Advertising Agency

1. 2. 3. 4. 5. Define Ad Agency Functions of Ad Agency Services provided by Ad Agency People working Types of Ad Agency

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.

AMERICAN ASSO. OF ADVTG. AGENCY defines---

An Advertising Agency as an independent organization of

Creative people and business people who specialize in developing and preparing marketing plans, advertisements, and other promotional tools.

Cundiff & Still defines---

An Advertising Agency is an independent organization

composed of Creative people and business people who develop, prepare and place advertisement in an advertising media for sellers, seeking to find customers for goods and services.

 Advertising agencies are outside companies that provide for the marketing and advertising needs of other businesses and organizations. Advertising agencies offer a full range of advertising services and advice based on market studies, popular culture and advanced sales techniques.

Advertising Agency Functions

To advertise their products, brands and services to present and prospective customers.

For planning and creating an effective advertising campaign.

To take over the process of brand building, strategizing and pushing sales through other promotion techniques like sales promotions etc.

primary services of Advertising Agency:

Total Advertising Services :Strategic planning, creative development and media services for advertising, particularly in television, newspapers, magazines and radio; providing the best creative designed to capture the imagination of consumers Marketing Services: Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing. E-Solution Services : e-solution services, including system integration services, e-business consulting and customer relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and epromotions using the Internet and mobile.

primary services of Advertising Agency:

Content Business: Sales of sponsorship, broadcasting and other rights, and the production and marketing of such media / content as sporting events, films, TV programs, animated content, music and other forms of entertainment. Integrated Media Services : Bringing value to both clients and media-related companies by offering a wide range of media solution services Sales Promotion : Providing comprehensive sales promotion planning designed to complement mass media and other activities Event Marketing : Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications Integrated Branding Services : Assuring clients the highest quality of branding services for their communication needs

People working in an agency: Accounts Executive: It is a key career option in advertising agency. He is called an Account Director when he is a member of the Board. He is a link between a client and his staff. Copywriters: They are the wordsmiths who do the wording of an advertisement. They are bright and talented. They have a flair for language. They contribute to the theme of an advertisement. Creation of successful copies for different clients establishes them in this field. Visualisers: These are artists who put on paper what has been thought out by the copywriter. They in fact design the ad.

People working in an agency:

Creative Director: He co-ordinates the copywriting and designing. He is a senior professional who is seasoned in an existing advertising agency set-up to take on this mantle. Production Department: Persons of diverse talents like printing technology, DTP, photography, typography etc. are involved here. Media Planner: He has to allocate the advertising budget amongst media. He has to select the appropriate media. He decides about the frequency, size and position of an advertisement. He decides about its publication date. He receives the tear-off copies from the media when the ad is published. He is guided by the media research, which he undertakes, or by research undertaken by an outside agency.

People working in an agency:

Marketing Researchers: Modern agencies are integrated setups. They provide a range of marketing services. Research data become very useful as input to the creative process.

Ancillary Services : These are needed to produce/create advertisement. A whole range of services like studio service, photographic service, printing service, gift item producers etc. fall into this category.

Freelancers : These are professionals who work independently and have a successful track record. They are copywriters, jingle singers, radio announcers, artists, visualizers, technical writers etc.

Five Advertising Agency Types

1. Full-service agencies Full2. Creative boutiques 3. Media-buying services Media4. Interactive agencies 5. In-house agencies In-

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 Full Service Ad Agencies are well equipped to plan and create advertising campaigns for a range of media including TV commercials, Radio jingles, print advertisements etc. Depending on the budget, client's select their agency.

4 functions of full-service agencies

account management creative media planning and placement research

account management
liaison between agency and client responsible for understanding...
the clients business the clients marketing needs strategy development

representing client point of view within the agency

creative department
1.The creative department is responsible for creating and producing the print and broadcast advertising 2. Strategy is key. A good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

Media Department
The media department has two main functions - planning and buying. The planning group handles more strategic marketing and media issues. The buying group handles media negotiations and implementation.

Research & Other Functions

Research department may design and execute research programs strategy/creative review board office management human resources legal services accounting recruitment

CREATIVE BOUTIQUE
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.

The Role of Creative Boutiques

Creative Boutiques

Provide Only Creative Services

Full-Service Agencies May Subcontract With Creative Boutiques

Other Functions Provided by the Internal Client Departments

Media Buying Can Be Specialized

Media Buying Services

Specialize in Buying Media, Especially Broadcast Time

Agencies and Clients Develop Media Strategy

Media Buying Organizations Implement the Strategy and Buy Time and Space

Direct Response Agency

Advertising whereby the only connection the consumer has to the product is the advertising and the only way a consumer can act on the advertisement or commercial is to return a coupon or make a phone call. Direct response advertising is geared to eliminate an intermediary in the purchase process. It can utilize a wide range of media, from matchbook covers to print or radio and television, although it is typically conducted through the mail.

Direct Response Agency Activities

Data Base Management Direct Mail Direct Response Agencies

Media Services

Creative

Research

Production

In House Agency
Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser.

Interactive agencies
Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/ecommerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly.

Functions performed by Interactive Agencies

Web Banner Ads Web Sites

Interactive Media Creation CD-ROMs Kiosks

Audio Digital Content Animation

Video

Special Effects

The Benefits of Using an Advertising Agency

Added Expertise Media Knowledge and Unbiased Advice Easier Administration Media Buying Quality Control Information Cost Saving Time Saving

Pros & Cons of In-House Agencies

+ Positive
Cost Savings

- Negative
Less Experience

More Control

The In-house Agency

Less Objectivity

Better Coordination

Less Flexibility

Participants in the IMC Process

Advertiser (Client) Advertising Agency Media Organizations Marketing Communications Specialist Organization Collateral Services Direct Response Agencies Sales Promotion Agencies

Public Relations Firms

Interactive Agencies

Centralized Advertising Activity has been defined as that which - is located at or directed by headquarters, reporting to corporate sales or marketing head or in top management. In operation it gets the necessary product, market, and budget information from the divisions and then controls the execution of the various programmes by: 1. Providing the needed information and guidance to the advertising agency and other Services; 2. Then reviewing and approving the completed work before getting division approval

Advertising Department Under Centralized System

President

Production

Finance

Marketing

Research and Development

Human Resources

Advertising

Marketing Research

Sales

Product Planning

Pros & Cons of Centralization

+ Positive
Better Communications

- Negative
Less Goal Involvement

Fewer Personnel

The Centralized System

Longer Response Time

Continuity Of Staff

Cant Do Multiple Product Lines

A Decentralized Advertising Activity is operated and controlled by individual units located in each major division, usually reporting to a division head or to a division marketing or sales head. The division advertising, sales and marketing people and control both the 'what' and 'how' of the advertising job, getting only advice and counsel plus miscellaneous services from a central advertising function.

Decentralized Brand Management System

Corporate Production Finance Marketing Research and Development Human Resources

Sales

Product Management Brand Manager Brand Manager Ad agency Sales Promotion Merchandising

Marketing Services Advertising Department Marketing Research

Ad agency

Package Design

Pros & Cons of Decentralization

+ Positive
Concentrated Attention

- Negative
Lack of Experience in IMC The Decentralized System

Rapid Problem Response

Competition for Resources

Increased Flexibility

Lack of Authority