Choosing A Type of Ad Agency

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There are many options and different types of agencies out there that specialize in various channels. It is important to understand what each one offers to refine your search efficiently:

Full-Service Ad Agency

A one-stop shop that covers it all, from robust demographic data (income, age range, home value, etc.) to direct mail (coupons, envelope inserts and postcards) to digital marketing (directory listings, website design, social media advertising, etc.) and more. It’s like an all-inclusive ad resort, with robust in-house offerings in one network; rather than piecemeal.

Traditional Ad Agency

This OG of agencies favors print over digital—it doesn’t mean they’re “dated,” it just means they know how to deliver everything from newspapers to magazines to posters and billboards. And a traditional ad agency is usually a channel ninja when mastering the classic advertising methods.

Digital Ad Agency

Digital agencies can help your company carve its journey in online advertising, digital media, and on the internet with offerings like web design, email, social media, SEO and content marketing. These digital media jugglers will usually combine various channels to get the highest value out of your campaigns.

PR Agency

Some agencies specialize in public relations (PR) and offer various services, including media relations, event planning, social media management, public affairs + crisis management, and more. PR agencies help companies build and maintain healthy relationships with their public, i.e., customers.

Media Buying Agency

An agency specializing in media buying will know precisely where and when to place your ads. They will know where it’s seasonally effective to place your ads and when, be it billboards, the subway, buses, etc. However, it is important to note that media buyers are middlemen (often, you get less customer service or reporting from them).

Social Media Agency

Billions of consumers are on social media nowadays, and it’s the social media agency’s job to get your product / service out in front of the right target audience on platforms such as LinkedIn, Twitter, Facebook, Instagram, etc. These agencies will know how to drill down demographics in specific areas.

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Do Your Research (Then Dig Deeper)

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Search “best advertising agency in [my city]” or “top [my city] ad agency,” and sponsored (paid) search results and pay-to-play agency lists push organic search results to the bottom of page 1, sometimes further. Scroll past the sponsored results or paid agency listings and investigate which agencies are organically coming up—the ones with the most relatable regional content that Google deems reputable enough to place higher in the results, i.e., just below the sponsored results.

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Look into some of their work and if they have partnerships with data providers and market research firms: Competiscan, AdMall, Claritas PRIZM Premier, MRI-Simmons, et al.

Take a deep dive into their website and social media—you can learn a lot about an agency by researching their online presence. Have articles been written about them, their clients, and their services in well-respected trade magazines or journals (Ad Age, Adweek, etc.)? Look into their references (if available) from former or current clients. Also, it is wise to ask your network or contacts which ad agencies they’ve used, respect and trust (according to a recent Nielsen study, 88% of people trust word-of-mouth).

Because big agencies can seem intimidating, many small business owners are concerned about the size of an agency and if it’s right for them. So, it’s vital to discover who their clients are, how they’ve helped them succeed, what they did to promote the business, and which past campaigns were most successful. Do your research and view case studies, white papers, e-books, blog posts, etc. Think of geography, competition, seasonality, and what you should expect from a campaign with an agency.

Ultimately, choosing the wrong agency is like choosing the wrong home contractor—it may be foundationally off and questionable. In the end, due diligence pays off.

Local V. National Ad Agencies

Local advertising will generally focus on a specific market or region within a reasonable radius of the business. National advertising will cast a much wider net to reach millions of people. Locally owned businesses and franchises must communicate why consumers need their products / services and how they are better than the competition down the block.

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Keeping the marketing local means utilizing TV, radio or direct mail, billboards—even local magazines or newspapers. In today’s world of social media and digital display ads, smaller companies can reach millions of potential customers online too.

National advertisers will have access to household data insights and targeting capabilities at scale, thus creating opportunities for segmenting their brand message to increase its impact across various channels, including direct mail and digital marketing solutions. National brands like McDonald’s pay millions a year to advertise. In 2022 alone, the Golden Arches spent approximately $398.3 million to spread its message worldwide.

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