Advantages and Disadvantages of Advertising Agencies
An advertising agency will work with the business to develop a campaign. This can involve everything from coming up with a promotional theme, determining the proper media to use, creating the ads, and even negotiating the prices for purchasing the advertising with the various media. This can be extremely beneficial to the business owner who has little or no advertising knowledge or has only used one type of media. Creative Expertise While business owners may be experts in their particular field, they may possess little or no knowledge of what makes an effective, attention-grabbing advertisement.
Advertising agencies are staffed with people whose sole job is to come up with innovative ideas that can be completely original, or based on themes that have worked in the past. This can also help the business owner who is not inclined to think creatively. Market Research Business owners may not be strong in the area of market research. The advertising agency can perform much of the legwork in this area by helping to identify the business’s target market as well as their key demographics. Thus, the advertising agency may be better suited to determine what type of advertising would be most effective, as well as to whom the ads should be aimed.
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Save Time and Money With many small business owners being pressed for time, it is often not feasible for them to carve the necessary time out of their busy day to create a full-blown advertising campaign, even if they possess the expertise to do so. Also, if they don’t know what they are doing, they can end up spending a lot of money on advertising that proves to be ineffective. While hiring an agency can result in an additional expense, this can be offset by the return on the investment resulting from a well-planned and executed campaign. Branding An advertising agency can be instrumental in helping a business develop a recognized brand.
Agency artists can develop logos and other design features that can become of a part of the business’s advertising. It can also help with tailoring the brand so the business can meet the unique challenges of marketing the brand on the Internet. Disadvantages Additional Expense Hiring an advertising agency is an expense that some businesses cannot afford, especially during tough economic times. When you hire an ad agency, you’re tapping into the expertise of copywriters, designers and creative directors, all of whom need to be compensated from the commission you pay. For many small businesses, an advertising agency is not an affordable option.
Unfamiliarity With Your Product The ad agency may know toothpaste or iPods or microwaves, but it may know little or nothing about your company’s product or industry. Given time, you may be able to educate the agency’s people about what you do, but there is no guarantee that they will develop a true feel for your business. Consequently, you could end up wasting thousands of dollars on an ad campaign that misses the mark. Unclear Expectations There is always the risk of a disconnect between what you hope to accomplish with the ad campaign and what the agency actually delivers.
For the campaign to succeed, you must have a clear objective for what you’re trying to accomplish. For example, if you’re looking to increase market share by lowering your prices to attract new customers, you need to ensure that an ad campaign highlights your new pricing structure. But an unresponsive agency might offer a different and unsuitable approach. Low Priority If you are not regarded as a big client by the ad agency, it may not allocate its best resources to your project. If the agency picks up more big clients after you sign on, you may get pushed even farther down the totem pole.
As a result, your project may be assigned to inexperienced staff members. Limitied Creative Thinking There also is a chance that the agency will take a “one size fits all” approach to your campaign and not take the time to be creative. For example, if the agency developed a successful campaign for a company or product that’s similar to yours, or perhaps even did a similar campaign for one or your competitors, it may do the same approach with your product. As a result, the agency may not take into account any changes that have occurred in the marketplace, rendering your campaign obsolete.