When it comes to finding an advertising agency to suit small business needs, bigger is not always better.
The ad agency merger-mania that has gone on in North America over the past several years has certainly produced some jumbo agencies. Most of these large agencies, by the very nature of their size, are unable, uninterested or unwilling to seek or service smaller companies.
And for most small businesses this is a good thing!
This "Bigger is Better" mindset has produced real opportunity for smaller, more efficient agencies to show their skills in specialty fields and in servicing smaller and mid-sized clients looking for a more personal business relationship and shorter response times.
Small Fish Big Pond!
If you own or manage a small company that spends less than $250,000.00 on all forms of advertising including marketing materials, sales promotion, direct mail, point of sale and electronic media…don't hire a large agency.
Chances are a larger, full service agency will spend a lot your hard earned money on overhead and assign junior staffers to your account. They will complain because they can't make money on your business and you won't be satisfied with the service.
By the same token, effective advertising… like all forms of corporate communications…should not be undertaken by amateurs. Don't try this at this office! So what to do?
The Quandary
Smaller businesses need marketing and communications counseling just as much and probably more than many large companies. Success lies in matching your needs to an agency that is large enough to be effective, yet small enough to be economically efficient.
What do you need?
Before you go shopping for agency help, you should determine your real needs. Dedicated agencies and good communications are usually the result of savvy clients.
Know Yourself…Your Business…and the Industry You Are In.
The more you know and understand your business needs the better you are able to communicate this information to your proposed agency. The more they understand…the better the work they'll do for you.
Develop a Briefing Paper.
To get your agency up and running quickly, it is a good idea to prepare a background briefing highlighting market size, competitors, market leaders, industry practices, trade associations and (don't be modest) your own strengths and weaknesses. Some companies do this on an annual basis to sharpen their focus and help plan for the challenges that lie ahead.
Once you have decided on an agency share everything you have with them including your business plan, previous advertising activities (and results) and any strategy plans if you have them. Your agency can't work without this information and if they don't get it from you, then they'll get it on their own…and charge you to do it!
O.K. So How Do I Find and Agency?
Ask a business associate.
Consult an advertising directory.
If you are a member of a Board of Trade or a Chamber of Commerce, then ask either the executive or a fellow member.
Call an association.
Find out who does the type of work you have seen and liked.
Check the Internet.
Ask someone in the business.
Talk to several agencies with different specialties: production, media planning, event management, Internet solutions, and print expertise.
Good Idea! So Who Gets the Work?
Match the agency to your needs. When you have determined your communications needs and have "interviewed" the agencies on your list, you will be in a better position to make a decision on who does your work.
Ask to review their work and the results…ask for references…talk to several of their current clients…talk to their competition. Be thorough…it's your money!
Some companies pay two or three agencies to develop a pre-determined project, then choose the agency that submits the best program.
Retainer or Project Billing of Other?
Enough books have been written on billing systems to fill a modest library. At one time most agencies billed clients by marking up outside services and by receiving 15% discount for all media placements.
Today, this system has all but disappeared. Fortunately for both sides no hard and fast rules remain. Many agencies today are paid by project, on work done and on pre-determined costs established for any agency personnel working on the account. Don't be too shy to ask up front the cost of any work your agency proposes.
Needless to say, you should only pay for the services you receive at pre-determined rates. Don't ask your agency to embark on any project without giving the people involved a full briefing, then ask for a cost estimate before allowing them to start.
The Power of Partnership!
When you have decided on a company to manage your communications needs treat the relationship like a partnership. With the right arrangement the priority for both parties is your company's performance. As you grow and prosper your agency grows and prospers.
Rod Feller, Editor/Publisher
*Find out more about advertising and agencies by visiting a good reference library, a business bookstore or check the Internet under Advertising/Marketing.
