Advertising: Do-It-Yourself or Hire a Pro?

Your company's message, and how it is delivered, can be one of the biggest factors in determining your level of success. Having the right communications firm can make a big difference. How do you decide whether to do it yourself “in-house” or bring in an agency? And if you decide to hire an agency, what should you be looking for?

SEEK HELP?

The decision to hire an agency is partly an economic one. Agency fees vary, but frequently it costs more to employ an agency than it does to do it yourself. For example, you’ll save 15% on media commissions if you have an in-house agency (but keep in mind that some media companies, especially the larger ones, ask that you prove that you are a bona fide in-house agency with insertion orders before they agree to charge you the lower “net” rates). You’ll also save on production costs, as most agencies mark up production. But remember, inferior creative and costly mistakes can result in missed opportunities or worse, tarnishing your brand. Advertising is part art and part science: You need experience to produce the right message (and know where to put it). Just because no one knows your products and services as well as you do does not mean you know how to create the right ad. An amateurish advertising campaign will not only result in a bad investment and lost opportunity, it can undermine your brand as well.

Be mindful that you’ll have to buy the media, sort out the bills and schedules, and traffic the ads to the media. That’s above and beyond developing ad layouts, writing the copy, creating the logos, etc. A lot of time and energy is required, and unless you have someone on board with experience, those tasks are usually best left to those with expertise.

YOUR OPTIONS

So let’s say you decide you need the help of an agency — how do you go about finding one?

There are various types of communications firms that can be of help, but they differ in their approaches. It is important to know their differences as well as their strengths and weaknesses.

Design firms and graphic studios

The strength of these firms is in designing logos, letterheads and collateral materials (posters, signage, bro chures and the like). They are best at creating a “look” and are particularly appropriate for image-oriented enterprises such as fashion companies. But it’s best to check their marketing ability and their strengths in media buying and planning: They frequently don’t handle broadcast advertising, and some do not fully understand the importance of making the sale (e.g., their ads are nice to look at but may not achieve the needed results).

Media buying service

Their primary function is planning and buying media, particularly broadcast. Usually they don’t do creative or production work, nor are they particularly adept at strategic marketing. If you are doing the creative in-house you may want to hire them to place the media — more often than not they can negotiate a better deal and, more importantly, they will help you choose the right media.

Internet agencies

There’s no question that having a good website and doing online marketing is growing in importance. But it’s still just one aspect of the marketing mix. Internet agencies will help with all of the above, but if you hire an Internet agency you should also plan on having somebody else handle the more traditional marketing outlets.

Advertising agencies

Ad agencies, especially those that are “full service,” provide a range of services, including creating ads and broadcast commercials, brochures and other collateral materials; planning and buying media (as well as trafficking ad materials to them); and marketing, strategic planning, sales promotions and market research. In other words, they are generalists, the advantage being that the advertising campaign is integrated, consistent and under one roof. Ad agencies vary in size from small one- to five-person boutiques to huge, multinational conglomerates. For smaller companies a smaller operation makes more sense; the key is whether these agencies provide the services that your business requires. In the past, ad agencies were compensated by a 15% commission that was built into most media rates, plus a mark-up on production work. Today many agencies charge a monthly fee that reflects the extent of services provided as well as the media schedule.

How do you determine which agency is right for you? Many important considerations come into play:

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