Advertising agenciesAdvertising agenciesAdvertising agenciesAdvertising agencies

Advertising agencyAdvertising agency

Advertising agency is an independent organization Advertising agency is an independent organization that provides one or more specialized advertising that provides one or more specialized advertising and promotion related services to assist company and promotion related services to assist company in developing, preparing and executing there in developing, preparing and executing there advertising and other promotional programmes advertising and other promotional programmes

Top advertising co. in IndiaTop advertising co. in India

Ogilvy and Mather: Ogilvy and Mather: This company has offices across the globe. This company has offices across the globe.

J Walter Thompson India:J Walter Thompson India: About 200 offices in 90 countries. About 200 offices in 90 countries.

Mudra Communication Pvt. Ltd:Mudra Communication Pvt. Ltd: Established in the year 1980 at Mumbai. Established in the year 1980 at Mumbai.

FCB-Ulka Advertising Ltd:FCB-Ulka Advertising Ltd: CB-Ulka Advertising Ltd. In US 3 CB-Ulka Advertising Ltd. In US 3rdrd rank rank

RK Swamy/BBDO Advertising Ltd:RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973 .among the top ten advertising agencies in India. Established in 1973 .

Grey Worldwide (I) Pvt. Ltd:Grey Worldwide (I) Pvt. Ltd: company is primarily based in Mumbai and has offices in company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide

Leo Burnett India Pvt. Ltd :Leo Burnett India Pvt. Ltd :it has a significant presence in about 96 offices in 10 countries it has a significant presence in about 96 offices in 10 countries ..

ccontract Advertising India Ltd:ontract Advertising India Ltd: It was founded in 1992 and is situated in Mumbai. It was founded in 1992 and is situated in Mumbai. Etc.Etc.

what agencies do.what agencies do.

Structure & organizationStructure & organizationStructure & organizationStructure & organization

and how they’re organizedand how they’re organizedand how they’re organizedand how they’re organizedto do it.to do it.to do it.to do it.

7 primary services:7 primary services:

complete acomplete a marketing analysis marketing analysis develop andevelop an advertising plan advertising plan prepare aprepare a creative strategy creative strategy create create advertising executionsadvertising executions develop and implement adevelop and implement a media plan media plan handle handle billingbilling and and paymentspayments integrate integrate other marketing communicationsother marketing communications

4 functions of full-service agencies4 functions of full-service agencies

account managementaccount management creativecreative media planning and placementmedia planning and placement researchresearch

agency organization chartagency organization chart

Print

Traffic

Production ProductionBroadcast Analysts

Other MarketingCommunications

Services[PR, etc.]

Asst. AccountExecutive

AccountExecutive

ManagementSupervisor

Account Mgmt.Director

Copy Spvr. &Copywriters

Art Supervisor& Art Directors

CreativeGroup:

AssociateCreativeDirector

CreativeExec CD

ResearchAssistants

ProjectManagers

ResearchDirector

MediaPlanner

MediaBuyer

MediaSupervisor

AssociateMedia

Director

Media Dept.Director

StrategyReview Board[ManagmentCommittee]

Office Management[Personnel,Accounting,Legal, etc.]

President[COO]

Board ofDirectors

[Chairman/CEO]

Typical Full-Service Agency OrganizationTypical Full-Service Agency Organization

WritersArt Directors

Traffic

TVProduciton

Traffic

PrintProduction

VP CreativeServices

AccountExecutive

AccountSupervision

VP AccountServices

Media Research SalesPromotion

VP MarketingServices

Personnel Accounting Finance

OfficeManagement

VP Managementand Finance

President

Board ofDirectors

ArtistsArtists WritersWriters ResearchersResearchers

PhotographersPhotographers Media AnalystsMedia Analysts Other SkillsOther Skills

Ad Agencies Have Skilled SpecialistsAd Agencies Have Skilled Specialists

Represents agency to clientRepresents agency to clientClient relationshipClient relationshipKnowledge of client’s businessKnowledge of client’s business

Competitive actionsCompetitive actionsConsumer trendsConsumer trends

Helps set goals & budgetHelps set goals & budgetCoordinates day to day workCoordinates day to day work

account management account management account management account management

account management directoraccount management director management supervisormanagement supervisor account supervisorsaccount supervisors account executivesaccount executives assistant account execsassistant account execs account coordinators account coordinators

Traffic

Asst. AccountExecutive

AccountCoordinator

AccountExecutive

AccountSupervisor

Management.Supervisor

Account Mgmt.Director

account management account management account management account management

responsibilityresponsibility the creative department the creative department is responsible is responsible

for creating and producing the print and for creating and producing the print and broadcast advertisingbroadcast advertising

good creative work good creative work is always guided is always guided by aby a creative strategy creative strategy that sets forththat sets forth goals to be accomplishedgoals to be accomplished and and key key message points message points to be relayedto be relayed

the creative department the creative department is responsible is responsible for creating and producing the print and for creating and producing the print and broadcast advertisingbroadcast advertising

good creative work good creative work is always guided is always guided by aby a creative strategy creative strategy that sets forththat sets forth goals to be accomplishedgoals to be accomplished and and key key message points message points to be relayedto be relayed

creative departmentcreative departmentcreative departmentcreative department

creative departmentcreative department

executive & group creative executive & group creative directors directors

creative directorcreative director associate creative directorassociate creative director copywriterscopywriters art directorsart directors broadcast producersbroadcast producers print production managersprint production managers traffic coordinatorstraffic coordinatorsPrint

Traffic

ProductionBroadcast

Production

Copy Spvr. &Copywriters

Art Supervisor& Art Directors

CreativeGroup:

AssociateCreative

Director (ACD)

CreativeDirector (CD)

ExecutiveCreative

Director (ECD)

StrategyReviewBoard

media departmentmedia department

PlanningPlanningPlan media schedulePlan media schedule

BuyingBuyingExecute media planExecute media plan

PlanningPlanningPlan media schedulePlan media schedule

BuyingBuyingExecute media planExecute media plan

media directormedia director

associate media directorsassociate media directors

media supervisorsmedia supervisors

media plannersmedia planners

media buyersmedia buyers

media analystsmedia analysts

Analysts

MediaPlanner

MediaBuyer

MediaSupervisor

AssociateMedia

Director

MediaDirector

MediaMediaPlanPlan

media departmentmedia departmentmedia departmentmedia department

mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers

agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units

many large clients now look at many large clients now look at media as amedia as a separate serviceseparate service

mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers

agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units

many large clients now look at many large clients now look at media as amedia as a separate serviceseparate service

big changes in thebig changes in thebig changes in thebig changes in themedia departmentmedia departmentmedia departmentmedia department

research departmentresearch departmentresearch departmentresearch department Strategic planningStrategic planningConsumer researchConsumer researchHow does consumer interact with brand?How does consumer interact with brand?How does brand fit into consumer lifestyle?How does brand fit into consumer lifestyle?Pretest and posttestsPretest and posttests

ResearchResearchReportReport

research directorresearch director research project managersresearch project managers research assistantsresearch assistants outside research outside research

specialistsspecialists

research departmentresearch departmentresearch departmentresearch department

ResearchSuppliers

Outside

ResearchAssistants

ProjectManagers

ResearchDirector

ResearchResearchReportReport

Full-service advertising agency

AdvantagesAdvantages In-depth knowledge and In-depth knowledge and

skillsskills Obtaining negotiating Obtaining negotiating

muscle with the mediamuscle with the media Coordinating advertising Coordinating advertising

and marketing effortsand marketing efforts

DisadvantagesDisadvantages Some control is lostSome control is lost Larger clients are favored Larger clients are favored

over small clientsover small clients Occasionally inefficient in Occasionally inefficient in

media buyingmedia buying

Poorperformance

Poorcommunications

Unrealisticdemands

Personnelchanges

Changesin size

Conflict ofinterests

Changesin strategy

Decliningsales

Paymentconflicts

Policychanges

Poorperformance

Poorcommunications

Unrealisticdemands

Personnelchanges

Changesin size

Conflict ofinterests

Changesin strategy

Decliningsales

Paymentconflicts

Why Agencies Lose ClientsWhy Agencies Lose Clients

ReferralsReferrals

How Agencies Gain ClientsHow Agencies Gain Clients

SolicitationsSolicitations

PresentationsPresentations

Public RelationsPublic Relations Image, ReputationImage, Reputation

What Makes Effective Advertising?What Makes Effective Advertising?

Sound &

other

Creative

strategies

Consumer’s

View Persuasive

Doesn’t

Overwhelm

Deliver on

Promises

Break

Clutter

Effective

Advertising

Selecting an agencySelecting an agency

What is their attitude to What is their attitude to costs? Will they save us costs? Will they save us money?money?

How will they relate to our How will they relate to our media buying media buying agency/other specialists?agency/other specialists?

How important to them How important to them will our account be? Will will our account be? Will we be one of their larger we be one of their larger accounts, or simply a accounts, or simply a small fish in a very large small fish in a very large pool?pool?

Will they fit with our ways Will they fit with our ways of working? Are they of working? Are they willing and able to be willing and able to be business partners, or will business partners, or will they simply be suppliers? they simply be suppliers? (This depends – of (This depends – of course – on how we see course – on how we see our own style of dealing our own style of dealing with agencies)with agencies)

Paying the AgencyPaying the Agency

Commission systemCommission systemFees goalsFees goals

agency commissionsagency commissions

Rebates offered by media advertising Rebates offered by media advertising agencies (15%)agencies (15%)

Commission SystemCommission System

Agency creates commercial for Agency creates commercial for advertiseradvertiser

Agency contacts TV station for air timeAgency contacts TV station for air timeTV station bills ad agencyTV station bills ad agency

Cost of air time $ 10,000Cost of air time $ 10,000Less 15% Less 15% (1,500)(1,500)Due Due $ 8,500 $ 8,500

Agency bills advertiser $10,000Agency bills advertiser $10,000

Fee-based CompensationFee-based Compensation

fi May vary according to departments fi May vary according to departments or levels of salaryor levels of salary

Or flat hourly rateOr flat hourly rate Charges for out-of-pocket expenses, Charges for out-of-pocket expenses,

travel, etc.travel, etc. Media charges are net of Media charges are net of

commissions xed fee (retainer)commissions xed fee (retainer) cost-plus feecost-plus fee performance feeperformance fee commissioncommission

incentivesincentives

in theory, a good way to workin theory, a good way to work get paid based on how well you do, not how get paid based on how well you do, not how

much you billmuch you bill in practice, difficult to implementin practice, difficult to implement if client makes final decision (instead of if client makes final decision (instead of

agency), how can agency be responsible for agency), how can agency be responsible for final results?final results?

results based on many factors, such as results based on many factors, such as competitive efforts, not just advertisingcompetitive efforts, not just advertising

new businessnew business

three primary sourcesthree primary sources build existing client’s businessbuild existing client’s business add and sell new IMC servicesadd and sell new IMC services solicit new accountssolicit new accounts

two ongoing problemstwo ongoing problems “ “spec” workspec” work teams “walking” with accountsteams “walking” with accounts

““The critical objective and role of any ad The critical objective and role of any ad

agency is gaining new businessagency is gaining new business.”.”““The critical objective and role of any ad The critical objective and role of any ad

agency is gaining new businessagency is gaining new business.”.”

AssignmentAssignment

why might you be interested in going into why might you be interested in going into the agency business?the agency business?

what might keep you from choosing a what might keep you from choosing a career in the agency business? career in the agency business?