Advertising Agency

Role of Ad Agencies and Other marketing Communication Organizations

Major Institutions Involved in Advertising Management

Control Institutions Facilitating Institutions
Advertising Agency Government Advertiser Media

Competition

Research Suppliers

Markets and Consumer Behaviour

 The first ad agency was set up by J.

Walter Thompson in Philadelphia in 1841 by way of selling space in news papers and magazines. He was news paper agent

Major Ad Agencies of India

Hindustan Thompson Lintas Mudra O& M FCB-Ulka R K Swamy Clea Trikaya Grey Rediffusion Contract

FUTURE
1. DEVELOPMENTS : Brand Proliferation Media Explosion Technology Boom Changed Consumer 2. MARKETS : Dot Coms Financial Agency Marketing Public Relations Franchise Markets

Types of agencies
Full Service Agencies Provides whole range of services to clients, both advertising and non advertising
A la carte agencies or boutique agencies
Specialize in creative concepts, strategy development

House agencies Agency established by company itself e.g. Lintas by lever and Mudra by Reliance

Ad Agency Structure
President/Proprietor Branch Head Head Accounts

Account Planner

Creative Director
Planning

Media Head
Buying Operations

Studio

Finance Banks Financers Clients suppliers

Clients brand Art

Copy Print

TV/ Film Producers

Production

Agency services
Account Planning
Account Management Creative services Media services Traffic maintenance

Selection of an Ad Agency
Looking around Shortlisting

Criteria for shortlisting

Core competence Service orientation Category expertise Current portfolio Resource allocation Remuneration Location Size Thought alignment

Signing Up Agency briefing, setting and directing the achievement

of objectives

Agency Compensation Systems

Media Commission Model
Fee- Based Model Other Options In-house ad agency Creative shops/ Free lancers Marketing communication consultants

Problems Of Advertising Agencies

Delayed Payment Development Of Break Away Units High Salary Change Frequency by Clients Erratic Pre-Censorship Of Commercials

TRENDS Indian Agencies Go Global

Artful Obscenity Use Of Children in Advertisements Specialization Rural Advertising Grasping the Grassroots

Areas of Client- Agency Conflict

Guiding Principles For Good Relationship Trust Honesty Commitment and responsibility Understanding and empathy Respect

Agency Tasks/ functions

Planning client mix strategies

Financial planning and controls Estimation Signing contract Advance request invoicing Billing Outstanding generation and follow up Payment
Relationship with other partners & associates Managing media relationships Managing relationships with artist, creative people

Specialized Services
Direct Marketing Agencies
Sales Promotion Agencies Public relation Firms

Interactive agencies- devt of Web etc.

Collateral Services
Marketing Research companies
IMC service companies

Thanks