Chapter-One(Introductory Part)

Introduction
Advertising means activity or profession of producing information for promoting the sale of
commercial products or services. For any business success depends on its promotional activities
& for promotion advertisement is most important tools in marketing. Thus day by day an
effective & grow able advertising industry is established in Bangladesh. The advertising industry
has been dynamic due to its evolution. In some cases it has reflected social trends; in other
instances it has influenced social trends.
There was very little advertising practice in Bangladesh before independence (1971) due to
inadequate industrialization and learning. Demands for specialized advertising agencies were
very limited. Now the total numbers of advertising firms are almost seven hundreds (Asiatic).
There is no formal way for tracking of advertising agencies in the country. According to formal
media sources, a total of 150 agencies are registered with Bangladesh Television (BTV).
The sectors are expected to continue to flourish with the increased access to technology and
various media, including the internet and satellite television, and with a large emerging young
population. With the growing economy and population, experts predict that more international
brands will be attracted to the country, fuelling the growth of the advertising industry.
Advertising sector has the potential to make a huge contribution in the economy of Bangladesh.
By ensuring proper development of this sector, it is possible to earn a large amount of foreign
currency which will contribute to the growth of national economy. The sector provides an ample
employment opportunity for the people who are directly or indirectly involved in this sector. It is
a service providing sector. The unemployment problem of the country can be reduced partly by
developing necessary infrastructure of this sector.

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HISTORICAL PERSPECTIVE OF ADVERTISING INDUSTRIES

HOW ADVERTISING AGENCIES DEVELOPED:
Advertising has become a part of the economic & social fabric of a nation. It provides
information about the product, service, ideas etc. It influences the choices we make. Advertising
agencies got started and how they developed into worldwide organizations that play such a
prominent role in the marketing and advertising process. The advertising industry has been
dynamic due to its evolution. In some cases it has reflected social trends; in other instances it has
influenced social trends. The history of advertising is a perspective on how the principles and
practices of multibillion-dollar industry have evolved.
The Early Age (Colonial Times to 1917)
It is not generally known that the first Americans to act as advertising agents were colonial
postmasters. In many localities advertisements for Colonial papers might be left at the post
offices. William Bradford, publisher of the first Colonial weekly in New York, made an
arrangement with Richard Nichols in 1727, whereby it was accepted advertisements for the New
York Gazette at regular rates. The Agency Becomes a Creative Center In the early 1870s, writer
Charles Austin Bates began writing advertisements and selling his services to whoever wanted
them, whether advertisers or agents. Many of the names on the list of firms advertising in 1890
are still familiar today; their longevity can be attributed to the effectiveness of that generation of
agency people who developed the new power of advertising agency services. Agency-Client
Relationship was established in 1875. Standard Commissions for Recognized Agencies
Established In 1917, newspaper publishers, through their associations, set 15 percent as the
standard agency commission, a percentage that remains in effect for all media to this day. The
American Association of Advertising Agencies Founded in 1917, the American Association of
Advertising Agencies (sometimes known as AAAA or 4As), is the national trade association
representing the advertising agency business in the United States. Its membership produces
approximately 75 percent of the total advertising volume placed by agencies nationwide.

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The No-Rebate Age (19181956):

By 1942, agencies were billing more for radio advertising ($188 million) than they were for
newspaper advertising ($144 million). The radio boom lasted until television came along.
Television became popular after 1952, when nationwide network broadcasts began. Between
1950 and 1956, television was the fastest-growing medium. By 1956, the computer was already
changing the lives of the media department, the marketing department, and the research
departmentall having grown in competence with the increasing number of syndicated research
services. Consent Decrees In 1956, a change occurred in the advertiser-agency relationship.
The Reengineering Age (19902000):
Mergers during the 1980s, many corporations had merged, creating giant corporations. To be
more competitive, agencies followed suit, many merging because of financial pressures to serve
larger clients. Integrated Services the decade of the 1990s was about agencies revaluating how
they operate. Integrated services has been a buzzword relating to efforts to coordinate a clients
entire marketing mix, including public relations, promotion, direct marketing, package design,
and so on. Some agencies have expanded their communication services to clients by expanding
departments or buying or creating subsidiary companies that enable them to offer sales
promotion, public relations, direct marketing, logo and packaging design, and even television
programming.
Media and the Digital Age (Since 2000):
Agency holding companies created mega-media buying and planning agencies (also called media
services agencies) that became profit centers to attract global clients in an effort to become more
efficient and cost-effective. As a result, many clients unbundled their media from their agencies
and gave them to a single-media agency to buy and place. Interactive agencies have risen in
importance as clients have attempted to deal with the mobile, Web, iPod, blog, BlackBerry,
consumer generated advertising world.

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The figure will better describe how in different years advertising agencies have been developed
in the new shape.

1870- Started
writing
advertisement

1727- New York

Gazette
accepted as
advertisement

1890introduced firms
1917- AAAA

formed
1942-Rdio
advertising

Emerging advertising industries in

different years

1952-television
advertisement

1956-computer
changed styles
2000-mega media
buying and planning
started

1980- Created
giant agencies
1990integreted
service

Figure: advertising agencies developed through different years.

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Moreover, the evolution of advertising can be divided into seven stages reflecting historical eras
and technological changes that lead to different philosophies and styles of advertising.
Stage 1: Age of print: The objective of this stage was to deliver information. The primary
medium of this age was newspapers, though handbills, posters were also important. Literacy
levels increased due to the use of printing press and that persuade businesses to advertise
Stage 2: Industrial revolution and emergence of consumer society: Advertisers began to give
their good brand names by the end of the 19th century, such as Bakers chocolate or ivory soap.
The purpose of advertising during this period was to create demand for these new brands.
Salesmanship in print-it became the guideline principle of this industry.
Stage 3: Modern advertising era: In the early 20th century, modern professional advertising
adopted scientific research techniques. Two leaders were Claude Hopkins and John Caples who
respectively contribute to scientific advertising and changing style of advertising writing which
had been wordy and full of exaggerations.
Stage 4: Age of agencies: The agency world and management of advertising developed rapidly
after World War I. Young & Rubicam advertising agency was formed and its work was known
for intriguing headlines and fresh, original approaches to advertising ideas.
Stage 5: The creative era: The creative power of agencies culminated in the 1960s and1970s in
a period marked by the resurgence of art, inspiration and intuition. Leo Burnett created brand
icons and inherent drama in every product, Ogilvy developed research based image advertising
and storytelling and Bernbach focused on the art of persuasion.
Stage 6: The accountability era: During this period, an industry wide focus on effectiveness
was introduced to enhance sales using research and measurement. After the internet economy
downturn at the start of 21st century, accountability became more important and advertisers
wanted assurance that their advertising was truly effective.

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Stage 7: Age of social responsibility: Corporations took challenge not only for reasons of
financial accountability but also on question of social responsibility. During this stage of
advertising, companies began to think sincerely about being better corporate citizens by
performing some responsibilities to society.

Age of print
Industrial
revolution and
emergence of

consumer
society

Modern
advertising era

Age of
agencies
The creative
era
The
accountability
era

Age of social
responsibility

Figure: How advertising agencies have been evolved in different ages.

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Evolution of Advertising agencies in Bangladesh

A descriptive framework has been made in order to understand the history of advertising
agencies in Bangladesh, categories of advertisement, advertising prices of different mediums,
major clients of advertisement in our country, and legal aspect of advertising in Bangladesh.

Before
liberation1967

After
liberation in
1971

After 1980s

Present
condition

Growing
condition

Bitopi, East Asistic (now Asiatic), and

Interspan entered the market

Other firms entered into the market.

Advertisement in newspapers, magazines,
radios, televisions and satellite channels
become well known.

Two categories of advertisement started

based on the placement strategy-Above the
Line (ATL) &Below the Line (BTL) category
Now the total numbers
ofadvertising firms are
more than seven
hundreds, these re well
organized to make global
advertisement

Online based
advertisement is
increasing. These are
more customized and
idea based

Figure: the history of advertising agencies in Bangladesh.

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There was very little advertising practice in Bangladesh before independence (1971) due to
inadequate industrialization and learning. Demands for specialized advertising agencies were
very limited. Pioneers in the field such as Bitopi, East Asistic (now Asiatic), and Interspan
entered the market almost in the year 1967. Other advertising companies started their business
after independence. Now the total numbers of advertising firms are almost seven hundreds
(Asiatic). There is no formal way for tracking of advertising agencies in the country.

According to formal media sources, a total of 150 agencies are registered with Bangladesh
Television (BTV). However, maximum market share is hold by the top nine advertising agencies
of the country. These agencies are Adcomm, Asiatic, Bitopi, Unitrend, Grey, Interspeed,
Popular, Madonna and Matra. Other firms entered into the market after independence (1971).
Advertising firms in Bangladesh are not well organized. So it is hard to collect data from these
firms. People of Bangladesh are well known to Above Line Category Advertisement
(Newspapers, magazines, radios, televisions and satellite channels). Below Line Category
advertisement is a new concept in Bangladesh. Few people are familiar with the concept of event
management, in house advertising, at point of purchase etc. In Bangladesh price of advertisement
depends on popularity of channels. Bangladesh government is the main client of print media on
the contrary multinational companies bear advertisement than private national companies. Legal
aspect is totally controlled by the Ministry of Information and Ministry of Health. Demand for
advertisement has increased.
There are various types of advertising agencies in Bangladesh. Advertisement media in
Bangladesh can be classified in two categories based on the placement strategy
Above the Line (ATL) category and
Below the Line (BTL) category.
ATL includes newspapers, magazines, radio, television, and satellite & cable television.
Placement strategies under BTL includes event management, in-house advertisement (company
performing own advertisement) at point of purchase, outdoor advertisement (billboards,
hoarding, neonsigns), innovative activities (jatra, streetdrama) and advertisement on vehicle
bodies and fliers. Pages; it is about three times higher in back pages.
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The growth of advertising industry since 1967 demonstrates a direct relationship between the
economic growth of the country and purchasing power. The clientele of advertising agencies
primarily comprise of private national companies (PNCs), multinational companies (MNCs), and
Non-Government Organizations (NGOs). The MNCs comprise maximum media share followed
by the PNCs comprising.
The major client of the print media is the government. The advertising business is governed by
the competition prevailing in the market; products having high competition advertise more. Also
consumer goods hold higher portion of the advertising budget. Also evident the industries having
a very high local demand depend on advertising. Export oriented companies having gradually
started to use the expertise of the advertising industry especially in the area of brochure
development.
The legal aspect of advertising is controlled by the government through a requirement of the
media to sign contracts with advertising agencies or the advertiser for all types of advertisement.
The general terms and conditions of the contract are to conform to law and regulations relating to
printing, publication and mass communication. The Ministry of Information is the primary
controlling authority and may decide to change all or a part of terms and conditions of contracts
with the advertising media.
Advertisements related to drugs, cigarette and the like require prior permission of the Ministry of
health. Also, the government has set an ethical code of conduct, although not adopted as a legal
document, for advertising agencies and for the media. The code urges the agencies to refrain
from advertising products like alcohol, cigarette, baby medicine, food and cereal, undergarments
for both men and women, and contraceptives (except birth control pills). The media in general is
expected to abide by social norms and moral value, refrain from direct attacks on any religion,
person or organization, as well as from obscenity and vulgarism, and from using historical
leaders and political leaders in advertisements. Advertising is the most difficult and challenging
task of a firm. It is difficult to say that when and where advertising firms started their business in
Bangladesh.

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Literature Review
Demand for products means that there is an obvious need to create such products and launch
them in the market. Here comes the concept of advertising. An advertising agency or ad agency
is a service business dedicated to creating, planning and handling advertising (and sometimes
other forms of promotion) for its clients. Typical ad agency clients include businesses and
corporations, non-profit organizations and government agencies. Agencies may be hired to
produce an advertising campaign. Many businesses organizations are involved with different
advertising agencies in order to maintain their activities effectively and efficiently. Several
works has done on the present and future prospect of advertising industries in Bangladesh.

Advertisement agencies:

Advertising is non-personal communication of information, usually paid for and pervasive

in nature, informing about product, services, ideas or experiences by identified sponsor
through various media (Belch 2009). The advertising agency has evolved to provide the
specialized knowledge, skills, and experience needed to produce to produce effective
advertising campaign (Sandage 1967). Todays advertising agencies are faced with a vast
number of media options. With the growing application of wireless and Internet
technologies, communications options now include PDAs, electronic billboards, blimps,
cell phones, and even gas station pumps. The agencies realize that a critical objective is to
utilize media to more effectively target defined audiences and communicate quickly
updated information and promotions. More than ever, the use of multi- and cross-media
strategies is critical to successful business communications.

Development of advertising agencies:

According to Sandage (1967), the development of advertising agency can be divided

roughly into four periods: Period of early growth 1841-65: The first advertising agency of
record in the United States was Voleny B. Palmer. In 1841, Palmer organized a newspaper
advertising and subscription agency. Wholesaling period 1865-80: The new competitive tool
was supplied by George P. Rowell, who opened an agency in 1965. Throughout the
wholesaling period, the agent continued as a seller of space for publishers. Semi service
period 1880-1917: The wholesaling phase of agency work was checked when publishers
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began to establish their own sales departments for selling space. Early in the semi service
period, agencies offered to write the copy for the advertiser, thus giving added weight to
their claim of being servants of the advertiser. Service Period 1917-present: By 1917 the
idea of service had grown until not only was copywriting done for the advertiser but many
other things as well.

The agency condition in Bangladesh:

Tawhidur Rahman (2016) showed the recent condition in his article that Advertisements or
commercials are lifeline of the media industry. It is one of the continuing financial sources
of running the media organizations. There are more than 500 advertising agencies in
Bangladesh; this sector employs more than 10 thousand people. Among the leading players
are Unitrend Ltd, Asiatic MCL, Adcomm Ltd, Grey Advertising Bangladesh Ltd,
Interspeed, Bitopi Advertising, Matra, Creative Media Ltd, Expressions and Bindu. Most of
the commercials in Bangladesh media, both print and broadcasting, are on mobile phone
companies, real estate, private universities, perfumery and toiletries industries, home
appliance selling organizations, government and private banks, and beverages. Ad agencies
usually have some fixed clients. New clients need to come to them with their proposals. Ad
agencies conduct promotional as well as publicity campaign on behalf of their clients.
Different ad agencies take commissions at various rates from the media organizations in
exchange of giving advertisements on behalf of their clients. Clients give money to ad
agencies for putting up the advertisement. Ad agencies also take money from the client for
any publicity campaign. As part of the publicity campaign, ad agencies also get
commission from the media (newspaper or television or radio). Most of the ad agencies get
15% commission from the media. Through this process, a pact has developed between the
media and ad agencies.

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The Emerging Trends:

Growth in the cable and satellite television industry has been in turn driven by massive
growth in the telecommunications sector. Television viewership is growing at a rate of 1520% a year. Because of the huge spending by telecom companies and some local and
multinational companies, the advertisement market has also doubled in five years.
According to the Advertising Agencies Association of Bangladesh (AAB), the advertising
market in Bangladesh is of about 154 billion USD and the market is growing in volume by
10% a year. By its very nature, digital is simultaneously mass and niche. Even as hugely
popular networks like Facebook, YouTube, WhatsApp or Reddit grow, they can be home at
any given moment to one collective conversation or thousands of disparate ones. The race
for consumer attention is more competitive than ever. Big, commercial campaigns shouting
top-down messages to broad demographics are no longer tenable or effective. Savvy
consumers simply ignore, block or even subvert the marketing that is being pushed their
way. As a result, a new paradigm for engagement is beginning to emerge that recognizes
the ascendant role that consumers play in today's marketplace. This model views
advertising as more of a choice, a conversation or a point of connection. Within this report,
PSFK Labs describes the new rules to building consumer engagement, charting effective
strategies for capturing audience attention and growing mindshare. Throughout the
document, we highlight best-in-class case studies and expert opinions and share actionable
insights for brands, agencies and content providers.

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Research Gap
The summary of literature review and the main focus part of the study.

Advertisement
agencies
Definition
How these are
working
Media options

Development
of advertising
agencies

The agency
condition in
Bangladesh

History

Leading
advertisement
agencies
working
Strategies

Focusing Part of the study

Historical
perspective, present and
future prospect

Figure: Overview of literature review.

From reviewing the literatures, the results are vivid that there are several different studies that are
conducted on the advertising agencies in Bangladesh. So, in our study we want to conduct on the
Historical perspective, present and future prospect of advertising agencies in Bangladesh.

Scope of the Study

Ad agency is a large concept. It is not possible to discuss every aspect of it within a limited time
period. A few but with greater significance factors has been discussed on the ultimate success of
the marketer. Though the scope of the study is very limited it will serve as a helpful landmark for
further significant study.

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Problem definition
The broad problem of the study is The impact of ad agency for communication success and the
impact of different factors of Ad agency on the ultimate using intention of the marketer in
Bangladesh: A study of some renowned ad agencies and some of their clients. The study will be
guided specifically by the evolution of ad agency and the factors leading to voting intention of
the students.

The impact of ad
agency of
communication
success

The evolution ogf

ad agency

Factors leading to
using intention of
ad agency

Objectives of Study
Every study bears significance behind it. Consequently there should be some proper objectives
which will pave the way of the report and make it possible to find the best outcome for the
company.
Broad objective
The broad objective of the study is to understand the evolution of advertising agency in
Bangladesh and its present and future in the country.
Specific Objective
Broad objectives are followed by and achieved through the set of specific objectives. The
specific objectives of the project paper are:

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1. To identify various aspect of advertising agency.

2. To identify the effectiveness of creative strategy of ad agency in selecting the particular
add.
3. To identify the consideration of cost efficiency while selecting ad agency.
4. To identify why the reputation of an ad agency leads to the selection of ad agency.
5. To recognize that image of relationship between client and ad agency to be selected.
6. To identify the influence of ad agency organization for being selected as an ad agency in
particular situation.

Study Questions:
1.
2.
3.
4.

What is the impact of ad agency on the success of marketing communication politicians?

Does creative strategy used by agency affect using intention?
How much cost efficiency of ad agency matter?
Is there any relationship between success of communication campaign and the reputation
of ad agency?
5. Do the influences of relation with agency matter?
6. What is the impact of organization of ad agency?

Hypotheses:
1.
2.
3.
4.
5.
6.

H1: There is a relationship between ad agency and success of marketing communication.

H2: Using intention will be affected by creative strategy used.
H3: Using intention will be affected by cost efficiency.
H4: Reputation of ad agency matters a lot.
H5: Influence of relationship can change the using intention.
H6: organization of the ad agency also matters.

From above hypotheses and earlier regression model it can be specified as

Approach to the problem:

From theories and models reviewed in the literature review section, a number of variables have
been identified under full concentration which actually determine the usage intention

and

actually grasp the concept The Impact of Different factors of ad agency on ultimate using
intention: A study of some renowned ad agency in Bangladesh and their respective clients. The
analytical framework has been developed by considering 10 variables found in the previous
established studies under five dimensions. Conceptual Framework According to this framework

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the dependent variable for this study is ultimate using intention whereas independent variables
are creative strategy, cost efficiency, reputation of ad agency, relationship with ad agency and
organization of particular ad agency and these five factors are reorganized under ten variables
that are:
Creative strategy, Execution style, Cost efficiency, In house less expensive, Current position
Reputation and fame, Relationship , Customization, Decentralization, Full service

Theoretical frame work:

Creative strategy used by
agency
Cost efficiency of ad agency

Reputation of ad agency
Ultimate using intentions of
the marketers
Relationship with ad agency

Organization of particular
ad agency

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Methodology
Information needed:
Primary Data had been collected from following sources
1. Members of focus group discussion
2. Selected ad agencies clients
Secondary Data had been collected from various publications, Internet articles.

Primary data has been collected from focus group as well as survey questionnaire has been
circulated by using questionnaire. Selection of group was judgmental. Sample size was only 10.
This study is both exploratory and conclusive one. For this both qualitative and quantitative
method had been used. The simple cross tabulations and univariate technique had been used.
Statistical tools such as percentage, average, standard deviation, regression model were
employed to analysis the data. Multiple regressions were developed to know the impact of
independents variables on dependent variables.

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Chapter-Two (Findings)
Findings and Discussions
Bangladesh, like many Asian countries, is rapidly growing and developing. Over the past 20
years, Bangladesh has risen and is now considered a number 11 nation. According to Wiki,
Bangladesh is the worlds eighth-most populous country, with over 160 million people. It is
among the most densely populated countries, and is by far the most densely populated of any
country whose population exceeds 10 million. It forms part of the ethno-linguistic region of
Bengal, along with the neighbouring Indian states of West Bengal and Tripura.
With a large population and rising middle class, Bangladesh is an important market for FMCG, It
has more than 500ad agencies in Bangladesh ranging from full service, in house, media buying
and creative boutique. Due to time limitation, the report does not contain information about all of
them. A survey on 10 ad agencies have been done from their respective clients This list
of advertising agencies in Bangladesh is designed to give you a starting point for finding and
partnering with one of the advertising agencies in Bangladesh.
The findings of the report are fragmented into 3 parts. The corresponding figure will carry the

present status
of ad agencies
in Bangladesh
Future
prospect of ad
agncies in
bangladesh

Data analysis &

Comparison

data analysis and comparison

inception
functions
performed
task
clients

Present & future

analysis

preseant and future

ad agencies in bangladesh

An overview of
ad agencies in
Bangladesh

data
analysis
comparison
with world
best
agencies

Fig :
Advertising
industries in
Bangladesh

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Top 10 advertising industries in Bangladesh

The top 10 ad agencies taken for analysis are enlisted below. The name of the
chosen ad agencies will be.

NOKSHA

BITOPI

HEAD
OFFICE

MAGNITO
DIGITAL

ASIATEC

19

GREY

spell bound

MACCOM

Janala
Bangladesh

Fig: Top 10 advertising agencies in Bangladesh

An illustration of each advertising agencies in Bangladesh

Head Office Communication

Inception:
Head Office Communication started its journey back in 2001. The agency was a tiny design firm
that was used to design only print advertisements for companies. Head Office Communication
first started working in print based media. By using creative methods and ideas, head office used
the print media to specializing in paper work. Head Office Communication gradually made its
way out into other fields. They experienced all forms of papers and print media and processes,
advertisements. Their very initial works were catalogue design, calendar design, visiting card
design, folder design etc.

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Functions:
1. Internal Communications (IC)
2. Corporate Identity Development
3. Branding / Re-branding
4. Advertising & PR
5. Retail Point Design
6. Printing & Packaging Services
7. Brand Activation
8. Event Marketing / Management
9. Social Communications (SC)
10. Online Marketing

Performed task:
Code Love A unique
exhibition
undertaken by
Carefountain
Foundation

A formal launch of
Google bus in
Bangladesh

Ajo: A caf for all

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Clients:

Noksha
They are a total communications company committed to creating and striking brand value for their
clients. Being a total communications company means having best-in-class offerings in every
discipline to deliver complete, competitive media neutral communications solutions for their clients.
Creative and progressive thinking that build brand, make desire. They apply creative and progressive
thinking to build brands, enrich desire and they do this by employing methodologies that expedite the
performance of brands and best assign the client resources through optimizing channel planning.
Their vision is to expedite the budding of their clients desire through grand, awesome, and
innovative ideas.

Functions:
1. Print &Design
2. Product & Publications
3. Event Management
4. Interior & Exterior Decoration
5. Multimedia Solutions
6. Training & Development
7. Film & Sound

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Task performed:

Short film production

Chittagong short film festival

Clients :

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Bitopi
Functions:
1. Advertising
2. Event Management
3. Activation
4. Media Coverage
5. Print & Outdoor Solutions
6. Media Buying
7. Corporate Communications
8. Media Planning

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Task performed:

Clients :
Rupchada
Belissimo
Qubee

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Magnito Digital
It is the largest digital agency of Bangladesh with a team of more than 70 people. We are famous
for our unconventional company culture. Our experience and massive setup allows us to deliver
services at unparalleled scale. We have worked with the largest clients of Bangladesh and have
built leading brands in the digital space. It is in our bloodline to solve problems by combining
creative strategies with data, content and technology. Our key strength is developing and
deploying meaningful digital contents to engage with the right audience. Thanks to this, we have
become the specialized go-to-agency with proven track records, for managing large scale digital
products & services. Being one of the most awarded digital agencies of Bangladesh, Magnito
Digital won Gold to become the Campaign Asia-Pacific: Digital Agency of the Year 2015 in
the Rest of South Asia category. The latest addition to our digital mix is Magnito Labs, our
exciting innovation funnel. Magnito Labs utilizes the knowledge, expertise and network of our
agency business, and partners up with internal or external stakeholders to build robust
technological products. We then channel these innovations towards the right direction through
our active involvement within the startup community of Bangladesh. We believe that in the
coming years, technology & innovation will drive the sustainable growth of Magnito Digital.

Functions:
Creative idea generation
Event management
Innovation
Media
Analytics
Development

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Clients :

Task performed:

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Asiatic
In the beginning there were only stories. Then came into reality. And, reality has been trying to
catch up with the stories ever since. Which is why at Asiatic JWT, it says that our universe is
made of stories, not atoms. Because we all know that there are more stories in this world than all
the atoms, demons, ice cream parlours and running shoes put together. Stories are what keep the
past alive, the future bright and the present colourful. Stories are what create magic out of
moments and memories out of that magic. We are storytellers. All of us, it all has its our little
stories. Tales that we like to share with others. Stories that become epics, ballads that become
history. Like the many brands we handle. Each brand has a story. Each person we have touched
with our communication is a part of that story.

Functions:
1 Brand management.
2 Advertising
3. Event Management
4. Activation
5. Media Coverage
6. Print & Outdoor Solutions
7. Media Buying
8. Corporate Communications
9. Media Planning

Clients:

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Task performed:
U&Me Condom - Resistance is Futile
Wheel Power White Re-launching
Fruit fill strawberry Candy launching
PalabeKothay
Mediacom
Mediacom Limited emerged in the year 1997 as an in-house agency of Square Group, one of the
largest and most respected business conglomerates in Bangladesh. Within a short time of its
inception, it grew steadily into a full-service advertising agency. Over the years, it attained its
current height of one of the leaders in the local field. During this period, Mediacom has earned
the reputation of being the most strategy-based agency in the country. Our strategic inputs to a
number of sick brands have brought them business and reputation to a dramatic extent. No
wonder, we are seen as the brand-healers. The ideas that are rooted in strategy are copy-crafted
and visualized in a unique and compelling way that secures a bond between the brand and the
consumers. At Mediacom, creativity is not a sweet serendipity its rather the pointed outcome
of a passionately-followed process that ensures insightful and result-oriented communication.
Functions:
1.Print&Design
2. Product & Publications
3. Event Management
4. Interior & Exterior Decoration
5. Multimedia Solutions
6. Training & Development
7. Film & Sound

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Clients :

Task performed:

Spellbound
Spellbound is a collaboration of a group of young entrepreneurs working to deliver the best
output for the industry at the lowest competitive price. It has been an uphill task to maintain the
quality, but they have managed to do it every time. Starting its journey back in 2007, Spellbound
has gained the reputation of being on the list of top 10 advertising agencies of Bangladesh & has
earned 117 clients through dedicated & efficient teamwork. Currently, Spellbound is working
from its 6000 square foot corporate head-office located in Banani. Spellbound is operating all its
activities with more than 50 permanent employees. Spellbound provides services through its
diversified segments of communication, advertising, PR & events.

Functions:

Creating advertisement
Brand management
Event management
Campaign management
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Performed Task:

View Details
Ranger Vs.The World

Clients:

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19:
Being young, energetic and versatile, they are one of the most sought after companies in the
country for video production, web solution and digital marketing. They take a full-service digital
agency approach to grow your brand online. More than anything, they value contents that are
provocative, original and enticing. At 19, they believe that change is the only constant. Look
around you, the world is changing faster than you can ever imagine. When you are twitting,
everyone else is pinning. No wonder, brands feel stunned. However, they realize that if they can
master this change, they can create limitless possibilities for their clients and their futures. At the
end of the day thats what they do. They help their clients to find themselves in a sea of constant
unsettling change and strategize how they should connect with people in the digital age.

Functions :

Idea generation

Advertising

Brand management

Documentary

We solution

Digital Marketing

Video Production

Web Solution

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Clients:

Clients:

Galileo | Sofhrt man Zug in Bangladesch

Documentary, Video Production
view

Somewhere Out There

Documentary, Video Production
view

Task performed:

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ZANALA Bangladesh
They are a new age marketing communication company. They design identity and
communication strategies for your communication needs in all forms of media, be it
product/service promotion or social awareness.They have the people, know-how and
professional experience to give you a distinct identity in the market.They have worked with
major brands like unicef and Unilever, along with a host of local brands. They offer services
ranging

from

graphic

design, brand

identity,

and audio

visual

to event

&

activation, campaigns, web & new media, and even kiosks.

Functions
1Graphic design
2Audio visual
3 Campaign
4 Event
5 Web marketing

Clients:

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Task performed:

GREY Advertising Bangladesh

Founded as a one-man, one-room retail shop in New York Citys garment district, Grey Group is
now one of the largest global advertising and marketing agency network. GREY Advertising
Bangladesh Ltd, the Bangladesh office of Grey Group, is the first and only true global
advertising agency in Bangladesh. Being a strict believer in following the global credo of
producing Famously Effective works, Grey Adverting Bangladesh Ltd has become the most
awarded and sought after agency of the country.
Functions:

Idea generation

Advertising

Brand management

Event management

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Task performed:

Clients:

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Present status and future prospect of advertising agencies in

Bangladesh
Present status of advertising agencies in Bangladesh:
The advertising market in Bangladesh is relatively small compared to those of other Asian
countries, but is catching up fast. The Bangladesh market is a tiger cub in comparison to china,
India and Indonesia. But it will become big according to the chairman of the Asia Pacific region
of the United States-based company. There are around 500 advertisement companies operating in
the country, but top 15 companies control 65 percent of the tk. 1000 crore advertising market.
Advertising market will definitely become bigger in coming years. Regarding the human
resources in Bangladesh there is no dearth of talent in Bangladesh. But what they need is
professional training to hone their skills.
Bangladesh can be considered as one of the most creative countries among all the developing
countries of over the world .The growth of multinational companies is also praiseworthy. The
local MNCs are also on the rise. RAN,AIRTEL, Standard chartered, Uniliver, P&G, NESTLE
can be of examples. Each And every company requires advertisement agencies (full service,
media buying ,creative boutique, in house) to design the creative advertisements for their clients.
The present status of advertising agencies is prosperous. The top most advertising agencies in
Bangladesh are performing several activities .they are doing the following tasks media buying,
idea generation, creative design, event management, research and development, advertisement
design andraising awareness. They also contribute to the economic development of our countries
as they are increasing the awareness of customers.

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The economic contributions of advertisement agencies:

100%
90%
80%
70%

2014

60%
Series 3

50%

2013

40%

Series 2
Series 1

30%
20%
10%
0%
Category 1

Category 2

Category 3

Category 4

The economic contributions of advertising industries in Bangladesh have been clear from the
above chart which shows the growth of between 2013 and 2014.

The future prospects of advertising agencies in Bangladesh:

Advertising sector has the potential to make a huge contribution in the economy of Bangladesh.
By ensuring proper development of this sector, it is possible to earn a large amount of foreign
currency which will contribute tothe growth of national economy. The sector provides an ample
employment opportunity forthe people who are directly or indirectly involved in this sector. It is
a serviceproviding sector. The unemployment problem of the country can be reduced partly by
developing necessary infrastructure of this sector. It will help increase household incomeat
community level and as well as the revenue of the government advertising agencies will also
work for the following partners in the future.NGOs,Development Agencies, Transport Agencies,
Charity Organizations, etc which make them one step ahead towards the future. They will
conduct research and development work too.It will be considered as the defined sector of
Bangladesh. Most of the organizations have become

agency centric. The number of creative

37 | P a g e

boutiques will be on the rise as the customers want experience. The economic contributions of
digitized .Take commission incentives to compete in highly competitive market.A full time
online operation for their clients. They will focus on CRM and Customized services offerings.
For doing all these things ad agencies of Bangladesh should get more financial flexibilities,
employee training and motivation from private sectors and government. Indeed, foreign learning
on ad designing can also aid in the development of advertisement of Bangladesh.

Fig: Future prospective of advertising agencies in Bangladesh

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Data analysis and interpretation

Proposed population regression equation:
Y= 0+ 1X1 + 2X2 + 3X3+ 4X4+ 5X5+ 6X6+ 7X7+ 8X8+ 9X9+ 10X10+e
Where, Y=Using intention.
0= Constant, X1= Creative strategy X2= Execution style, X3= Cost efficiency
, X4= In house less expensive, X5= Current position, X6= Reputation and fame, X7=
Relationship, X8= Customization, X9= Decentralization, X10= Full service

Model summary:
Model

R2

Adjusted R2

.975

.951

.948

Std.Error of
Estimates
.32704

the

ANOVA:
Model
Regression
Residual
Total

Sum of squares df
23
4
3
5
26
9

Mean square F
5.75
9.58
.6

Sig.
.000

Respondents are asked to cite what they think about the impact of different factors on ultimate
using intention .It is known that R2 indicates the strengths of association between the
independent variables and dependent variable. The higher the value of R2 , the higher the
strengths of association between the independent and dependent variables as well as the
consideration of how much the variation in the dependent variables can be explained by the
variation in the independent variables. The value of R2 in this case is .97 which implies that 97
percent variation in dependent variable is due to the variation in the independent variables. Here
adjusted R2 is .95 which indicates that the addition of new independent variables may not affect
the regression result. From ANOVA table it can be seen that the significance value is .000 which
is less than .05 (significance level). The calculated value of F is 9.58 which are larger than the
critical value; therefore the null hypothesis is rejected. It means the independent variables affect
on dependent variable.
Y=.086+.175X1+.052X2+.424X3+.008X4+.905X5-.117X6+.209X7+.190X8+.538X9-.400X10
39 | P a g e

Descriptive statistics:
Minimum

Maximum

Mean

Std. Deviation

10

1.00

5.00

2.6388

1.74573

10

1.00

5.00

3.8167

1.39064

10

1.00

5.00

3.3720

1.61469

10

1.00

5.00

3.7278

1.16422

10

1.00

5.00

3.9542

1.37960

10

1.00

5.00

2.9569

1.49532

10

1.00

5.00

3.5768

1.44686

10

1.00

5.00

4.1725

1.29339

10

1.00

5.00

3.2965

1.38660

10

1.00

5.00

3.5687

1.78961

Here the study was based on the 10 survey responses to draw a complete picture of the situation.
.Some sorts of descriptive statistics were undertaken to make the purpose of analysis easier as
well as regression analysis had been followed after the descriptive statistics of the collected data.
From theories and models reviewed in the literature review section, a number of variables have
been identified under full concentration which actually determine the perception of the market

40 | P a g e

Ad agency is selected based on Creative strategy

Frequency Percent
Valid

Valid
Percent

Cumulative
Percent

strongly disagree 1

.1

.1

28.0

disagree

.1

.2

47.2

neutral

.2

.4

57.4

agree

.2

.6

80.9

strongly agree

.4

.10

100.0

Total

10

99.7

100.0

Missing System

.1

Total

11

100.0

From the frequency table and pie chart, it had been seen that most of the marketer agreed that
creative strategy of the ad agency s significantly influence in the decision making process. Thats
why ad agency should emphasize on creative strategy.

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From the frequency table and pie chart it is clear that most of the respondents commented that
cost efficiency matters a lot while selecting outside agency instead of an in house

Cost efficiency of ad agency matters a lot

Valid
Frequency Percent Percent

Cumulative
Percent

strongly
disagree

.1

.1

8.6

disagree

.1

.2

37.5

neutral

.3

.5

41.0

agree

.4

.9

52.8

Strongly agree 1

.1

.10

100.0

Total

10

99.7

100.0

Missing System

.3

Total

11

100.0

Valid

42 | P a g e

Reputation of Ad agency can go a long way

Frequency Percent
Valid

Valid
Percent

Cumulative
Percent

strongly disagree 1

.1

.1

28.0

disagree

.1

.2

47.2

neutral

.2

.4

57.4

agree

.2

.6

80.9

strongly agree

.4

.10

100.0

Total

10

99.7

100.0

Missing System

.1

Total

11

100.0

From the frequency table and pie chart it has been shown that marketer consider the reputation of
ad agency while selecting the ad agency for a particular ad campaign.

43 | P a g e

Relationship with clients of the ad agency paves the way for being
selected
Frequency Percent

Valid
Percent

Cumulative
Percent

strongly
disagree

.1

.1

8.6

disagree

.1

.2

37.5

neutral

.3

.5

41.0

agree

.4

.9

52.8

Strongly agree

.1

.10

100.0

Total

10

99.7

100.0

Missing System

.3

Total

11

100.0

Valid

Organizational structure of the ad agency can lead to the selection of ad agency

Frequency Percent
Valid

Valid
Percent

Cumulative
Percent

strongly disagree 2

.2

.2

8.6

disagree

.1

.3

37.5

neutral

.3

.6

41.0

agree

.2

.8

52.8

Strongly agree

.2

.10

100.0

Total

10

99.7

100.0

Missing System

.3

Total

11

100.0

From the frequency table and pie chart it is expressed that the influence of organizational
structure doesnt matter a lot but some clients may consider this with greater extent.

44 | P a g e

Chapter-Three (Concluding Part)

Recommendations
Existing advertisement agencies in Bangladesh already done some fabulous job in
printing and publishing industry, but they need to focus more on online marketing, as this
field is currently flourishing.
Understanding the youthful mindset of todays consumer, it can offers advertising and media
services particularly using effective internet and other digital content.

Advertising agencies can also use proper blend of media tools to increase the
effectiveness of the media strategy and return of the investment on the clients marketing
actions.
Before starting a project, coordination must build up between departments inside of the
advertising agencies. Better co-ordination can produce more communicative
advertisement.
Advertising agencies already established different departments for its various
applications, they should deploy expert people in that department.
Advertising agencies should offer professional training to increase the efficiency of the
people concerned in this industries.
Different ad agencies and media can make a coalition in running their businesses to offer
a complete package to their clients in giving advertisement of their client and in
designing a publicity campaign.
It can also develop strategic and designs creative planning for IPO road shows, investor
conferences, annual reports, and investor relations Web sites.
Advertisement Agencies can initiate public relation services for its clients to maintain successful
relationship with their targeted group of customers.

45 | P a g e

Conclusion
The advertising market in Bangladesh is relatively small compared to those of other Asian
countries. There are around 500 advertisement companies operating in the country, but top 15
companies control 65 percent of the tk. 1000 crore advertising market. Advertising market will
definitely become bigger in coming years. Regarding the human resources in Bangladesh there is
no dearth of talent in Bangladesh. But what they need is professional training to learn their skills.
Bangladesh can be considered as one of the most creative countries among all the developing
countries of over the world . Advertising sector has the potential to make a huge contribution in
the economy of Bangladesh. By ensuring proper development of this sector, it is possible to earn
a large amount of foreign currency which will contribute to the growth of national economy. The
sector provides an ample employment opportunity for the people who are directly or indirectly
involved in this sector. It is a service providing sector. The unemployment problem of the
country can be reduced partly by developing necessary infrastructure of this sector. It will help
increase household income at community level and as well as the revenue of the government
advertising agencies will also work for the following partners in the future.So not only the all
business industries but also government need to take some effective steps to make more
improvement of this industry.

46 | P a g e

Reference
Belch, E. George and Belch, A Michael (2009), The Promotional Mix, Advertising and
Promotion, 7thed., the Macgraw- Hill Inc., pp.15-17
Mackay, Adrian (2004), The Practice of Advertising, London: Butterworth-Heinemann,
ISBN 0-7506-6173-9. p.70.
McArthur,& Griffin. (1997). A marketing management view of integrated marketing. Journal
of Advertising Research, 19-26.
Nyilasy, G., & Reid, L. N. (2009). AGENCY PRACTITIONER THEORIES OF HOW
ADVERTISING WORKS. Journal of Advertising, Vol. 38 Issue 3, p81-96. 16p. 2 Charts.
Sandage, C.H. (1967), The advertising Agency, Advertising Theory & Practice, (Seventh
edition), Business Publication Inc., pp.625-647
TawhidurRahman (2016), the present condition of advertising Agency in Bangladesh, Journal
of Advertising Research, 21.

47 | P a g e

Appendix
Questionnaire:
This study attempts to find out the level of clients preferences for using ad agencies in
Bangladesh. You are free to share whatever you think as a client about the use of ad agencies in
Bangladesh and your current experience. Your cordial responses will aid us conducting the
survey on preparing a term paper on The present and future prospects of advertising agencies in
Bangladesh. (All the answers are evaluated on 5 point Likert scale where 1 is strongly
disagree,2 is disagree,3 is neutral, 4 is agree,5 is strongly agree.)
Name of the company

Agency you used

Creative Appeal and Execution:

1. You choose advertisement agency because of the creative idea and attractive appeals
generated more successfully by them than in house..
1

2. you believe that the level of dramatization, demonstrations, mood created by ad agency
cant be done individually by a company.
1
2
3
4
5

Cost efficiencies:
3. Using ad agency is cost efficient.
1

4 Using in house advertising is expensive you cant afford.

1

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Reputation:
5. You select ad agency based on their current position.
1

6. You select ad agency based on their reputation and fame.

1

Client relationship:
7. You choose the ad firm with whom you have relationship.
1

8. Ad firms will offer extra advantage and cost savings on commission to you as
customized offers.
1

Organizing:
9. You think decentralized agency is efficient than centralized one.
1

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10. You think full service agencies are better than other types.

11. The current and future prospects of ad agencies in Bangladesh are satisfactory.

------THE END-----

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