I often get asked, “What’s the advantage of using an Ad Agency?” and the answer is pretty simple.
- Experience.
- Expertise.
- Value.
When an Agency, like ours, has been operating for 26 + years, there’s a lot of industry and marketing knowledge obtained.
Knowledge that can help you, as our client.
Want an example? Sure.
Here goes.
I’m a BIG fan of outdoor media for business advertising.
And I’m a HUGE fan of billboards for advertising.
- They get seen.
- They’re big.
- They’re have credibility.
BUT, I’m not such a huge fan of digital billboards for advertising.
One of the most popular billboards on the Gold Coast is one I don’t buy for clients anymore.
It’s generally $2,500 per week.
It’s terrible value. Really terrible.
It’s a digital billboard, so your ad is one of ten ads that get displayed.
The ad rotation is set at 30 seconds each ad.
So every 5 minutes, your ad gets shown once.
The billboard is in a HUGE traffic area – with close on 125,000 going past the billboard each week.
So let’s assume for 10% of the time, your ad is showing. So now we’re down 12,500, your ad displays for.
But it’s actually way less than that.
The billboard is in a very cluttered spot, with lots of other signs, right on a roundabout.
Most people going past the billboard are either in a car or bus, and can’t really see the billboard.
They’re excited to be where they are – they’re checking phones, talking with others, looking for road signs.
From when they turns the corner and the billboard is in play, it’s a maximum of 15 seconds before the car is past it.
They’re not looking at the billboard.
Barely anyone is looking at that billboard.
We’ve done the hard yards and sat for hours watching people inside cars and buses go past this billboard.
And our assessment is that, despite appearing to be in an amazing spot with huge numbers going past, less than 15% of the 12,500 people going past each week, even glance at it.
That’s 1,875 people at most seeing your ad for the week.
A waste of $2,500+.
How much does it cost to use an Agency?
Ooooh, good question! Some of the time, when the agency negotiates and gets you the best deal on advertising space, it costs you, the client, nothing.
Nada. Not a cent.
You see, an agency often works on a commission model.
- Your Agency recommends a billboard to you – they get a 10% (or so) commission on the sale.
- Your agency buys you space for ads in that magazine (remember those). 10% commission.
- Does your agency buy the media for your TV or radio spots? 10% commission.
(Sounds easy, but there can be a mountain of work putting together a relevant and targeted campaign that provides great value for the client.)
Back in the olden days, a lot of the creative work was done by agencies with the expectation they’ll make some money on the backend – when they buy the TV ad or magazine ad on your behalf. Not so common these days.
These days, more agencies get compensated under a fee arrangement – by time or per project.
Remember this
The Agency works on your behalf. They work in your best interests.
The Trick
The trick is simple – you need an Agency you can trust.
That you can trust not to get you to buy billboards that are poor value.
That you can trust to work in your best interests and steer you in the right direction.
Simple!
Cheers
