Dvertising And: Ntegrated Arketing Ommunications

Copyright (c) 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.
Integrated Marketing
Communications
Advertising and
KRUTI SHAH
55
COMMUNICATION AGENCIES
THE WORLD OF MARKETING
CHAPTER TAKEAWAYS
• Understand the origin and role of marketing
communication agencies
• Learn about the various players in the
communication world
• Comprehend the dynamics of an advertising
agency
• Appreciate the role and functions of
specialized service agencies
ADVERTISING AGENCIES
A brief history of
GENESIS OF ADVERTISING
• Pre-printing era
• Criers & signs in Greece & Rome
• 17th century advancement
– Newspapers ahoy!
THE AWARENESS ERA
FIRST AGENCIES OF THE TIME
(WESTERN WORLD)
• 1841: Volney Palmer’s agency, USA
• 1871: Bates, USA – first to offer ‘creative
services’
• 1875: NW Ayer & Sons, USA – first modern ad
agency
• 1882: P&G internal agency’s ad for Ivory soap
• 1892: Reynell & Sons, England
SELLING SPACE?
ADVERTISING BUILDS
BUSINESSES
DEVELOPMENT OF
MODERN ADVERTISING
• The role of industrial revolution
• The growth of newspapers & magazines
• The advent of radio & television
• Modernization of agencies & new talent
• 1914: ABC was founded
• 1917: AAAA was founded
• The great depression of the 1930s & ad
gimmicks
AND WHAT WAS HAPPENING
CLOSER HOME?
EARLY YEARS…
AGENCIES IN INDIA
• 1905: Advertising pioneered by Dattaram &
Co.
• Foundations of professional advertising laid by
JWT (1926) & DJ Keymer’s/ O&M (1928)
• 1934: Sista Advertising & Publicity Services –
first full service agency
• 1939: LINTAS by Lever & other corporate
agencies
• From space buyers to creative service
providers
THE `40S & `50S
MIXED BAG FOR ADVERTISERS
• Infrastructure industries impacting
advertising
• Shortage of products in the ’50s
• Socialistic model of development
• Ad revenues only Rs. 5 crores till the ’50s
• Proliferation of ads – news of Gandhi’s
assassination
• 1954: Ad Club, Mumbai founded
THE `60S & `70S
A TURNING POINT FOR THE
INDUSTRY
• Upsurge of creativity
• Brand building on the scene
• 1967: First commercial on Vividh Bharti
• 1977: DD became commercial
• 1970s: Initial advertising research
• Media planning became systematic
• 1980: Mudra founded
THE `80S
• Bombay Dyeing: First colour commercial
• 1982: Colour transmission by DD
NO LOOKING BACK
THE `90S
TRANSFORMATION
• Media explosion
• Reappearance of foreign agencies
• Government advertising becoming professional
• Identity makeovers by corporation
• Emergence of software television producers
• Reappearance of cinema
• Rising penetration of Internet & new tech
• Ad awards
CHALLENGE OF THE TIMES
Harderfasterbettermore
IS INTEGRATION THE ANSWER?
Advertising on the crossroads
THE ADVERTISING
Advertiser Ad agency
TRINITY
Media
Advertiser Ad agency Media
●
Creates ads
●
Buys ●
Sells
●
Facilitates
space/time space/time
media buying
THE AGENT ACTS AS PRINCIPAL

THE COMMUNICATION WORLD
ence
Regul
Audi
rtiser
Adve
ators
Me
dia
MAJOR PLAYERS IN
Age
ncy
MAJOR HOLDING COMPANIES IN THE
Interpublic
Omnicom
Publicis
WPP
WORLD
FUNCTIONS OF AD AGENCIES
Account Directors
Account Executives
Media Creative Production Administration
Account planning Market Research

Planning Buying
Copy Art
Storyboards/ Shoots/ Printing General/HR/ Finance

FUNCTIONS OF AD AGENCIES
Who is an advertising manager?
QUICK Q!
QUICK Q!
QUICK Q!
• Jaisalmer Dreaming wants to operate day
tours in Jaisalmer. It retains your agency to
develop a communication strategy to
market its services. As a client servicing
executive, what questions will you ask the
client to develop a brief?
• What will an account
planner need to do?
TYPES OF AGENCIES
• Full service
• Specialized/ a la carte agencies
• Creative boutiques
• In-house agencies
• Media buying services
• Marketing service agencies
IMC Pitch
Strategy
Pitch
AGENCY PITCHES
Creative
Credentials
Pitch
Agency
Pitch
AGENCY COMPENSATION
• Commissions
• Fees & retainers
– Hourly fees or monthly retainers
– Billing a client
• Markups
• Performance-based compensation
BRAND EQUITY AGENCY RECKONER
2011
RANKING PARAMETERS
• Billings (x)
• Client Servicing Skills
• Creative Ability
• Account Planning Ability
• 360-Degree Capability
• Partnering With Client
• Innovation and Thought Leadership
Agency evaluation
Internal External Quantitative Qualitative
Some Evaluation Parameters
– Understanding of product category
– Experience
– Team’s reputation
– Financial soundness
– Financial terms
ACTIVATION
PR
SPECIALIZED SERVICES
DIRECT RESPONSE
SP
AGENCIES
O&M’S 360 DEGREE BRANDING
INTERACTIVE
COMMUNICATION AGENCIES
Campaign Email Marketing Web Experiential Search Marketing
Marketing Development Marketing
Mktg strategy, Emails, Strategic planning Interactive ads Search marketing
media planning & sweepstakes, e- using tools like Brand sites strategy including
buying, ad coupons, landing digital Flash games identifying
serving pages, contests, springboard, Viral marketing relevant
surveys & polls, Analytics & Screen mates keywords
customer benchmarking, Application skins Search engine
profiling Information Mobile, CD & optimization
architecture, touch-screen using technology
Content kiosks & analytics
management & Paid inclusions
technology
solutions,
E-commerce,
Intranet/extranet,
Portals & verticals
Brand Equity Ad Agency Reckoner 2008
TOP INTERACTIVE AGENCIES
HERE’S WHAT TOP AGENCIES DO
WEBCHUTNEY OGILVY INTERACTIVE
• Interactive Consulting
• Online Advertising
• Web presence creation and
• Web Design & Development maintenance
• Campaign creation and
• Mobile Marketing
management
• Social Media Services • Mobile solutions
• Out of home interactive
solutions
KEY FIRSTS BY OGILVY INTERACTIVE
• First online press conference in India, for
ICICI Bank
• First to create an online talking agent, for
VIP Frenchie X
• First to run an email campaign with tracking
of open rates and click-through rates
SO WHAT DOES A SOCIAL MEDIA
AGENCY DO?
• Understands the online conversation around clients’
brands and responds to it
• Engages with customers of clients’ brands to either start
conversations around them or for existing conversations
– giving it a direction
• Engagement activities: creating and managing a
blog/facebook page, organizing offline events to engage
with customers, arranging a social media promotional
campaign around a product launch / event, etc.
• Research: Tap industry trends, identify opinion leaders,
take advantage of engagement opportunities
SERVICES OF AN MR AGENCY
• Syndicated Reports
– Consumer segmentation on various attributes, ad
tracks, brand tracks, customer satisfaction tracks,
and online media & ad metrics tracks
• Custom Research Solutions

– Usage and attitude studies, advertising pre- and
post- testing, brand tracking,
customer/dealer/employee satisfaction studies,
site users and usage studies, etc.
SOME STUDIES BY JUXTCONSULT
SOME REPORTS BY JUXTCONSULT
OGILVY DISCOVERY
• Understands deeper motivations & culture
that drive human behaviour
• Provides relevant consumer intelligence
that drives brand solutions
• Some tools: Cultural analysis of popular
media, photo-diaries, scrap books,
interviews with observers of change,
discussions with sociologists, psychologists
and innovators, & participant observation
OGILVY DISCOVERY
• Infocell: Keeps employees and clients updated
on the latest market and industry information
• Some applications of its findings: providing
inspiration for creative ideas, helping nuance
communication in visual and verbal
expression, assisting pitching, identifying
need gaps that new products might fill,
finding mythological bases for consumer
promotions, etc.
SERVICES OF A PR AGENCY
• Strategic planning and counseling
• Corporate positioning/image enhancement
• Strategic media relations
• Crisis and issues management
• Internal communications
• Media skills training and messaging workshops
• Offer domain knowledge & communication
expertise in areas like corporate & finance,
strategic marketing, technology, health & medical,
public affairs
SERVICES OF A DM AGENCY
• List management
• ‘Offer’ strategy
• Message development
• Execution in media
THE ACTIVATION BANDWAGON
• Specialist outfits for on-ground & online
activities
CRM
• Estimated size: Digital
Direct
– Rs. 4,000 crore Outdoo
– 40% p.a. growth rate r
Activati
on
Retail
Display
Promoti
ons
Events
SOME ACTIVATION OUTFITS
NLX (New Life Experience) – new media
brand activation unit by JWT, RMG Connect –
CRM & eCRM unit by JWT
KidsStuff – by Mudra Marketing Services,
Lintas IMAG, Grey Worldwide Ltd’s G2, Ogilvy
Activation, Mindshare Fulcrum Activation,
and Publicis India’s Solutions Integrated
Marketing Services
Signscape
Ogilvy
s
Ogilvy
Ogilvy Activation
Live
Outreach
Ogilvy
Landscap
Ogilvy
es
OFFERINGS OF OGILVY LIVE
• Events & Promotions
• Exhibitions & Road shows
• Consumer education programmes
• Seminars & Meets
• Consumer & Retail contact programmes
• Mobile Marketing
• Sponsorship Management
GLOCALISED COMMUNICATION
AGENCIES
• Localisation & pre-media services
– Communication globalization
– Translation
– Localization across markets & languages
• E.g. Maatra by Mudra
• Beeuplus, octagonal mosquito coils
BRAND STRATEGY & DESIGN
CONSULTANCIES
• High-end consulting for brand strategy,
identity design & experience design
• Designing of image, logo, collaterals,
packaging, operations…
• E.g. Water by Mudra
INDUSTRY VERTICALS
E.g. Mudra Health & Lifestyle (MHL)
– Understanding of the healthcare business,
consumer, doctor & channel insight
INDUSTRY HORIZONTALS
• E.g. Mudra Ignite – a specialized agency
exclusively dealing with entrepreneurs & startups
• Services: Debt-equity solutions & other financial
needs, distribution, branding, packaging, etc.
• Partnerships: Corporate advisory experts, fund
providers, private treaty houses, distribution
services, PR firms, communication specialists, etc.
• Why focus on entrepreneurs?
CLIENT VERTICALS
• Exclusively service large clients
• Not in-house ad agencies
• E.g. RADAR – dedicated media agency
partner for Mudra’s principal client
Reliance ADAG, Group M – specialized
cells for Unilever & LG
ADVERTISING AGENCY
HUMMINGBIRD

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Copyright (c) 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

THE AGENT ACTS AS PRINCIPAL

Account planning Market Research

Storyboards/ Shoots/ Printing General/HR/ Finance

Internal External Quantitative Qualitative

• Custom Research Solutions

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