Choosing the right advertising agency
Nov 16 2010
Small and medium businesses have the other extreme situation: Most agencies are not interested in their account for the simple reason that their billing will not be much to justify the high overheads. So, how does one go about choosing the right agency?
Reviews in the past several years are one good measure to start with. The reasons why agencies are fired are seldom related to the reasons they were hired in the first place.
There has been some studies in this direction abroad and let me share some of the findings in this respect: Things such as "outstanding creative product" and "strong marketing strategy" were generally at the top of any client's wish list when looking for an agency. However, when it came to terminating an agency, it usually was not because the agency had lost its creative spark or strategic edge.
It is more likely to be things such as poor administrative practices, bad chemistry, or lack of responsiveness that gets an agency fired. Ad industry's trade journals are full of examples of agencies being fired by clients for whom they had just garnered top creative awards. It just is not fair is what they all cry! Perhaps. Perhaps not.
I have written about creativity that wins awards but fails to move products. In fairness to awards committees, it usually is not possible to tell if an ad that appears to be very creative actually is.
Was it, in fact, well received by targeted prospects in that advertiser's selected markets? You have to know the target audience's motivations and then spend time developing messages to appeal to motivations.
This leads us to the first rule in search of a new ad agency.
Do not ask for spec creative: I would call this "drive-by creative" because it typically has a lot of snappy headlines and quick visual puns, but the messages are poorly aimed and only skin-deep. Rarely is spec creative used after a new agency is appointed, and in most cases, it does not really enter into the decision-making process.
When I was on the other side of the fence with an agency, my boss used to tell the creative group working on a new-business pitch, "Don't do ads to sell the product, do ones that will get us the business." Now that is being honest. Many agencies do not even do the spec ads themselves.
Freelance talent is hired to do the work because unless the agency just lost a big account, it probably does not have a lot of people who are benched.
Do not rush the selection process: You need to allow 10 to 12 weeks for the selection process in order to do it right. When I consult for a company on choosing a good agency for them, I first spend one to two weeks interviewing client brand/top managers to assess their needs. Then I spend another week or so developing a preliminary list of 7 to 10 agencies that might fill the bill.
I then telephone the agency principals to assess their interest and to check for possible conflicts before narrowing the field to no more than three finalists. People feel some sort of perverse moral obligation to include the current agency, but the fact of life is the chances of being re-appointed are slim.
If they were doing poorly enough to provoke an agency review, the kindest thing you can do is redirect their energies toward finding new business elsewhere. There are exceptions to this such as the times when you want your current agency to refocus on your business with more vigour.
A review would normally scare any agency to fall in place. Another exception is for industry associations or government accounts that are required by law to conduct periodic agency reviews. Then the incumbent should be included, provided the client is satisfied with its work.
Focus on strategic issues: Third, brief the prospective agencies on a short list of key strategic issues the client and agency will need to face, and ask for final presentations based on how those issues should be addressed.
This changes the selection process from a subjective, creative shoot-out to a business-based discussion of core strategies. The consultant should be present during these briefings to ensure all finalists are treated equally. There are no magic bullets.
You should not search for any, and you certainly should not
put yourself in the position of selecting a new agency based on
its creative aura.
An extended discussion of strategic business solutions will show you how an agency thinks, and that is ultimately what you are buying. A creative hot shop is chosen only for short durations and that too when you know very well about your strategy.
One cannot expect strategic inputs from creative agencies such as Rubecon, which is focused on creative work.
How much should a client expect to pay for a service to an agency selection consultant? Between Rs 200,000 to Rs 250,000. That is not the cheapest budget, nor is it the most expensive.
All I can say is, for 10 weeks of work from a knowledgeable professional, it seems like a bargain to me. How very much I wish I had the services of a consultant whenever I wanted to choose a new agency!
The writer is CEO and MD of CustomerLab Solutions




















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