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7/27/2019 Add Agencies

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Advertising Agencies


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Advertising agency

As an independent organization of creative people

and business people who specialize in developing

and preparing marketing and advertising plansadvertisements and other promotional tools

The agency purchases advertising space and time

in various media on behalf of different advertisers

or sellers to find customer for their goods andservices.


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Types of agencies Local agencies: advertising agencies that specialize in creating

advertising for local business.

Regional & national agencies :agency that focuses on theproduction and placement of advertising suitable for regionaland national campaigns.

International agencies: ad agency that has offices or affiliates in

major communication centers around the world and can help itsclients market internationally or globally.

Full service agencies:an agency equipped to serve its clients inall areas of communication and promotion its advertisingservices include planning, creating, and producingadvertisement as well as performing research and mediaselection services. Non advertising functions including

production sales promotional materials publicity articles,annual reports, trade show exhibits and sales training materials.


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Specialized service agencies: many agencies assist

their clients with a variety of limited services.Creative service, media buying service, interactive

agencies.

Interactive agencies: an ad agency that

specializes in the creation of ad for a digital

interactive medium such as web pages.


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structure & organization

what agencies do. And how theyre

organized to do it.


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primary services:

complete amarketing analysis

develop anadvertising plan

prepare acreative strategy

create advertising executions

develop and implement amedia planhandle billingand payments

integrate other marketing communications


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functions of full-service agencies

account management

creative

media planning and

placement

research


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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 theagency

They in turn report to the agencys director of

account (or client) service.


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account management

Traffic

Asst. Account

Executive

Account

Coordinator

Account

Executive

Account

Supervisor

Management.

Supervisor

Account Mgmt.

Director

account management

director

management

supervisor

account supervisors

account executives

assistant account

execs

account coordinators

traffic


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creative department

responsibility

the creative department is responsible for

creating and producing the print and broadcast

advertisingstrategy is key

good creative work is always guided by a

creative strategy that sets forthgoals to beaccomplishedand key message points to

be relayed


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creative department

Prin

t

Traffic

Productio

n

Broadcas

tProduction

Copy Spvr. &

Copywriters

Art Supervisor

& Art Directors

Creative

Group:

Associate

Creative

Director (ACD)

Creative

Director (CD)

Executive

Creative

Director (ECD)

Strategy

Review

Board

executive & group creative

directors

creative director

associate creative director

copywriters

art directors

broadcast producers

print production managerstraffic coordinators


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media department

The media departmenthas two main functions

planningand buying.

The planning grouphandles more

strategic marketing and media issues.

The buying grouphandles media

negotiations and implementation


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media department

Analysts

Media

Planner

Media

Buyer

Media

Supervisor

Associate

Media

Director

Media

Director media director

associate media

directors

media supervisors

media planners

media buyers

media analysts


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big changes in the media department

mega-agency media departments

have now becomeprofit centers

agencies have set up their mediadepartments asfree-standing units

many large clients now look at media

as aseparate service


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Research department

interpret market environment

gather and analyze research data.

primary and secondary techniques

determine consumer needs/perceptions

understand problems

advise how ads can meet

strategic goalshelp find solutions


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research department

ResearchSupplier

s

Outside

Research

Assistants

Project

Managers

ResearchDirector research director

research project

managersresearch assistants

outside researchspecialists


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auxiliary agency functions

account planning: a hybrid discipline thatbridges the gap between traditional research,

account management, and creative direction

where by account planners study consumer

needs and desires through phone surveys andfocus groups, but primarily through personal

interviews. They help the creative team

translate their findings into imaginative,

successful campaigns.


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strategy/creative review board

office management

human resources

legal services

accounting

recruitment


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ways agencies make money

commissionsusually 15% of gross costs

fees

usually based on negotiated hourly rate

incentives

still relatively new and problematic

usually based on performance goals


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agency commissions

media commission system

15% media commission

adjustable commission rates

negotiate to match client budget

markups-production & service

add a percentage markup to costs


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types of fee systems

fixed fee (retainer)

cost-plus fee:client agrees to pay the agency a fee

based on the cost of its work plus some agreed on

profit margin.

performance fee or incentive-based system: manyclients e=these days are demanding more

accountability from their agencies and tying agency

compensation to performance through some type of

incentive-based system.


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Why agencies lose clients

Poor performance or service

Poor communication

Unrealistic demands by the client

Personality conflicts.

Personnel changes Conflict of interest

Changes in client's corporate and or marketingstrategies

Declining sales

Conflicting compensation philosophies

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