SELECTION OF AN ADVERTISING AGENCY
First and foremost, the agency must be known. Previously unknown agencies are not preferred.
Secondly, the agency must have creativity. Creative people are a little crazy, non- conformists. Creativity does  not  follow any logical pattern. Creative people are like naughty children. The secret of creativity is simplicity.
Thirdly, the agency must have a sound track record, a good deal of experience. Fourthly,  the  accounts  executive  must  have ability to  understand  the client’s problems.
Fifthly,  you  may  look t  the accounts  they  handle, and  the accounts  they  have gained and  lost. In other words, the work they have produced  for other clients does matter.
Sixthly, the personal equation of the client with the agency also matters. If you know them personally, they are compatible with you.
Seventhly,  their ability  and  presentation  may  make  you  opt  for  them.  Premier Auto  (the company that makes Fiat cars) was shopping around for an agency to launch its 118 NE. It invited presentations from various agencies and then shifted its account  from  its  old agency Sistas to Ulka. More and more clients  prefer to invite  presentations  for  campaigns  of  new  products  and  then  award  the campaign to the agency who they think has made the best presentations.
Lastly,  there  are  some  unique  considerations,  some  prefer  a  small,  some  a medium,  some  a  large  agency.  Increasingly,  clients  prefer  to  fragment  their business, giving different products to different agencies.
Other factors that need consideration is the staff of the agency and its caliber, its flexibility, practical and consumer oriented approach, the use it makes of MR, its media  understanding, the attention it gives to the client, its growth, the ability to handle below-the-line publicity and its international tie-ups.
So creativity, commitment to client and  the quality of its  top management go a long  way in the selection of an agency. Unfortunately many think ‘Creativity’ is just another way of saying, ‘I like the agency.’
EVALUATION OF AN ADVERTISING AGENCY
The agency is evaluated on the past performance.
The number of clients it holds. (For e.g. O & M works on 240 brands at a time) The reputation the agency has  in advertising  circles  (JWT is renowned for its reputation)
The particular USP of the agency (on what areas the agency is specialized in, for e.g. Â O&M is known for creativity. R.K Swamy BBDO is renowned for print; Leo Burnett is renowned for consumer insights.
Timely delivery of advertising materials (especially for Cola ads)
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