NFIB

Advertising Aid
03/ 28/ 2002

by Dan Rafter

Steve Rothberg advertises his company, CollegeRecruiter.com, online on 17,000 Web sites. It takes him one hour a week to do this.

Rothberg, president and founder of the Minneapolis-based online job and resume bank, isn't Superman. But he is a smart businessman. He's hired an outside agency to research possible advertising outlets, draft the contracts and track the effectiveness of each advertising medium. All Rothberg has to do is sign off on the agency's decisions.

"To buy advertising from 17,000 Web sites--I don't know of any small business owner who can handle that," Rothberg said. "Working with an outside company has been one of the best business choices I have ever made."

Rothberg isn't alone. For many small businesses, hiring a full-time staff person to handle advertising can be too costly, once benefits are calculated in. And a small business might not advertise enough to justify hiring an employee dedicated only to marketing, even if they could afford to do so. Outsourcing allows them to pay an advertising professional only when they need one.

Another benefit? Business owners who outsource their advertising usually end up with more effective ads. Ad agencies, after all, employ professional marketers.

"Just because someone can write a document doesn't mean he can do a good press release," said Sam Waltz, president of Sam Waltz & Associates Business and Communications Counsel in Wilmington, Del. "Just because someone can sketch a drawing does not mean he or she is an advertising specialist."

Business owners can either pay a monthly retainer fee for an advertising agency's services or they can choose to pay an agency on a per-project basis. Amy Power, owner of Power Advertising based near Dallas, said that business owners can expect to pay from $1,500 to $3,000 a month when they enter into a retainer relationship with an advertising agency. If they'd rather hire agencies on a per-project basis, they can expect to pay from $60 to $250 an hour.

Business owners shouldn't blindly follow the marketing advice of their contracted advertising or marketing agency.

"You should always work hands-on with your agency," said Merilee Kern, owner of Las Vegas-based Kern Communications, an Internet marketing consultancy. "Review everything before it goes to print. As knowledgeable as the agency might be, it's the business owner who knows the product and company best."

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This article originally appeared in the February/March 2002 issue of MyBUSINESS Magazine.

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