ROLE OF ADVERTISING AGENCY AND ITS FUNCTIONS

By, Dr. Vasanth Kiran

www.vanguardbschool.com

November 11, 2012

1

Advertising Agencies
• It is the advertising agencies’ advertisements which portray ideas to the audience – agencies that compete to be ranked as the best. • The advertising agencies are ranked in order of their creativity as well as the expertise to deliver the content and message to the clientèle.

• Indian consumer's deepening pocket and blooming markets for ad-spends have touched new heights in India. • Indian Advertising industry has witnessed a prominent globalisation.Advertising Companies of India • Advertising is a big business in this era in India. .

events. .. • They come up with descriptive copy for sales materials.Cont. they also issues press releases for upcoming programs. as well as products. brochure and logos in a way that the brand connects well with the consumers and attracts their attention. • Advertising agencies in India service their client by preparing slogans. • Apart from these activities.

.Cont. • This may well explain the growth of Graphic Design & Advertising Agencies servicing their clients with high quality professional graphics. advertising material. • With about 25 million users. • The use of Internet for advertising is yet another trend. Internet advertising in India is increasingly on the rise. .

• Likewise outdoor advertising like billboards. • With mobile phones and FM climbing the popularity chart. telecom firms and FM radios have joined hands with advertising agencies in India. .. hoarding have also become a reckoning force.Cont.

Advertising Agencies • • • • • • • • • • • • Mumbai 544 Chennai 383 Delhi 375 Kolkata 146 Ahmedabad 137 Chandigarh 134 • • • • • • • • • Pune 112 Jaipur 111 Bangalore 97 Indore 91 All listing of Advertising Agencies in India • 3358 (approx) .

• (5) commissions research and surveys. radio. television. • (2) designs print. .Advertising Agency Firm that • (1) creates new promotional ideas. • (3) books advertisement space and time. and internet advertisements. • (4) plans and conducts advertising campaigns. and • (6) provides other such services that help a client in entering and succeeding in a chosen market.

planning and handling advertising (and sometimes other forms of promotion) for its clients. • 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.• An advertising agency or ad agency is a service business dedicated to creating. .

advertisements.• According to American Association of Advertising “An advertising agency is an independent organization of creative people and business people who specialize in developing and preparing market plans. and other promotional tools”. .

Primary services of Advertising agencies • complete a marketing analysis • • • • • • develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications .

traffic. art. media) Audience (minority. youth) Industry (healthcare. accounting. agriculture) Market (minority groups) • Creative Boutiques • Small agencies focused on the creative product • Media-buying Services • Focused on purchasing media for clients www. creative services.Types of Agencies • Full-service Agencies • Offer account management.vanguardbschool. production.com November 11. account planning. 2012 12 . and HR • Specialized by: • • • • Function (copy. computers. media planning.

production of ads. product design etc . artwork. A full services agency provides services that are directly related to advertising such as copywriting. media planning etc. distribution.Types of Advertising Agencies • Full Service Agencies • A full service ad agency is one that provides a range of marketing services. packaging. It also provides such services in respect of pricing.

Modular Agencies • A modular agency is a full service agency that sells its services on a piece meal basis. Fees are charged for actual work undertaken. Thus an advertiser may commission an agency’s creative department to develop an ad campaign while obtaining other agency services elsewhere. • Or. an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. .

This type is owned completely by the advertiser.In House Agencies • Those companies. have their own in-house agency. • It performs almost all functions that an outside advertising agency would perform and that’s why some people refer to it as full-service advertising department of the advertiser. which prefer to have closer control over advertising. .

but an advertising department solely undertakes that work of its owner and not of outside clients.• The difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients. . if the owner so desires.

There are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. .Specialist Advertising Agencies • There are some agencies who undertake advertising work only in certain areas.

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

2. They have the ability to buy media in bulk at rates that a single business cannot obtain.Benefits of using an Advertising Agency • 1. ultimately minimizing wastage 3. They are educated as to the best times and places to run ads to reach your target market. They can help you fine tune your target market so that the message is designed to reach those you want to reach. Easily Administered . 4.

. • Another disadvantage would be the media buying discounts you may not be able to take full advantage of due to commission barriers within an agency. If an agency does not communicate or relay it's clients goals and creative wishes properly problems can occur within a contract and lawyers may have to be involved.Disadvantages of using an Advertising Agency • A main disadvantage of using an advertising agency would be the communication factor.

Role of Advertising Agencies • Advertising agency is a service provider that helps its clients by developing suitable ad campaigns for them. • Advertising agency's role start with the identification of its clients' goals and objectives. • Their aim is to represent its clients' products and services before customers in such a way that a positive image is created in their minds. . • This turns out to be of immense value in planning and creating the future course of action concerning ad campaigns.

Some Questions to be answered For whom is the product or service designed? · Who would use it? · Who is the "target group"? · What's special about the product? In what way is it distinct? Unique? Different? · What's its "position" in relation to other similar products? · What do you want to convey to the public about your product? · How should your company contact the public? · What medium should it use? Radio? TV? Newspapers? Magazines? Bus/subway ads? Direct mail? etc. · .

and body copy for ads. • An advertising agency's professional teams put in their best efforts to develop attractive slogans. it starts creating and planning its ad campaigns. jingles. All this is done within the defined parameters of its clients and their budgetary allocations. .• Once an advertising agency gets acquainted with its clients' business objectives. restating benefits of its clients' brands. and drawing new customers in addition to establishing and maintaining contacts with their existing customers. pushing new products in the market. • For this it keeps in mind certain points such as increasing sales.

Functions of Advertising Agencies • Account Planning • Market research • Creativity • Media planning .

financial services. print production. producers • Media Planning and Buying – Recommend most efficient means of delivering the message • Internal Agency Services – Traffic.How Agency Jobs Are Organized • Account Management – Serves as a liaison between the client and agency – Three levels: management supervisor. copywriters. account executive • Account Planning and Research – Acts as the voice of the consumer • Creative Development and Production – People who create and people who inspire – Creative directors. account supervisor. art directors. human resources 2-25 .

How Agency Are Paid • Commissions – A percentage of the media cost • Fees – Hourly fee or rate plus expenses and travel • Retainers – Amount billed per month based on projected amount of work and hourly rate charged • Performance-based – Based on percentage of sales or marketing budget • Profit-based – Greater risk if campaign doesn’t have desired impact • Value Billing – Based on value of creative strategy or ideas 2-26 .

Grey Worldwide (I) Pvt. J Walter ThompsonMudra CommunicationFCB Ulka Advertising.Examples of Top Advertising Agencies • • • • • Ogilvy & MatherJWT. Ltd- .

Thank You .

Sign up to vote on this title
UsefulNot useful