The Advertising

Agencies

Presented By:
Sunil Singh Parihar
 Advertising Agency
Meaning:
An advertising agency creates, plans and manages
all aspects of a client's advertising.
Ad agencies can specialize in specific areas, such
as interactive advertising, or they can be a full-
service agency that creates advertising materials
like brochures, catalogs, direct mail, print ads,
radio and TV commercials, sales letters, etc.
 Functions of Advertising Agency
 Primary Services:
• Complete a marketing analysis
• Develop an advertising plan
• Prepare a creative strategy
• Create advertising executions
• Develop and implement a media plan
• Handle billing and payments
• Integrate other marketing communications
 Functions of full-service
agencies
 Account management
 Creative
 Media planning and placement
 Research
 Agency Organization Chart
Board of
Directors
[Chairman/CEO]

President
[COO]

Other Marketing Strategy Office Management

Communications Review Board [Personnel,
Services [Managment Accounting,
[PR, etc.] Committee] Legal, etc.]

Account Mgmt. Creative Research Media Dept.

Director Exec CD Director Director

Management Associate Project Associate

Supervisor Creative Managers Media
Director Director

Account Creative Research Media

Executive Group: Assistants Supervisor

Asst. Account Copy Spvr. & Art Supervisor Media Media

Executive Copywriters & Art Directors Planner Buyer

Broadcast Print Analysts

Production Production

Traffic
 Functions of Advertising Agency
 Account management
 Liaison between agency and client
 Responsible for understanding...
 the client’s business
 the client’s marketing needs
 strategy development
 Representing client point of view within
the agency
 Account Management
Account Mgmt.
Director  Account management
director
Management.
Supervisor  Management
Account supervisor
Supervisor
 Account supervisors
Account
Executive
 Account executives
Asst. Account Account
 Assistant account execs
Executive Coordinator
 Account coordinators
Traffic  Traffic
 Creative Department
Responsibility
 The creative department is responsible for
creating and producing the print and
broadcast advertising
 strategy is key

good creative work is always guided by a

creative strategy that sets forth goals to be
accomplished and key message points to be
relayed
 Creative Department
Strategy
Review
 Executive & group
creative directors
Board

Creative director
Executive
Creative 
Director (ECD)

Creative
 Associate creative
Director (CD)
director
Associate
Creative
Director (ACD)
 Copywriters
Creative
 Art directors
Group:
 Broadcast producers
Copy Spvr. &
Copywriters
Art Supervisor
& Art Directors  Print production managers
Broadcast
Production
Print
Production  Traffic coordinators
Traffic
 Media Department

 The media department has two main

functions - planning and buying.
 The planning group handles more
strategic marketing and media issues.
 The buying group handles media
negotiations and implementation.
 Creative Department
Media
Director  Media director

Associate
 Associate media
Media
Director directors
Media  Media supervisors
Supervisor
 Media planners
Media Media
Planner Buyer  Media buyers
Analysts  Media analysts
 Big changes in the media
department
 Mega-agency media departments have now
become profit centers
 Agencies have set up their media departments
as free-standing units
 Many large clients now look at media as a
separate service
 Research Department

 Interpret market environment

 Gather and analyze research data.
 Primary and secondary techniques
 Determine consumer needs/perceptions
 Understand problems

 Advise how ads can meet

Strategic goals
 Help find solutions
 Research Department
Research  Research director
Director
 Research project
Project managers
Managers  Research assistants

Research  Outside research

Assistants
specialists
Outside
Research
Suppliers
 Auxiliary Agency Functions
 Account planning
 Strategy/creative review board
 Office management
 Human resources
 Legal services
 Accounting
 Recruitment
 3 ways agencies make money
 Commissions
 usually 15% of gross costs
 Fees
 usually based on negotiated hourly rate
 Incentives
 still relatively new and problematic
 usually based on performance goals
 Agency Commissions
 Media commission system
 15% media commission
 Adjustable commission rates
 Negotiate to match client budget
 Sliding scale
 Markups-production & service
 Add a percentage markup to costs
 17.65% of net = 15% of gross
 4 Types of fee systems
 Fixed fee (retainer)
 Cost-plus fee
 Performance fee
 Hybrid fee & commission
 Top Indian Advertising Agencies
 Adbur Pvt Ltd.
Clients: Sanat Products (Bioslim slimming agent);
Dabur Pharmaceuticals (Lona Low-sodium salt).
Dabon International Ltd (Lebon-Cheese)
 Akshara Advertising
Major Clients: Rajasthan (University of Rajasthan);
ONGC; MTNL.
 Ambience D'arcy
Major clients: Times of India Group , Emami Group
of companies ,TVS Suzuki Ltd , Philips India Ltd.
 Top Indian Advertising Agencies
 Chaitra Leo Burnett Pvt Ltd.
Major Clients: ICICI; Bajaj Auto; Dabur India; BPL Ltd;
Coca -cola(mazaa/beverage); Toyota (Qualis); Amtrex
Hitachi(Air-conditioner)
 Contract Advertising (India) Ltd
Major Clients: Bajaj Ltd (spirit scooterettes); Cadbury
India Ltd (picnic, milk treatChocobix); Dabur foods
Ltd(real/fruit juice); MTNL (corporate).
 Crayons Advertising and Marketing Pvt Ltd
Major Clients: Marshal (Mahindra & Mahindra/jeep);
Jindal art glass (Jindal Dyechem/Stained glass).
 Top Indian Advertising Agencies
 Creative Advertising
Major Clients: trendly systems (TSL/telemedia
service).
 Enterprise Nexus Communications Pvt. Ltd
Major Clients: Nimbus (Nirvanazone/youth portal);
Daewoo (Matiz,Nexia/cars); Emami(Herbal skin & hair
care range).
 Everest Integrated Communications Limited
Major Clients: Ajanta Pharma Ltd (Pinkoo Cough
Syrup & Gripe Water/healthcare); Honda Motors;
National Panasonic India Ltd (Washing
Machines/Consumer goods).
The End