Agency Selection Process – A Better Approach
The agency business has changed in recent years. An article in Marketing Week identifies several trends affecting the traditional agency model. In summary, there is a move toward manufacturers taking creative in-house (especially video production and digital for everyday content development) and a pulling away from the media commission structure because of a perceived lack of transparency. Add to that a lack of expertise in digital and you have the makings of an overhaul in the advertising world. This is also leading to needed changes to the process of selecting an agency to simplify and improve the outcome.
I spoke recently at the Pennsylvania Marketing Summit with an audience made up of marketers from a mix of local, global, B2B and B2C organizations. I took part on a panel discussing the building of great agency and client relations. Many of the agency sponsors were in the audience, so there was interest in how my company selected a full service advertising agency that could handle our regional business adeptly.
My process for finding them was admittedly old-school. I looked for local agencies with strong branding skills and a good client roster. I wrote up a one-page summary of our needs and another page of our history and culture. I called a few companies in my business and asked for recommendations from their VPs of marketing. I got on the phones and started making calls to about 20 agencies that might fit the bill and kept discussion notes on a spreadsheet. We had great conversations and there was a lot of back and forth. I was open about our level of investment and the communications that had worked in the past. Through these discussions i learned that several would not be a good fit, a few declined because of budgets, and a few agreed to come in for a capabilities presentation complete with ideas on how we could position ourselves in the market (no creative was shared). We chose an agency that was the right fit. After selecting one, we assigned projects first with the assurance that we were not still shopping around and that, based on the work, this would become a longer term partnership.
This is not the process used by many marketers to find an agency.
Most companies use a more process-driven sourcing model. There is a detailed RFP (request for proposal) outlining all the needs of an internal decision committee. These can be pages long (I have heard that some are 30 pages). You ask the agency to send in questions for a predetermined window and then ask for a full capabilities presentation. Each agency that passes the initial screen is asked to “pitch” the business with a full creative presentation of positioning and brand campaign done for free. There are two problems I see in relying only on this approach. Usually these documents are confusing and contradictory. The agency rarely gets a feel for chemistry and culture. They don’t know whether to be small and hungry, or come across as big and professional. The chances of getting the pitch all wrong are enormous.
i really liked the idea of project work first. The agency gets paid for their work, which makes them happy and we get to check out their level of expertise. I think this is a good model and some are saying it is coming back.
As a marketer, my goal is to develop a strong brand positioning and creative messaging. These come as an agency and marketing team working together to share and develop the story of the brand. It’s a lot of collaboration and its developed over time in an intense environment that requires trust. It’s not entirely different to the relationship of a marriage of sorts between teams. Marketers should think carefully before jumping into a highly analytical process as it might not lead to the right match.
