Getting Results for Franchisors

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EVENTS SCHEDULE

  • February 10, 2012
    IFA Convention, Orlando, FL
  • April 24, 2012
    Multi-Unit Franchising Conference, Las Vegas, NV
  • June 26, 2012
    Franchise Consumer Marketing Conference, San Francisco, CA
  • October 3, 2012
    Franchise Leadership & Development Conference, Atlanta, GA

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Finding the Right Advertising Agency for You — Pt 2: Cost

Getting the best ROI from your franchise marketing requires finding the right advertising agencyAt our agency, we firmly believe that marketing isn't rocket science.  The truth is, although most marketing and advertising companies would HATE that I'm saying this, most firms can deliver what you want to some degree...

(Ready for it? Here comes that "but.")

BUT — while just about anyone can deliver marketing, advertising, and web site products — getting actual results and ROI from those efforts is an entirely different thing.  For that, you must find an agency with the just the right blend of The Three C's — Creativity, Cost & Chemistry, for you.

COST:

Cost is a critical element for getting maximum results from your franchise advertisingYou can’t ignore cost (although sometimes we all might like to). Cost a vital component to every decision a company makes.  This is especially when choosing an advertising and marketing company.  Frankly, when it comes to cost, what seems like a simple issue – "just take the less expensive agency" – often isn't so straight-forward.

Here are some important considerations to keep in mind:

If you demand a price a lot lower than the agency estimates, you may think that you got a great deal and celebrate.  But, you probably won't be celebrating for long...

If the price you expect to pay is too little...

  • Your jobs may not get the priority level you desire:  Let's be honest.  If an ad agency has two deadlines looming on the same day — one is for a client that barely pays enough for the agency to break even on the time while the other consistently helps to pays the bills — who's project do you think will get done first?  If you consistently feel like your work is being put on the back-burner by your agency, you might want to address the issue with the agency and find out if you're paying less than other clients are.
  • Your advertising agencies could go out of business, leaving you without a resource:  Advertising agencies, like any business, need to make enough money to pay salaries, equipment costs, electricity, phone bills, etc.  As a client, you shouldn't bear the brunt of all these costs by yourself, but you should expect to pay a fair price to help your partner company keep the lights on.

On the other end of the spectrum, if your agency asks you to pay a price that's a lot higher than similar agencies, that's not good either…

If the price you pay is too much...

  • You may feel taken advantage of and the work will suffer:  It's the same with anything — if you find out that you're paying a lot more for something than other are, you're going to feel swindled.  Then, in turn, the amount of trust you place in the agency partner will go down.  With less trust, it's almost a certainty that the work will suffer as you begin second-guessing any advice given or suggestions made by the agency.  If you feel the relationship could still have some worth, have a brutally honest conversation about cost.  But, if the relationship is simply broken, look for a new agency — fast.

  • Take a look at where your marketing agency is located:  Do they reside in Manhattan, Los Angeles or Chicago? Those cities have much higher operational costs than smaller cities.  Does your agency have a very posh interior?  Guess who pays for the difference in overhead?  Make sure the results you get from an agency in big city or with a fancy office is really worth the difference in cost.  

  • Determine the amount of staff your ad agency has:  Larger advertising agencies, by their nature, offer more services which require that they keep more employees on staff in a variety of departments.  As a client of a big agency, you're helping to pay for all of these employees, whether or not these people are actually directly involved in your projects.  Make sure that you make use of enough of the departments within a large agency to make it worth the extra cost.  If not, consider looking at a smaller ad agency.  You'll get great creative from a smaller agency at a fraction of the price.

TAKE AWAY:  Cost is a crucial factor in getting the results you need from your marketing, advertising, and web needs.  Make sure you're not paying too much - or too little. 

Did you miss Part #1 about Creativity?  Check it out now.

Ready to move on to Part #3 about Chemistry? Read it out now.