Chapter No - Iv Advertising Agency: Structure, Divisions and Functions

CHAPTER NO –IV
ADVERTISING AGENCY: STRUCTURE, DIVISIONS
AND FUNCTIONS
4.1 HOW IS AN ADVERTISING AGENCY STRUCTURED?
The Basic Structure
The traditional, full-service agency is divided into 3 functional parts:
account management (sometimes called client service), creative and
media. These parts report to a central authority, often the President. There is a
central administration and the accounting department.
Each functional area has a vital but different role to play in developing
advertising for the agency's clients. The account group, for instance, works
with the client in developing the advertising approach and objectives and
oversees the whole process through the agency. The creative group plans out
the words and the artwork, in keeping with the advertising objectives. The
media group develops the placement plan - where, and for how long, and in
what media, and in what specific outlets, etc., the advertising should run. Some
agencies may also have a research unit, which provides basic marketing
information to assist in developing advertising objectives.
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“THE STUDY OF ADVERTISING AGENCY BUSINESS IN INDIA” - A STATUS REPORT 114
Art jobs in advertising are plentiful, but competitive. If one work well under
deadlines can come up with fast ideas and work long hours, then this may be
the profession. Although a college degree is not required for most advertising
creative jobs, it can help.
Recruiters say the key to being a good candidate is to have a great portfolio.
This portfolio should include a variety of layouts, thumbnail ideas, and if
appropriate, storyboards.
The candidate should demonstrate proficiency with the computer. Programs
one should be proficient in include Pagemaker, Illustrator and/or Freehand,
Corel Draw (if using Windows), and programs such as Painter, Ray Dream,
and Macromedia Director. A strong knowledge of typefaces and production is
also helpful.
Only the best applicants land their first job in a well-known advertising firm
such as: Leo Burnett, J. Walter Thompson, or O&M Getting some experience
in high school and at an art school or college is one way to get a leg-up on
other applicants. Printed samples of work speak volumes more than marker or
computer layouts of imaginary products.
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FLOW CHART NO: -4.1
TYPICAL STRUCTURE OF AN ADVERTISING AGENCY
B o a r d o f D i r c e t o r
P r e s i d e n t
C r e a D t i r v i e e c F D t i o n i r a e o n c f c t M o e A r ae c nd c dio a u S D n e t i r r
W r i t e Ar s c, c A o r u t n D t i S r M e u c pe t de o r i r a v s i , P s P o l r a r o ns
T r a f f A i c c Dc o e u p n t .t E Mx e e c d u i at i v E e s s t
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4.1.1 ADVERTISING AGENCY SET-UP
I) WORK
The three main branches in advertising can be broadly grouped into Sales
Promotion, Consumer Education and Public Relations.
In Sales Promotion, the main job is to persuade and convince people to buy
the product, which the company has brought out. This cannot be done
overnight with a magic wand, but can be achieved only through a sustained
campaign and promotional drive. In sales promotion, the first thing that one
tries to do is to gather more and cater to more and more people and explain the
benefits of the product so that they can be convinced to purchase it repeatedly.
Similarly, in Consumer Education, the public at large is taught the various
benefits of a particular product or service so that the people get attracted to it.
In such a procedure, campaigns are designed and splashed in various papers;
posters are hung and hoardings painted. Door-to-door campaigns are also
organized where the benefit is even greater and the reach more effective.
In Public Relations, the objective is to create a positive image of the company
by organising various activities, press meets and articles published in various
newspapers and magazines. This also helps in building a strong brand
message, as the effectiveness of the media is very strong in the country. It is
very cost effective too. There are various media available through which a
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company can achieve its objective. For example, the print media is the best
way to achieve it through press advertisements in newspapers and magazines;
handbills, direct mail and posters are the other forms.
In the Audio-Visual medium, there are radio spots, film and television
commercials, slide presentations and live shows. In displays, there are
hoardings, exhibitions, point of purchase promotions and demonstrations,
market stalls and information booths.
Like any other industry, advertising is also well structured and there are
several departments. The major tasks that are performed in any well-
structured agency are Client Servicing, Creative, Media, Production and
Research. Each department is important in its own way, and the roles are very
well integrated.
II) CLIENT SERVICING
Personalized meetings with the clients are perhaps the most important part of
any advertising campaign. This department is responsible for meeting
prospective clients and getting business for the company. They are the main
profit-makers for the company and their role is very important in the agency. It
is the client-servicing people who ultimately reach the top slot of any agency.
To be an effective client-servicing person, the candidate has to have a thorough
knowledge of the client's business and also know his weak points so that,
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through advertising and communications, the gap can be minimized. Client
servicing personnel meet the clients and take their briefing.
They then get back to the agency's creative people who, in turn, give a shape to
the campaign. The client-servicing people must understand the problem
and look at the product from a consumer's viewpoint and also explain the
creative department how to devise an appropriate strategy.
Then they brief the media Department for right display in various outlets. Once
the Campaign outline is designed, the client servicing people take the client's
approval and makes modifications, if necessary. After the approval, the job is
sent to the production Department where they make the campaign print. The
basic requirement of a Client Servicing Executive is that he should be
interactive. As his main task is dealing with clients who ultimately sign the
cheque, self-confidence and persuasive power are very important. At times, he
should be able to sell a bad campaign to a client and convince him about its
merits.
These people should be very systematic and take every step methodically.
With research getting more and more important, the task of a servicing person
is to collect enough track research input before making the final presentation.
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The work also calls for organising research, collecting information, gauging
consumer attitudes and drawing up the most appropriate and effective
advertising strategy within a specified budget.
Most prestigious advertising agencies prefer MBAs for the job. However,
agencies also recruit client-servicing trainees with a degree, preferably in
Economics with statistics.
III) CREATIVE DEPARTMENT
The needs of the client have been understood but they have to be
conceptualized and implemented. This is the task of the creative
department. The department is further divided into two sub-sections- Copy
and Art. In the former, the text of the campaign is written and appropriate
slogans are conceived.
The work of the two has to be tuned together so that the campaign is noticed
properly. Copy writing department works on a brief that describes the client's
requirement, target group and the media channels.
This department devises the campaign slogan, jingles, scripts and promotional
literature of the product or service as well as proposals, concept notes and film
treatments. The copy department is also expected to edit all textual matter for
factual, syntax and typesetting discrepancies before it goes into production.
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A degree in English with a good educational background, and a flair for
writing backed up by the knowledge of advertising are the required parameters
to become a good copywriter. General awareness of the current affairs and the
social trends is necessary for the job. Command over more than one language
can be an asset.
The art Department is responsible for the visual effect of a campaign. Layouts
and graphics for advertisements are done by this department. Displays, logos
and mastheads are also designed. The task of the Visualiser is to visualise and
conceptualize the art work.
The studio takes care of the technical aspects of design. Rough sketches are
converted here into finished layouts, storyboards; art works and slides are done
here and the final shape given to a campaign. The studio also keeps stock of
the art materials purchased by the agency when ordering day-to-day inputs,
like transparencies and pictures from various sources.
The minimum requirement to join an agency's art Department is a
degree/diploma in commercial art from a reputed art college or a design
school.
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IV) MEDIA DEPARTMENT
This department is responsible for the positioning of an advertisement in
the press, radio or television as well as identifying and procuring display
space. The department, keeping in view the target segment, looks for
innovative media outlets and places the advertisement accordingly. The
department also negotiates for various media discounts and checks out
effectiveness of the regional media and its reach to the targeted consumer.
Post-campaign release research is undertaken by the department to keep a
check on the effectiveness of the ad/campaign.
Media buying is a very tricky business and it is here where the client's shoe
pinches the most. By media buying, one means, the purchase of advertising
space and air time. It also constitutes keeping in contact with commercial
representatives of the press, television stations and other media outlets; raising
estimates on campaign media plans and ensuring that materials are released on
time and the billing is properly done. The agency gets a good commission from
the outlet on releasing any campaign.
As a matter of fact, advertising agencies are finding media business more
profitable and are diversifying into this business with renewed vigor. Many of
them have floated separate outlets for media buying and selling. Given the
nature of job that involves interacting with the client and also with the media,
the minimum educational qualification requirement is an MBA. The person
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should be able to juggle with numbers and make the best use of the client's
money.
If the candidate is an Economics graduate with Statistics background, the
chances are far brighter.
V) PRODUCTION DEPARTMENT
Production Department of an advertising agency is responsible for the
looks of the advertisement when they are released in newspapers,
magazines, posters and billboards. The production people ensure that the ad
gets printed and, therefore, need to know all about typography, printing,
photography, use of material, etc. As more and more ads are now released in
film format, the production department is also likely to be involved in the
production of ad films.
VI) RESEARCH
The basis of any advertising is good research. Every good ad plans start
with research. This has to be done with the collection of data, of
information about the target group, the market and the existing
competition. Based on market research, a broad hypothesis is formed on
which the ad story is being worked out, market research specialists must,
therefore, be good in statistics, and possess some knowledge of psychology or
behavioural sciences.
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4.2 JOB TITLES IN ADVERTISING
i) Creative Director/Vice President
This person is in charge of the creative portion of accounts. They must work
carefully in a budget. After brainstorming in a creative session, the creative
director will usually create fast thumbnail sketches and then pass them off to
the art director for more careful rendering. Frequently the creative director
also does some copywriting, but usually limited to slogans or headlines.
Throughout all stages of the creative process, the project must be approved by
the creative director who also works closely with the account executive and
client. This person is usually present during crucial stages of a project such as
a photo shoot or printing. Strong computer skills are needed for this position.
A good illustration of a creative director is found in the movie “Nothing in
Common” with Tom Hanks playing a creative director.
ii) Art Director
This person also works within a budget. In smaller agencies they also manage
some accounts. This person takes conceptual ideas from the creative
director and puts them into a finished layout. Once the ideas are approved
they also work closely with production to see the project through completion.
Occasionally this person meets with clients and attends photo shoots and
printing sessions. In larger agencies they have assistants who they delegate
work to.
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iii) Assistant/Junior Art Director
This person assists the art director. Work that can't be done by the art director
due to time constraints or isn't "appropriate" to an art director is delegated to
the assistant. Sometimes this position is an entry level position, but usually the
gopher job is entry level in large agencies. Strong computer skills are needed
for this position.
iv) Artist/Designer
This person does a variety of work ranging from quick illustration, key line,
rendering layouts, creating stats, and design. Strong computer skills are
needed for this position.
v) Gopher
This person usually does the jobs that no one else wants to do. The job is entry
level and offers opportunities for advancement and to meet many people. Job
duties range from delivery/pick-up, creating stats, clean-up, ordering supplies,
taking inventory, and rendering. This should show the opportunity for
advancement that this job has. Strong computer skills are helpful for this
position.
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vi) Production Coordinator
This person usually acquires quotes from vendors on jobs. Once a competive
price is found, they work closely with printers and other vendors to assure
quality in production. Strong computer skills are needed for this position.
vii) Production Assistant
Assists the production coordinator. Does the same work but usually delegated
work that the coordinator doesn't have time for. Strong computer skills are
needed for this position.
viii) Keyline/paste-up (for small agencies)
In small agencies with a low level of technology, this person pastes blocks of
type in an ad. They also work the stat camera. In larger agencies, this person
creates finished ads on the computer. They usually make corrections in type
and position. A strong knowledge in fonts and typefaces is needed.
ix) Freelancer
This person is a self-employed person frequently hired by agencies during a
crunch. They do jobs that may range from illustration, paste-up, design, and
art direction.
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x) Illustrator
This person may be a freelancer. In large agencies, they hire an illustrator full-
time to save money. This person creates illustrations for ads, TV, brochures,
etc., using a variety of media including the computer.
xi) Storyboard Artist
This is a deadline-heavy job. The hours are long and frequently run into the
weekend. Storyboards are created for music videos and commercials for the
screen or TV. They range in resolution from quick renderings to marker
layouts and computer comps. This job has a high turnover rate but offers
quick, easy cash and opportunities for other jobs.
xii) Layout Artist
Creates ads using a variety of media from pencil, markers and computers.
These ads have already been designed by an art director.
xiii) Media Director
This person oversees production in media. They may attend photo shoots,
create PR campaigns, slide shows, video presentations, etc.
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4.3 TYPES OF ADVERTISING
The advertising objectives largely determine which of two basic types of
advertising to use; institutional or product.
i) Institutional advertising tries to develop goodwill for a company rather
than to sell a specific product. Its objective is to improve the advertiser's
image, reputation, and relations with the various groups the company deals
with. This includes not only end-users and distributors, but also suppliers,
shareholders, employees, and the general public. Institutional advertising
focuses on the name and prestige of a company. Institutional advertising is
sometimes used by large companies with several divisions to link the divisions
in customers' minds. It is also used to link a company’s other products to the
reputation of a market-leading product.
ii) Product advertising tries to sell a product. It may be aimed at the end
user or at potential representatives and distributors. Product advertising may be
further classified as pioneering, competitive, and reminder advertising.
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a) Pioneering advertising tries to develop primary demand that is demand for
a product category rather than a specific brand. It's needed in the early stages
of the adoption process to inform potential customers about a new product.
The first company to introduce a new technology to its industry doesn't have to
worry about a competitive product since they alone have the technology. They
have to sell the industry on the advantages of the new technology itself.
Pioneering advertising is usually done in the early stage of the product life
cycle by the company, which introduces an innovation.
b) Competitive advertising tries to develop selective demand; demand for a
specific manufacturer’s product rather than a product category. An innovating
company is usually forced into competitive advertising as the product life
cycle moves along. After pioneering technology is accepted and most
manufacturers are supplying competing products, the innovator is forced to sell
the advantages of his specific design over that of the competition. This is
usually the situation in a mature market.
c) Reminder advertising tries to keep the product's name before the public. It
is useful when the product has achieved market domination. Here, the
advertiser may use "soft-sell" ads that just mention or show the name as a
reminder. Reminder advertising may be thought of as maintenance for a
product with the leadership position in the market.
Of course none of the above classifications are exclusive. Some companies
combine elements of the institutional ad with product advertising. The
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classifications are merely aids in developing the objectives, which the
company sets for their ads
Much of the advertising in India is still created and placed by full-service
advertising agencies, and these agencies provide most training positions.
There are, however, a number of "specialty" or "boutique" agencies, which
specialize in just one of the functional areas (account management, creative or
media) of the full service agency.
Many agencies have not only a central office headquarters but also branch
offices in major centres across India viz. Mumbai, Delhi, Kolkata, Chennai,
Bangalore Hyderabad and Nagpur.
All agencies must avoid account conflict. For example, an agency that has one
major manufacturer as a client would not also have that manufacturer's
competitor.
4.4 TOOLS OFFERED BY ADVERTISING AGENCY
INTRODUCTION
A wise man once said, "The person who saves money by not advertising is
like the man who stops the clock to save time." In today's fast-paced, high-
tech age, businesses have to use some form of advertising to make prospects
aware of their products and services.
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Even a famous company like Coca-Cola continually spends money on
advertising to support recognition of their products. In 1993, Coca-Cola spent
more than $150 million to keep its name in the forefront of the public's eye.
Some questions the advertiser should consider before buying ads are:
1. What media is the best to use?
2. How important is creativity?
3. Is there a way to buy space and time that will stretch advertising
budget?
When it comes to advertising, a lot of people really don't know what they
want, where to get it or what to do with it after they have it. This study will
help to learn to determine what type of advertising media is best, and learn to
identify guidelines that can be used obtain the advertising exposure. It will
help to identify ways to make advertising more cost efficient.
Advertising is an investment in business's future. And like any investment, it's
important to find out as much as one can before taking a decision.
1) NEWSPAPER ADVERTISING
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Every advertising medium has characteristics that give it natural advantages
and limitations. As one look through newspaper(s), there are some businesses
that advertise regularly. Observe who they are and how they advertise their
products and services. More than likely, their advertising investment is
working if it's selling!
Some Advantages in Newspaper Advertising
Almost every home in the India receives a newspaper, either by newsstand or
home delivery. Reading the newspaper is a habit for most families. Moreover,
there is something for everybody-- sports, comics, crosswords, news,
classifieds, etc. The advertiser can reach certain types of people by placing ad
in different sections of the paper. People expect advertising in the newspaper.
In fact, many people buy the paper just to read the ads from the supermarket,
movies or department stores.
Unlike advertising on TV and radio, advertising in the newspaper can be
examined at leisure. A newspaper ad can contain details, such as prices and
telephone numbers or coupons.
There are many advantages to advertising in the newspaper. From the
advertiser's point-of-view, newspaper advertising can be convenient because
production changes can be made quickly, if necessary, and one can often insert
a new advertisement on short notice. Another advantage is the large variety of
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ad sizes newspaper advertising offers. Even though the advertiser may not
have a lot of money in their budget, they can still place a series of small ads,
without making a sacrifice.
Some Disadvantages with Newspaper Advertising
Advertising in the newspaper offers many advantages, but it is not without its
inherent disadvantages, such as:
1. Newspapers usually are read once and stay in the house for just a day.
2. The print quality of newspapers isn't always the best, especially for
photographs. It is suggested to use simple artwork and line drawings for best
results.
3. The page size of a newspaper is fairly large and small ads can look
minuscule.
4. The ad has to compete with other ads for the reader's attention.
5. One is not assured that every person who gets the newspaper will read
the ad. One may not read the section advertised in, or they may simply have
skipped the page because there wasn't any interesting news on it.
How to Work with Newspaper Representative?
Every newspaper has its own sales staff, and the advertiser normally appointed
their personal newspaper "Sales Representative." A newspaper sales rep can be
very helpful. He or she can keep posted on special sections or promotions that
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may apply to the business; one should always keep in mind it is the sales rep's
job to sell the advertising.
Sales rep might say that the newspaper can layout any of the ads, pre-prepared
or not. However, these ads are assembly line products and are not often very
creative or eye-catching. Consider using an artist or agency for the ads.
In addition, sales rep can sometimes be instrumental in making sure that the
story or upcoming announcement "finds" the right reporter because the
relationship between the advertising and editorial staff is chummier than most
people think, even though they claim total anonymity.
Buying Newspaper Advertising Space
Advertising is sold by column and inch, instead of just line rates. To determine
the size of ad one want, just by looking in the newspaper in which to advertise.
If one cannot locate an ad that's the size needed, just measure the columns
across and the inches down. For example, an ad that measures 3 columns
across and 7 inches down would be a 21-inch ad. If the inch rate is Rs 500, the
ad would cost Rs 10,500. In case the newspaper is still on the line rate system,
then there are 14 lines to an inch. So, if the line rate is Rs 3.75, multiply it by
14 and one can get the cost of an inch rate. (The rate would be Rs 45.50 an
inch.)
2) MAGAZINE ADVERTISING
Many of the same "print" type principles that apply to newspaper advertising
also apply to magazine advertising. The biggest differences are:
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• Magazines are usually weekly or monthly publications instead of daily.
• Advertising messages are more image-oriented and less price-oriented.
• The quality of the pictures and paper are superior to newsprint.
• Advertisements involve colour more often.
The general rule that one can run the same ad 3-5 times within a campaign
period before its appeal lessens applies to magazine advertising as well, even
with a monthly publication. Therefore, it makes sense to spend extra time and
money to prepare a worthwhile ad that can be successfully repeated.
Over long terms such as these, however, be aware that the clients often tire of
the ad before the audience does.
Because ads in magazines are not immediate, they take more planning. Often,
an ad for a monthly magazine must be prepared at least a month in advance of
publication, so ads detailing prices and items have to be carefully crafted to
insure accuracy.
Since the quality of the magazines is superior, the advertising that one
generates must be superior as well. Negatives are usually required instead of
prints or "PMTs" (photo-mechanical transfers). Consider getting assistance
from a graphic artist or an advertising agency.
There are two categories of magazines: trade magazines and consumer
magazines. Trade magazines are publications that go to certain types of
businesses, services and industries. Consumer magazines are generally the
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kind the advertiser finds on the average newsstand. Investigate which type
would do the business the most good.
An agency can also purchase the magazine space for you, often at no charge,
because the magazine pays the agency a commission directly. If the advertiser,
wish to purchase the advertising directly, contact the magazine and ask for an
"Ad Kit" or "Media Package." They will send a folder that includes
demographic information; reach information, a current rate card and a sample
of the publication.
Although most magazines are national in nature, many have regional
advertising sections that allow business to look like it purchased a national ad
when it only went to a certain geographical area. This can be especially useful
if product or service is regional in nature as well and could not benefit from the
magazines complete readership. Each magazine does this differently, so
contact the interested in and ask them about their geographic editions. Some
sophisticated magazines even have demographic editions available, which
might also be advantageous.
3) RADIO ADVERTISING
Since its inception, radio has become an integral part of Indian culture. In
some way, it touches the lives of almost everyone, every day. Radio, as a
medium, offers a form of entertainment that attracts listeners while they are
working, traveling, relaxing or doing almost anything. A farmer, for example,
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may listen to the radio while he is having breakfast or plowing his field. People
driving to work often listen to the radio. Radio offers information such as:
news, weather reports, traffic conditions, advertising and music for listening
pleasure.
What Are Some of the Good Things About Radio?
Radio is a relatively inexpensive way of reaching people. It has often been
called the "theater of the mind" because voices or sounds can be used to create
moods or images that if crested by visual effects would be impossible to
afford.
The advertiser can also negotiate rates for their commercials, or even barter.
Stations are often looking for prizes they can give away to listeners, so it is
possible to get full commercial credit for the product or service offered.
Advantages to radio advertising include:
• The ability to easily change and update scripts are paramount to radio
broadcasting, since news stories can and often do happen live.
• Radio is a personal advertising medium. Station personalities have a good
rapport with their listeners. If a radio personality announces the commercial,
it's almost an implied endorsement.
• Radio is also a way to support the printed advertising. The advertiser can say
in their commercial, "See our ad in the Sunday Times," which makes the
message twice as effective.
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What are Some Limitations to Radio Advertising?
Radio advertising is not without its disadvantages too, such as:
• One can't review a radio commercial. Once it plays, it's gone. If the listener
didn’t catch the entire message, one can't go back and hear it again.
• Since there are a lot of radio stations, the total listening audience for any one
station is just a piece of a much larger whole. That's why it's important to
know what stations the customers and prospects probably listen to.
Therefore, most of the time, one has to buy time on several radio stations to
reach the market.
• People don't listen to the radio all the time...only during certain times of day.
So, it's important to know when the customers or prospects are listening. For
example, if one wants to reach a large portion of audience by advertising
during the morning farm report, one has to specify that time period to the
radio station when buying the time.
One of the most popular times to reach people is during Drive Times
especially in metros (from 6 a.m. to 10 a.m. and 3 p.m. to 7 p.m.). It is because
most people are going to or from work during this period, and because most
people listen to their radio when they drive. Unfortunately, radio stations know
that this is a favorite time to advertise, so commercial costs are much higher
during this time.
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• Radio as a broadcasting medium, can effectively sell an image...or one
or two ideas at the most. It is not, however, a detailed medium...and is a
poor place for prices and telephone numbers.
• Radio listeners increase in the spring and summer, contrary to television
audiences which increase in the fall and winter and decrease in the summer.
This is an important aspect to consider when choosing advertising media.
How to Time on the Radio?
Like a newspaper, each radio station has its own advertising staff. Each wants
to believe that their station is the absolute best buy for the money and many
will go to great lengths to prove it. However, if done a research, or if using an
advertising agency, one can probably have a good idea of the station they
would like to buy time on and when. If one does not know which stations they
want to use, ask each station for its own research, that is, the type of
programming, musical format, geographic reach, number of listeners and
station ratings.
By getting the station ratings and the number of people it reaches, one can
figure out the cost-per-thousand people (CPM) by simply dividing the cost
of a commercial by the thousands of people.
Without getting complicated, here are two cardinal rules for radio advertising:
1. it’s better to advertise when people are listening than when they are not.
2. it’s better to bunch all the commercials together than to spread them apart.
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A lot of radio sales reps will try to talk one out of advertising during specific
times. They'll offer you a reduced rate called TAP (Total Audience Plan) that
splits your advertising time into 1/3 drive, 1/3 mid-day and 1/3 night. This may
sound like a good deal, but airing commercials during times when your
audience isn't listening is bad advertising. If however, sponsoring a show such
as Hawa Mahal or the Morning Farm Report, it makes sense to advertise
once or twice a day on a regular basis, since those programs have regular
listenership. Frequency is a vital element for effective radio advertising.
Since one can't automatically recall the radio commercial and hear it again, one
may have to hear the same commercial two, four, or maybe six times before
the message sinks in. If one missed the address the first time, they consciously
or subconsciously are hoping the commercial will be aired again so that they
can get the information they need. That's the way radio advertising works. And
that's also the way the advertiser buys it.
Most of the time, radio advertising should be bought in chunks. High
frequency over a short period is much more effective than low frequency
over a longer period. It is important for the audience to hear the spot again to
get more information out of it. For example, if one wanted to advertise a two-
week campaign and one could afford 42 radio commercials, the following buy
would serve well: On Tuesdays, Wednesdays and Thursdays, place three spots
between 7-9 a.m. and four spots between 3-6 p.m. for two weeks. Notice that
both day and hour periods are concentrated.
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By advertising in concentrated areas in tight day groups, the advertiser seems
larger than they really are. In addition, people hearing the concentrated
campaign for two or three days will think that the advertiser is on all the time.
The radio sales reps may try to sell three spots everyday on the station for 14
days (a total of 42 spots). But the campaign won't be nearly as effective.
For writing radio scripts, the basic copy writing rules are:
• Get the listener's attention immediately.
• Write in conversational style.
• Avoid using buzzwords or jargon.
• Repeat important points.
• Make the ending strong and positive with call-to-action for response.
4) TELEVISION ADVERTISING
Television is often called "king" of the advertising media, since a majority
of people spends more hours watching TV per day than any other medium. It
combines the use of sight, color, sound and motion...and it works. TV has
proven its persuasive power in influencing human behavior time and time
again. However, it is also the "king" of advertising costs.
Advantages in Television Advertising
Television reaches very large audiences-audiences that are usually larger than
the audience the city's newspaper reaches. The area that a television station's
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broadcast signal covers is called ADI, which stands for "Area of Dominant
Influence."
Some advantages of television advertising include the following:
1. Advertising on television can give a product or service instant validity
and prominence.
2. One can easily reach the audiences they have targeted by advertising on
TV. Children can be reached during cartoon programming, farmers during the
morning agricultural reports and housewives during the afternoon soap operas.
A special documentary on energy sources for heating homes and business will
also attract viewers interested in heating alternatives.
3. TV offers the greatest possibility for creative advertising. With a
camera, one can take the audience anywhere and show them almost anything.
4. Since there are fewer television stations than radio stations in a given
area, each TV audience is divided into much larger segments, which enables to
reach a larger, yet, more diverse audience.
Disadvantages in Television Advertising
Because TV has such a larger ADI, the stations can charge more for
commercials based on the larger number of viewers reached. The cost of
television commercial time is based on two variables:
1. The number of viewers who watch the program.
2. The time during the day the program airs.
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One 30 second television commercial during prime time viewing (8 p.m. to 11
p.m.) can cost 10 to 30 times more than one radio spot during drive time
(which is considered prime listening time).
While the newspaper may cover the city's general metropolitan area, TV may
cover a good portion of the state. If such coverage blankets most of the sales
territory, TV advertising may be the best advertising alternative for the
business.
Producing a commercial is also an important variable to consider. Overall,
television audiences have become more sophisticated and have come to expect
quality commercials. A poorly produced commercial could severely limit the
effectiveness of the message, and may even create a bad image in customer’s
mind.
Advertising agencies or TV commercial production facilities are the best
organizations for creating a commercial that will be effective for the goods or
service you are offering. However, the cost of a well-produced commercial is
often more expensive than people think. Some TV stations will claim they can
put together commercials for "almost nothing." Before agreeing to this, find
out what "almost nothing" means. Then, determine if the commercial quality
and content they are proposing will represent the firm's image.
Many companies use the station's commercial production facilities for creating
"tag lines" on pre-produced commercials. Often, the station will help
personalize the spot for little or no cost...if advertise with them. Remember,
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more than anything else, when it comes to making a TV commercial, get what
is paid for. Moreover, when buying commercial time for one 30-second TV
spot costing from Rs 30000 to Rs50000 it makes sense to have the best sales
presentation possible.
Remember, like radio, the message comes and goes...and that is it. The viewer
does not see the commercial again unless one buys more placements.
Creativity: A Vital Element
When advertise on TV, the commercial is not only competing with other
commercials, it is also competing with the other elements in the viewer's
environment as well.
The viewer may choose to get a snack during the commercial break, go to the
bathroom or have a conversation about what they just saw on the show they
were viewing. Even if the commercial is being aired, viewers may never see it
unless it is creative enough to capture their attention. That is why it is so
important to consider the kind of commercial being created...and how one want
the audience to be affected. Spending money on a good commercial in the
beginning will pay dividends in the end.
TV and Ad Budget
Attempting to use TV advertising by using a poorly-produced commercial;
buying inexpensive late night commercial time that few people watch; or just
placing the commercial a couple times on the air will guarantee disappointing
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results. To obtain positive results from TV advertising one must have enough
money in your budget to:
1. Pay for the cost of producing a good TV commercial (today costs range
from Rs 3,00,000 to Rs1, 00,00,000 and above).
2. Pay for effective commercial time that will reach the viewer at least 5-7
times.
Properly done, television advertising is the most effective medium. However,
it is big league advertising...and one should not attempt it unless there is
enough money in the budget to do it right.
If the advertiser is still attracted to TV, it is a good idea to call in an
advertising agency for production and media buying estimates. Then, figure
out what sales results are expected. With such data, one should be able to reach
a logical advertising decision.
Buying Television Advertising Time
There are many things to know and consider before buying a TV programming
schedule. That is why, in most cases, using an advertising agency or a media
buying service is recommended when advertising on TV. If these services are
unavailable, find a TV representative that one can trust. The agency or
representative can help select the programs one should advertise on in order to
reach the market. Also, ask about "fringe" time, adjacencies and package plans.
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When engineering the schedule, remember that repetition (or frequency) is a
very important ingredient to use. Make sure the audience sees the commercial
with the context of the programs. Ask for a commercial affidavit. Normally, it
does not cost any more and the station will provide with a list of the exact
times the commercial was run.
Other Considerations
For an effective and inexpensive way to get the message on the TV screen,
consider using pre-prepared TV commercials that may be available to through
a manufacture or distributor. One can add the name and logo to the end of the
commercial for little or no cost. Look at cooperative advertising too. Many
companies offer prepared advertising materials that can be used and at the
same time may pay for a portion of the advertising schedule.
5) CABLE ADVERTISING
Cable advertising is a lower cost alternative to advertising on broadcast
television. It has many of the same qualities as broadcast television, and in
fact, since it offers more programming, it is even easier to reach a designated
audience.
The trouble with cable is it does not reach everyone in the market area, since
the signal has to be wired instead of broadcast and also because not everyone
subscribes to cable.
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If cable does reach a large part of your market, have an advertising agency
investigate its cost or call the cable company's advertising sales department.
Chances are the commercial time will be 10 to 20 percent of the costs of
regular broadcast time.
6) YELLOW PAGES
Telephone book advertising is another way to reach the market area. It allows
placing the business listing or ad in selected classifications within the book,
with the theory being that when people need the product or service, they look
up the classification and contact the advertiser.
Much of the "sell" copy for a product or service, therefore, does not have to be
in ad content, since the people who have looked up the classification are
already in the market to buy. The thing to be aware of when writing the ad is
the other firms' ads within the same classification. In other words, why should
the reader select the firm over the competition? That is the crucial question --
and the ad should provide the answer.
Telephone Yellow Pages salespeople often employ the technique of selling as
large of ad as they can to one company, then showing the other companies in
the same classification what the one company is doing so that they can match it
or beat it. This is not the best criteria for determining ad size, but is definitely
good for the ad salesperson.
To determine the size, consider the following:
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• The ad should be large enough to incorporate the vital information the
reader needs to make a contact decision (as mentioned above).
• Remember the lessons in print advertising. Keep the ad clean, creative
and eye appealing. Even though the phone company will "design your ad for
free," some firms employ graphic artists and advertising agencies to create a
Yellow Pages ad that really stands out.
• Give a budget to work with. Figure out how much to spend on Yellow
Pages advertising for the entire year, and then divide it by 12. That will give
one the payment that is automatically attached to the phone bill every month.
Do something unique or different. If no one else is using color, use color. Even
shades of gray can make an ad look better and more appealing.
Advantages of Yellow Pages Advertising
• One ad works all year long.
• Gives the prospect a method of easily locating and contacting the
business, even if they didn't initially know the name.
• Can help describe the differences between the advertiser and their
competition.
• Payment by the month instead of one large payment.
Disadvantages of Yellow Pages Advertising
• The Advertiser must commit to an entire year of advertising.
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• The Advertiser is immediately placed with a group of competitors,
making it easy for the prospect to comparison shop.
• Some classifications are so cluttered with advertising, that the ad is
buried and ineffective.
• It is only effective when a prospect looks up in the correct
classification, assuming the prospect knows what classification to look for in
the first place.
If the advertiser requires more than one classification, the Yellow Pages
representative often has packages and programs that can save some money. In
addition, the same is often true if the advertiser need to be advertising in more
than one city or market.
Yellow Pages advertising is an important medium to consider in our fast-
paced, information-hungry society. People really do let their "fingers do the
walking" instead of driving around blindly. Make sure that the Yellow Pages
ad is attractive and informative enough to be the one or two businesses the
prospect actually does select to call. Then make sure to have the resources to
deal with the inquiry. After all, there is nothing more annoying than being put
"on-hold" by a busy checker or being served by an uninterested or
unknowledgeable employee.
7) OUTDOOR ADVERTISING
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When people think of Outdoor Advertising, they usually think of the colorful
billboards along our streets and highways. Included in the "outdoor"
classification, however, are benches, posters, signs and transit advertising (the
advertising on buses, subways, taxicabs and trains). They are all share similar
advertising rules and methods.
Outdoor advertising reaches its audience as an element of the environment.
Unlike newspaper, radio or TV, it does not have to be invited into the home.
Moreover, it does not provide entertainment to sustain its audience.
Some Outdoor Advantages
• Since it is in the public domain, Outdoor Advertising assuredly reaches
its audience. People can't "switch it off" or "throw it out." People are exposed
to it whether they like it or not. In this sense, outdoor advertising truly has a
"captured audience."
• Its messages work on the advertising principle of "frequency." Since
most messages stay in the same place for a period of a month or more, people
who drive by or walk past see the same message a number of times.
• Particular locations can be acquired for certain purposes. A billboard
located a block in front of the business can direct people to the showroom. Or
can reach rural areas efficiently by placing a billboard in each small town.
• Outdoor advertising is an excellent adjunct to other types of advertising.
In fact, it is most effective when coupled with other media.
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Some Outdoor Disadvantages
• Outdoor advertising is a glance medium. At best, it only draws 2-3
seconds of a reader's time.
• Messages must be brief to fit in that 2-3 second time frame. Ninety-five
percent of the time, either the message or the audience is in motion.
• The nature of the way the advertiser has to buy outdoor advertising
(usually a three month commitment) is not conducive to a very short, week-
long campaign.
When buying outdoor advertising, remember that location is everything. High
traffic areas are ideal. A billboard in an undesirable area will do little good.
Keep the message concise (use only five to seven words) and make it
creatively appealing to attract readership. Few words, large illustrations (or
photos), bold colors and simple backgrounds will create the most effective
outdoor advertising messages.
8) DIRECT MAIL
What makes "direct" mail different from regular mail? Nothing. It is just a way
the advertising world describes a promotional message that circumvents
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traditional media (newspaper, radio, TV) and appeals directly to an individual
consumer. Usually through the mail, but other carriers also participate.
Studies indicate that it is the third largest media expenditure behind television
and newspaper.
General Rules
• Define the audience. Figure out whom to reach before developing the
direct mail program. This allows to specifically target the message to fit
common needs. It is the best advertising medium for "tailoring" the appeal.
• Locate the right mailing list. One can either build a "house list" by
doing the research and compiling the information on a computer or one can
purchase an "outside list" from a list house or mailing organization already
pre-prepared and ready to go.
• There are many ways to purchase lists. The Advertiser can buy them
demographically (by age, profession, habits or business), or geographically (by
location, state and zip code). Or one can buy a list with both qualities. More
than likely, there is a mailing list company in area that would happy to consult
for the needs. If not, there are a number of national mailing lists available.
• For assembly, addressing and mailing the project, one also has the
choice of doing it or locating a mailing service company to do it. As the
numbers of the direct mail pieces increase, the more practical it is to enlist
such an organization for assistance. They also are very good at getting the
lowest postal rates.
_________________________________________________________________
• Consider using a self-addressed reply card or envelope to strengthen
return. Use a Business Reply Postage Number on the envelope.
The blessing (or curse) of direct mail is that there are no set rules for form or
content. The task of deciding what mailing should have as content, its design
and its message(s) is up to the advertiser. However, remember to attract the
reader's attention with color and creativity. Use clear, comfortable writing and
make the appeal easy to respond.
And of course, coordinate the mailing with other advertising media if one is
also using them in the same campaign. It can significantly increase the
potential return.
9) SPECIALTY ADVERTISING
"Giveaways" -- the pencils, pens, buttons, calendars and refrigerator magnets
you see everyday -- are called "Specialty Advertising" in the advertising
business.
Chances are, one have some specialty advertising items right at the desk.
Businesses imprint their name on items and give them away (or sometimes sell
them at very low cost) in order that:
• One notices the advertiser name enough times on the item to build "top-
of-the-mind" awareness. So when one needs a restaurant, for instance, one
thinks of their name first.
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• One appreciates the goodwill of the company giving the item and
eventually returns the favour by giving them some business.
These are both long-term advertising investments that can take months or years
to turn into actual sales.
First, select the best item that would tell the story most effectively. While an
accountant can give away an inexpensive calculator, the same item may not be
ideal for a hairdresser. A comb or brush might be more appropriate in that
case.
Second, decide what to say on the item. A company slogan? Address
directions? Since one has a relatively small area, the advertiser must be very
concise and direct.
Third, figure out the method of distribution. Are you going to send them to
each customer through the mail? If so, how much will that cost? Will you have
them in a big bowl that says, "Take one"? Distribution is just as important to
consider as buying the item.
Just as there are many reputable specialty-advertising professionals in the area,
the industry is notorious with many high-pressure telephone and mail solicitors
who often give specialty advertising a bad name. Do not buy specialty
advertising through the mail without checking the quality and prices with
trusted local representatives first. And, buying specialty advertising over the
telephone is not recommended at all.
Specialty advertising is a unique way to generate goodwill. 1.3
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10) INTERNET ADVERTISING
More and more innovative types of advertising are coming into existence as
the Web matures, so this is not meant to be an exhaustive list. However, it
covers all the main types of advertising in use today.
a) BANNER ADS
Despite widespread concern about the effectiveness of banner advertising, this
is still by far the most popular advertising type in use today.
A banner ad is a graphical bar or button containing text or graphics designed to
attract a viewer's attention and induce an action (usually, invite the viewer to
click through the banner and visit the advertiser's site). Banners come in all
shapes and sizes, although some standards are emerging. For instance, the
468x60 pixel banner (like the one at the top of this page) is a very popular size,
as is the 234x60 banner (half the size of the larger banner, so two fit into the
same space).
Banner ads can be static or animated. The most popular graphic format for
banner ads is GIF format. Most banner ads are sold on a CPM basis or on a
CPC basis.
Some sites show more than one banner ad per page, and some even go so far as
to use little Java or other programs to rotate banners every few seconds while a
visitor remains on a given page.
b) TEXT ADS
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Popular in newsletters, and on some progressive sites, text ads are growing in
popularity (for some products, a few words are worth a thousand pictures!) A
text ad consists of a few lines of copy together with a link or an email address
for action. Text ads can be priced like banner ads on a CPM or CPC basis. It is
difficult to track how many text ads have been shown on a site, so many sites
choose to "hide" a 1x1 pixel transparent graphic right next to the text ad and
count how many times the graphic is loaded as being the number of times the
text ad was loaded.
Text ads in newsletters are usually specified as a number of lines, with a
maximum number of characters per line. For instance, PR2 offers text ads in
the newsletter with a maximum of ten lines of text and 65 characters per line.
c)INTERSTITIALS
Interstitial ads are nothing more than ads that are shown in the transition
between two pages of a site. So you click on a link on Page A, but instead of
going to Page B you arrive at an intermediate page containing the sales pitch
(and - hopefully - a link to Page B somewhere on the page!). Interstitials are
gaining in popularity with advertisers since they offer an almost unlimited
amount of space to pitch a product. Many site visitors find interstitials
irritating, and they also increase site-loading times,
d)POP-UP ADS
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According to many webmasters, pop-up ads are the most annoying type of
advertisement... although there is little evidence this sentiment is shared by the
larger Web community.
Pop-up ads consist of a small window that "pops up" over the main browser
window when you enter a site (and sometimes when you leave it, a favourite
tactic of adult sites). The pop-up windows can contain anything: text, graphics,
a form to collect information or email addresses, even a little game.
There are two downsides to pop-up ads, one for webmasters, one for
advertisers. From a webmaster's point of view, pop-up ads wrench control of
the browser away from their own page, and some badly-written pop-up ads
may also crash certain browsers, leaving a permanently bad impression in a
visitor's mind. From an advertiser's point of view, most pop-up windows can
be minimized (hidden behind the other windows) with relative ease, so if the
pop-up window is being used to rotate ads on a time basis, your advertisement
may not even be visible but you'll still be charged for it!
e) OPT-IN MAILING
An advertising type that is rapidly becoming popular, opt-in mailing consists
of sending an email message to a "pre-qualified" list of people i.e. an audience
that has expressed an interest in receiving information on a given topic.
Some sites sell their lists of newsletter recipients to advertisers, but most prefer
to keep the email addresses secret and distribute the ad on the advertiser's
behalf.
_________________________________________________________________
If you want to advertise using opt-in mailing, approach mailing lists with
caution and check that they are being offered by a reputable firm. Some
unscrupulous companies think nothing of "padding" their lists with the names
of people who have no real interest, but who have been virtually press-ganged
into joining.
Opt-in mailing is not the same as SPAM. SPAM is another word for bulk
mailing, and involves sending a message to people who have never shown
any interest in receiving it. SPAM will destroy your business. Some
companies claim to be opt-in whereas they are actually selling SPAM
services. In general, don't expect to pay less than $0.02 per name for a real
opt-in mailing - and many are around $0.1-0.2 per name. SPAM services
sell their lists ridiculously cheap, for instance $250 for 10 million names.
Don't get caught out!
f)HTML ADS
HTML ads combine graphics and text with other HTML elements such as pull-
down list, check boxes or forms. These can be very effective in getting traffic,
but are much harder to serve and track, and generally require very
sophisticated software to run properly.
g)RICH-MEDIA ADS
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Rich media ads make use of multimedia elements such as sound, animation
(often using plug-in such as Shockwave or Flash) and Java/JavaScript to drive
the message home. Great for advertisers, less good for webmasters since the
premium for rich-media ads is not particularly high, but the extra load time and
annoyance can be considerable (you'll lose your audience of visitors surfing
from work on audio-equipped PCs for a start if your site suddenly blares out
music!)
h)HYBRID ADS
Hybrid ads combine aspects of other advertising types, such as text and
banners, to make a more effective pitch to visitors.
i)SPONSORSHIPS/PARTNERSHIPS
Not a different advertising type, exactly, but a different way of approaching
advertising; sponsorships and partnerships usually involve embedding the
advertising much more into the body of a site. Sponsorships, when done well,
can be both discreet and effective. Much sponsorship takes the form: "Site
brought to you by Sponsor" or "Sponsor's guide by Site"
Sample Advertising Page from rediff.com
NET MATCHM
HOME NEWS BUSINESS CRICKET RADIO MOVIES SPORTS SHOPPING BLOGS ASTROLOGY
GUIDE AKER
_________________________________________________________________
Ad Guidelines
For your reference, here's a list of standard banner sizes available
on our website. To find out how you can get the most out of your
Web advertisement, please contact us.
Banner I
Banner Size : 238*238
Banner Weight : Max 20k.
Banner-II
Banner Size : 468*60 Banner Weight : Max 16k.
Banner-III
_________________________________________________________________
Banner Size : 125*500 Banner Weight : Max 18k.
HOME NEWS BUSINESS CRICKET RADIO MOVIES SPORTS
_________________________________________________________________

Chapter No - Iv Advertising Agency: Structure, Divisions and Functions

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Chapter No - Iv Advertising Agency: Structure, Divisions and Functions

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CHAPTER NO –IV

ADVERTISING AGENCY: STRUCTURE, DIVISIONS

4.1 HOW IS AN ADVERTISING AGENCY STRUCTURED?

The Basic Structure

The traditional, full-service agency is divided into 3 functional parts:

account management (sometimes called client service), creative and

central administration and the accounting department.

information to assist in developing advertising objectives.

creative jobs, it can help.

This portfolio should include a variety of layouts, thumbnail ideas, and if

The candidate should demonstrate proficiency with the computer. Programs

one should be proficient in include Pagemaker, Illustrator and/or Freehand,

and Macromedia Director. A strong knowledge of typefaces and production is

computer layouts of imaginary products.

Promotion, Consumer Education and Public Relations.

benefits of the product so that they can be convinced to purchase it repeatedly.

Similarly, in Consumer Education, the public at large is taught the various

In such a procedure, campaigns are designed and splashed in various papers;

In Public Relations, the objective is to create a positive image of the company

by organising various activities, press meets and articles published in various

newspapers and magazines. This also helps in building a strong brand

message, as the effectiveness of the media is very strong in the country. It is

way to achieve it through press advertisements in newspapers and magazines;

handbills, direct mail and posters are the other forms.

commercials, slide presentations and live shows. In displays, there are

hoardings, exhibitions, point of purchase promotions and demonstrations,

market stalls and information booths.

structured agency are Client Servicing, Creative, Media, Production and

II) CLIENT SERVICING

any advertising campaign. This department is responsible for meeting

To be an effective client-servicing person, the candidate has to have a thorough

servicing personnel meet the clients and take their briefing.

the campaign. The client-servicing people must understand the problem

creative department how to devise an appropriate strategy.

basic requirement of a Client Servicing Executive is that he should be

cheque, self-confidence and persuasive power are very important. At times, he

consumer attitudes and drawing up the most appropriate and effective

advertising strategy within a specified budget.

agencies also recruit client-servicing trainees with a degree, preferably in

Economics with statistics.

III) CREATIVE DEPARTMENT

conceptualized and implemented. This is the task of the creative

department. The department is further divided into two sub-sections- Copy

slogans are conceived.

requirement, target group and the media channels.

factual, syntax and typesetting discrepancies before it goes into production.

writing backed up by the knowledge of advertising are the required parameters

conceptualize the art work.

like transparencies and pictures from various sources.

The minimum requirement to join an agency's art Department is a

degree/diploma in commercial art from a reputed art college or a design

This department is responsible for the positioning of an advertisement in

the press, radio or television as well as identifying and procuring display

innovative media outlets and places the advertisement accordingly. The

Post-campaign release research is undertaken by the department to keep a

check on the effectiveness of the ad/campaign.

the outlet on releasing any campaign.

As a matter of fact, advertising agencies are finding media business more

the minimum educational qualification requirement is an MBA. The person

If the candidate is an Economics graduate with Statistics background, the

chances are far brighter.

Production Department of an advertising agency is responsible for the