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Advertising agency
advertising agency
ad agency
is a service businessdedicated to creating, planningand handlingadvertising(and sometimes other forms of  promotion) for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overallmarketingand brandingstrategies andsales promotionsfor its clients. Typical ad agency clients include businesses andcorporations,non-profit organizationsand governmentagencies. Agencies may be hired to producetelevision commercialsandradio commercialsas part of anadvertising campaign.
Contents[edit] History
The first acknowledged advertising agency was William Taylor in 1786, another agency wasstarted byJames 'Jem' Whitein Fleet Street, London in 1800, and eventually evolved intoWhite Bull Holmes a recruitment advertising agency, that went out of business in the late1980s.
In 1812 George Reynell, an officer at the
 London Gazette
, set up another of theearly advertising agencies also in London.
This remained a family business until 1993, as'Reynell & Son', and is now part of the TMP Worldwide agency (UK and Ireland) under the brand
Another early agency that traded until recently,was founded byCharles Barker, and the firm he established traded as 'Barkers' until 2009 when it went intoAdministration.Volney B. Palmer opened the first American advertising agency, inPhiladelphiain 1850.This agency placed ads produced by its clients in various newspapers produce "photographs, ambrotypes and daguerreotypes." His ads were the first whosetypefaceandfontswere distinct from the text of the publication and from that of other  advertisements. At that time all newspaper ads were set inagateand only agate. His use of larger distinctive fonts caused a sensation. Later that same year Robert Bonner ran the firstfull-page ad in a newspaper.In 1864, William James Carlton began selling advertising space in religious magazines.James Walter Thompsonjoined this firm in 1868. Thompson rapidly became their bestsalesman, purchasing the company in 1877 and renaming it theJames Walter ThompsonCompany, which today is the oldest American advertising agency. Realizing that he couldsell more space if the company provided the service of developing content for advertisers,Thompson hired writers and artists to form the first knownCreative Departmentin anadvertising agency. He is credited as the "father of modern magazine advertising" in the US.
[edit] Types of advertising agencies
Ad agencies come in all sizes and include everything from one or two-person shops (whichrely mostly on freelance talent to perform most functions), small to medium sized agencies,
large independents such asSMARTand multi-national, multi-agency conglomerates such asOmnicom Group,WPP Group,Publicis,Interpublic Group of CompaniesandHavas.
[edit] Generalized Advertising Agencies
Creative agenciesspecialize in "creative" or design-based business models: their basicinterest is in the creation of the advertisement or branding. Other ("full-service") agenciesoffer design in conjunction withmedia buying.Media agenciesconcentrate on media buying. (In the 1990s, media and creative were often unbundled in the interests of economies of scalein buying media.
)The client who chooses to use a design only based advertising agency must assume some of the advertising purchasing. These are activities that are routinely handled by an agency with amedia buying option. Media buying agencies are oftentimes a good choice for larger  businesses. These agencies can assume greater responsibility for the strategic planning andfunction of an advertising campaign. The advantage to a design only-based agency is there isno third-party ordering the service. In turn, cost can be lower and is oftentimes a goodalternative for smaller businesses.
[edit] Specialist Advertising Agencies
In addition to the full-service, general-line advertising agencies, there are also agencies thatspecialize in particular kinds of advertising: recruitment, help-wanted, medical, classified,industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment,investment, travel, and so on.Specialization occurs in such fields for a variety of reasons. Often, as in recruitmentadvertising, for example, specialized media or media uses are involved that requireknowledge and expertise not ordinarily found in a general-line agency. In other cases, such asmedical or industrial advertising, the subject is technical and requires that writers and artistshave training in order to write meaningful advertising messages about it.Such specialist advertising agencies are also usually "full-service," in that they offer all the basic advertising agency services in their area of specialization plus other, peripheraladvertising services related to their area of specialization.
[edit] In-House Advertising Agencies
Some advertisers believe that they can provide such advertising services to themselves at alower cost than would be charged by an outside agency.
[edit] Interactive agencies
nteractive agencies
may differentiate themselves by offering a mix of webdesign/development,search engine marketing,internetadvertising/marketing, or e-  business/e-commerceconsulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive
agencies are defined as companies that provide specialized advertising and marketingservices for the digital space. The digital space is defined as any multimedia-enabledelectronic channel that an advertiser's message can be seen or heard from. The 'digital space'translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, andmobile). Interactive agencies function similarly to advertising agencies, although they focussolely on interactive advertising services. They deliver services such as strategy, creative,design, video, development, programming (Flash and otherwise), deployment, management,and fulfillment reporting. Often, interactive agencies provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich mediacampaigns, interactive video brand experiences, Web 2.0 website design and development, e-learning Tools, email marketing, SEO/SEM services, PPC campaign management, contentmanagement services, web application development, and overall data mining & ROIassessment.The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as MySpace,Facebook and YouTube have sparked market interest, as some interactive agencies havestarted offering personal and corporate community site development as one of their serviceofferings. It still may be too early to tell how agencies will use this type of marketing tomonetize client ROI, but all signs point to online networking as the future of brand marketingand Interactive being the core of Brand's Communication and Marketing Strategy.Due to the social networking explosion, new types of companies are doing reputationmanagement. This type of agency is especially important if a company needs online damagecontrol. For example, disgruntled customers can quickly and easily damage a company'sreputation via social networking sites. Reputation management companies help stem thenegative information or misinformation that might proliferate in their absence.
[edit] Search engine agencies
Lately, pay per click (PPC) andsearch engine optimization(SEO) firms have been classified  by some as 'agencies' because they create media and implement media purchases of text based (or image based, in some instances of search marketing) ads. This relatively youngindustry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases, they do technically qualify as 'advertising agencies'.
[edit] Social media agencies
ocial media
agencies specialize in promotion of brands in the various social media platformslike blogs, social networking sites, Q&A sites, discussion forums, microblogs etc. The twokey services of social media agencies are:
social media marketing 
online reputation management 
[edit] Healthcare communications agencies
Healthcarecommunications agencies specialize in strategic communications and marketingservices for the Healthcare andLife Scienceindustries. These agencies distinguishthemselves through an understanding of the strict labeling and marketing guidelines

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