary idea for a business that has never gone through the process . but it doesn't have to be. This article explores when it is appropriate to consider using an ad agency and some tips on how best to find the right match.
Do I Really Need An Advertising Agency?
The answer depends on how much time, energy and money you choose to put into marketing your company. Every company markets themselves in some fashion. Even if it is just a two inch ad in the yellow pages, you are marketing your company. For some companies, this is all they do. But if you run a company that plans to grow, what worked in the past may not work in the present, let alone the future. That's where having an advertising agency is helpful. New mothers shop at your store because you can provide your expertise to help them make important buying decisions. By the same token, ad agencies are experts at marketing and can provide a broad range of solutions targeted to growing your business. Most agencies will offer a free first interview to assess your needs and possibly make a few suggestions. This interview should be a two way street. It is also your opportunity to assess the advertising agency and see if they appear to be the right "fit" for you.
How To Interview An Advertising Agency
Ad agencies come in all shapes and sizes. Some are one person shops, while others boast 50 or more employees. Some specialize in consumer products and services, some specialize in business-to-business clients and some specialize in commercial retail. Some will even work with clients in all three areas. As you head a retail business, you would want an agency that has had experience helping retail-type accounts in the past. Obtaining case histories or success stories from them would be beneficial. When it comes to size, you may want to choose an agency that could borrow the motto of many banks today: "large enough to handle all of your needs yet small enough to provide personal service." You do not want to work with an agency so large they assign your account to the rookie account executive who may not know much more about marketing than you do; nor do you want to work with an agency that is so small they may not be able to offer the range of services you need. Finally, make sure your account executive is someone you like and can trust. Ultimately, we all prefer to work with people we like. As for trust, there is no substitute. If the interview leaves you with a bad feeling in your stomach, follow your instincts and call the next agency on your list.
How Do Advertising Agencies Charge For Their Services?
There is no single answer to this question. Every agency handles things a little differently, but you have every right to get the ground rules straight before the game begins. Ask about the agency's compensation method. Is it fee-based? Commission-based? A combination? Many agencies use a combination of fees and commission to derive their compensation. Fees would be charged for the creation and development of marketing pieces such as a print ad, a radio or TV spot, a brochure, a direct mail piece or a web site. Commission (typically 15%) is paid by various media to recognized advertising agencies. In other words, you might pay your agency $1,000 to run an ad in a magazine. The agency, in turn, places the space and pays the publication $850, earning $150 in commission. How does the agency earn that commission? Remember our discussion above about experts? Knowledgeable advertising agencies are experts at researching, planning, negotiating and buying the right media to meet your marketing objectives. The same holds true for renting the best direct mail list to hit the right targets in your marketing area or placing your advertisement on the right web sites. There is no magic in planning successful marketing campaigns. It is all a result of proper research and years of experience by trained professionals.
Many service professionals such as attorneys and accountants have the reputation for producing invoices that are not itemized and, therefore, difficult to analyze. Your advertising agency should not fall into this category. You should expect your agency to provide clear, itemized invoices for services rendered. Keep in mind though, unlike your business, advertising agencies do not have a "product" to sell. They are selling their time and ideas. Therefore, if you ask your agency to "toss a few ideas around" about a certain project, you should expect to receive an estimate and, ultimately, an invoice for that "tossing" regardless of whether the idea ever comes to fruition.
A Marriage Made In Heaven?
It has often been said that an agency/client relationship is like a marriage. After all, you tell your agency intimate details about your company you might not share with your best friend. But just as in real marriages, if one partner strays and starts "experimenting" with others, that all important trust is broken. How can you help assure a healthy marriage? Once you make your choice for an ad agency, give them a shot at all of your business. The more you pigeon hole your agency, the more you take a chance at fracturing that trust. Show your agency you trust them, and most agencies will return that trust many times over. It's a fact that the more your agency knows about your business, the better their recommendations will be. If they are only privy to one part of your company, they can only address that part. The most successful agency/client relationships last for many years and are based on true business partnerships.