Sandra Moriarty

Nancy Mitchell
William Wells

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 Part 1
Principle: Back to Basics

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1. What is advertising, how has it evolved, and what
does it do in modern times?

2. How have the key concepts of marketing

communication developed over time?

3. How is the industry organized – key players,

types of agencies, and jobs within agencies?

4. Why and how is the practice of advertising

changing?

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The Organization

 The message sponsor or

advertiser

 Likely to have a marketing

team that initiates the
advertising effort

 Hires the advertising agency

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The Agency

 Creates, produces, and distributes

the messages.

 Employs experts who are

passionate about their work.

 Can negotiate the best media deals

for clients.

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The Media

 Channels of communication that

deliver messages and engage
audiences.

 Many are large media conglomerates

such as Time Warner and Viacom.

 The mass media enable advertisers to

reach many people with a single
message in a cost-efficient manner.

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Professional Suppliers
and Consultants

 Provide specialized services

to advertisers and agencies.

 Includes artists, writers,

photographers, producers,
printers, and vendors who
supply user-generated
content online

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 Full-Service Agencies
◦ Encompasses account management, creative
services, media planning, and account planning.

 In-House Agencies
◦ Is a part of the advertiser’s organization; helps to
control costs and maintain control over brand
image.

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The A-List of Advertising Agencies
Here are a select few:

◦ McGarryBowen: www.mcgarrybowen.com

◦ Droga5: www.droga5.com

◦ Razorfish: www.razorfish.com

◦ 72andSunny: www.72andsunny.com

◦ Edelman: www.edelman.com

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 Specialized Agencies
◦ Specialize in certain functions, audiences,
industries or markets.

 Creative Boutiques
◦ Small agencies that work only on the creative
execution of an idea or product.

 Media-Buying Services
◦ Specialize in the purchase of media for clients

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 Agency Networks and Holding Companies
◦ Large conglomerations of agencies under a
central ownership

◦ One or more agency network, usually with

multiple offices

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The five main areas:

1. Account management
2. Account planning and research
3. Creative development and research
4. Media research, planning, and buying
5. Internal operations

Let’s take a look at each one……

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Account management
 This team acts as a liaison between the client and
agency.
 The account executive interprets the client’s
marketing research, strategy for the agency.

Account planning and research

 This team gathers market intelligence and acts as
the voice of the consumer.
 Strategic specialists research consumers’ wants,
needs and brand relationships.

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Creative development and production
 Includes copywriters, art directors, and producers.

Media research, planning, and buying

 This department provides research, planning, and
buying services.

Internal operations
 Includes traffic, print production, finance, and
human resources.

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From three main sources:
1. Commissions: based on
media billings.
2. Fees: based on an hourly
rate or project. Also
covers travel and various
expenses.
3. Retainers: A regular
amount billed each
month, based on
projected work.

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Two recent trends:

1. Based on performance: the agency is paid a

percentage of the client’s sales or marketing
budget.

2. Value billing: the agency is paid for its creative

and strategic ideas rather than for executions
and media placements.

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 The days of pounding people with images,
shoving them down their eyeballs are over.

 Consumer-generated advertising creates

valuable brand publicity.

 Consumers have taken control of media and

marketing through the Web and social media.

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 Television is still a major
player, but the number of cable
channels has exploded.

 Digital media has fragmented

the media world with new,
ever-changing forms.

 Agencies must take a stronger

leadership role in the
development of brand strategy.

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 Accountability: This has grown in importance
over the past two decades.
 Effectiveness: In tight economic times, it is more
critical than ever to deliver results.

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What is an effective ad?

Answer:

Effective ads deliver the message the advertiser

intended, and that consumers respond to as the
advertiser hoped they would.

Effectiveness is measured according to

predetermined objectives.

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 Industry awards showcase the best in
advertising and marketing communication.

 The Effie Award is given for the most effective

ads.

 The Clio Award is based on creativity.

As a class: check them out at:

www.effie.org
www.clioawards.com

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Other advertising awards:

Canada’s Cassie Award

www.cassies.ca

Cannes Lions Award

www.canneslions.com

Silver Anvil Award

www.prsa.org/awards/silveranvil

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The first principle of IMC:
“Everything communicates!”

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 IMC is all about integration.

 IMC is the primary tool of brand communication.

 Brand messages must complement one another

and present the same basic brand strategy.

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In Chapter 2, we will:

 Explain the bigger picture of advertising and its

role in marketing communication and marketing.

 Explore new ways that agencies are working to

interact with customers and cement brand
relationships.

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 Old Spice generated
excitement with guys who were
not current customers and
women who typically made
most body wash purchases.

 The “hunk” atop the horse

captivated the audience – think
“eye candy!”

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Key lessons
 Old Spice used research to generate insights that
drove the campaign.

 They involved both men and women in the

conversation about what a guy should smell like.

 The campaign generated an incredible amount of

free public relations and social media buzz.

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