Why do companies use ad agencies instead of creating their own ads?

Companies often choose to work with ad agencies instead of creating their own ads for several reasons, each tied to the expertise, efficiency, and advantages that agencies offer.

Companies tend to look for solutions to any problem that are within their scope. Agencies don’t, because their scope is communication. Here’s an example.

In the UK, London Underground found that passengers were getting very frustrated waiting for trains, and that often when one came, it was full so they would have to wait for another one. London Underground is primarily an engineering company that spends a fortune on signaling systems, rolling stock etc, so it’s not surprising that their solution was to build more trains, have longer platforms etc… a very, very expensive solution.

Their advertising agency recognized that the waiting public’s frustration with full trains could be eased if they knew when the next train was due. “Next train due in two minutes” is a lot more digestible than just watch the one you couldn’t get on vanishing down the tunnel.

So the client was persuaded to install electronic signage on the network. Not a cheap solution, but peanuts compared to extending the platforms.

Another example: we had a client who made washing up liquid, and they had found a way to make it smell of lemons or lavender, etc. We were asked to communicate this new fragrance range, and the client imagined their standard print as with a flash at the side saying “now with lemon fragrance” or something similar. They saw the addition of a smell as a nice touch. No more than that.

As their ad agency, we knew that there is a big therapeutic effect of washing dishes by hand. In the age when dishwashers are widespread, washing up liquid is still a big seller, and it’s because people like using it. It is the restoration of peace and order after what is often a noisy, messy supper with children.

So we convinced the client to do some new ads positioning the products with fragrance as “Aromatherapy by Fairy”. They thought we were craze and fought against it, but reluctantly let us run a few print ads. They were a huge success, winning creative awards and being great for sales. The client was amazed, and it became a big campaign with TV ads and a proper budget all of its own.

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