Advertising Agencies

Advertising agency
As an independent organization of creative people and business people who specialize in developing and preparing marketing and advertising plans advertisements and other promotional tools The agency purchases advertising space and time in various media on behalf of different advertisers or sellers to find customer for their goods and services.

 Local agencies: advertising agencies that specialize in creating advertising for local business. Regional & national agencies :agency that focuses on the production and placement of advertising suitable for regional and national campaigns. International agencies: ad agency that has offices or affiliates in major communication centers around the world and can help its clients market internationally or globally. Full service agencies:an agency equipped to serve its clients in all areas of communication and promotion its advertising services include planning, creating, and producing advertisement as well as performing research and media selection services. Non advertising functions including production sales promotional materials publicity articles, annual reports, trade show exhibits and sales training materials.

Types of agencies

 Specialized service agencies: many agencies assist their clients with a variety of limited services. Creative service, media buying service, interactive agencies.

Interactive agencies: an ad agency that specializes in the creation of ad for a digital interactive medium such as web pages.

structure & organization

what agencies do. And how theyre organized to do it.

primary services:
complete a marketing analysis

develop an advertising plan

prepare a creative strategy

create advertising executions

develop and implement a media plan

handle billing and payments

integrate other marketing communications

functions of full-service agencies

account management
creative media planning and placement research

account management
liaison between agency and client

responsible for understanding...

the clients business the clients marketing needs strategy development representing client point of view within the agency They in turn report to the agencys director of account (or client) service.

account management
account management director
Account Mgmt. Director

Management. Supervisor

management supervisor account supervisors

Account Supervisor

account executives
assistant account execs account coordinators traffic

Account Executive

Asst. Account Executive

Account Coordinator

Traffic

creative department
responsibility
the creative department is responsible for creating and producing the print and broadcast advertising
strategy is key good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

creative department
Strategy Review Board Executive Creative Director (ECD)

executive & group creative directors creative director associate creative director copywriters

Creative Director (CD)

Associate Creative Director (ACD)

art directors
broadcast producers print production managers

Creative Group:

Copy Spvr. & Copywriters

Art Supervisor & Art Directors

traffic coordinators

Broadcas Production t Traffic

Prin Productio t n

media department
The media department has two main functions planning and buying.

The planning group handles more strategic marketing and media issues. The buying group handles media negotiations and implementation

media department
Media Director

media director associate media directors media supervisors media planners

Associate Media Director

Media Supervisor

Media Planner

Media Buyer

media buyers media analysts

Analysts

big changes in the media department

mega-agency media departments have now become profit centers

agencies have set up their media departments as free-standing units many large clients now look at media as a separate service

Research department
interpret market environment gather and analyze research data. primary and secondary techniques determine consumer needs/perceptions

understand problems
advise how ads can meet strategic goals

help find solutions

research department
Research Director

research director research project managers

Project Managers

Research Assistants

research assistants
outside research specialists

Outside Research Supplier s

auxiliary agency functions

account planning: a hybrid discipline that bridges the gap between traditional research, account management, and creative direction where by account planners study consumer needs and desires through phone surveys and focus groups, but primarily through personal interviews. They help the creative team translate their findings into imaginative, successful campaigns.

 strategy/creative review board office management

human resources
legal services accounting

recruitment

ways agencies make money

commissions
usually 15% of gross costs

fees
usually based on negotiated hourly rate

incentives
still relatively new and problematic usually based on performance goals

agency commissions
media commission system 15% media commission adjustable commission rates negotiate to match client budget

markups-production & service

add a percentage markup to costs

types of fee systems

fixed fee (retainer) cost-plus fee:client agrees to pay the agency a fee based on the cost of its work plus some agreed on profit margin. performance fee or incentive-based system: many clients e=these days are demanding more accountability from their agencies and tying agency compensation to performance through some type of incentive-based system.

Why agencies lose clients

Poor performance or service Poor communication Unrealistic demands by the client Personality conflicts. Personnel changes Conflict of interest Changes in client's corporate and or marketing strategies Declining sales Conflicting compensation philosophies