Advantages and Disadvantages of Advertising Agencies Essay

745 Words Nov 18th, 2012 3 Pages
M2

Advantages

Developing Campaigns
An advertising agency will work with the business to develop a campaign. This can involve everything from coming up with a promotional theme, determining the proper media to use, creating the ads, and even negotiating the prices for purchasing the advertising with the various media. This can be extremely beneficial to the business owner who has little or no advertising knowledge or has only used one type of media.
Creative Expertise
While business owners may be experts in their particular field, they may possess little or no knowledge of what makes an effective, attention-grabbing advertisement. Advertising agencies are staffed with people whose sole job is to come up with innovative ideas that
…show more content…
Disadvantages

Additional Expense
Hiring an advertising agency is an expense that some businesses cannot afford, especially during tough economic times. When you hire an ad agency, you're tapping into the expertise of copywriters, designers and creative directors, all of whom need to be compensated from the commission you pay. For many small businesses, an advertising agency is not an affordable option.
Unfamiliarity With Your Product
The ad agency may know toothpaste or iPods or microwaves, but it may know little or nothing about your company's product or industry. Given time, you may be able to educate the agency's people about what you do, but there is no guarantee that they will develop a true feel for your business. Consequently, you could end up wasting thousands of dollars on an ad campaign that misses the mark.
Unclear Expectations
There is always the risk of a disconnect between what you hope to accomplish with the ad campaign and what the agency actually delivers. For the campaign to succeed, you must have a clear objective for what you're trying to accomplish. For example, if you're looking to increase market share by lowering your prices to attract new customers, you need to ensure that an ad campaign highlights your new pricing structure. But an unresponsive agency might offer a different and unsuitable approach.
Low Priority
If you are not regarded as a

Related Documents