As a C-level executive, you’ve no doubt come across situations before where you had to make the choice between partnering with a small agency or a larger one.
Have you ever wondered whether or not you made the right decision? Well, like most things in digital marketing, the answer is… well, it depends.
What makes a “small” agency?
Let’s be clear about who and what we’re talking about here. For reference, “agency” applies to any particular type of agency, whether it’s a creative agency, marketing agency, advertising agency, PR firm, or full-service agency. A traditionally “small” agency applies to companies with fewer than 10-20 employees that all have a very broad range of skillsets, which means that one person can perform 20 different tasks during the course of a single working day.
Small agencies typically handle between 10-50 clients at a time and can have anywhere from 10-20 ongoing large projects per month (depending on whether or not that agency is outsourcing work to increase their capacity).
Keeping an agency small makes it easier to manage clients, and drives rapid innovation.
We’ve found that larger agencies tend to hire dozens of “specialists” who are very good at doing one thing, but not much else. This approach does have its benefits, but its drawback is that in order to move a project forward, you need cooperation between 5-10 people at a time. That’s a nightmare to coordinate on a tight deadline.
What makes a “large” agency?
Unlike a smaller agency, a large agency can employ upwards of 100-500 people, will have a multitude of departments, and loads of standard operating procedures. Large agencies definitely get things done – there’s no doubt about that. They are large for a reason – because they are efficient, and know how to operate.
For example, a large agency might employ 10-15 copywriters whose only job is to write the text for ads, blog posts, eNewsletters, or website content. Then, they might also hire 5-10 graphic designers, whose job it is to take the content from the copywriting department and create infographics for social media. Finally, they might also employ 5-10 different social media specialists, whose job it is to schedule out those infographics, respond to people on social media, and fuel overall social media growth.
That’s a lot of hands passing a lot of things around!
But it results in a very efficient workflow, and no one is wasting their time.
Which should you choose?
There’s no right or wrong answer here because ultimately the only thing that matters is the results that the agency can deliver for your company’s bottom line. If a small agency and large agency can both do the exact same work, and deliver similar results, then ultimately what it boils down to is who’s sales rep you liked the most!
All joking aside, though, here are 5 pros of working with a small agency, and 5 pros of working with a large agency.
5 Reasons to work with a small marketing agency:
- Small agencies are passionate. When you work with a smaller agency, that agency is actively trying to grow. This drives both passion and competition, as the agency is always looking to outperform its competitors.
- Smaller teams mean faster turnaround times. This may seem counter-intuitive, but it makes sense. When you have large teams of 10-12 people working on your account, things can get jumbled. When you only have 1-3 people working on it, things get done faster, and communication is more personal.
- More personal communication. Smaller agencies treat their clients like family, and unlike large agencies, you probably won’t have an “account manager” who will act as the middleman for lines of communication. When you call a smaller agency, you’re going to get either the owner or one of the people working on your projects on the phone.
- Less sales-y, more authentic. Small agencies may only have 1-2 salespeople, and 9 times out of 10, the salesperson is the agency owner themselves. Because of this, they won’t have time to be sales-y to you over the phone – they just want to focus on delivering results and keeping you happy.
- Lean, nimble, and affordable. Small marketing and advertising agencies are lean, having between 3-20 employees. No one is a specialist at anything, and everyone can do a little bit of everything. This means that shifting gears on a project or restrategizing altogether is always quick, and small agencies know how to adapt whereas larger agencies are more rigid and procedural. It also means that overhead is much lower, enabling them to charge less for the same or similar work that a large agency might charge 50-200% more for.
There are undoubtedly more benefits to working with a smaller agency, but don’t misunderstand – we’re not bashing large agencies.
5 Reasons to work with a larger agency:
- Large agencies get things done. As stated above, large agencies are large for a reason. They are successful because their methods have been proven effective time and time again, enabling them to grow beyond the “small” agency ceiling.
- More procedural. If you’re a very large corporation with lots of hoops to jump through during the process of working with a third-party vendor agency, then a large agency might be a good fit for you. They are used to working with clients like this, and know-how to please large, multiple-decision-maker-type companies.
- Chaotic is not in their vocabulary. If you’re the type of company that wants an agency that only plays it safe, and never takes any unwarranted risks with the budget you’ve allowed them to use for your campaign, then a large agency is perfect. They have their procedures, and they follow them religiously. If something isn’t in line with their procedures, then it doesn’t get done.
- A broad approach to service. Larger agencies rarely niche down to one specific industry or vertical. Most of the time, they serve anyone and everyone who shows up at their doorstep – which isn’t necessarily a bad thing. It means that they have the experience to work with many different business types, and can apply one method from another industry that no one may have thought to apply to another industry.
- Referrals, partners, and agency networks. Large agencies usually have a network of partners they work with to provide services your business needs, but they don’t necessarily offer.
Small agency vs. large agency: what’s the verdict?
As a smaller agency, we’re biased of course. But, objectively speaking, there are certain scenarios in which you might prefer a small agency and scenarios where a large agency is the obvious right choice.
It boils down to what qualities you’re looking for in an agency partner.
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