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When picking an advertising agency, it is important to consider multiple factors to find an agency that fits well with your marketing goals..

The best agency for you will understand your business, what you want to achieve and cares about what you do.

What to consider before choosing an advertising agency

Understand your business goals and objectives

Before choosing a potential advertising agency to work with, be clear about what are your marketing goals and objectives. This will also help you decide if the campaign is successful and guide future decisions.

For example, do you want to increase brand awareness, generate leads, boost sales or drive more traffic to your website? Setting specific, measurable, achievable realistic and time-bound (SMART) objectives for your marketing will help you achieve your business goals.

Create a shortlist

Research different advertising agencies online and ask contacts in your industry for recommendations. Arrange meetings with the agencies on your shortlist and ask them to pitch their ideas. You should consider if they have:

• experience in your sector
• expertise in either business-to-business or consumer advertising, if you have a preference for either
• a track record in the advertising platforms you want to explore
• experience in other marketing services, such as PR

The final selection 

You should arrange to meet some of the agencies and ask them to pitch their ideas to you. You can do this by providing the agencies with a brief and budget so they can present a plan tailored to your needs. 

A pay-per-click (PPC) agency or full service digital marketing agency can help you start your PPC campaign. This can help you attract new customers and secure online sales. They can also make sure that your search marketing is integrated - improving your visibility across both paid and organic search.

PPC agency checklist

For managing your PPC activity a PPC agency should be able to show:

• certification and partnership with the advertising platforms you are interested in
• an understanding of your goals for your paid media campaign such as clicks, impressions or brand awareness
• data to back up their decisions on how they will run your campaign
• proven experience and the necessary technology to set up, manage, track and analyse PPC campaigns
• a creative approach to PPC essentials - keyword research, bid management, daily budget management, website optimisation and advert writing
• how they intend to maximise and measure your return on investment
• how they intend to charge you (eg a flat fee, a percentage of the campaign expenditure or on the basis of campaign performance)

Your advertising budget will usually be a proportion of your total marketing budget. From the point you consider using an advertising agency, you should have a clear idea of how much it is.

The type and volume of advertising you want will determine how high your budget should be set. Remember to allow for your other marketing needs, such as PR or promotions.

Consider whether you want:

• a one-off advertisement or an ongoing campaign
• business-to-business or consumer advertising
• traditional advertising like press, outdoor, TV and radio 
• local or national advertising
• online advertising like search, social media and display 

An agency should advise you on which types of media best suit your objectives. Once you know what you can afford to spend, what you want to spend it on and over what period, any agency you engage should work toward this.

Measuring advertising effectiveness

You need to consider, together with your agency, how you will measure the effectiveness of your advertising. Only then will you be able to determine whether you are getting value for money. Having clear goals at the outset will be key to measuring the success of your advertising. 

Key metrics

Key metrics or key performance indicators (KPIs) to consider are:

• return on investment (ROI) - measures overall campaign鈥檚 effectiveness and whether it has performed against its goals
• return on ad spend (ROAS) - measures the revenue earned for each pound spent on ads. It helps check the campaign's performance before it ends

Different agencies may use varying methods to calculate ROI and ROAS. Choose an agency that matches your measurement preferences. It will help you accurately evaluate your campaign's success.

See measure your online marketing. 

When you have chosen an advertising agency, it's good business practice to negotiate and sign a detailed contract with them. Before you do this you should be clear about what you want from the deal. Many agencies have their own pro-forma agreements that you can adapt to your needs.

Length of contract

Ask yourself whether you want a contract for a short period, allowing for a one-off campaign. It might be better to prepare for a longer-lasting relationship. You could opt for a year-long contract allowing the agency to create an overall strategy. Consider including a probation period to allow for an early termination if necessary.

Agreeing campaign details and schedules

Your contract should then outline the nature of campaigns to be undertaken, as well as any other work, such as media buying, that the agency is expected to do. It should detail any campaign schedules to which the agency will work. You should also clarify who will own the intellectual property in any work that you commission. This is particularly important where it involves the design of an advertisement or logo, for example.

Setting clear objectives

You should agree objectives and how you will evaluate campaigns - for example by measuring sales or carrying out market research. You might want to set measurable benchmarks. You should also agree a procedure to address any situation where either party is unhappy or wants to end the agreement.

Setting payment terms

You should make sure you know exactly how the agency will calculate its charges. For example, will there be additional expenses and does it include fees for buying media space? Sometimes you can agree a payment-by-results system. Also, check if there will be any extra charges for meetings and brainstorming sessions.

Building in safety measures

Any contract should include confidentiality clauses.

It should also prepare for either side wanting to end the agreement by:

• specifying the notice period each party must give and whether the agency will be entitled to notice payment
• detailing the obligations on both parties during the notice period
• determining who owns copyright in the work created for your business

Building and maintaining a client-agency relationship is central to achieving your marketing objectives. When the client-agency relationship is working well, it makes getting the job done much easier for you and the agency. You and your chosen agency should have mutual trust, confidence and understanding.

1. Have clear communication channels

Create open, clear communication channels. This will ensure your agency knows your project goals, timelines, and expectations. Make sure the preferred communication channels are shared with your whole team.

2. Have clear goals and expectations

By setting clear goals for your campaigns, the agency will know what they are expected to deliver. Developing briefing templates will help keep you and the agency focused on the end goal.

3. Maintain regular contact

Have regular status meetings with your agency. Review live campaign progress, address concerns, and make needed adjustments.
It might be helpful to have occasional brainstorming events or away days to productively get to know each other better.

4. Take a collaborative approach

You will get the most from the agency if you treat them as an extension of your business, not a supplier. You will then build a strong relationship with the agency to achieve a common goal.

5. Trust the agency

For the agency to do the best job for your business, you need to trust them. This trust spans from knowing they will use their expertise to create successful campaigns. It extends to sharing confidential information, trusting they will keep it confidential. You might want to consider signing a confidentiality agreement with your agency.

You can increase your sales by using advertising and promotion as part of your marketing strategy. With so many ad options, getting advice from a reputable agency is wise to ensure your campaigns are effective. This checklist will detail everything you need to find the perfect ad agency for your business.

Before making your choice, you should:

• find out the size of the agency
• check if they are members of any professional associations
• ask what media they specialise in and if they have any creative strategies they prefer to use
• examine their past campaigns and find out how successful they were
• look at their types of clients, past and present
• ask about the main people who will be working on your account and their track record
• see if they have any experience of working for your type of business and if they understand the competition in your field
• check how they assess a campaign's effectiveness
• get an estimate of their fees and what's included - eg whether they would accept a payment-by-results agreement
• take up references from their clients if possible

There is no one-size-fits-all solution when choosing between an ad agency and an in-house marketing employee. Both options have their own advantages and disadvantages. It's important to know the differences between hiring an ad agency and an in-house employee. This will help you make an informed decision.

There are many factors to consider such as costs, the needs of your business and the ability to hire the right person, but you should base your decision on your marketing goals.

Cost and resources

Hiring in-house employees means you'll have recruitment, salary, and training costs. Working with an ad agency usually means a fixed contract and budget.

Advertising agencies also have access to cost-efficient tools and resources that you might otherwise have to invest in. They also often have established relationships with media outlets, which can help secure discounts for traditional ads.

Skills and expertise

Having in-house employees can be beneficial. They鈥檒l be more familiar with your brand and will understand what you're trying to achieve in your marketing strategy from the start. 

Marketing professionals who work in-house typically have a good understanding of multiple areas of marketing, but an advertising agency will have a team of experts within each field. Advertising agencies have many years of experience in campaign management and industry insights. They鈥檝e worked with different businesses and can bring a fresh approach to your advertising outputs.

Creative control and outputs

Working with an in-house marketing employee gives you greater control over your advertising materials than an advertising agency. The agency may offer you various creative ideas since you鈥檝e paid for their expertise, but these options may not match your brand's image, leading to delays and disappointment.

If you have the budget, you could hire an advertising agency to work with your in-house marketing team. By seeing the agency as part of your business, not a supplier, you can build a strong relationship focused on a common goal.

An advertising campaign can be a successful way to increase sales, as part of your marketing strategy. However, if it is not well run and designed for your needs it may be a waste of money. Here are ten questions you can ask to ensure your advertising campaign is effective:

1. Does the agency fully understand your marketing objectives?
2. Is the agency demonstrating a good grasp of your market and competition? See choose an advertising agency.
3. Is the agency providing regular updates on the campaign鈥檚 progress? See manage your relationship with the advertising agency.
4. Have you established clear measures of effectiveness with the agency? See measure performance and set targets.
5. Is the campaign meeting its targets, and if not, is the agency proposing solutions to improve it?
6. Is the agency adhering to the agreed budget for the campaign? See set an advertising budget.
7. Are you getting the best value for the money spent on this campaign?
8.  Are the ads being placed as scheduled? Is the agency keeping you informed about their placements?
9. Are you still working with the same contacts at the agency as initially promised?
10. Is the agency continuing to bring fresh and creative ideas to improve your advertising strategy?