Info_.gif (4148 bytes)
AGENCIES: To Hire or Not to Hire

Many small businesses think they can save money by doing their own advertising. They believe that if they buy a computer and graphics software, they can do their own creative work in-house. Also, you may have a person on staff with a creative flair, but unless that person's primary job function is to handle the advertising and is an expert in that area, it may be better to go "outside" for help.

Before hiring anyone, decide what you are trying to accomplish. Do you need marketing help? Do you have someone to handle the marketing and you need only the creative? Will your advertising be occasional, or will your efforts be constant and require a fulltime overseer to implement and manage the campaigns?

Choosing an ad agency is like selecting any other company with which you want to do business. Review their most recent work, call their existing clients and interview all of the people who would be handling your account; account supervisors, media buyers, creative directors. Remember, you may meet with the president on the agencies initial pitch, but an intern may be assigned the actual work.

Whatever you do, don't hire an advertising agency based on how many times you have read about them in the paper. It does not mean they do great work - it could mean they spend all their time on PR for themselves.

If your decision is to retain an Advertising Agency, find one that has some experience in your industry. Look for one that is not too big for you. Don't let your ego get in the way and hire an agency just for their name. If they're too big, the attention paid to your account will be minimal, with your business taking the back burner to their major clients. Find an agency where you would be one of its largest clients. You will then be most likely to get the best service.

The expertise of the ad agency should match your needs. If your thrust is going to be the print medium, for example, go with a graphics heavy firm. Radio and Television - select an agency with broadcast experience. Except in the largest cases, rarely does one agency truly specialize or have experienced personnel in all areas of advertising.

Ask about awards and other honors received by the agency. While they should never be a prerequisite of who you select as your agency, they do help to recognize and identify those that have received recognition in a particular medium. Also, listen to their pitches carefully. If the agency spends most or all of their time talking about radio, for example, this is probably where they feel most confident and have the most expertise.

If you hire an agency, trust them to make the decisions. If you meddle with the plan or don't allow sufficient time for it to work, you're not doing the agency justice. Of course, if after a reasonable amount of time, the measurable results are not satisfactory, modify the direction of your advertising or change the agency. Remember, it's your money, your business and your future that is on the line. If you are not satisfied, let your voice be heard.

Ad agency profits are obtained primarily from commissions earned on placement dollars. With broadcast media, this commission is usually built-in to the cost. Print ads most often are billed net, and the agency commission is an add-on. While 15% is the industry accepted standard, you can sometimes negotiate for a smaller agency commission. The benefit to you is the extra discount on the dollars spent for your advertising. The downside is that you might lessen the interest, attention and service the agency affords your account because they aren't getting their full rate.

An Advertising Agency isn't the only choice available to offer advertising assistance.

Consultants. A marketing professional who is a specialist in your industry. It could be someone who recently retired, was downsized, or left the corporate environment to work as an independent practitioner. They can tell you what has worked (and not worked) in your industry and why. They also will know the details of production such as where to get materials created as well as the costs involved. They could pay for themselves just by knowing how to negotiate with printers, the media and others, securing the best prices available.

Media Buyers. An individual or firm that is hired specifically to plan your marketing strategy and negotiate/place your advertising. Sometimes they can also offer creative assistance by supplying names of freelance professionals.

Note: With both Consultants and Media Buyers, it is best to pay them a project fee or an hourly rate in lieu of mark-ups or commissions. You should also make arrangements to pay your media bills directly. This will enable you to take early payment discounts and have some control over the vendors.

Navibtn1.gif (624 bytes)

Contact Us | Terms of Use | Help | Company Info

Copyright © 2001 Lambis & Associates. - All rights reserved.