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.
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 over-night shipments they send can inundate and distract you. That adds days and it adds dollars.
4. You lose key players. If the search team isn’t organized and in agreement as to selection procedures, it can result in executive departures. It’s not uncommon to see a key marketing executive walk out as the new agency walks in. And there’s no measuring the impact of exits like that on corporate morale.
5. Industry press infers your search is poorly managed. Public corporations are beholden to stockholders. An ill-run search can put the client at legal risk, giving rise to litigation for prejudicial practices.
If you run up the numbers, you can see that a poorly orchestrated or protracted agency search could cost more than the benefits derived from a great new agency.
Find perfect candidates @ agencyfinder.com; now beginning our sixth year.
Log in: https://www.agencyfinder.com/advertiser-login.html
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Advertising and marketing experts…
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If You’re An Agency, Be Sought by: Manufacturers, retailers and service providers in need of marketing programs that work…
Charles G. Meyst, Chairman/CEO
Business Partnering International, Ltd.
Vantage Place, 4327 Cox Road
Glen Allen, Virginia 23060 USA