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Online Advertising Agencies

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online advertising agencies
How much do advertising agencies charge?

For a local diner or a donut shop ect., how much do they charge to help advertise in newspapers, online ads, bus stop ad, ect. Do they charge monthly, yearly up front costs, percentages. How do they work. What is the paper work like. does any one have an advertising agency work at one or uses one. —(california, inland empire)—

Agencies vary greatly. Some work on a retainer. You pay them so much annually or monthly, and they handle all of your advertising. Others will work on a project-by-project basis. You give them the project, and they bid on it.

There are several things to keep in mind. When you advertise, you have two costs — creative and media. For example, if you are producing a newspaper ad, an agency will charge you for the creative time of designing the ad. If you also employ their services to buy the ad space from the newspaper, they will also work with the newspaper to place the ad and will pass along what the newspaper charges to you. Media buying is where the percentages come in. When they place your ads, they get what is called an agency discount, BUT they will still charge you the normal price of the ad. So, they are keeping the amount of the discount for their fee. If you opt to have them do the creative, and you place the ad yourself, you can ask the newspaper, or radio or TV station for the discount yourself. It’s called an in-house agency discount. One other thing. If an agency handles something like a direct mail project for you, you can opt to have the agency create the direct mail piece, work with a printer and a mailhouse to complete the entire project. Or, you can have the agency handle the creative only, get the file from them, take it to a printer yourself and work with the post office to mail it yourself. My point is that what you pay to the agency on a project depends on what aspects of the job you have them handle.

My advice is to contact two or three agencies. Ask to see samples of their work. If you like what you see, ask whether they only work on a retainer or on a project-by-project basis. If you have a small business, the latter may be the most cost-effective way for you to go. Perhaps you would use them for large projects, and handle some of the smaller ones yourself. If you do that, it wouldn’t make sense to be paying anyone a monthly retainer.

I do have one other suggestion. Freelancers are also an option for you. You may not need to work with a full-fledged agency. I was formerly an S.V.P. of Marketing who left my position and started my own consulting company specifically for small businesses. I’m a one-person show working out of my home, so I can offer more affordable prices for a small business owner. Your freelancer will typically charge by the hour, with the rate depending on where you live. There are sites on the internet where you can find freelancers, such as http://www.ifreelance.com. To find someone locally, start asking around. Are there other small businesses in town who have advertising you like? Contact them and ask who does their advertising. More than likely, one of them is using a freelancer. Your Chamber of Commerce or local SCORE office may also have the name of marketing/advertising freelancers.

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