Selecting an Ad Agency

Adapted from J. Scott Armstrong for use in lectures related to Persuasive Advertising

Select Agency 13February 22, 2015-R

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Traditional “Pitch” or Advertising Proposal

• To get started, do the Bell Communications exercise. As you watch this video, list the procedures that see useful and also those that could be improved.

Full Video Link

Overview of the process

Develop objectives for the campaign

Develop formal evaluation process

Use the two-stage selection

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Set Objectives

Net benefits • ROI on campaign (or similar) with explicit attention paid to objectives of stakeholders.• Propose a contract with common objectives (e.g., both parties benefit from profits on the advertisement) For details on setting objectives, see Persuasive Advertising, pp. 15-20.

Low risks• Financial• Legal & ethical (incl. treatment of stakeholders)

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5

Applications

Set a goal on how many techniques you can apply to your project.

Assume that you were making a proposal to a client to convince them that this is a worthwhile proposal.

Develop formal evaluation process

Use a multi-skilled groupDomain experts in the product areaAdvertising expertsLegal experts

Pre-specified rating sheets

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ScreeningIs the agency interested?

List of prior clients & contact information?

Conflict of interests?

Can they submit a copy of a proposal or a general outline of how they do a proposal?

Later: Would they be willing to follow your format for a proposal?

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Select agency based on processes(Do not use image, awards, or claimed success.)

Request samples of proposals

Avoid face-to-face meetings until you decide which agencies would be acceptable.

Use multi-skilled group to evaluate the proposal

Independently complete criteria rating sheets (Delphi)

Use Multiple Anonymous Authentic Dissent

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Selection of an agency

Request written proposals from a few of the advertisers.

Use independent ratings of process from the members of the selection committee.

Negotiate with top two or more bidders. (Face-to-face meetings OK here)

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Examine the proposals to check for:• objectivity• full disclosure• reliability• validity

Use the checklist on the next slide to analyze the Subaru case from the article “Seducing these men”Better, use the Excel version of this checklist.It is up to the agency to prove that they covered each point. If not, then give your lowest rating.

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Checklist for Proposals

Proposal RatingYour GroupRating Summary

Rating System: 1 is poor, 10 is excellent. Agency must convince you. If no information give lowest rating.

1. Planning Techniques

2. Objectives

3. Target Market Research

4. Creativity Techniques 5. Persuasion Research 6. Copy Alternatives

7. Copy Testing

8. Media Alternatives

_____9. Media Testing

10. Capabilities of the Team ___ _____

11.Taste/legal/ethical

Rater Percentages on averageAdprin.com

“How Should Firms Select Advertising Agencies?” J. S. Armstrong, J. of Marketing, July 1996, 131-133

in full text

Provides an application of the “Structured guide for evaluating an agency's proposal.”

Now compare this approach with theAmerican Bell proposal.

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Application of the Checklist

1. Obtain at least three, but preferably five independent ratings of an advertising proposal for your projectGiven that you will be using novice judges, you will have to use the the Excel version of this checklist.2. Use the results of this “audit” to improve the proposal for your project.