how to advertising agencies charge?

[007helen]

I was wondering how Advertising Agencies usually go about charging SME's. As the work might accommodate various bits and bobs such as some graphic design, booking adverts and possibly some pr. Is it normal for them to charge by the hour or be on retainer payments? Work would be probably a different ad' needing to be designed every two months and booking of adverts and Pr in between...the latter probably amounting to only about 5 hours per month. At this stage I'd be interested in hearing from anyone who's used an agency and could give me the low down on ho it all works or recommend one rather than an agency looking for business.

[billhilton]

If you're an SME, don't use an agency. I guess I would say that, but experience suggest it's sound advice.

You'd be much better off using freelances, and either coordinating them yourself or getting one of them to manage the project. Freelances are usually just as good (or better) than agencies, and we don't pay huge overheads on huge offices, secretarial staff and so on.

Drop me a PM, if you want, or get in touch via my website. I'll be happy to give you more advice on going about this.

[Richard Glynn]

OK, I’ve not used an agency – but I do know about them.

Advertising agencies charge one off fees for projects and also do retainers. It depends on how you want to pay. Retainers can be on pre-agreed contracts of, say, 12 months or rolling contracts with a call off term of ,say, three months – which means you agree to give them three months notice if you want to walk away from the contract.

The only way an agency will usually demand you pay one way or another is if they think your budget is too low. If your monthly spend is on the low side they’ll seek solace in the fact that you’re tied in for 12 months – or however long it is.

“PR in between. 5 hours per month?” Out of interest not a pitch, I’d charge you about £250 for 5 hours work and that would get you one news release. Speaking bluntly. Most agencies wouldn’t bother with you unless you have a minimum of around £1000 a month to spend. Realistically they want £5,000 a month from their clients. So Bill’s advice about using freelancers is good.

When you’re allocating time and budget for PR remember that a PR person ‘just writes news releases’ the same way accountants ‘just add up numbers’

For one news release my minimum service level would include …

• Research from background papers provided
• Background research using Internet search tools as required
• Phone interview relevant staff for background information
• Research personalised media list
• Draft release (up to 400 words) from client brief
• Submit draft release for approval
• Submit media list for approval
• Manage client approval process
• Action up to two rounds of client amendments
• Distribute to approved media list
• Include me as primary contact for further media information
• Follow-up phone calls to - up to - five key journalists from the approved media list
• Co-ordinate media responses and deal with media requests as appropriate
• Forward approved release for client files
• Forward approved distribution list for client files

And then there’s planning, strategy, media competitions, features, reader offers, evaluation etc.

Design? Track down a freelance designer too. Consider a template advertisement where you pay for the creative ideas and execution at the outset and then ask the designer to simply resize and forward the adverts to each magazine/newspapers specification as required.

Your PR adviser should be able to recommend the best media titles for you to consider advertising in. Although it’s unlikely he/she will buy the space for you or advise on the best deals. Since you’re not buying lots of space buy it yourself.

Consider committing to a minimum spend over 12 months – that means planning - and you might get a better deal. Use your commitment to gain favour with the magazine and additional editorial space. (Although this depends on the relationship between ad sales dept and editorial dept on each magazine/newspaper concerned)

To conclude: Forget agencies until your marketing budget is closer to £3,000 plus a month – probably more. Track down a specialist freelance designer and PR consultant you like, trust and who – crucially - gets you results. Consider giving them a three month trial. Then if it works out hold on to them!!

[uksbc]

without going into a pitch on it. we specialise in marketing and helping small business owners get the right kind of coverage.

we will sit down and look at exactly what you are trying to acheive and then put together the most cost effective solution based on your needs and budget

we dont work on a minimum spend - i tell all clients it is as much or as little as you want to spend

we heavily brand the "personal approach" philosophy and work with you to ensure you are getting what you want from us and revise and update plans accordingly. this includes coming to see you, usually once a month for a chat about how things are going and take it from there

bottom line - we are a bridge between having no marketing and appointing an agent - an agent for SME's if you will :D

pm me if you need any more info