There may come a time when your agency's communications needs exceed the capabilities of in-house personnel. You want to concentrate on producing new business, developing products, and servicing clients. Who has the time and expertise to create newspaper or radio advertising-or perform the myriad public relations functions necessary to keep your agency in the public eye?
So you turn to the advertising/public-relations agency. A good move-but buyer beware! There's nothing more unproductive than investing thousands of dollars into an ad campaign that doesn't work-or worse, does more harm than good. You need a mutually beneficial partnership with an ad agency that's going to produce new business for your firm for years to come.
I asked my good friend, John Graham, President, Graham Communications, 'How can a medium-sized insurance agency make the right decision in contracting and working with an advertising and public-relations firm?' John responded with these five key questions to help you make the right choice.
1. Does the firm know marketing?
This is the most important question of all. If you go to an advertising agency, you're going to hear about the importance of advertising. If you go to a public- relations firm, guess what's in store? Should you meet with folks from a direct-mail house, you can imagine what you're going to be sold.
The fundamental issue isn't advertising, public relations, or direct mail. It's marketing. This involves understanding your goals, your problems, and your opportunities, then developing a specific program to meet these needs- not those of the ad agency, the PR firm, or the direct-mail company.
In the final analysis, you want a firm that specializes in marketing, that will implement a program including advertising, public relations, and direct mail.
2. Who will be working with us?
The person from the agency who will work with you is of utmost importance. The ad agency may have a great organization, but the individual assigned to you is the key, as far as you're concerned.
From the ad agency's perspective, a small account means lower billings. Translation? A lower paid, far less experienced person (sometimes a total neophyte) may become your account executive. Quickly, you'll discover that the program is on the road to nowhere-but you're still getting the bills!
Other ad agencies recognize that the most efficient way to serve smaller clients is to use experienced account executives. Because they know what they're doing, they can get the job done quickly and correctly the first time. So find out who will be working with you!
3. What's it going to cost?
This question should be directed to the owner of the ad agency. First ask yourself, 'How much am I willing to invest to market my business correctly?' The emphasis is on 'correctly.'
No ad agency should have a blank check. Before anyone begins working, ask for a plan and estimated cost. Then, agree on what you're going to spend during the next 12 months.
At the same time, ask what the ad agency could offer in guidance when it comes to a budget. If the agency concludes that it must wring every dime out of you, it is not working with your best interest in mind.
A realistic budget results directly from setting specific goals and objectives. We all know there's a relationship between results and budget!
4. What are they going to do?
Caution: If the agency recommends producing a whole series of ads, creating a new logo (they will call it 'a new look'), printing a big brochure, and preparing several direct-mail pieces, all at the beginning, watch out! In fact, stop. Simply don't let it happen unless you're prepared to pay the price. This 'front load' technique gets the agency in fast to do all the work, and then get out. The agency that takes this approach isn't going to be with you long enough to provide continuing counsel and guidance.
An effective marketing program unfolds over a period of time. It may change and be recast due to altered conditions or new opportunities. In effect, it expands and builds. The impact increases. In the same way, the cost of the program will be spread over a longer period of time. This indicates that an ad agency is 'living with you.' There are regular meetings and continuing discussions. Ideas are reviewed. New plans are made. This is what you want- your ad agency to become your business partner.
5. What kind of results can we expect?
This is, perhaps, the most crucial question of all. Results from marketing should be cumulative. Nothing happens overnight. It is naive to expect calls after one advertisement. This isn't what a marketing effort is all about.
Here's the point: The goal of an effective marketing program is to be there when the customer is ready, so that you get the business, and not your competitor. Marketing is a process of creating the proper climate so people will want to do business with you. Give it a chance, and you'll get positive results that will benefit your business for many years. End of story.
If you ask these five questions, and listen carefully to the answers, you'll eventually find an agency that understands you and your business; an agency with which you will feel comfortable working.
A final word about getting started with a new agency: It's not necessary to accept every idea the ad agency suggests. However, treat the agency contacts as experts. They may not know as much about your business as you do, but they know more about marketing-and this is why you're hiring them.