Five Advertising Agency Types

1. Full-service agencies 1. Full-service agencies

2. Creative boutiques2. Creative boutiques

3. Media-buying services3. Media-buying services

4. Interactive agencies4. Interactive agencies

5. In-house agencies5. In-house agencies

well equipped to plan and create advertising campaigns for a range of media including TV commercials, Radio jingles, print advertisements etc.

provides a range of marketing services.

provides services related to advertising such as copywriting, artwork, production of ads, media planning etc.

provides services related to pricing, distribution, packaging, product design etc

Full-service agenciesFull-service agencies

functions of full-service agencies

• account management• creative• media planning and placement• research

• liaison between agency and client • responsible for understanding...

– the client’s business– the client’s marketing needs– strategy development

• representing client point of view within the agency

account management

1.Responsible for creating and producing the print and broadcast advertising

2..Guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

creative department

Media Department

Two main functions - planning and buying.

• The planning group handles more strategic marketing and media issues.

• The buying group handles media negotiations and implementation.

Research & Other Functions

• Research department may design and execute research programs

• strategy/creative review board• office management

– human resources– legal services– accounting– recruitment

Ogilvy and Mather Limited - Headed by Mr. Piyush PandeyMudra communications Pvt. Ltd. - Head: Mr. Madhukar KamathLintas India Pvt. Ltd. - Head: Mr. Pranesh Misra (President & COO - Lowe, India) JWT (Hindustan Thompson Associates Pvt. Ltd. - Head:Mr.Colvyn Harris (Chief Executive Officer)FCB-Ulka advertising pvt. Ltd. - Head Mr. Anil Kapoor (Managing Director and CEO)Rediffusion DY&R Pvt Ltd. - Mr. Mahesh Chauhan (President)RK Swamy BBDO Pvt Ltd. - Mr. Srinivasan K Swamy (Head)McCann-Ericsson India Ltd. - Sorab Mistry (Head)Leo Burnett - Mr. Arvind Sharma (Chairman and CEO) Grey worldwide (India) Pvt Ltd. - Mr. Nirvik Singh (President south east Asia & chairman South Asia, Grey Global)

Top Ten Advertising Agencies of India (2006-2007)

CREATIVE BOUTIQUE

• Shop agencies that provides only creative functions and not full-service.

• Creative functions include copy writing, artwork and production of ads.

• Charge a fee or percentage of full service agencies.

• Convert into a full service agency or merge with other agencies to provide a wide range of services.

CREATIVE BOUTIQUE

• The Shop, a Delhi-based agency • set up in 2004 by Freddy Birdy,

considered among the country’s most successful copywriters

• Naved Akhtar one of the best known art directors in the industry.

Specialize in Buying Media, Especially Broadcast Time

Agencies and Clients Develop Media Strategy

Agencies and Clients Develop Media Strategy

Specialize in Buying Media, Especially Broadcast Time

Media Buying Agencies

Media Buying

Services

Media Buying Organizations Implement the Strategy and

Buy Time and Space

In House Agency

• Owned completely by the advertiser.

• Companies, which prefer to have closer control over advertising, have their own in-house agency.

MoreControl

CostSavings

BetterCoordination

LessObjectivity

LessExperience

Pros & Cons of In-House Agencies

TheIn-houseAgency

+ Positive+ Positive - Negative- Negative

LessFlexibility

Interactive agencies

• Online marketing under which search engine marketing and web marketing comes as subsections.

• Offers a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/ e-commerce consulting.

• Rose to prominence before the traditional advertising agencies fully embraced the Internet.

• Clickadtrix is a one-stop-shop for companies who want to try different mixes of online marketing.

Audio

Special Effects

Video

WebBanner Ads

Kiosks

Web Sites

CD-ROMs

Special Effects

VideoAudio

KiosksCD-ROMs

Web SitesWebBanner Ads

Functions performed by Interactive Agencies

Interactive Media Creation

DigitalContent

Animation

Organization Structure of Advertising Department

• structure may vary from one organization to another

• each one tries to develop a form, which is most suited to one's requirements.

• The principal forms of organizational structure are based on sub functions of advertising - :

Copywriting or artworksCommunication media Geographical spreadProduct andEnd users.

Organization Structure of Advertising Department

Advertising Manager

Copywriting Manager Art Manager

Production Manager Media Manager

Organization Structure of Advertising Department

Advertising Manager TV Broadcasting MagazineNewspaper Outdoor Direct mailing

Organization Structure of Advertising Department

By Product

Advertising Manager

Product A Product B Product C

Organization Structure of Advertising Department

By Geography

Advertising Manager

Zonal Manager A ZM(B) ZM (C)

Organization Structure of Advertising Department

By End User

Advertising Manager

Consumer Institutional Government

Centralized Advertising Activity

located at or directed by headquarters, reporting to corporate sales or marketing head or in top management. gets the necessary product, market, and budget information from the divisions

controls the execution of the various programmes by: 1. Providing the needed information and guidance to the advertising agency and other Services;2. Then reviewing and approving the completed work before getting division approval

Advertising Department Under Centralized System

President

Production Finance MarketingResearch

and Develop-

mentHuman

Resources

Advertising Marketing Research Sales Product

Planning

FewerPersonnel

BetterCommunications

ContinuityOf Staff

LongerResponse Time

Less GoalInvolvement

Pros & Cons of Centralization

TheCentralized

System

+ Positive+ Positive - Negative- Negative

Can’t DoMultiple Product

Lines

Decentralized Advertising Activity

• operated and controlled by individual units located in each major division

• usually reporting to a division head or to a division marketing or sales head

•division advertising, sales and marketing people and control both the 'what' and 'how' of the advertising job

• getting only advice and counsel plus miscellaneous services from a central advertising function.

•

Decentralized Management System

Production Finance

Sales

BrandManager

Ad agency

BrandManager

Ad agency

ProductManagement

SalesPromotion

PackageDesign

Merchandising

AdvertisingDepartment

MarketingResearch

MarketingServices

Marketing Researchand

Development

HumanResources

Corporate

Competition for Resources

Lack of Experience

in IMC

Rapid ProblemResponse

ConcentratedAttention

IncreasedFlexibility

Pros & Cons of Decentralization

TheDecentralized

System

+ Positive+ Positive - Negative- Negative

Lack ofAuthority

Contest/Sweepstakes Development

Contest/Sweepstakes Development

Promotion Planning

Creative Work

Research

Coordination With Advertising

Premium DesignPremium Design

Coordination With Advertising

Research

Creative Work

Promotion Planning

Data Base Marketing

Activities performed by Sales Promotion Agencies

StrategyDevelopment

GeneratingPublicity

LobbyingPublicAffairs

DamageControl

ImagePortrayal

StrategyDevelopment

GeneratingPublicity

LobbyingPublicAffairs

DamageControl

ImagePortrayal

Functions performed by Public Relations Firms

ProgramPlanning

Planning and Implementing

Research Planning and Implementing

Research

Information Application

Analysis and Interpretation

Primary Data Collection

Qualitative & Quantitative

Secondary Data Collection

Primary Data Collection

Qualitative & Quantitative

Analysis and Interpretation

Information Application

Marketing Research Companies

Advertising whereby the only connection the consumer has to the product is the advertising and the only way a consumer can act on the advertisement or commercial is to return a coupon or make a phone call.

Direct response advertising is geared to eliminate an intermediary in the purchase process. It can utilize a wide range of media, from matchbook covers to print or radio and television, although it is typically conducted through the mail.

Direct Response Agency

DirectMail

Data BaseManagement

Research

Creative

Media Services

Creative

Media Services

Research

DirectMail

Data BaseManagement

Direct Response Agency Activities

DirectResponseAgencies

Production

Benefits of Using an Advertising Agency

• Added Expertise• Media Knowledge and Unbiased

Advice• Easier Administration• Media Buying• Quality Control• Information• Cost Saving• Time Saving