The Advertising Agency

Prakash Sharma
Asst. Business Development Officer
IndiaReport
Metrix Web Services (P) Ltd
Introduction

Advertising as an industry is more than two hundred

years old. From the simple job of buying and selling
space in newspapers, the ad agencies over a period
of time have become complex structures with niche
specializations.

The dependence of ad agencies, however on media for

earning a major chunk of revenue remains the same.
Ad agency scene in India

From the home grown to global agencies,

advertising agencies in India witnessed a great turn
around in the 1990s.

0.5% of GDP in India. Thailand: 0.9%. USA: 1.3%.

Indian ads are winning international awards.

Types of Advertising Agencies

Full-service ad agency (Provides a whole range of

services to the clients, both advertising and non-advertising).

A la Carte services (Such outfits specialize in

creative concepts/ strategy development/ media planning).

The house agency (A house agency is an advertising

agency established by a company to look after its
advertising requirements).
Full service
Advertising (including healthcare, financial)
Graphic design
Brand consultancy
PR
Experiential Marketing
Interactive
Media Planning & Buying
Full service
OOH
CRM
Promotions
Sports and entertainment sponsorship
TV Programs
Ad and corporate film production
Specialist departments in an
ad agency

 Account Planning

 Account management (Help from ‘Traffic’)

 Creative services (‘Digital studio’ included)

 Media services
Typical structure of an
Indian Ad Agency
How do agencies earn
revenue?

 15% commission or as negotiated

 Creative fees
 Fee: Fixed; Fee-commission
 Cost - plus Agreement
 Incentive - based
How advertisers retain
advertising agencies
Getting leads

Proactive pitching: Agency taking a lead in

contacting a prospect

Reactive Pitching: In response to the client

contacting the agency
What does an advertiser look for
in advertising agencies?
The prime consideration on the mind of an
advertiser while retaining an advertising agency
is that it is able to build a brand.
What does an advertiser look for
in advertising agencies?
 Demographics of agency, including billing
 Attitude and involvement factor
 Specific expertise required
 Past record in creatives, media
 Recommendation from others
Building relationships
The Softer Aspects

1. Trust
2. Honesty
3. Commitment & Responsibility
4. Understanding & Empathy
5. Respect
Thanx