Advertising Agency

• “The work of a tailor is to collect the raw material,

find matching threads, cut the cloth in desired shape,
finally stitch the cloth and deliver it to the customer.”

• Advertising Agency is just like a tailor. It creates the

ads, plans how, when and where it should be
delivered and hands it over to the client. Advertising
agencies are mostly not dependent on any
organizations.
Advertising Agency – Basic Concept
• These agencies take all the efforts for selling the
product of the clients. They have a group of people
expert in their particular fields, thus helping the
companies or organizations to reach their target
customer in an easy and simple way.

• The first Advertising Agency was William Taylor in

1786 followed by James “Jem” White in 1800 in
London and Reynell & Son in 1812.
Advertising Agency – Basic Concept
• An advertising agency is a service business dedicated to
creating, planning and handling and other promotional
activities for its clients.

• An ad agency is independent from the client and

provides an outside point of view to the effort of selling
the client's products or services.

• An agency can also handle overall marketing,

communication, sales promotions oriented and
branding strategies for its clients.
Advertising Agency – Basic Concept

• Typical advertising agency clients include the following

clientele:

1. Businesses and Corporations

2. Government Agencies
3. Non Profit Organizations

• Agencies may be hired to produce a complete overall

advertising campaign and promotional activities to build
awareness and fulfill advertising goals and objectives
 Advertising Agency
• Firm that
(1) creates new promotional ideas,
(2) designs print, radio, television, and internet
advertisements,
(3) books advertisement space and time,
(4) plans and conducts advertising campaigns,
(5) commissions research and surveys, and
(6) provides other such services that help a client in
entering and succeeding in a chosen market.
• An advertising agency or ad agency is a
service business dedicated to creating, 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.
• 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, advertisements, 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
 Types of Advertising Agencies
• Full Service 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
 Modular Agencies
• A modular agency is a full service agency that sells its services
on a piece meal basis. 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. Fees are charged for actual work
undertaken.
 In House Agencies

• Those companies, which prefer to have closer control

over advertising, have their own in-house agency. This
type is owned completely by the advertiser.

• 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.
• 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, but an
advertising department solely undertakes that
work of its owner and not of outside clients.
 Specialist Advertising Agencies
• There are some agencies who undertake
advertising work only in certain areas. There
are agencies that specialize only in financial
services or only in publicity or only in point-of-
purchase material etc.
 Creative Boutiques

• 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.
Benefits of using an Advertising Agency

• 1. They have the ability to buy media in bulk at rates

that a single business cannot obtain.
2. They are educated as to the best times and places
to run ads to reach your target market, ultimately
minimizing wastage
3. They can help you fine tune your target market so
that the message is designed to reach those you
want to reach.
4. Easily Administered
Disadvantages of using an Advertising
Agency
• A main disadvantage of using an advertising agency
would be the communication factor. 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 become involved.

• 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,
 Role of Advertising Agencies
• Advertising agency is a service provider that helps its
clients by developing suitable ad campaigns for them.
• 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.
• Advertising agency's role start with the identification
of its clients' goals and objectives.
• This turns out to be of immense value in planning and
creating the future course of action concerning ad
campaigns.
• 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.
• Once an advertising agency gets acquainted with its clients'
business objectives, it starts creating and planning its ad
campaigns.
• For this it keeps in mind certain points such as increasing sales,
pushing new products in the market, restating benefits of its
clients' brands, and drawing new customers in addition to
establishing and maintaining contacts with their existing
customers.
• An advertising agency's professional teams put in their best
efforts to develop attractive slogans, and body copy for ads. All
this is done within the defined parameters of its clients and their
budgetary allocations.
 Functions of Advertising Agencies
Account Planning
• Advertising agencies typically have account planners who work
as the go-between for the client and the agent. They ensure that
client needs are expressed to the research and creative teams.

•They also work to ensure that necessary information is

transferred to the client regarding creative, research, competition
or any of other factor that may somehow affect how the client's
product gets marketed to consumers. Account planning is where
agencies start their initial interaction with clients.
Marketing Research

•Advertising agencies work with companies to

establish the characteristics of their target markets
through marketing research.

•Advertising agencies spend a substantial amount

of time researching consumers to understand what
they buy and what motivates them to buy.
Market Research

•Knowing the competition, account managers at

advertising agencies research the environment, identify
competitors, and research their marketing tactics.

•Through market research, advertising agencies also

identify political, social, technological and economic
factors that may affect a client's campaign.
Creative

•Advertising agencies are known for their creative output,

which can include website design, advertising copy, magazine
advertisements, and radio and television commercials.

• The medium of advertising often varies by campaign. Graphic

designers, web designers, writers, editors and creative
directors make up an advertising agency's creative
department.
Selling Advertising Space

• Advertising agencies don't just create advertising pieces for

clients; they also give clients insight as to which media will be
most effective for their product, service, event or cause.

• In the process, they work to secure advertising placements

for customers either online, in print, on television or on the
radio.
Examples of Top Advertising Agencies
• Ogilvy & Mather- Hutch (Vodafone), Cadbury, Asian Paints
and Fevicol.
•  JWT, J Walter Thompson- Nestle, Bayer, Ford, Nokia and
Unilever.
• Mudra Communication-Neutrogena, HBO, Philips, Reliance
NetConnect, Big Bazaar.
• FCB Ulka Advertising Ltd-Tata Indicom, Whirlpool, Zee
Cinema, Santoor, Sunfeast and Amul.
• Grey Worldwide (I) Pvt. Ltd- Hero Honda, Maruti Suzuki,
Nestle, Ambuja Cement, UTV, P&G and Godrej.
Thank You