ADVERTISING AGENCY AND IT’S

FUNCTIONS

PRESENTED BY NAME

What is Advertising?• Promotion of goods, services, companies and ideas.

• Marketers see advertising as part of an overall promotional strategy.

• Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

• Process where in a message is designed.

• Various mediums used for communication.

• Attract, modify, change and influences public opinion.

• Everyone needs to advertise.

• Various ways for advertising(trade magazines, transit sign on buses, lamp posters, banners, etc).

Advertising Industry Has Three Major

Sectors• Business or organization which wishes to

advertise.

• Media which provides the medium for advertising.

• Ad-agency which creates the ad to suit the need of the firm.

What is an Advertising Agency?

The Association of Advertising Agencies of America (AAAA) defines advertising agency as

“An independent business organization composed of creative and business people

who develop, prepare and place advertising media for sellers seeking to find customers for

their goods and services.”

Advertising Agency• Getting the best out of advertising is a highly skilled job.

• Biggest advertisers cannot afford to employ all these experts.

• It is one of the most important components of advertising industry.

• It has evolved to provide the specialized knowledge, skills and experience needed to produce effective advertising campaigns.

• Service business dedicated to creating, planning and handling advertising for their clients.

• It is independent from the client and provides an outside point of view.

• clients include businesses and corporations, non-profit organizations and government agencies

History Of Ad Agency• Period of early growth 1841 – 1865

• Wholesaling Period 1865 – 1880

• Semi Service Period 1880 – 1917

• Service Period 1917 – Present

Advertising Process

Typical Work Flow in an Ad Agency

Types of Advertising Agencies

• All Sizes• In house work• Selecting an Ad Agency

1. Full Service Agency

• Provides a range of marketing services. Services directly related to advertising such

as copywriting, artwork, production of ads, media planning etc.

2. Modular agencies• A full service agency that sells its services on a

piece meal basis• Fee is charged for actual work undertaken

3. In House agencies• Owned completely by the advertiser• Can undertake to serve several other clients, if

the owner so desires

4. Creative Boutiques• Provide only creative functions and not full-

service. • Copy writing, artwork and production of ads • Merge with other agencies to provide a wide

range of services

5. Mega agencies• Concept of 1980s• Merger of two agencies• 1986, Saachi & Saachi, a London based - the third

largest, strarted the movement

6. The Specialists Agency• Agency that specializes only in certain specific

area• Eg: Soubhagya advertising agency concentrate

on specialized financial advertising.

Functions of an Ad Agency

• To accelerate create public awareness• To provide a total, professional, experienced

service • To take the advertiser's message and

convert it into an effective and memorable communication

Services Offered by Ad Agency

• Total Advertising Services– Strategic planning– Creative development– Media services, particularly in television,

newspapers, magazines and radio

• Marketing Services– Sales promotion, market research, PR and event

marketing

• E-Solution ServicesSystem integration services, e-business consulting, customer relationship management (CRM), Search Engine Marketing (SEM) and e-promotions using the Internet and mobile.

• Content BusinessSale of sponsorship, broadcasting and other rights, production and marketing of media / content such as sporting events, films, TV programs, animated content, music and other forms of entertainment

• Integrated Media ServicesBringing value to both clients and media-related companies by offering a wide range of media solution services

• Sales PromotionProviding comprehensive sales promotion planning designed to complement mass media and other activities

• Event MarketingAssisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications

• Integrated Branding ServicesAssuring clients the highest quality of branding services for their communication needs

Organization Structure• The activities within an ad agency are

divided into 4 broad groups:1. Account management2. The creative department3. Media buying4. Research

• Recently added: public relations, direct marketing, and promotional services

Organization ChartBoard of Directors

Managing Director

Client Services Director

Creative Director

Servicing Group

Media

Research

Creative Groups

Audio Visual

Language

Studio

Production

Finance / Accounts

Secretarial / Legal Personnel

Structure of an advertising agency

What Makes Effective Advertising?

SoundStrategy

Consumer’sView Persuasive

Doesn’tOverwhelm

Deliver onPromises

BreakClutter

Effective Advertising

Selecting an agency• Have they fully

understood the brief?• Do they know how to

use market research? Can they contribute to our thinking here?

• Is their strategic thinking sound?

• Is it imaginative? Have I learned anything useful from it?

• Are they professional and businesslike?

• Can I work with their senior people? And will they be actually working on my business?

• Are their capabilities high in all key areas – management, strategy, creative, media?

• Do they work well as a team – both among themselves and with our people?

Selecting an agency• Is their creative work

of a high quality?• Is this confined to

TV, or does it go across all media?

• Does this include below-the-line? New media? Can they offer an integrated service?

• Do they have real expertise in the specialist areas which we are looking at, egl direct marketing, new media?

• Can they work with us internationally (now or in the future)

• How do they propose to evaluate the effectiveness of the campaign?

Function of and advertising agency

• Account Services / Account Management

• Creative department

The Creative Team

Creative Team

Creative Concept

Art DirectorCopywriter

Copywriting and the Creative Plan

Copywriting is

the process of

expressing the

value and

benefits a brand

has to offer.

A creative plan is

the guideline that

specifies the

message

elements of

advertising copy.

Creative Department people need following

attributes• A good psychologist.• Willing and able to set high standards.• An efficient administrator & Research minded• Capable of strategic thinking – ‘positioning’ and all that.• Equally good at package goods and other kinds of accounts• Well versed in graphics and photography• A hard worker and fast• Slow to quarrel• Prepared to share credit for good work, and accept blame for

bad work• A good presenter & good recruiter

Copy Approval Process

Senior Executives

Product Manager, Brand Manager, Marketing Staff

Client

Account Management TeamLegal DepartmentAgency

Senior WriterCreative Director

Copywriter

Account Planning

• Media Department

Broadcast Television

Cable Television

Radio

Newspaper

Direct Mail

Magazines- Consumer/Business

Outdoor

Internet

Media selection

• After selecting media, marketers determine the most effective timing and sequence for a series of advertisements.

• Influenced by seasonal sales patterns, repurchase cycles, and competitors’ activities.

• Measure effectiveness in three ways:

• Reach—the number of people exposed to an advertisement.

• Frequency—the number of times an individual is exposed to an advertisement. Minimum of three exposures is recommended.

• Gross rating point—the product of the reach times the frequency.

Media scheduling

Marketing research department

• The identification of information needs• Data collection & interpretation• Analysis & evaluation

• Creative service department• Event management & promotion

department• Traffic Department• Radio & TV broadcast production

department −Producer

−Production co-ordinator

Print production department

• Meet deadlines• Use sophisticated technology• Co-ordinate and manage• Skills and training

Agency Personnel• Production Team

• Storyboard artist

• Graphic designer

Case study

Company Profile• Advertising / Full Service / Integrated

• It is a subsidiary of WPP group, the world’s best-known marketing communications brand with a global network of more then 200 offices in over 85 countries.

Brief History• William James Carlton in 1864• James Walter Thompson ( JWT ) in 1995

Scope of Operation

• Sir Martin Sorrell's WPP Group•HQ = NewYork•10,000 employees• 200 offices• 90 countries• 1,200 clients.

Setting new benchmark

• Invent copy and layouts

• Build the first full-service advertising agency

• Pioneer ad careers for women• • Create the first international network• • Develop account planning

Chief clients

Solution it provides360 degree solutions

• Creative• Digital• Market planning• Specialized communication• Strategic communication• Trend spotting

In news• Effie 2008 Awards

• Grand Prix at GOAFEST 2009Agnello Dias,('Lead India Poised' ;Film Single Grand Prix for the Nike Cricket 'Traffic'.)

• Viral and Email Marketing’ initiatives

• Three Astrid Awards

• 28 creative excellence award

JWT Exemplar !!

Definitive and Final say ….

• Future Outlook

• Advertising glorified !!

THANK YOU