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advertising agencies
agencies
structure
structure &
& organization
organization
what
what agencies
agencies do.do.
and
and how
how they’re
they’re organized
organized
to
to do
do it.
it.
77 primary
primary services:
services:
complete
complete aa marketing
marketing analysis
analysis
develop
develop an
an advertising
advertising plan
plan
prepare
prepare aa creative
creative strategy
strategy
create
create advertising
advertising executions
executions
develop
develop and
and implement
implement aa media
media plan
plan
handle
handle billing
billing and
and payments
payments
integrate
integrate other
other marketing
marketing communications
communications
4 functions of full-service agencies
account management
creative
media planning and placement
research
agency
agency organization
organization chart
chart
Board of
Directors
[Chairman/CEO]
President
[COO]
Traffic
account
account management
management
liaison
liaison between
between agency
agency and
and client
client
responsible
responsible for
for understanding...
understanding...
the
the client’s
client’s business
business
the
the client’s
client’s marketing
marketing needs
needs
strategy
strategy development
development
representing
representing client
client point
point of
of view
view
within
within the
the agency
agency
account
account management
management
Account Mgmt.
Director
account
account management
management director
director
management
management supervisor
supervisor
Management.
Supervisor account
account supervisors
supervisors
Account account
account executives
executives
Supervisor
assistant
assistant account
account execs
execs
Account
Executive account
account coordinators
coordinators
Asst. Account Account
traffic
traffic
Executive Coordinator
Traffic
creative
creative department
department
responsibility
responsibility
the
the creative
creative department
department isis responsible
responsible
for
for creating
creating and
and producing
producing the
the print
print and
and
broadcast
broadcast advertising
advertising
strategy
strategy is
is key
key
good
good creative
creative work
work is
is always
always guided
guided by
by aa
creative
creative strategy
strategy that
that sets
sets forth
forth goals
goals to
to
be
be accomplished
accomplished and and key
key message
message
points
points to
to be
be relayed
relayed
creative
creative department
department
Strategy
Review
Board
executive
executive & & group
group creative
creative
directors
directors
Executive
Creative
Director (ECD) creative
creative director
director
Creative associate
associate creative
creative director
director
Director (CD)
copywriters
copywriters
Associate
Creative
Director (ACD) art
art directors
directors
Creative
Group:
broadcast
broadcast producers
producers
Copy Spvr. & Art Supervisor
print
print production
production managers
managers
traffic
traffic coordinators
Copywriters & Art Directors
Broadcast Print
coordinators
Production Production
Traffic
media
media department
department
The
The media
media department
department hashas two
two main
main
functions
functions -- planning
planning and
and buying.
buying.
The
The planning
planning group
group handles
handles more
more
strategic
strategic marketing
marketing and
and media
media issues.
issues.
The
The buying
buying group
group handles
handles media
media
negotiations
negotiations and
and implementation.
implementation.
media
media department
department
Media media
media director
director
Director
associate
associate media
media directors
directors
Associate
Media media
media supervisors
supervisors
Director
media
media planners
planners
Media
Supervisor media
media buyers
buyers
Analysts
big
big changes
changes in
in the
the
media
media department
department
mega-agency
mega-agency media media departments
departments
have
have now
now become
become profit
profit centers
centers
agencies
agencies have
have set
set up
up their
their media
media
departments
departments as as free-standing
free-standing units
units
many
many large
large clients
clients now
now look
look at
at media
media
as
as aa separate
separate service
service
research
research department
department
interpret
interpret market
market environment
environment
gather
gather and
and analyze
analyze research
research data.
data.
primary
primary and
and secondary
secondary techniques
techniques
determine
determine consumer
consumer needs/perceptions
needs/perceptions
understand
understand problems
problems
advise
advise how
how ads
ads can
can meet
meet strategic
strategic goals
goals
help
help find
find solutions
solutions Research
Report
research
research department
department
Research
Director research
research director
director
research
research project
project managers
managers
Project
Managers research
research assistants
assistants
outside
outside research
research specialists
specialists
Research
Assistants
Outside
Research
Research Report
Suppliers
auxiliary
auxiliary agency
agency functions
functions
account
account planning
planning
strategy/creative
strategy/creative review
review board
board
office
office management
management
human
human resources
resources
legal
legal services
services
accounting
accounting
recruitment
recruitment
33 ways
ways agencies
agencies make
make money
money
commissions
commissions
usually
usually 15%
15% of
of gross
gross costs
costs
fees
fees
usually
usually based
based on
on negotiated
negotiated hourly
hourly rate
rate
incentives
incentives
still
still relatively
relatively new
new and
and problematic
problematic
usually
usually based
based onon performance
performance goals
goals
agency
agency commissions
commissions
media
media commission
commission system
system
15%
15% media
media commission
commission
adjustable
adjustable commission
commission rates
rates
negotiate
negotiate to
to match
match client
client budget
budget
sliding
sliding scale
scale
markups-production
markups-production &
& service
service
add
add aa percentage
percentage markup
markup to
to costs
costs
17.65%
17.65% ofof net
net == 15%
15% of
of gross
gross
44 types
types of
of fee
fee systems
systems
fixed
fixed fee
fee (retainer)
(retainer)
cost-plus
cost-plus fee
fee
performance
performance feefee
hybrid
hybrid fee
fee &
&
commission
commission
incentives
incentives
in
in theory,
theory, aa good
good way
way toto work
work
get
get paid
paid based
based on on how
how well
well you
you do,
do, not
not
how
how muchmuch you
you bill
bill
in
in practice,
practice, difficult
difficult to
to implement
implement
ifif client
client makes
makes final
final decision
decision (instead
(instead of
of
agency),
agency), how how can
can agency
agency be be responsible
responsible
for
for final
final results?
results?
results
results based
based onon many
many factors,
factors, such
such as
as
competitive
competitive efforts,
efforts, not
not just
just advertising
advertising
new
new business
business
three
three primary
primary sources
sources
““The
The critical
critical
build
build objective
objective
existing
existing client’s and
and role
role
client’s business
business
of
ofanyaddad
any
addad
andagency
andagency
sell is
sell new
new gaining
isIMC
gaining
IMC new
services
servicesnew
solicit business.”
business.”
solicit new
new accounts
accounts
two
two ongoing
ongoing problems
problems
““spec”
spec” work
work
teams
teams “walking”
“walking” with
with accounts
accounts
things
things to
to think
think about:
about:
why
why might
might youyou be
be interested
interested in
in
going
going into
into the
the agency
agency business?
business?
what
what might
might keepkeep you
you from
from choosing
choosing
aa career
career in
in the
the agency
agency business?
business?