Full Frontal PR Report
Heather Nevesky

Editor’s note: In case you missed it, the Los Angeles PR world was rocked a few weeks ago with a scandal involving a big agency who, so it’s told, was severely over billing the State of California. Oy oy oy.

You know your industry has hit the fan when your family and friends ask you about inflated billing rates. After several articles in the Los Angeles Times, the larger agencies here are in a panic. They are addressing billing issues with their staff and examining how they bill their clients.

That a large PR agency would (gasp!) over bill appears to have come as a surprise to many. To those of us who have worked at large agencies, though, we simply wonder why it took so long for the folks in accounting to catch on.

And so begins the season of the midsize agency.

What should you look for in your chosen company in this new era of PR? When it comes to your agency…does size really matter?

The following are six tips to consider when you are shopping for an agency:

1. Variety Is the Spice of Life

Cast a wide net when you look for an agency. The larger agencies will appear to have more resources (people), but you might get limited staff with your budget, and not necessarily the staff who has the experience and passion your PR program needs. Tier your list based on proven results for clients—not on the number of employees the agency has.

2. Thou Shalt Not Do P.O.O.

To some PR professionals, it’s all about the win. General rule of thumb: if an agency gives you Promises Of Oprah covering your company, product, or issue, they are either related to her, or you are being snowed. The competition is fierce when pitching new business. Some people will say anything for the leg up. Any agency worth their salt will not make such promises of guaranteed placement. Isn’t that what advertising is for? Instead, look for an agency who has great relationships with media, understands your business objectives, and is passionate about your business. Oh, and that you like.

Also check to see whether their fancy reference list includes any journalists!

3. Falling For “Okie Doke”

In a playoff game, a team does not start with their C-level players; they start with their best players. That’s what a lot of agencies do when they pitch new business. They come in with their best and brightest, but you end up getting the junior level staff running your account. That bait and switch is called falling for the okie doke. Be sure when your business is pitched that you meet those who will be actually working on your business, day to day to day. Ask for the seniority of your account team to be guaranteed!

4. Testing…Testing…1, 2, 3

To assuage the pressure inherent in making a choice, consider starting with a fixed term, fixed scope, fixed price project so you can see your potential agency spring into action. Over the course of three months, you will see whether they can cut the mustard. If their results positively impact your business, you found the right agency.

5. You Want What?

Do you want weekly calls? Monthly reports? 24/7 access to your team? When looking for an agency, do not let them dictate the terms of your working relationship. Let them know what you really expect in terms of meetings, reports, upper management involvement, etc. This will eliminate the time and hassle in correcting expectations.

6. Understanding Bottoms

A budget of out-of-pocket (OOP) expenses can be a bit daunting. You should expect to see expenses for communications (phone, fax etc.), research (Lexis/Nexis, Bacon’s, etc.), and a media monitoring service—and you have every right to know in advance what these re-occurring monthly OOP expenses will be. It’s fair to question a $750 hotel expense for a one-night stay. Let your agency know your company’s travel policy and other useful tips that will help them stay on track. Also, you might want to make sure you sign off on expenses over a certain amount. That will help avoid surprises at the end of the month. It’s not called the bottom line for nothing…

Choosing an agency is not a scientific process; PR is not a tangible per se. There is value in enthusiasm and overall aggressiveness that is difficult to quantify. Following these guidelines, though, will help ensure that your choice is a wise one—and that your company doesn’t end up in the next PR scandal story!

Heather Nevesky is manager of media strategy in RLM’s LA office. She participates in business development pitches while also delivering sensational (realistic) results for her clients.