ASSIGNMENT 3

ADVERTISING AGENCY, STRUCTURE AND

MANAGEMENT OF ADVERTISING AGENCY AND
PROCESS OF ADVERTISING

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.
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.
Role of Advertising Agencies
1. Creating an advertise on the basis of information gathered
about product
2. Doing research on the company and the product and
reactions of the customers.
3. Planning for type of media to be used, when and where to
be used, and for how much time to be used.
4. Taking the feedbacks from the clients as well as the
customers and then deciding the further line of action
All companies can do this work by themselves. They can make
ads, print or advertise them on televisions or other media
places; they can manage the accounts also. Then why do they
need advertising agencies? The reasons behind hiring the
advertising agencies by the companies are:
The agencies are expert in this field. They have a team of
different people for different functions like copywriters, art
directors, planners, etc.
The agencies make optimum use of these people, their
experience and their knowledge.
They work with an objective and are very professionals.
Hiring them leads in saving the costs up to some extent.
There are basically 5 types of advertising agencies.
1. Full service Agencies
Large size agencies.
Deals with all stages of advertisement.
Different expert people for different departments.
Starts work from gathering data and analyzing and
ends on payment of bills to the media people.
2. Interactive Agencies
Modernized modes of communication are used.
Uses online advertisements, sending personal
messages on mobile phones, etc.
The ads produced are very interactive, having very
new concepts, and very innovative.
3. Creative Boutiques
Very creative and innovative ads.
No other function is performed other than creating
actual ads.
Small sized agencies with their own copywriters,
directors, and creative people.
4. Media Buying Agencies
 Buys place for advertise and sells it to the
advertisers.
Sells time in which advertisement will be placed.
Schedules slots at different television channels and
radio stations.
Finally supervises or checks whether the ad has been
telecasted at opted time and place or not.
5. In-House Agencies
As good as the full service agencies.
Big organization prefers these type of agencies which
are in built and work only for them.
These agencies work as per the requirements of the
organizations.
There are some specialized agencies which work for some
special advertisements. These types of agencies need people of
special knowledge in that field. For example, advertisements
showing social messages, finance advertisements, medicine
related ads, etc.

AGENCY MANAGEMENT
Managing an advertising agency is complex. The landscape is
constantly changing. Chief Marketing Officers (CMOs) must
consider how agencies are keeping pace with evolving
strategies.
Engaging with an advertising agency is one of the most
expensive marketing investments. Its critical to ensure the
marketing strategy, programs, projects, tactics, and
especially marketing budgets stay on track.
Its critical to know where youre heading, for what reason, and
how effective youre managing.
RESPONSIBILITIES
 Provides reasonable analysis of market dynamics and key
lessons learned.
Reviews major promotional moves by competitors and
analyzes effect on Brand and category.
Identifies key areas for improvement in previous years
plan.
Proposes business-building projects with the potential to
have a major impact on the Brands business.
Outlines key research that may ultimately contribute to
growth of Brands business.
Recommended target audience and promotional strategies
flow logically from the lessons learned with similar
branding clients.
Elements of long-term communication plan have a central
and consistent focus.
Drafts copy strategy statement that is expressed as simply
and succinctly as possible.
Proposes a meaningful character for Brand.
Plans reflect experience and involvement of senior agency
people.
Proposed creative concepts have following qualities
o Clearly on strategy
o Stopping power a big idea
o Relevance and realism
o Simplicity
o A distinctive and appealing personality
Communications and media plans emphasize
achievement of objectives.
Alternatives analyzed in light of both quantitative and
qualitative factors.
 Develop new ways of doing things.
High standard of accuracy, thoroughness and
consistency.
Work completed on time.
Work completed within budget.
Careful custodians of client budgets.
Follows projects through necessary involvement of
client staff groups.
Accurate and timely communication contact
reports, financial/budget updates.
Reacts quickly to find solutions to problems.

The Organizational Structure of an Ad

Agency
The organizational structure of an advertising agency consists
of the same basic elements, regardless of the firm's size. An
account services team manages client relationships, the
creative team develops the advertisements and media
specialists select the media outlets that will run the ads. A
senior management team takes responsibility for the agencys
business and financial operations.
Agency Management
The senior management team may consist of a chief executive
and finance director in a small agency. A larger agency may
have a management team, including a chief executive and
finance director, together with directors responsible for each of
the firms departments. If an agency belongs to a large group of
companies, a member of the management team takes
responsibility for relationships with the board of the holding
company.
Account Services
The account services team deals with clients and coordinates
the work of the agency's creative and media teams. A large
agency might have three levels of account management:
account director, account executive and assistant account
executive. Account directors, who report to the agencys
management team, supervise the work of account executives
and take responsibility for a group of accounts. They may also
maintain a close relationship with the agencys most important
clients. Account executives and assistant account executives
report to account directors and manage the day-to-day
operations on their accounts.
Account Planning
Account planners research the needs and preferences of the
target market for a product or service. They use their findings
to develop an advertising strategy and prepare a brief for the
creative team that's working on an advertising campaign. In
smaller agencies, account planning may be part of the
responsibility of an account executive. Larger agencies may
appoint a specialist as a member of the account management
team.
Media
The media department is responsible for planning where and
when advertisements will appear and buying space or time in
newspapers, magazines, radio, television, digital media and
outdoor media, such as poster sites and billboards. In small
agencies, one person may combine the planning and buying
roles. Larger agencies have a media department headed by a
media director who supervises the work of a team of planners
and buyers. The media team may include specialists in print,
broadcast or digital media.
Creative Services
The creative services team consists of copywriters and
designers, known as art directors, who work together to
develop concepts for advertisements. In larger agencies, a
creative director manages teams working on different accounts.
Smaller agencies may only appoint a creative director who
works with freelance writers.
Production
Larger agencies have a production department responsible for
managing advertising campaigns. They set schedules and
manage campaign budgets, coordinating the work of the
creative and media departments. The production team also
interacts with external suppliers working on advertising
campaigns, such as printers, photographers and video
production companies. In smaller agencies, account executives
or creative directors take responsibility for project
management.

ADVERTISING CAMPAIGN
Advertising campaigns are the groups of advertising messages
which are similar in nature. They share same messages and
themes placed in different types of medias at some fixed times.
The time frames of advertising campaigns are fixed and
specifically defined.
The very prime thing before making an ad campaign is to know-
Why you are advertising and what are you advertising ?
Why refers to the objective of advertising campaign. The
objective of an advertising campaign is to
Inform people about your product
Convince them to buy the product
Make your product available to the customers
The process of making an advertising campaign is as
follows:
1. Research: first step is to do a market research for the
product to be advertised. One needs to find out the
product demand, competitors, etc.
2. Know the target audience: one need to know who are
going to buy the product and who should be targeted.
3. Setting the budget: the next step is to set the budget
keeping in mind all the factors like media, presentations,
 paper works, etc which have a role in the process of
advertising and the places where there is a need of funds.
4. Deciding a proper theme: the theme for the campaign
has to be decided as in the colors to be used, the graphics
should be similar or almost similar in all ads, the music
and the voices to be used, the designing of the ads, the
way the message will be delivered, the language to be
used, jingles, etc.
5. Selection of media: the media or number of Medias
selected should be the one which will reach the target
customers.
6. Media scheduling: the scheduling has to be done
accurately so that the ad will be visible or be read or be
audible to the targeted customers at the right time.
7. Executing the campaign: finally the campaign has to be
executed and then the feedback has to be noted.
Mostly used media tools are print media and electronic media.
Print media includes newspaper, magazines, pamphlets,
banners, and hoardings. Electronic media includes radio,
television, e-mails, sending message on mobiles, and
telephonic advertising. The only point to remember is getting a
proper frequency for the ad campaign so that the ad is visible
and grasping time for customers is good enough.
All campaigns do not have fix duration. Some campaigns are
seasonal and some run all year round. All campaigns differ in
timings. Some advertising campaigns are media based, some
are area based, some are product based, and some are
objective based. It is seen that generally advertising campaigns
run successfully, but in case if the purpose is not solved in any
case, then the theory is redone, required changes are made
using the experience, and the remaining campaign is carried
forward.

STEPS IN ADVERTISING CAMPAIGN

1. Market research: Before you even start thinking about
where you might want to place an ad or even what it could
look like, its important to do at least some basic research.
 Even if you arent in a position to bring in an expensive
research firm, you can ask your current customers
questions about why they come back to you, as well as
taking a close look at your target demographics needs
and interests.
2. Budgeting: Your business probably has a set advertising
budget for the year but how do you divvy it up between
your various advertising projects? For each project youre
planning, you need to be clear on just how much money
youre willing to spend. Youll almost certainly change
exactly how you divide it between costs like copy writing
and design, but you can treat the overall amount as set in
stone. Write it down and put it in your project folder.
3. Setting goals: The aims you have in mind for a particular
advertising project need to be written down ahead of time.
While its good to be ambitious, its also important to
decide what constitutes a successful advertising campaign
for your business. Sales can be the simplest metric: if
youre advertising a particular product, how many units
will you need to sell to pay for that campaign?
4. Advertising venue: The website, tv station, newspaper,
radio station, magazine or other advertising venue you
place your ad with is a crucial decision. Youll need to look
at not only the cost of your preferred venues but also
whether they reach your target demographic. Ad buys can
make up a significant portion of your budget. Deciding on
where you will place your ads first tells you how much
money youll have left over for actually creating your ad.
5. Choosing creatives: Unless youre planning to write,
shoot and design every part of your ad, youll probaably
need to bring in some help. Finding the right freelancers
for each aspect requires checking through portfolios and
rates if you can find a business or freelancer who can
handle all aspects of creating your ad, even if that means
subcontracting, it can save you a lot of time. Youll also
want to make sure that you find any talent youll need for
your ad (voice actors for radio, models for photography
and so on).
6. Design and wording: While you may not have a lot of
actual writing and designing to do for your ad, during the
creation process you will need to review and sign off on
different stages of the project. When starting with a new
designer or other creative, make sure that you both know
any expectations for timelines and progress checks.
7. Placing the ad: Once you have a finished ad in hand, its
time to actually place it with your preferred advertising
venue. You may have a few contracts to sign and a check
to hand over. Youll also want to make sure you actually
see your ad once its run from a newspaper, for
instance, youll want to see the tear sheets of pages
containing your ad.
8. Evaluation: Depending on your ad, how you evaluate it
can vary. If it included a coupon, for instance, you can
simply count how many customers brought in the coupon.
For other ads, you may be simply comparing sales before,
during and after your advertising campaign. Spend as
much time on analyzing how your advertising campaign
worked as you can. That information can point you to
more effective uses of advertising in the future.