MBA Notes - Selection of Advertising Agency
Question - What are the different aspects an advertiser should consider while selecting an advertising agency?
Answer
The Advertiser looks for an advertising agency whose services and expertise meets his requirements. Following factors should be considered while selecting an advertising agency:-
Services offered by Ad-agency - There are different agencies provides different services, some provides all the services, some provide selected services, some provides only media services. It depends on the requirement of advertiser whether he need a fulls service agency, creative boutique, media buying service agency, or a sweet shop.
Experience of Agency - An experienced agency performs better then a new agency because it is familiar with different components of marketing environment like- competitors' policies, taste of consumer, income of consumer, consumer responses, fashions and trends, reputation of different media etc.
Location - A major factor to be considered while selecting ad-agency is location of office of agency. A considerable amount of communication is required at different level of ad planning, creation and execution. So, a local or near by ad-agency should be preferred which is easily accessible.
Size of Agency - There are both large size agencies and small size agencies, both have their own advantages and disadvantages. Large agencies serves big clients, provides wide variety of services, and charges higher but, cannot give personal attention because of having large number of clients, also cannot give much attention to small clients because of having large number of big clients.
Competitors' Agency - Agency which is working for competitors must be avoided otherwise agency will not prepare ads which help the advertiser to take an edge over competition.
Image of Agency - While selecting ad-agency the advertiser should inquire the image, integrity, ethical standards, and relations of agency with its clients.
Creativity and other skills - Ad-agency must be creative enough to generate new ideas to gain the attention of target audience.
Rates Charged by Agency - The rates of agency must suit the pocket of client. Advertiser should select agency whose rates are reasonable and within the ad-budget.
Financial Strength of Agency - A financially strong ad-agency have better turnover and better contacts with media owner, and afford better infrastructure, well-equipped-ad labs, and quality staff.
Past Records of Agency - It is necessary to know who were the past clients of agency, how long were they with agency, why they left the agency, brand image of products of clients, etc.
