How to Choose the Right Marketing Agency: Large vs. Small Agencies

Written by Kelsey

November 12, 2024

For companies hoping to generate new business growth, investing in marketing and advertising is a critical step. Brands looking for expert help to produce results more efficiently often find partnering with an agency is the most effective way to drive that growth.

Finding the right fit with an agency partner can be an overwhelming process for business owners and internal marketing teams. There are thousands of advertising and marketing agencies currently in business. Many of them seem to offer compelling services, but with vague descriptions and agency-speak, it can be difficult to determine the specific work they offer. And if your business is on a budget, it can be particularly frustrating to figure out what’s included at each price point.

Often, one of the biggest choices businesses face when selecting a partner is whether to use a big agency or smaller team. There are advantages and disadvantages to both options, and the best choice will depend on the scope of services your brand needs, preferred working & communication styles, and budget. Let us break down how big and small agencies differ in each category to help you make a more informed choice for your business.

Project Involvement

Big advertising agencies with a long roster of employees and clients naturally have more complicated operations to manage. To keep dozens of teams and projects running smoothly, large firms are often forced to standardize their procedures and workflows for each account. Their regimented processes are designed to hit deadlines and minimize surprises or roadblocks. This operational strategy is efficient, and most ideal for businesses looking to be relatively hands-off with a campaign that will get their brand started in the right direction. However, businesses who want an individualized approach or more creative input might find the big agency model a bit impersonal or even cookie-cutter.

With fewer employees and clients to juggle, smaller marketing agencies tend to be nimbler and more flexible. Smaller teams typically have fewer operational hoops to jump through, making it easier for them to think outside the box and treat each client as a unique project. They can quickly implement new ideas and pivot to follow an audience’s attention to continually improve results. Businesses looking for a more creative marketing strategy that is tailor-made for their unique industry or business model may come away feeling more satisfied after working with a smaller agency – even if it means sacrificing the big-name agency and client roster.

Creative Specialty

In many cases, big ad agencies have become so large because they offer a wide range of marketing services through their many different teams. With extensive resources and a diverse array of client experiences, big agencies can typically offer a full-service marketing program for their clients. It’s a great solution for brands hoping to launch huge national campaigns that will require broad resources and prefer to work with one partner who can manage the work across every media platform.

For some businesses, a wide-reaching campaign based in strategy that caters to many different industries may not be a good fit for their marketing goals. Instead, they may want to find a smaller agency that specializes in a niche that fits their business. Small agencies often specialize in select aspects of marketing or a specific group of industries, giving them deep and intimate knowledge despite a smaller client base. Their narrow focus can provide more detailed insights and strategy that can help businesses achieve more precise marketing goals.

Communication

Effective client communication is often one of the biggest challenges for large marketing agencies. With more team members involved in each project, many accounts to manage, and a more corporate setting, it’s common for communication to get bogged down. If they have more than one point of contact, clients can get confused about who to email when they have a question, and follow-ups can get quickly get lost in an over-crowded inbox. According to Forbes, siloed teams and ineffective communication is one of the most frequent complaints clients cite with previous big agency partners.

The more personal service commonly offered by smaller marketing firms often makes for better client communication. With fewer employees and an all-hands-on-deck approach, there are fewer opportunities for miscommunication or questions getting lost in the shuffle. Plus, without as much corporate influence, smaller agencies are freer to communicate back and forth with their clients as if they were a part of the internal team.

Attention to Detail

Because big marketing agencies have a vast network of resources, many businesses assume they will offer the most detail-oriented campaigns and results. Unfortunately, in reality, businesses who work with large agencies are often left feeling like the firm isn’t paying close attention to their account. This is a problem particularly with agencies that work with very well-known brands that take up a lot of time and put a lot of pressure on the agency team to deliver results. Consequently, other clients sometimes slide down the list of priorities and receive less detailed care and attention.

A small agency may not have as many resources in-house, but because they have a smaller number of accounts, their team has a much more vested interest in keeping every one of their clients happy. Instead of being one of many accounts, each business is treated like the agency’s big-name client. In a smaller setting, there’s less competition for the team’s attention and more time allotted to keep each account running with the most effective strategy.

Budget

For most businesses looking for an agency partner, the budget plays a huge role in their decision. Bigger agencies carry more overhead costs, so as a result, they typically charge higher monthly costs or retainer fees. And in accordance with their more rigid procedures, larger agencies are also more likely to have preset packages at fixed prices, with little flexibility to scale down to fit smaller budgets.

On the other hand, smaller agencies have less overhead, which helps them offer more affordable rates. In many cases, they also have more flexible pricing models, and are willing to negotiate with businesses they’re really interested in to find an agreement that fits their budget. There may be opportunities to start with scaled-back deliverables and corresponding fees and increase the budget once their team’s campaigns start driving results.

As a small digital marketing agency in business since 2007, we’ve heard firsthand from our clients how the experience of working with a smaller team compares to larger, corporate agencies. While some brands can benefit from the vast experience and resource of big firms, we believe in the power of tailored, adaptable, detailed marketing strategies driven by small and specialized teams. You can find out more about how our small marketing team delivers results for our clients here.

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