ADVERTISING AGENCY

INTRODUCTION
ADVERTISERS

ADVERTISING MEDIA
INDUSTRY

ADVERTISING
AGENCIES
 DEFINITION
• “Advertising agency is a marketing service firm that
assists its client in
planning, preparing, implementing and evaluating
various activities of advertising campaign.”
-Philip Kotler
 FEATURES
•Independent organisation
•Works for advertisers
•Composed of creative people
•Develops, prepares and places advertisement in
media
•Service organisation
•Commercial organisation
FUNCTIONS
SELECTION OF CLIENTS

ADVERTISING PLANNING

CREATIVE FUNCTION

DEVELOPING AND PREPARING

AD COPY
FUNCTIONS
APPROVAL OF CLIENTS

MEDIA SELECTION

AD -EXECUTION

EVALUATION -FUNCTION
FUNCTIONS
MARKETING FUNCTION

RESEARCH FUNCTION

ACCOUNTING FUNCTION
 BENEFITS
Benefits of Ad Agency can be classified into
two parts:

1.Benefits of Ad Agency to itsclients

1.Benefits of Ad Agency to media

 Benefits of Ad Agency
to its Clients
1. Eliminates the need of advertising department

2.Services of experts

3. Reduction in media cost

4. Helps to solve advertising problems

 Benefits of Ad Agency
to its Clients
5. Helps in allocating advertising budget more
effectively

6. Non-advertising activities

7. Effective advertising campaigns

8. Conducting marketing research

BENEFITS OF AD AGENCY
TO MEDIA
1.Procures business for media
2.Ad-Agency collects Dues for media
3.Agency delivers the advertisement in appropriate
form to media
4.Helps the media in advertising scheduling
TYPES OF AD-AGENCY
FULL SERVICE AGENCIES
MODULAR AGENCIES
IN HOUSE AGENCIES
CREATIVE BOUTIQUES
Full Service Agencies

A full service ad agency is one that provides a range of

marketing services. A full services agency provides
services that are directly related to advertising such as
copywriting, artwork, production of ads, media planning
etc. It also provides such services in respect of pricing,
distribution, packaging, product design etc
Modular Agencies
•A modular agency is a full service agency that sells its
services on a piece meal basis. Thus an advertiser may
commission an agency’s creative department to develop
an ad campaign while obtaining other agency services
elsewhere.
•Or, an advertiser may hire an agencies media
department to plan and execute a program for
advertising that another agency has developed. Fees are
charged for actual work undertaken.
In House Agencies
•Those companies, which prefer to have closer control
over advertising, have their own in-house agency. This
type is owned completely by the advertiser.

• It performs almost all functions that an outside

advertising agency would perform and that’s why some
people refer to it as full-service advertising department
of the advertiser.
In House Agencies
The difference between an in-house agency and an
advertising department is that the in-house agency can
undertake to serve several other clients, if the owner so
desires, but an advertising department solely
undertakes that work of its owner and not of outside
clients.
Creative Boutiques
These are shop agencies that provides only creative
functions and not full-service. The specialized creative
functions include copy writing, artwork and production
of ads, they charge a fee or percentage of full service
agencies, and as such most of them convert into a full
service agency or merge with other agencies to provide
a wide range of services.
Role of Advertising Agencies
•Advertising agency is a service provider that helps its clients
by developing suitable ad campaigns for them.
•Their aim is to represent its clients' products and services
before customers in such a way that a positive image is
created in their minds.
•Advertising agency's role start with the identification of its
clients' goals and objectives.
•This turns out to be of immense value in planning and
creating the future course of action concerning ad
campaigns.
Role of Advertising Agencies
For whom is the product or service designed?
· Who would use it?
· Who is the "target group"?
· What's special about the product? In what way is it distinct?
Unique? Different?
· What's its "position" in relation to other similar products?
· What do you want to convey to the public about your product?
· How should your company contact the public?
· What medium should it use? Radio? TV? Newspapers?
Magazines?
Bus/subway ads? Direct mail? etc.
Role of Advertising Agencies
•Once an advertising agency gets acquainted with its clients'
business objectives, it starts creating and planning its ad
campaigns.
•For this it keeps in mind certain points such as increasing sales,
pushing new products in the market, restating benefits of its
clients' brands, and drawing new customers in addition to
establishing and maintaining contacts with their existing
customers.
•An advertising agency's professional teams put in their best
efforts to develop attractive slogans, and body copy for ads. All
this is done within the defined parameters of its clients and their
budgetary allocations.
 DETERMINING WHEN YOU MAY
NEED TO HIRE AN AGENCY
•When phone calls from media sales
representatives are taking up too much of your time
•When you’re simply overwhelmed by the myriad
details
•When you no longer have the time, or the
energy, to write and produce your advertising
yourself
 DETERMINING WHEN YOU MAY
NEED TO HIRE AN AGENCY
•When your advertising budget has grown too much

•When you finally admit that media invoices are written

in a secret code that you’ll never decipher, and you want
to be assured that you’re getting everything you’re
paying for

•When you want to put a team of highly trained

specialists to work, with
 DETERMINING WHEN YOU MAY
NEED TO HIRE AN AGENCY
•When you’re eager to have creativeprofessionals
generate fresh, new ideas for your advertising

•When you would welcome the professional

creative, account service, and media buying expertise that
an agency can provide

•When your own creative efforts aren’t yielding theresults

you desire
 SELECTION OF AN
ADVERTISING AGENCIES
The following factors should be considered while
selecting an advertising agency :
1. Location
2. Size
3. Agency working for Competitors
4. Image of Agency
 SELECTION OF AN
ADVERTISING AGENCIES
5.Services offered by Ad-Agencies
6.Rates charged
7.Creative Skills and New Ideas
8.Past record of Agency
 SELECTION OF AN
ADVERTISING AGENCIES
9.Quality and Caliber of Staff
10.Financially Sound
11.Agency Experience
 ORGANIZATION OF
AD-AGENCY
The organization structure of the advertising
agency can be classified on the
following basis:

1. Organization of Ad Agency on Departmental Basis

2. Organization of Ad Agency on Group Basis

 Organization of Ad Agency
on Departmental Basis
On departmental basis, organization structure of
Ad – Agency may consist of following functional
departments:

1. Client Liaison Department

2. Research Department
3. Copy Writing Department
4. Art Department
 Organization of Ad Agency
on Departmental Basis
5. Media Department
6. Audio-Visual Ad Production Department
7. Accounts Department
8. Marketing Service Department
9. Public Relations Department
10. Evaluation Department
 Organization of Ad
Agency on Group Basis
The main groups in an advertising organization
are as follows :
1. Planning of advertising group
2. Preparation of advertisement group
3. Placement and Execution of Advertisement
group
4. Marketing Services group
THANK YOU