PC&D MAGAZINE
How to Choose Advertising Experts
From Volume 20, Issue 5 - May 1996
Feature
To pick an agency, conduct interviews and get proposals.
by: Jerome McHale
 
 Related Information
  Questions to Ask an Ad Agency Before the Hire

Advertising can play a key role in the success or failure of your business. Your future could depend on how well you draw new customers to your wash, and how well you can continue to bring them back.

Are you expert enough to successfully create, manage and buy your advertising? Or should you hire specialists from an advertising agency to do the work for you?

It's often said that advertising is a necessary evil. It's something that you as a carwash owner must do -- if only because your competition does it.

You may prefer creating and buying all of your advertising -- perhaps as a means of saving money. Yet in the long run it might not pay off in the best use of your ad dollars. Effective advertising can help build the image of your business, increase your traffic and improve your business's long-term success.

You might naturally respond, "I know my business better than anyone. Why should I hire an ad agency?"

Of course you know your business better than anyone -- it's your business. You've worked hard to become proficient in water chemistry, tunnel maintenance, solution management and the government regulations that affect your business.

That same reasoning can be used when considering an agency to handle all aspects of your wash's advertising. Agency people are also experts in what they do. They have written and designed hundreds of advertisements and analyzed many different kinds of media for a wide variety of clients. Further, an ad agency can bring a level of objectivity to your business, put a fine point on who your customers are and help position your business in relation to those customers.

Positioning is how your business is perceived in the minds of your customers. Do they see you as a low-price provider or as highly service-oriented? As a one-stop shop for all their car care needs (gas, quick lube, upholstery and carpet cleaning, etc.) or a quick stop just to knock some of the exterior dirt off? An agency can help you define the perception that will be most beneficial to you.

Once your position is established, your agency can help determine which media -- newspaper, TV, radio, direct mail, billboards -- will most effectively carry the message that reaches your customers. An agency's media staff has the resources and know-how to compare different media and select those which will reach the most prospects at the lowest cost. And they have the experience to negotiate the best rates, too.

Aim to Stand Out

Once you know where to advertise and the way you want your business to be perceived, there is the matter of how you're going to say it. Your advertising message is like a speech: The content could be of tremendous value, but if it is poorly presented by a less-than-skilled orator, it will be quickly forgotten, if heard at all.

An ad agency should prepare your message to break through the clutter of the medium in which it is placed. Agency creative teams are trained to craft messages that will stand out from the crowd so that your message is interesting and gets read, seen or heard.

In fact, an agency should present ideas that make you say, "We've never done it like that before," or, "I'm not really comfortable with that." If these are some of your responses, your agency will work hard and challenge you.

If you recognize the value of using an advertising agency, the next question is: How do you go about choosing one?

Begin by compiling a list of five to seven agencies. Perhaps you have already been contacted by agencies that are interested in doing business with you. Put them on your list.

You should also talk to other wash owners who use agencies (try to include other dealerships) and get their recommendations. Add them to the list. Then personally interview the agency principles and account executives who would be assigned to your account.

Ask for Samples

Ask questions about billing procedures, range of services and references. Also, ask the agency to bring samples of their work to the first meeting.

Next, start a second, shorter list, consisting of no more than three candidates, by cutting some of the agencies from your initial list. These short-list agencies should demonstrate high-quality work in their samples, offer the types of services you will need, and make you feel comfortable with the relationship.

To finalize your choice of an agency, ask each company to prepare a presentation of how they would handle your advertising. Start by writing down what your objectives are, what your budget is, who your customers are.

Give this information to your candidates and answer any questions they may have. Offer to pay any documented outside expenses they will incur in preparing the presentation, but set a limit on the dollar amount.

The amount you allocate for advertising expenses will depend on a number of variables:

* the size of your operation? (one self serve or six full serves)

* the number of competitors and potential customers in your area

* whether you most need to attract new customers, increase business with existing ones -- or both.

A ballpark figure would be to begin with between one-half and one percent of your gross sales on advertising.

Review each candidate agency's pitch individually and include other valued employees like your manager or general manager that you feel should be a part of the decision-making process. Ask questions during the presentations (see sidebar). Once all candidates have had their say, the hard work of evaluating and making a choice are next.

Once you are satisfied with all the information presented, contact the chosen agency and get to work. Then, contact the ones who were not selected, and tell them why, but don't burn the bridge. If your first choice does not work out, you'll have a head start in switching to a new partner.

Working With an Agency

Keep in mind that you have hired your agency to handle something that you have neither the time nor expertise to do properly. Give them the space they need to do their job. Stay out of routine day-to-day matters, but involve yourself with budget considerations, approval of all creative work and media placements.

The bottom line of advertising is to generate visits to your wash. However, you must first create a positive image and awareness of your company among your target audience.

Advertising can build customer traffic for your operation, but traffic alone will not guarantee sales. You, your sales writers and other employees on and off the line must provide the service and atmosphere that close the sales. Think of your advertising efforts as a critical first step in your overall sales efforts.

Your agency should be held responsible for meeting your advertising objectives. After four to six months, meet with your staff and evaluate the effectiveness of the efforts to date.

Depending on the results of this evaluation, you will either stay the course or make adjustments. If you are in the latter category, discuss possible changes with your agency and provide a reasonable time frame for them to satisfy you.

If they can't deliver, let them go, return to your short list of candidates and start again. Don't let one unpleasant experience turn you away from all agencies. There are a lot of good ones out there. You just need to find the right fit.

An advertising agency can be a tremendous asset to your operation. If you recognize advertising as a necessary business expense and understand its potential, it makes sense to hire experts who can maximize the effectiveness of your dollars.

Jerome McHale is vice president and creative director at Hurley, McHale Koepke Marketing Communications, Cleveland, OH.

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