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Top 5 Questions to Ask to Select the Right Ad Agency

By: Lisa Moscarelli
Principal C&M MARKETING AND COMMUNICATIONS

When moving through the process of selecting an advertising agency, you need to ask yourself the following questions:

1) What do I most need the agency to do?

            In addition to assembling the ads, agencies have several time, money, and stress-saving functions. For example, using outside help for media buying is often a wise choice. Media prices are set much like commodities and it's likely you'll save yourself and your company money by allowing a firm with more volume buying power and a better scope of options to purchase your media.  A good firm will more than pay for itself in savings and results.

2) Do I need to broaden the scope of where I place ads or do I need better economies of scale for what I'm currently doing?

            When interviewing potential agencies, understand that no two ad agencies or ad consultation firms are created equal. Most agencies tend to have a "sweet spot" or media-type focus. For example, those proficient in direct mail campaigns may not be as good at electronic media such as television, radio or vice versa. So, the answer to that question should be based upon research from experienced advertising firms who can show you past results for clients in your industry and detail the best way to get your message to the right people.

3) How are they compensated?

            Today, standard media placement commissions are 15% of gross dollars placed. In addition, agencies make money on creative fees and hourly ad consulting fees. A good agency will work with you and your specific budgetary needs.

4) If I am a marketing director for a company and I use an advertising agency, will I make my job obsolete?

            On the contrary, a good advertising firm can give legs to your vision. In addition, they can spend time on the mundane media haggling and copywriting while you focus on the big picture, strategy, the competition and more. A good marketing department-to-ad agency relationship should make your work shine.

5) Am I better off with a large Madison Avenue firm or a smaller boutique agency?

            You are best off working with individuals who know how to listen, implement and deliver and sound strategy. Similar to team building, it's important to connect on many levels. The larger shops tend to suffer from disconnect: media buyers know very little about the account and account managers don't play devil's advocate.  

Find an advertising agency whose developed marketing skills and experience fit your product or service. You can have the best creative, top-notch production, the best media buyers, the slickest TV ads and the cleverest online marketing plan, but it means nothing if you don't have a well-developed campaign strategy that tracks advertising results on a daily basis. Know your strengths and surround yourself with talented people.