Originally printed in The Advertiser, March 1998. Reprinted by permission.
The Advertiser/Agency Selection Process
An Innovative Approach to Finding a New Agency
Charles G. Meyst
Chairman & CEO
Business Partnering International, Ltd.
1997 was another year of unrelenting pressure on corporate executives to deliver the ever higher earnings needed to sustain historically high market valuations. And that, in turn, has put increased pressure on agencies to deliver higher earnings through sales.
When sales disappoint, the penalties can be severe. The trade press has been full of stories of one day declines in stock prices following lower than expected earnings reports.
The outlook for the future is more of the same. Burtch Drake, President/CEO, American Association of Advertising Agencies recently told The New York Times, "As long as the stock market holds up, I don't think there will be any change" in the demand for agencies to deliver ever higher sales. Accounts will keep changing agencies "as long as CEO's are being held accountable virtually quarterly by the stock market," he added. With next quarter's report only a few days, weeks or months away, you won't have much time to make a change if your agency can't deliver.
But it's a brave soul who looks forward to looking for a new agency.
Market Driven Need
Beginning in September 1996, we asked advertisers, ad agency executives and industry association directors how they felt about the traditional agency search process. Every advertiser we spoke with told us they were uncomfortable with their limited knowledge of the increasingly complex global agency marketplace and with escalating search costs. They were annoyed by periodic leaks to the press, and tired of being relentlessly pursued by agency new business hunters, particularly when they were not looking for a new agency.
Agencies operate on the premise that "the most vital ingredient in getting new business is to be in contact with the prospect when they are considering change." To be top-of-mind when change is being considered forces agencies to develop prospect lists and mail letters with promotional materials, often promising they'll "call to talk."
Voice-mail blocked most of those unwanted calls. But the hearty callers persisted until they got through to coax, nudge and cajole -- whatever it took to keep the pressure on to move rapidly to closure. But advertiser caution has its rewards.
Our study last year revealed the importance of conducting an extensive search for qualified agencies. In the US, there are more than 25,000 firms classified as "advertising agencies and counselors" (SIC 7311). Another 14,000 are classified as "public relations, sales promotion, direct marketing, media buying and new and interactive media" firms. Unless you limit your search to back yard players you know by name, you'll find a daunting number of qualified candidates to be explored if you want to conduct a thorough search.
When It's Time to Search
The challenge is to pair your company with the best agency -- quickly, efficiently and ethically. Why you're hiring isn't an issue. You can use traditional methods or you can try the innovative search service we created to answer your need for "a better way".
On October 20, 1997, Business Partnering International, Ltd. launched agencyfinder.com. This advertiser/agency match-making service was designed to help advertisers and agency selector consultants find the world's leading advertising, public relations, direct marketing, sales promotion, media buying or new and interactive media agencies in hours -- not days or weeks.
Listed agencies meet the stringent certification criteria developed by BPI's Board of Advisors. Searching is free to advertisers and agency selector consultants because it's sponsored by the "Certified Agencies."
Advertisers who have used the new service find agencyfinder.com to be quick, easy and thorough. You initiate the process; you determine timing, criteria and follow-up.
Search Using Simple, Sequential Steps
Your search begins when you register and define your requirements (Figure 1). Your needs and unique search parameters are ultimately shared only with the agencies you choose so they have the benefit of learning what you're looking for. You can even indicate agencies that shouldn't be contacted!
We made certain your visit, actions and ultimate search are entirely confidential. The press has no access to what you do, nor are they informed of your intentions. There is no announcement of contenders and no implication there will be winners or losers. You maintain tight control over who knows, so you won't become a target for unsolicited "over-nighted" proposals.
Each "Certified Agency" chooses from 190 database "fields" to describe itself -- by in-house disciplines, media buying experience, experience by category and market segment, size by capitalized billings and employee census, locations, years in business and billing options. An interview guides you gently while you define your search from those same fields.
When you're finished, our database software sweeps through more than 800 US and Canadian agencies to find only those that meet or exceed your requirements. (Figure 2) That database is growing every day. By June 1998, we expect to reach our goal of 2,000 worldwide agencies.
A Powerful Array to Conclude
In your final sequence, a screen array (Figure 3) presents the selected agencies by proxy number along with their Profiles, giving you tie-breaking insight into their philosophies, creative process, cultures, strengths, capabilities and attitudes. You examine these narrative Profiles (agency-by-agency, or one Profile at a time for all) to anticipate and evaluate what the "chemistry" between advertiser and agency might be prior to making any "get acquainted" commitments.
As a final step, you can rank-order your choices to create a short-list of "best fit" agencies. At every step, you are in control, so that in an hour or less, you've eliminated two or three rounds of a traditional search. Round One (mailing, receiving, reviewing and sorting candidates using the infamous capabilities "questionnaire"); Round Two (review -- show and tell us "what you can do, in what categories, what markets") and Round Three (the agency business director insisting that there is indeed the making of a partnership here). When you're through, the agencies you want to meet are told of your search and what it was about them that piqued your interest.
Within 24-hours, a BPI agencyfinder executive will call to confirm your requirements and discuss your project. You may also be happy to discover there's human assistance if needed. Only then -- and only with the your permission -- do we extend invitations and review your requirements with the agencies you selected. Since a "Certified Agency" could have reasons to decline, invitations are extended until up to five agree to respond. You'll hear from them within two business days.
That's it. An innovative approach to finding your new agency when the moment arrives. If you agree there's a need for a better way to find a new, additional or replacement agency, we invite you to visit server.agencyfinder.com.
