Client Newsletters

Client Search News - March 05, 2002

This CLIENT SEARCH NEWS is for individuals registered @ agencyfinder.com. Forward to those in your company or others elsewhere involved in the advertising or public relations agency selection or review process.

Good Morning!

The coming of spring is one great excuse to freshen things up a bit. If you've tried but are having difficulty breathing life back into your corporate marketing, maybe it's time for an agency search.

agencyfinder.com is one perfect tool to identify great candidates, but as you head down the path to a review, spend a few minutes to read about the pitfalls of doing so without due consideration.

THE COST OF AN AGENCY SEARCH

It's estimated that for every million dollars of ad budget, each day of an agency search costs about $1,500. That doesn't include executive man-hours, brand erosion and loss of momentum or market share. The cost of a $25 million search could run $37,500 each day; more than $2 million over an uncharacteristically short 60-day search! Even a smaller budget of $2 million could exceed $180,000

over 60 days.

Here's what can happen:

1. The incumbent learns your looking. Whether consciously or subconsciously, the agency's work takes a downturn. Fear of loss knocks them off their cutting edge; they're less inclined to bring you those big out-of-the-box ideas, or at worst, they're not inclined to present anything that would benefit your new agency relationship.

2. Your review goes public. That makes you a magnet to aggressive agency new business executives. With more than 26,000 US agencies out there (SIC #7311), it's an avalanche waiting to happen.

3. You get caught up with unqualified agencies. The Agency RedBooks, an industry resource, lists 13,500 US and inter- national agencies, suggesting that almost fifty percent of the agencies out there will never be found as long as they continue to pursue new business their "unlisted" way.

Of the 26,000, 86% have fewer than 9 employees. Consequently, many aren't great candidates for every account, but they don't always want to accept that. So the volume of provocative and compelling