Advertising Agency

1. Define Ad Agency
2. Functions of Ad Agency
3. Services provided by Ad Agency
4. People working
5. Types of Ad Agency
An Advertising Agency or ad agency is a
service provider that works for clients to
create an effective and goal oriented
advertising campaign aimed at
representing the Company positively in
the eyes of its target customers.
AMERICAN ASSO. OF ADVTG. AGENCY
defines---

‘An Advertising Agency as an independent organization of

Creative people and business people who specialize in
developing and preparing marketing plans, advertisements,
and other promotional tools.’
Cundiff & Still defines---

‘An Advertising Agency is an independent organization

composed of Creative people and business people who
develop, prepare and place advertisement in an advertising
media for sellers, seeking to find customers for goods and
services.’
• Advertising agencies are outside
companies that provide for the marketing
and advertising needs of other businesses
and organizations. Advertising agencies
offer a full range of advertising services
and advice based on market studies,
popular culture and advanced sales
techniques.
 Advertising Agency Functions

•To advertise their products, brands and services to present

and prospective customers.

•For planning and creating an effective advertising

campaign.

•To take over the process of brand building, strategizing and

pushing sales through other promotion techniques like
sales promotions etc.
 primary services of Advertising Agency:

Total Advertising Services :Strategic planning, creative development and

media services for advertising, particularly in television, newspapers, magazines
and radio; providing the best creative designed to capture the imagination of
consumers

Marketing Services: Provision of a number of advertising related services,

including sales promotion, market research, PR and event marketing.

E-Solution Services : e-solution services, including system integration services,

e-business consulting and customer relationship management (CRM), Search
Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-
promotions using the Internet and mobile.
 primary services of Advertising Agency:

Content Business: Sales of sponsorship, broadcasting and other rights, and the
production and marketing of such media / content as sporting events, films, TV
programs, animated content, music and other forms of entertainment.

Integrated Media Services : Bringing value to both clients and media-related

companies by offering a wide range of media solution services

Sales Promotion : Providing comprehensive sales promotion planning designed

to complement mass media and other activities

Event Marketing : Assisting clients by providing dynamic vehicles for their

messages in the form of on-the-spot interactive communications

Integrated Branding Services : Assuring clients the highest quality of branding

services for their communication needs
 People working in an agency:

Accounts Executive: It is a key career option in

advertising agency. He is called an Account Director
when he is a member of the Board. He is a link
between a client and his staff.

Copywriters: They are the wordsmiths who do the

wording of an advertisement. They are bright and
talented. They have a flair for language. They
contribute to the theme of an advertisement.
Creation of successful copies for different clients
establishes them in this field.

Visualisers: These are artists who put on paper what

has been thought out by the copywriter. They in
fact design the ad.
 People working in an agency:

Creative Director: He co-ordinates the copywriting and

designing. He is a senior professional who is seasoned in an
existing advertising agency set-up to take on this mantle.

Production Department: Persons of diverse talents like

printing technology, DTP, photography, typography etc. are
involved here.

Media Planner: He has to allocate the advertising budget

amongst media. He has to select the appropriate media. He
decides about the frequency, size and position of an
advertisement. He decides about its publication date. He
receives the tear-off copies from the media when the ad is
published. He is guided by the media research, which he
undertakes, or by research undertaken by an outside agency.
 People working in an agency:

Marketing Researchers: Modern agencies are integrated set-

ups. They provide a range of marketing services. Research
data become very useful as input to the creative process.

Ancillary Services : These are needed to produce/create

advertisement. A whole range of services like studio service,
photographic service, printing service, gift item producers
etc. fall into this category.

Freelancers : These are professionals who work independently

and have a successful track record. They are copywriters,
jingle singers, radio announcers, artists, visualizers, technical
writers etc.
Five Advertising Agency Types

1. Full-service agencies
2. Creative boutiques
3. Media-buying services
4. Interactive agencies
5. In-house agencies
A full service ad agency is one that provides a
range of marketing services. A full services
agency provides services that are directly related
to advertising such as copywriting, artwork,
production of ads, media planning etc. It also
provides such services in respect of pricing,
distribution, packaging, product design etc

Full Service Ad Agencies are well equipped to plan

and create advertising campaigns for a range of
media including TV commercials, Radio jingles,
print advertisements etc. Depending on the budget,
client's select their agency.
4 functions of full-service agencies

• account management
• creative
• media planning and placement
• research
 account management

• liaison between agency and client

• responsible for understanding...
– the client’s business
– the client’s marketing needs
– strategy development
• representing client point of view
within the agency
creative department

1.The
1.The creative
creative department
department is
is responsible
responsible for
for
creating
creating and
and producing
producing the
the print
print and
and
broadcast
broadcast advertising
advertising

2.
2. Strategy
Strategy is
is key.
key. A
A good
good creative
creative work
work is
is
always
always guided
guided by
by aa creative
creative strategy
strategy that
that sets
sets
forth
forth goals
goals to
to be
be accomplished
accomplished andand key
key
message
message points
points to
to be
be relayed
relayed
 Media Department

• The media department has two main

functions - planning and buying.
• The planning group handles more
strategic marketing and media
issues.
• The buying group handles media
negotiations and implementation.
 Research & Other Functions

• Research department may design and

execute research programs
• strategy/creative review board
• office management
– human resources
– legal services
– accounting
– recruitment
 CREATIVE BOUTIQUE

• These are shop agencies that provides

only creative functions and not full-service.
The specialized creative functions include
copy writing, artwork and production of
ads, they charge a fee or percentage of
full service agencies, and as such most of
them convert into a full service agency or
merge with other agencies to provide a
wide range of services.
 The Role of Creative Boutiques

Creative
Creative Provide
Provide Only
Only Creative
Creative Services
Services
Boutiques
Boutiques

Full-Service
Full-Service Agencies
Agencies May
May
Subcontract
Subcontract With
With Creative
Creative
Boutiques
Boutiques

Other
Other Functions
Functions Provided
Provided by
by
the
the Internal
Internal Client
Client Departments
Departments
 Media Buying Can Be Specialized

Media
Media Specialize
Specialize in
in Buying
Buying Media,
Media,
Buying
Buying Especially
Especially Broadcast
Broadcast Time
Time
Services
Services

Agencies
Agencies and
and Clients
Clients Develop
Develop
Media
Media Strategy
Strategy

Media
Media Buying
Buying Organizations
Organizations
Implement
Implement the
the Strategy
Strategy and
and
Buy
Buy Time
Time and
and Space
Space
 Direct Response Agency

Advertising whereby the only connection the

consumer has to the product is the advertising
and the only way a consumer can act on the
advertisement or commercial is to return a
coupon or make a phone call.

Direct response advertising is geared to

eliminate an intermediary in the purchase
process. It can utilize a wide range of media, from
matchbook covers to print or radio and
television, although it is typically conducted
through the mail.
 Direct Response Agency Activities

Data
Data Base
Base Media
Media Services
Services
Management
Management

Direct Direct
Direct
Direct Creative
Mail Response
Response Creative
Mail
Agencies
Agencies

Research
Research Production
Production
 In House Agency

• Those companies, which prefer to have

closer control over advertising, have their
own in-house agency. This type is owned
completely by the advertiser.
 Interactive agencies
• Interactive agencies may differentiate
themselves by offering a mix of web
design/development, search engine marketing,
internet advertising/marketing, or e-business/e-
commerce consulting.

• Interactive agencies rose to prominence before

the traditional advertising agencies fully
embraced the Internet. Offering a wide range of
services, some of the interactive agencies grew
very rapidly.
 Functions performed by Interactive Agencies

Web
Web Web
Web Sites
Sites
Banner
Banner Ads
Ads

Interactive
Interactive
Media
Media Creation
Creation

CD-ROMs
CD-ROMs Kiosks
Kiosks

Audio
Audio Video
Video

Digital
Digital
Content
Content

Animation
Animation Special
Special Effects
Effects
 The Benefits of Using an Advertising Agency

• Added Expertise
• Media Knowledge and Unbiased Advice
• Easier Administration
• Media Buying
• Quality Control
• Information
• Cost Saving
• Time Saving
 Pros & Cons of In-House Agencies

+ Positive - Negative

Cost
Cost Less
Less
Savings
Savings Experience
Experience

The
The
More
More Less
Less
Control
Control
In-house
In-house Objectivity
Objectivity
Agency
Agency

Better
Better Less
Less
Coordination
Coordination Flexibility
Flexibility
 Participants in the IMC Process

Advertiser
Advertiser (Client)
(Client)

Advertising
Advertising Agency
Agency

Media
Media Organizations
Organizations Direct
Direct Sales
Sales
Response
Response Promotion
Promotion
Marketing
Marketing Agencies
Agencies Agencies
Agencies
Communications
Communications
Specialist
Specialist
Organization
Organization Public
Public Interactive
Interactive
Relations
Relations Agencies
Agencies
Collateral
Collateral Services
Services Firms
Firms
Centralized Advertising Activity has been defined as
that which - is located at or directed by headquarters,
reporting to corporate sales or marketing head or in
top management.

In operation it gets the necessary product, market, and

budget information from the divisions and then
controls the execution of the various programmes by:
 
1. Providing the needed information and guidance to
the advertising agency and other Services;
2. Then reviewing and approving the completed work
before getting division approval
 Advertising Department Under
Centralized System

President
President

Research
Research
and
and Human
Human
Production
Production Finance
Finance Marketing
Marketing Develop-
Develop- Resources
Resources
ment
ment

Marketing
Marketing Product
Product
Advertising
Advertising Sales
Sales
Research
Research Planning
Planning
 Pros & Cons of Centralization

+ Positive - Negative

Better
Better Less
Less Goal
Goal
Communications
Communications Involvement
Involvement

Fewer
Fewer
The
The Longer
Longer
Personnel
Personnel Centralized
Centralized Response
Response Time
Time
System
System
Can’t
Can’t Do
Do
Continuity
Continuity Multiple
Multiple Product
Product
Of
Of Staff
Staff Lines
Lines
A Decentralized Advertising Activity is operated and
controlled by individual units located in each major
division, usually reporting to a division head or to a
division marketing or sales head. The division
advertising, sales and marketing people and control
both the 'what' and 'how' of the advertising job,
getting only advice and counsel plus miscellaneous
services from a central advertising function.
 Decentralized Brand Management System
Corporate

Production Finance Marketing Research Human

and Resources
Development

Sales Product Marketing

Management Services

Brand Brand
Advertising Marketing
Manager Manager
Department Research
Ad agency Ad agency

Sales Package
Promotion Design

Merchandising
 Pros & Cons of Decentralization

+ Positive - Negative

Lack
Lack of
of
Concentrated
Concentrated Experience
Experience
Attention
Attention in
in IMC
IMC

Rapid The
The
Rapid Problem
Problem Competition
Competition for
for
Response Decentralized
Decentralized Resources
Response Resources
System
System

Increased
Increased Lack
Lack of
of
Flexibility
Flexibility Authority
Authority