Choosing an agency
The selection of an agency or consultancy is as important as choosing other professional advisers such as accountants and lawyers. In many cases, it is more critical because the agency or consultancy is able to play an important part in promoting the company's brands and enhancing its ultimate profitability.
Benefits of using an agency/consultancy:
- it can guide the client through the whole process from researching the market to monitoring the effectiveness of marketing
- it can buy media at special lower rates
- it is only brought in as needed whereas staff in an in-house marketing department could be left idle at times
- it has detailed knowledge, experience, independent impartiality and creative originality
- it has staff that can contribute to every aspect of communication from a big TV campaign to a website, from radio and poster advertising to in-store show cards, from a direct marketing campaign to sponsorship activity.
Pitfalls of using an agency/consultancy:
- its fees can amount to 25% of your marketing budget
- it can fail to understand the client's needs
- it can be overly-aggressive in pushing its creative ideas on the client
- copyright of advertisements/brochures, etc will often remain with an agency/consultancy such that leaving that agency/consultancy could mean losing the ability to use successful brochures/advertisements previously used
You should consider the following when choosing an agency or consultancy:
- does it have membership of a suitable professional body?
- what is its professional background?
- does it have experience in similar or relevant activity?
- does it have suitable sector expertise?
- is there any likely conflict of interest with present clients?
- who are the present clients and how long have they been clients (ask to review letters of references or obtain contact details for existing clients who can act as referees)?
- how does it charge. eg. retainer, hourly rates, or a combination of both?
- how are expenses charged - at cost or with a mark-up?
- who might be working on the program? What qualifications and experience do they have and what are their hourly fee rates?
- what are the methods of reporting on the program - monthly reports, conference reports, six-monthly or 12-monthly reviews?
- how big is the budget and where will this put you in the agency's/consultancy's pecking order
- is its creative tone and style in line with what you are seeking
- is there "chemistry" between you and the agency and can you trust them
Finding an Agency is a comprehensive document setting out the key components of best practice, including guidelines on the process of searching for and selecting agencies and managing client-agency relationships. This can be downloaded from here.
Agency/consultancy selection facilitators:
Adforum.com has an agency preview section which contains a searchable database listing non-IPA members as well as IPA members. It is possible to preview credentials and creative portfolios for shortlisted agencies online.
The Chartered Institute of Public Relations has developed the PR Matchmaker Service which can be accessed from the PR Directory section of their website. This service provides a computer generated search on the basis of information that you provide which is matched to their database. A list of 6-8 names with background information will be generated for you to contact to discuss your requirements. The order form can be completed online with reply by fax within four working days. This service costs £60 + VAT.
The Direct Marketing Association publishes best practice guidelines and an industry code of practice. It also has an online searchable database for members with different skills - mailing list brokers, copywriters, mailing houses, consultants, etc.
The Institute of Practitioners in Advertising (IPA) has a searchable database of its members. Membership is by election and a subscribing company must have demonstrated professional competence in the eyes of its peers and the media, independence of clients and media, ability to mount a national advertising campaign, financial stability, and adherence to legal and ethical standards.
The Public Relations Consultants Association's referral system "PReview" is free although they reserve the right to charge for mis-use of the system. A selection form is completed online and then Preview's database will select the consultancies matching the criteria. Full background information on each consultancy is provided and you can then contact the consultancies directly or PRCA can contact them for you. PRCA takes a percentage of the first year's fees paid to consultants who win work through this scheme.
The AAR Group offers a confidential selection service for clients wishing to review their communications arrangements. It helps clients to shortlist advertising, PR, media planning, design, direct marketing, sales promotion, sponsorship, strategic agencies and consultancies. Fees vary according to the scope and complexity of the brief.
The Haystack Group website allows you free access to their searchable agency register where it is possible to do an online review of shortlisted agencies. If you require more specific consultancy support, you will be charged consultancy rates dependent on what your requirements are.
Run by specialist teams of industry experts, Xchangeteam (XTM) matches business needs with freelance consultants' skills. XTM represents thousands of independent consultants specialising in disciplines such as direct marketing, public relations and marketing communications. Once a consultant accepts an assignment, the client is invoiced for an introduction and management fee which is 25% of the total gross fees.