Deciding If Your Small Business Needs an Ad Agency

Helping your small business grow usually involves developing a cohesive marketing and advertising program, and you may get more results with an advertising consultant or ad agency. When you need that extra boost to get immediate results, an advertising agency can help you develop an ad budget, look at various options, and put together a package of services that can really help your business rise to the top.

The key reasons to hire a professional consultant or ad agency service vary by the key business needs. There are many reasons to hire an ad agency, and the investment can be valuable for any business struggling with brand identity and awareness. An ad agency can help with:

• Improving brand recognition
• Creating awareness through multiple ad campaigns
• Defining a brand
• Creating a network of other small businesses in the area, or simply learning more about them
• Conducting competitor analysis with the necessary tools and programs
• Providing a report on customer needs and running an objective analysis report that best suits your business

Dealing with both direct and indirect competitors can be difficult without an action plan; many small business owners struggle with this aspect of marketing, and it's difficult to position yourself as a strong brand without a comprehensive plan. An ad agency can help pull all the pieces of your business plan together including:

• Identifying your target market
• Conducting market analysis
• Reviewing all of your products and services
• Redeveloping or designing your mission statement
• Prioritizing your advertising goals
• Sequencing any product launches or marketing initiatives
• Consulting with local advertisers to negotiate rates (e.g. radio, print, and television networks that best suit your business)
• Developing proposals within your target budget, and offering solutions for any obstacles that may be preventing your small business succeed

Helping attract new customers is another reason to work with an ad agency, especially when you are entering a new market where you haven't been able to analyze the market thoroughly. Ad agencies metropolitan markets will offer extensive experience with shifts and changes within your industry, and can provide relevant information for both long and short-term projects. Running a simulation advertising campaign is a great way to learn if your next idea will survive; sometimes it's hard for small business to understand the real ‘impact' of their efforts-until it's too late!

How to Choose an Ad Agency

The first step in finding the ad agency that best suits your business is to seek out at least 5-6 in your area. Look for those that have a track record working with small businesses; it may not be fruitful to pursue corporate-level agencies just because of their experience. These agencies often charge much higher fees, and may not be able to tailor the services for your small business plan.

After finding the agencies of choice, conduct an initial ‘interview' or appointment and summarize their key points of service. Most will give you a brief presentation or even create a preliminary proposal. After this step, you'll be able to narrow down your choices. You'll need to consider:

• Price
• Proposal quality
• Turnaround time
• Types of reports and statistics available
• Flexibility to accommodate additional projects

When you've narrowed down your choices to 2-3 ad agencies, be sure to set up a second appointment to discuss pricing and rates. It's okay to let them know you're accepting bids from other agencies while you review, but it's bad business to disclose the actual offers you receive. You can share this information after closing the deal.