Advertising Agency

(Ad agency)

Important players in advertising

1. Advertiser ( Client Organisation)

2. Advertising Agency

3. Media organisations

4. Marketing Communication specialist organisations

5. Providers of collateral services

Ad agency

• According to AAAA “ Advertising agency is an independent business, composed of creative and business people who develop, prepare and place advertising in advertising media for sellers seeking to find customers for their goods or services

• It is a team of experts appointed by a client to plan, produce and place advertising campaigns in the media.

Positions in Ad agencies

1. Accounts Executive

2. Copywriters

3. Visualisers

4. Creative Director

5. Production Department

6. Media planner

7. Marketing Research Executive

Some more….

8. Media Executives

9. Ancillary Service Providers

10. Freelancers

Advertising Organisation Systems

1. Centralised

2. Decentralised

3. In house ad agencies

Centralised

Advantages

1. More Efficient Communications

2. Requires fewer personnel

3. Continuity of staff

4. More involvement of top management possible

Centralised

Disadvantages

1. Less understanding of overall marketing goals

2. Longer response time

3. Limited ability to handle many product lines

Decentralised

Advantages

• Concentrated managerial attention

• Rapid response to problems & emerging opportunities

• Increased flexibility

Decentralised

Disadvantages

1.Less effective decision making

2.Unhealthy internal conflicts

3. Misallocation of funds

4. Managers lack sufficient authority

In-house ad agencies

Advantages

1. Cost savings

2. More control on activities & costs

3. Increased coordination

In-house ad agencies

Disadvantages

1. Less experience

2. Less objectivity

3. Less flexibility

Functions of Ad agency

• Account Services• Marketing Services(a) Research Department(b) Media Department(c) Sales Promotion/ Direct Marketing• Creative Services(a) Art Department(b) Production Department(c) Traffic Departments• Management and Finance

Type of ad agency

1. Full Service Agencies

2. High Quality Service Agencies

(a) Media buying Services

(b) Creative Boutiques

Agency Structure

• Departmental system

• Group System

Agency Compensation

• Commission

• Negotiated fee

• Percentage Charges

Agency Evaluation

• Performance Area

1. Financial

2. Qualitative

• Assessment Methods

1. Formal

2. Informal

Acquiring new clients

1. Referrals

2. Solicitations

3. Presentations

Client Agency relationship

• Spirit of partnership• Not to imitate other advertisers• Encourage risk taking & experimentation• Make it profitable for agency• Knowledge of clients’ culture & philosophy• Delegation of authority• Honest in praise, polite in disapproval• Trust

Top Ad agencies (India)

1. HTA ( Hindustan Thompson associates)2. Ogilvy & Mather Ltd3. McCann Erickson India Ltd.4. Lowe Lintas5. Mudra Communications Ltd.6. Rediffusion – DY & R7. Da Cunha Associates & Draft FCB Ulka8. Trikaya Grey Advertising India Ltd.9. RK Swamy /BBDO advertising Ltd.

Thank you !

Muchas Gracias !