INTRODUCTION ADVERTISING AGENCY Advertising agencies are outside co mpanies that provide for the marketing and advert ising 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. The American association of advertising agencies (AAAA) has g iven the following definition to describe advertising agencies: ³advertising agency is an independent business composed ofcreative and business people who develop, prepare and place advertising in advertising media forsellers seeking to find customers for their goods or services. Advertising agencies produce logos, creating effective and attractive color schemes to draw the consumer's attention to their clients' ads. They also prepare slogans and brochures, and write descriptive copy for sales materials. They may prod uce public service announcements forcharitable organizations and social progra ms as well, and issue press releases for new programs, events, and products. Advertising agencies use assorted forms of media to promote their clients' businesses or organizations, including magazine advert isements, news paper ads, radio and TV commercials, websites, and even infomercials. Some also plan events, provide booths at conventions, and give away pro motional items. The way advertising agencies wo rk is by getting to know t heir clients' product or service well and determining which demographic provides the best audience for promotion. If a company sells designer handbags, an ad age ncy would likely try to position the company's TV commercials during women's programming or on a channel geared toward women. The look and tone of an ad campaign is also dependent upon demographics. If the company's target audience is mature adults, design elements should be more traditional than if the target were a youngergeneration. FUNCTIONS OF AN ADVERTISING AGENCY -To differentiate the product from their competitors -To communicate product information -To urge product use (used) -To expand the product distribution -To increase brand preference and loyalty -To reduce o verall sales cost
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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 advertisingservices and advice based on market studies, popular culture and advanced sales techniques.
The American association of advertising agencies (AAAA) has given the following definition to
describe advertising agencies: ³advertising agency is an independent business composed of
creative and business people who develop, prepare and place advertising in advertising media for
sellers seeking to find customers for their goods or services.
Advertising agencies produce logos, creating effective and attractive color schemes to draw the
consumer's attention to their clients' ads. They also prepare slogans and brochures, and write
descriptive copy for sales materials. They may produce public service announcements for
charitable organizations and social programs as well, and issue press releases for new programs,
events, and products. Advertising agencies use assorted forms of media to promote their clients'
businesses or organizations, including magazine advertisements, newspaper ads, radio and TV
commercials, websites, and even infomercials. Some also plan events, provide booths at
conventions, and give away promotional items.
The way advertising agencies work is by getting to know their clients' product or service well
and determining which demographic provides the best audience for promotion. If a company
sells designer handbags, an ad agency would likely try to position the company's TV
commercials during women's programming or on a channel geared toward women. The look and
tone of an ad campaign is also dependent upon demographics. If the company's target audience is
mature adults, design elements should be more traditional than if the target were a younger
generation.
FUNCTIONS OF AN ADVERTISING AGENCY
- To differentiate the product from their competitors
A full service agency offers their clients a full range of marketing, communications and
promotions services, including planning, creating and producing the advertising; performing theresearch; and selecting the media. A full service agency may also offer non advertising services
such as strategic market planning; production of sales promotion, sales turning and trade show
materials.
PROS: This type of agency is able to provide turn key operations such as they have success to a
wide variety of creative people and other services.
CONS: they lack the desired control by the advertiser and there is also the possibility that the
agency may not fully understand the company, or the product services that are being advertised.
They can be closed minded if they aren¶t constantly looking for fresh ideas, creativity can be
Some advertising agencies limit the amount and kind of service they offer. Such agencies
usually offer only one or two of the basic services. For example, although some agencies that
specialize in "creative" also offer strategic advertising planning service, their basic interest is in
the creation of advertising. Similarly, some "media-buying services" offer media planningservice but concentrate on media buying, placement, and billing.
When the advertiser chooses to use limited-service advertising agencies, it must assume
some of the advertising planning and coordination activities that are routinely handled by the
full-service advertising agency. Thus, the advertiser who uses limited-service agencies usually
takes greater responsibility for the strategic planning function, gives greater strategic direction to
specialist creative or media agencies, and exercises greater control over the product of these
specialized agencies, ensuring that their separate activities are well-ordered and -coordinated.
SPECIALTY AGENCIES
A specialty agency is one that either works within a particular agency such as Medical,
Real estate, Education financial. A specialty agency is one that can also work for a particular
function such as Internet, Public relations, Marketing and Research.
PROS: this type of agency is an expert in their particular area and therefore understands perfectly
what works and what does not.
CONS: they may also work too independently and therefore advertiser feels out of the loopcreating an undesirable working environment. Also, ideas can become stale if you do not
understand the consumer as someone with many interests.
IN HOUSE AGENCIES
Some companies in an effort to reduce costs and maintain greater control over agency
activities have set up their own advertising agencies with their own organizations. This type of
agency is set up, owned and operated by the advertiser. Large companies almost always have in
house agencies and it is common for them to then out source certain projects to retain certain³freshness´ for campaigns and special projects
PROS: a major reason for using an in house agency is to reduce advertising and promotion costs;
therefore there is more control on behalf of the advertiser. In house agencies also have a better
understanding of the product and are aware of the goals and objectives of the company as most
likely there is also a public relations and marketing department within the organization