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Choosing an ad agency: How should it be done?

Choosing an ad agency: How should it be done?

JAKARTA (JP): From an agency's perspective, pitching for a
campaign is always a risky option. They have to devote a large
number of man hours to preparing their presentation. They may
also have to invest in materials. Then there is no guarantee that
they will win the business. For them, it is preferable to be in a
situation where the prospective advertiser invites them to give a
credential presentation.

In that manner, they will be able to demonstrate their
capabilities to the potential client without having to risk too
much time, energy and resources. There is always the possibility
that this will happen, since word of mouth and references from
other clients also play a major role in getting a new client
interested in them.

However, from the advertisers point of view, pitching can be
the most effective and fair method of choosing an agency to work
with. During the pitch, the advertiser will select a number of
agencies that they think will be able to provide them with the
right services.

They would then invite these agencies to participate and, once
the latter agree to take part, a brief on the product or program
to be promoted would be passed on. Based on this brief, the
participating agencies will then prepare their own presentations
and show them to the advertiser. The advertiser then picks the
one that it thinks will be the most effective ad campaign.

Because of the huge amount of resources that have to be spent
in the preparation of the presentation, an agency will, usually,
first evaluate the potential size of the client's billing before
deciding to participate in the competition. If the client is big,
the agency may be eager to take part. On the other hand, if the
client is obscure and does not show the potential for bringing
them a large billing, agencies usually reject the invitation. The
bigger ones usually do this.

Factors

On the part of the client, however, there are a couple of
factors that they need to take into consideration when deciding
which agencies they should consider doing business with.

First, according to Alfonso Rahardja, from Inter Admark,
clients have to ask themselves whether or not they need the
assistance of a full-service agency, an agency that offers "one-
stop shopping". It will cost more, naturally, but it will free
the advertiser from the hassles of conducting the market research
on their own, for example.

Second, they also have to be honest with themselves and ask
whether their billing will become one of the major ones among the
accounts that the agency they have in mind already has. They have
to keep in mind that, if they become only a minor client, chances
are they will not receive the agency's full attention.

Like many other businesses, agencies will always do their best
to satisfy the 20 percent of their clients who give them 80
percent of their revenues. Therefore, they will tend to
concentrate on their major clients only and could ignore the
minor ones. Consequently, it is not advisable for a small
advertiser to seek services from the top 10 agencies in the
country.

They should narrow down their selection to a group of smaller
agencies, with the hope that they may become the agency's major
client. Being a major client, they will be able to demand more
attention and better services from the people in the agency.

Third, the advertiser should also choose from among agencies
that they think will have compatible cultures. "The chemicals
must match," Alfonso Rahardja said. For instance, if the
advertiser is Japanese oriented, in all likelihood they will be
better off choosing an agency with a strong Japanese background
and ties.

They may have a lot of difficulties if they use the services
of a Western-oriented agency. The styles will be different, the
cultures will not be similar, and their ideas may not be
compatible with each other at all. Keep in mind, too, that the
judgment of the creative work is very subjective, and, therefore,
two people from two different cultural background will most
probably value the same artifact totally differently.

People

Fourth, the advertiser should also think carefully about the
people who will serve their interests as the account executives.
They should try to find out as much as they can about the client
service department of the agencies they have in mind, to make
sure that they will have strong and capable contact persons.
Incompetent account executives will just drive them crazy. On the
other hand, arrogant account executives, who think they know
everything, may give recommendations based on wrong assumptions.

Fifth, the advertiser should evaluate themselves and determine
whether they belong to the "rush" or to the "well-planned"
category. Some agencies are flexible enough to accommodate rush
jobs and last minute changes. Most agencies, however, would like
their clients to be more organized and to plan well ahead of
time. If the advertiser knows that they belong to the
unorganized, or that they always want something done tomorrow
instead of next week, they should not choose an agency that
always follows their own strict work schedules.

Finally, the advertiser should also check whether any of the
agencies they have in mind have had any problem with the media.
Some agencies may have been put on the media's black list because
they fail to pay their bills.

The client will find themselves swimming in deep molasses if
they use the services of an agency that cannot buy the media for
them because of the agency's black listing. (zia)

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