Avoiding advertising agency pitfalls

by Ed Camp

We've all heard that experience is the best teacher, which I take to mean that all the mistakes you make over the years eventually give you a master's degree in your field.  If that is true, then I'm well on my way to a doctorate in learning about the pitfalls of working with an advertising agency.  I am not opposed to using an advertising agency and have met a number of very talented folks at agencies all across the country.  Unfortunately, I also have "fired" an advertising agency here and there.

In my nearly 25 years of being on the client side of the business, here are some of the pitfalls which I encountered.  (In fact, you could say I had quite a knack for being attracted to them!)  Here's the list:

• Know how agencies are funded.  Although the rules of the media buying game are changing in the Digital Age, an advertising agency receives the bulk of its income from media placement and the commissions that accompany the buys.  You may feel the agency moving you towards a strong broadcast (TV and Radio) strategy when it does not seem totally warranted.  I've been amazed at the amount some of my competitors were spending on radio at a time when my media buyer steered me away from buying radio at all. 
• Ask for creative pricing by project.  I inherited one advertising agency that refused to break down creative execution on a project by project basis.  Of course, I understood that creative concepts are difficult to price, but the advertising agency would not break a campaign into individual implementation pieces in any way.  By spliting it up, you can control your marketing costs even more by choosing which parts make the most sense.
• Talk to media accounts payable folks.    There's a simple reason:  are your media bills being paid on time?  If not, then why not?  The danger here is that you are still liable for the media bills regardless of whether you paid the agency or not.
• Meet the creative team.  Although the Account Executive is supposed to communicate effectively to the creative team, you have every right to meet everyone who is working on your project.  The advertising agency may change the players from time to time, but it's a good idea to know you are getting the best work from the best people.  Also, the team needs to hear directly from you about your vision.
• Watch for changes in quality.  Look out for creative execution coming from different sources each time a piece is produced.  You will get a disjointed campaign because each creative person has a different style and method.
• Be wary of financial troubles.  Did your advertising agency lose a big account?  Do you see good people leaving "for other opportunities" suddenly?  Does your work take longer to complete than usual?  Those are all good signs that the income stream has dried up.  Just remember, desperate people do desperate things.  Don't be a victim. 

It all boils down to watching how you spend your money, and where the money eventually ends up.  An advertising agency is a great resource, but always remember you manage the relationship and need to watch for strange things that don't seem right.