How to Select an Advertising Agency
Managing the Process from long List to final Selection
Sep 19, 2008
Businesses get bombarded with phone calls, letters and mailshots from numerous advertising agencies. This data can be a useful starting point for the production of a long list of candidates. Other sources are trade media and directories like the Advertiser’s Annual. Also a marketing manager can refer to his or her peer group both inside and outside of marketing. Agency register organisations such as the Recommended Agency Register can also be consulted. A combination of these sources will produce a long list, which should consist of a maximum of 12 agencies.
Long list criteria
The long list should be matched against specific criteria. The following criteria are recommended:
- Size - The old maxim of being "large enough to meet your needs but small enough to care” is a good one to follow. Long lists should not simply contain the biggest 9 or 10 agencies in the field.
- Experience versus conflict of interest - An agency needs to be experienced in the relevant business area but ideally should not have conflicting business interests.
- Finances - Selected agencies should be financially secure.
- Empathy - you need to get on!
Long List to Short List
Moving from a long to a short list is probably the most difficult and time-consuming part of the process. All of the long listed agencies are asked to send their credentials. Or …..Meetings are arranged with all of the long listed agencies. Or…A combination of both. Empathy with the agency people is vital. It is probably the most crucial of the long list criteria so meetings are essential albeit time-consuming.
From the long list there may be three or four agencies on the short list. This is where the presentations come in. These require preparation and a formal brief, in advance, for each agency. Agencies can be remunerated at this stage of the process. The fee does not have to cover all of their costs but should make a contribution.
The Presentation Brief
The brief for the agency presentations should be written not verbal. Here is a suggested list of possible content headings:
- Market data and trends
- Company history and structure
- Company sales performance and market share
- Long term company business plan
- Short term marketing plan
- Detailed marketing history and results.
How to decide
A selection panel consisting of no more than three or four managers who will be involved in the ongoing relationship with the successful agency should be appointed and briefed on the process. A score sheet with specific evaluation criteria should be used:
- Has the brief been answered?
- Creativity - both in terms of thinking and ideas execution
- Cost awareness
- Presentation style
- Empathy
- Range of relevant services available
The Presentations
Here are some rules:
- Two hours (maximum) for each agency.
- No external interruptions.
- All the presentations to be on the same day.
- Questions only at the end of each presentation.
- A panel chairman must be appointed
- Each member of the panel has a scoresheet and uses it.
- Presentations are scored objectively.
- The final decision is based on the scores achieved.
What happens next?
The successful agency is informed but so are the unsuccessful agencies also. Agencies want to know how they can improve and enhance their service to clients. Honest feedback, however unpalatable initially, is always appreciated.
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