Marketing and Business 101

Selecting an Ad Agency

Agencies that have received various awards for creative advertising will tell you how important it is to select an agency that has won awards. The award is validation of their effectiveness and success in creating advertising that works. Those who have not won any awards will tell you that awards don't count.

Awards are based on peer review. They are not based on how effective the ad was - they are based on what others in advertising think of the ad.

Industry awards are an indicator of an agencies creative talent and ingenuity, not of its marketing or advertising effectiveness. I do not have any awards, even though one of my marketing ideas has created national recognition and attention for a local company, and is the basis of their marketing effort.

Why don't I have an award? Because I have never submitted anything to be judged. Like a beauty contest, you have to enter yourself, and I've never taken the time to enter. If I had an award I'd be sure to tell everyone, peer approval is important - but client satisfaction is more important.

So how do you find an agency? You could go to the phone book, call everyone listed and have each of them send out a representative. That is probably a complete waste of your time, although you might come across a small firm that is a real gem. Look for ads you really like, and those you really can't stand. Call the company who the ad is for and find out who is producing their advertising, if there is a pattern in that one or two agencies are producing the ads you can't stand, then you know who to avoid. By the same token if a few agencies are producing the ads you really like, you know who to talk to first. If an agency is doing one great ad, and four lousy ads I'd call them last.

When you call the company to find out who their agency is, try and talk with the person at the company responsible for dealing with the agency. Find out what they think of the agency, are they easy to work with, are their rates fair (don't ask for specific rates, that's rude), how long have they been using them, and are they in general pleased with the results of the advertising? If you have friends in other businesses, ask them the same questions about their agencies. You should get some very straight and insightful information.

Once you have narrowed the list down to two or three agencies, then call and ask to meet with them. Let them come to you, it gives you more control over the situation and gives the agency contact better insight about you and your company.

Have an advertising budget figure in mind, and be willing to share that figure with the agency. Some firms may not be willing to take you unless you are willing to commit to a set minimum figure. After all, they are in business just like you and sometimes they need that minimum commitment just to be profitable. (This is especially true for the large agencies.) On the other hand, your budget figure may be too unrealistically low for any agency, and you need to know that too.)

Set aside 1 1/2 to 2 hours for the meeting. If you really hit it off the extra time will be useful for outlining strategy and learning about each other. If you've written the agency off after 20 minutes, I'm sure you can find something to do with the extra time. Be prepared to show every rep around your facility, if you have copies of old ads show them. Let them know what worked and didn't work. What you liked, and didn't like about previous ads. Give them plenty of information so they can provide you with their best effort. It also keeps them from making the same mistake - saving everyone time and money.

Assuming that no one firm jumps out at you as the best, invite each of them back in one week to present a proposal. Some firms will charge for the creative time in putting together a proposal, some won't; you need to find out in advance. If they are going to charge, then get a pre-set limit on the total charge. If they come in under that agreed to limit, put a star by their name - that usually means they take your money as serious as they take their own.

Once you have seen and heard the presentations you can either choose one of the companies, or look at still other agencies, or write the whole thing off as a waste of time. While that last choice may seem tempting at times, you really do need to advertise; and surprising as it may seem, agencies (big and small) really do know their business. Trust them, but don't give them caret Blanche.