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Ad Agency Notes
Ad Agency Notes
talernis
Advertistng
Agency: the distance
nce
ofan role of closing
Meaning
agencies play a major the size and thal
on
Advertising
the media: Depending
advertiser and services to the advertisers.
between the
it offers various and marketing
nature of the agency,
is not like
production
seasonal job. It throughout the
Advertising is
a
the assignments available
business has for one or more
work where the nmay
continue
one ad campaign is found
year. In advertising, ad department
a full-fledged
Therefore, maintaining done by ad agencies
years. advertisers get the ad work
uneconomical. Mostly mäkes the creative and media
ad agency th¡t
is it
A unique aspect of market research and is even
decisions. It also often supplies
supportive
Advertising is a service
agency
involved in the total marketing plan.
companies prefer to use the services of such
organisation. Large
agencies for extensive and effective advertising,
skilled, professional listen are
Similarly, large majorityof advertisements that we see or
advertising
channelised through advertising agencies. In fact,
represent the core of the advertising profession. A füll
agencies
service agency has many similarities to a large medical
clinic. Each has
expertS,
a variety of specialists. The agency has writers, artists, media
researchers, television producers, account executives and other experts.
and
Agency specialists work together to analyse the clients business
prescribe a course of action to keep the business healthy.
Definitton of an Advertistng Agency:
(1) The Armerican Association of Advertising Agencies, (AAAA
defines advertising agency as "An independent business organisatton%
composed of creative and business people, who develop, prepare and plat
advertising in advertising media for sellers seeking to find customers jor
their goods and services."
(2) The American Association of Advertising Agencies, (AAA
(AAAA)
defines an ad agency as "Service consists of interpreting, tothethe public
pubne or
to that pat of it which is desired to reach the ct or
ddvantages of a prount
service.
ganisation or
(3) H.
(3) H. W. Hepner defines ad agency as "a professional organisation
undertaking that on a commission or fee basis, assist clients in planning
Advertising Agency 263
preparing. placing and checking advertisements. It provides the speciaised
knowledge, skills and experience needed to generate efective advertising
plans and complains."
Epolution of AdAgency:
) Space Broker Stage: The advertising agency originated in the
USA. The first advertising agency was started as a space broker,
by Volney B. Palmer in Philadelphia in 1841. He was acting as an
agent, providing space to advertisers in the newspapers on
commission basis. In the course of evolution, advertising agencies
have grown in size and services. Gradually creative services were
offered by such agencies and at present ad. Agencies offer an
integrated package of advertising services to their clients. This
includes planninig of ad campaign, preparation of copy, contact
with media, guidance to clients relating to price, promotion,
brand, packaging etc. and finally conduct of research activities for
the benefit of clients. The evolution of advertising agencies is an
interesting story of more than 150 years. The popularity of such
agericies is fast increasing throughout the world due to high
quality services offered by mega advertising agencies
) Standard Service Stage: In 1876, N.W. Ayer & Sons an
American Agency devised a plan which eventually minimised the
dubious practice of brokering advertising spacè. Ayer entered into
agreements with advertisers whereby they promised to place all
their advertising through the agerncy. In turn, the agency bought
space for its cliens only at established rates as publjshed by
newspapers and magazines. Thus the agent became a buyer
instead of seller
represeriting the best interest of the advertiser a
Marketing
(4) was Service Stage: Heréafter the growth of advertising
rapid. Industrialisation all over the world was an important
factor in this process of growth. By 1950s the agencies began 4
offering more varied and highly skilled services to their clients
4)
taking consumer psychology into account when creating ads, as
well as furthering the role of advertising in the marketing-mix by
coordinating it with other marketing practices and producers. Ad
agencies thus entered the marketing service stage from which (5)
evoked the présent day full service agency which is the
representative of several large ad agencies throughout the world
today.
(5) Multi-faced Services: The 21st Century witnessed the rise
global business and àd agencies were expected to offer a range of 6)
services apart from media of
buying and ad planning. Internet
marketing. social marketing, direct
marketing, sponsoring sports
events and so on put
additional burden on ad agencies to prepare
social-oriented messages.
need of the hour. Over Thought-provoking
and
copy has become the7)
required to undertake researchabove
ad campaign, the
agency 15
activities.
collaborations have also become quite Mergers, takeavers and
regular.
NEED/PREFERENCE FOR ADVERTISING AGENCY
(1) Expert Services throughSkilled Personnel: An
agency appoints expert staff such as copy advertisin8 (1
art designers and film makers. It writers, media planners
provides
advertiser and offers the benefits of the servicesexpert services to the
fAleld of advertising. This rajses of experts in the
are introduced for
creativity in advertising, New ideas
making advertising 2
target-oriented. consumer-oriented ana
(2) Economical Services: An advertiser finds it economical to
employ an adyertiSing ageniCy rather than maintain a fulI fledged
advertising department. Moreover, the internal advertising
advertising
department may not be abie to provide diversified services.
Advertising Aency 265
wide Range of Services and Study of Marketing Problems:
Ad agency provides wide range of services to its clients. Such
services
services include
include marketing research, product renovatjon,
of suitable brand, and so on. These services
are in
introduction
such as preparing copy and booking
addition to usual services
Even the marketing problems of clients are
Space in media.
are suggested by the
analvsed objectively and remedial measures
ad agencies.
maintain close and cordial contacts
4 Media Contacts: Ad agencies time and
advertising media. An agency can book suitable
with the effectiveness of
in the media for its clients. This raises
space
advertising campaign.
An ad agency offers the benefit of its
5) Creativity in Advertising: introduce new
experience to its clients. It can
and past
expert staff of its clients for better appeal
ideas while introducing the products
professional touch and creativity in
to consumers. It brings
AGENCY
ROLES QF ADVERTISING
is
time: One vital roles of ad agency
of the
)Booking Space and time in various media on behalf of
to buy advertising space
and
their goods
helps to find custonmers for
different advertiser which
and services. the
is not owned by
4) Objective viewpoint: As maintain the agerncy meet
objective viewpoint to
to
agvertiser, it is possible business. If an
advertiser has
the advertiser's
E requirements of department it can never attain this
level of
trategles.
An advertising agency is so much useful in modem marketing
ctlvities that it has almost become indispensable for modem trade and
próminent position in the structure of
industry. Agenciés occupy a
aid
yarious aids to trade. Since adyertisirig itself serves as important
an
as the
to trade and comierce, advertising agencies can be termed to business
medium thtough which such aid can be made available
enterprises.
Association of
Agency service as defined by the American
the public benefits of
Advertising Agencies consists of interpreting to Association is based
the product. This interpretation according the
to
upon the following.
the
of the client's product or service in order to determine
la) Astudy in the
inherent itself and in
product
advantages and disadvantages
its relation to competition,
and potential market for which the
0 An analysis of the present
product or servicé is adapted
(1) as ta location,
(1) as to extent of possible sales,
(lil) as to season,
v)As to trade and economic condition,
competition.
AS to nature and amournt of and sales and
their
() Owledge
Aknowledge of the factors of distribution
of the product
or
interpretation
profitably be used to carry the
wholesaler, dealer or
other factor.
any
service to Consumer,
To cO
268
Advertlsing (Goa)
(e) Formulation ofa definite plan and presentation ofthis plan to the
client
() Executlon of this plan:
of advertisement or other
Writing, designing, illustrating
appropriate forms of the message,
(i) Contracting for the space.
incorporation of the message in mechanical form
(lil) The proper
it with instruction for the fulfillment
proper
and forwardirig
of the contract.
(tv) Checking and verlfying of
insertions display.
(v) The auditing, billing
and paying for the service, space and
preparation.
the clients' sales workforcë, to ensure the
(g) Co-operation with
greatest effect from dvertising.
without
Many small advertisers work directly with the media
losing an agerncy. Local car dealers, estate agents etc. supply 'copy
the artwork
direct to local newspapers, do the typestting and produce
ready for printing.
However, most of the major advertisers utilise the services of
one or more advertising agençies for parts of their advertising
prográmmes, The success of advertising depends on the contribution
made by these specialists.
So whether to use an agency or not is a matter for individual
companies to decide for themselves. As a broad indication, a company
with a wide range of highly technical products callirig for speclal
writing skills, by technically informed people, but where clear
presertation is more important than exciting creative approaches may
often opt for a 'do-it-yourself approach, A
company depenaent
developing a High level of awareness of its products through a branu
image' is more likely to hire specialised talent, when this need is allied
to a requirement for medla buying skl|ls, then an agency is likely to e
the answer.
4) Proviston of research
facilltles: Advertlalng agency at its
onducts
ORGANISATION STRUCTURE OF
AN ADVERTISING AGENCY
-
structure.
Anad agericy needs suitablë internal organisation
structure with
Every agericy has to éstablish its own organisation for effective
Suitable departments, line of authority and mechanism
communication and co-ordination,
Thus, the organisation structure
as per the
functional areas and
Qrers from agency to aency
departments. A standard chart showing the organisatlon
specialised is given on the next page:
Structure of an advertising agency
the specialised functions assigned to
Let us, now, consider
different fünçtional departments: contact with
Contact department keeps to them and
4Contact Depärtment: information
prospective dvertisers, supply necessary
Such contacts
of the agency.
to increase the
rhumber of clients the existing business.
existing
business.
y the
new business to supplement for earning more
ng bring business is necessary
activities of
the ad
Additional advertising the
expansjon in
evenue and
also for the head of
contact department.
as the
acts
Account executive
8ency:
274 Advertlsing (Goa
The department acts as a liaison authorlty betwe the
agency and the clients.
(2) Media Department: Media department has to select th.
ne most
appropriate media for advertising pfoducts of the
the most
this, nature of the product, market competition, theclients. For
the o r
budget
allocation by the client, etc. should be taken into conslder
Even media trends need careful consideratjon while sel
suitable media for advertising. The media department has to s
that message is communicated to consumers in an attractie see
manner. It estimates the potential customers for the product
the client and selects the media accordingly. The function of thie
department is (a) Media selection, (b) booking of time and space
in the media, (c) media scheduling. (d) supervision on the
execution of the schedule and finally (e) keeping contact with the
media.
Board of Dlreotors
Presldent/General Manager
4)
Vice Presldent Vlce Presldent Vice Preslident Vice President
Marketing Servlces Management & Creatlve Servlces Accounting
Flnance Services
Sale
Promotlon Pereonnel TV&Radio
Records Prass, etc.
Publle Relatlons Traffic
strain.
276 Advertlsing (Goa
research
department is heade
(7) Research Department: The
Research Director whd is assisted by analysts, investigators, by field
assistants, statisticians,
librarian, field
workers, marketing
library stàff. An advertising agency needs information as reg the
products, market trends, market competi ion, trends in consumes
hew trends in advertising ander
behaviour, media trends,
information and its critical analysis is t1
Collection of such
ad agencies usually have thal
to
the agency in different ways, Large neir
research subsidiaries (e.g. Lintas has path finders as its rch
valuable market information,
subsidiary) which provide
(8) Accounting and Finançe Departnent: The finance department
looks after the financial and accounting matters, It is responsible
for maintaining accounts, billing and collection of dues from the
clients, paying bills to media owners after verification and finally
looking after routine matters relating to accounts. Vice President,
accounting services supervises all accounting and financial
matters.
(9) Public Relations Department: Cordial relations with clients
media, etc. are absolutely essential for the survival and growth of
an advertising agency, Here, public relations department plays a
cruçial role. The department acts as a link between the agency and
others connected with the agency, The department makes efforts
for
creatihg goodw/]|l and reputation în the business world in
general and the advertising wotld in partiçular. The department is
headed by a
public relations officer (PRO) who has fake
possible steps for maintaining cordial relations with clients, media
to
a
Owners and the
society at large. The department has to create
good public image for the ad agency.
(10) Office Management: Efficient office management is essential in
the case of an
advertising agency as it operates like a
serve
organisation. Office management inçludes recruitment, trainin
promotion of statt, office
correspondence, and record
keeping, salary payment and provision of welfarefiling
facilities to
recor
sta
The office management
department
secretarial services to all
also provides clerical and
other
departments. Normally, Vice.
President, management of finance looks after the office
mnagement department.
Advereising Agency
277
FACTORS INFLUENCING THE
AN AD AGENCY CHOICE OF
Creativity of an Agency:
(1)
of Creativity is the most
advertising
an
agency. Creativity important asset
creative personnel depends the quality of
on