THE ADVERTISING BUSINESS:

AGENCIES AND CLIENTS

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CHAPTER 1:
ADVERTISING

Part 1
Principle: Back to
Basics

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WHO ARE THE KEY PLAYERS?

The Organization
The message sponsor or advertiser
Likely to have a marketing team that initiates the advertising effort
Hires the advertising agency

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WHO ARE THE KEY PLAYERS?

The Agency
Creates, produces, and distributes the messages.
Employs experts who are passionate about their work.
Can negotiate the best media deals for clients.

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AD AGENCIES
The best agencies create value:
By giving a product personality
By communicating so as to shape a basic understanding of the product
By creating an image or memorable picture of the product
By setting the product apart from its competitors
Great advertising must do more than inform, it must tailor the product story to a
potential customer

WHO ARE THE KEY PLAYERS?

The Media
Channels of communication that deliver messages and engage audiences.
Many are large media conglomerates such as Time Warner and Viacom.

Malaysia: Astro and Media Prima

The mass media enable advertisers to reach many people with a single
message in a cost-efficient manner.

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WHO ARE THE KEY PLAYERS?

Professional Suppliers
and Consultants
Provide specialized services
to advertisers and agencies.

Includes artists, writers, photographers, producers,

printers, and vendors who supply user-generated
content online

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TWO ADVERTISING ORGANIZATION

STRUCTURES

TYPES OF AGENCIES
The A-List of Advertising Agencies
Here are a select few:
Grey Kuala Lumpur: http://grey.com/malaysia
BrandThink: http://www.brandthinkasia.com/
JWT Malaysia: https://www.jwt.com/malaysia
Lion & Lion: http://lionandlion.com/

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TYPES OF AGENCIES
Full-Service Agencies
Encompasses account management, creative services, media planning, and
account planning.

In-House Agencies
Is a part of the advertisers organization; helps to control costs and maintain
control over brand image.
http://global.ralphlauren.com/enus/About/Philanthropy/Pages/pink_pony.aspx?

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TYPES OF AGENCIES..
Specialized Agencies
Specialize in certain functions, audiences, industries or markets.
Creative Boutiques
Small agencies that work only on the creative execution of an idea or
product.

Media-Buying Services
Specialize in the purchase of media for clients
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HOW ARE AGENCY JOBS ORGANIZED?

The five main areas:
1. Account management
2. Account planning and research

3. Creative development and research

4. Media research, planning, and buying
5. Internal operations
Lets take a look at each one
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AGENCY JOBS......
Account management

This team acts as a liaison between the client and agency.

The account executive interprets the clients marketing research, strategy for
the agency.
Account planning and research
This team gathers market intelligence and acts as the voice of the consumer.
Strategic specialists research consumers wants, needs and brand relationships.

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AGENCY JOBS......
Creative development and production
Includes copywriters, art directors, and producers.
Media research, planning, and buying
This department provides research, planning, and buying services.
Internal operations
Includes traffic, print production, finance, and human resources.
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HOW ARE AGENCIES PAID?

From three main sources:
1. Commissions: based on media billings.
2. Fees: based on an hourly rate or project. Also covers travel and various
expenses.
3. Retainers: A regular amount billed each month, based on projected work.

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HOW ARE AGENCIES PAID?

Two recent trends:
1. Based on performance: the agency is paid a percentage of the clients
sales or marketing budget.
2. Value billing: the agency is paid for its creative and strategic ideas
rather than for executions and media placements.

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BREAK 10 MINS

HOW IS THE PRACTICE

OF ADVERTISING CHANGING?
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CONSUMER IN CHARGE
The days of pounding people with images, shoving them down their eyeballs
are over.
Consumer-generated advertising creates valuable brand publicity.
Consumers have taken control of media and marketing through the Web and
social media.

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BLURRING LINES
AND CONVERGING MEDIA
Television is still a major player, but the number of cable channels has
exploded.
Digital media has fragmented the media world with new, ever-changing forms.
Agencies must take a stronger leadership role in the development of brand
strategy.

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ACCOUNTABILITY AND EFFECTIVENESS

Accountability: This has grown in importance over the past two decades.
Effectiveness: In tight economic times, it is more critical than ever to deliver
results.

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A QUESTION FOR YOU

What is an effective ad?

Answer:
Effective ads deliver the message the advertiser intended, and that consumers
respond to as the advertiser hoped they would.
Effectiveness is gauged according to predetermined objectives.
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LOOKING AHEAD
In Chapter 2, we will:
Explain the bigger picture of advertising and its role in marketing
communication and marketing.
Explore new ways that agencies are working to interact with customers and
cement brand relationships.

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ITS A WRAP

OLD SPICE: THE SMELL OF SUCCESS

Old Spice generated excitement with guys who were not current customers
and women who typically made most body wash purchases.
The hunk atop the horse captivated the audience think eye candy!

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OLD SPICE CAMPAIGN: THE MAN YOUR MAN

COULD SMELL LIKE

ITS A WRAP

OLD SPICE: THE SMELL OF SUCCESS

Key lessons
Old Spice used research to generate insights that drove the campaign.
They involved both men and women in the conversation about what a guy
should smell like.
The campaign generated an incredible amount of free public relations and
social media buzz.
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THANKS
Any questions?
You can find me at
esaline.spykerman@newinti.edu.my