Small ad agencies favor newspapers p. 27

By: Dorothy Giobbe

IN A TIME of flat to declining advertising budgets, many advertisers are turning to smaller agencies that say they offer clients a more immediate relationship and closer, direct involvement in the advertising process.
The New York-based Triad Group, formed in 1990, has just eight full-time employees, but the agency is gaining recognition based on a record that includes increasing one client's annual sales by 15% while cutting its ad budget by 20%.
"I think some large agencies are in trouble because they have enormous overhead," said William Grant, the group's president. "I used to be part of the agencies, and I understand that clients just don't have big budgets anymore and they want to get more bang for their buck."
Grant said most of his clients have ad budgets of about $2 million to $5 million.
To help hold down its costs, the Triad Group uses outside services. "We constantly outsource with a core of top professionals that we use, but they are never part of our overhead," Grant said. Also, the agency heavily utilizes newspapers in its media mix because "it's extremely cost-effective to run in newspapers as opposed to other media."
All newspaper space is bought through Publicitas.
"We use Publicitas' ability to get a low rate," Grant said. "I make money on creative. I don't want to get into buying media."
One current client, Johanna Foods, has advertised mostly in the Northeast but is trying to expand into markets in the Midwest. Grant has designed a creative theme for the campaign and has planned media buys. Newspapers "will be a large part of this campaign," he said. The Johanna Foods campaign will include newspaper buys on "food days" and in food sections that regularly appear in most newspapers.