1. ADVERTISING AGENCY AND ITS
FUNCTIONS
BY:
HARSHITA TANDON

2. Advertising Agency
• Firm that
• (1) creates new promotional ideas,
• (2) designs print, radio, television, and internet
advertisements,
• (3) books advertisement space and time,
• (4) plans and conducts advertising campaigns,
• (5) commissions research and surveys, and
• (6) provides other such services that help a client in entering
and succeeding in a chosen market.

3. • An advertising agency or ad agency is a
service business dedicated to creating, planning and
handling advertising (and sometimes other forms
of promotion) for its clients.
• An Advertising Agency or ad agency is a service provider that
works for clients to create an effective and goal oriented
advertising campaign aimed at representing the Company
positively in the eyes of its target customers.

4. • According to American Association of Advertising “An
advertising agency is an independent organization of creative
people and business people who specialize in developing and
preparing market plans, advertisements, and other
promotional tools”.

5. Primary services of Advertising
agencies
• 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

6. Types of Advertising Agencies
• Full Service Agencies
• A full service ad agency is one that provides a range of
marketing services. A full services agency provides services
that are directly related to advertising such as copywriting,
artwork, production of ads, media planning etc. It also
provides such services in respect of pricing, distribution,
packaging, product design etc

7. Modular Agencies
• A modular agency is a full service agency that sells its services
on a piece meal basis. Thus an advertiser may commission an
agency’s creative department to develop an ad campaign
while obtaining other agency services elsewhere.
• Or, an advertiser may hire an agencies media department to
plan and execute a program for advertising that another
agency has developed. Fees are charged for actual work
undertaken.

8. In House Agencies
• Those companies, which prefer to have closer control over
advertising, have their own in-house agency. This type is
owned completely by the advertiser.
• It performs almost all functions that an outside advertising
agency would perform and that’s why some people refer to it
as full-service advertising department of the advertiser.

9. • The difference between an in-house agency and an
advertising department is that the in-house agency can
undertake to serve several other clients, if the owner so
desires, but an advertising department solely undertakes that
work of its owner and not of outside clients.

10. Specialist Advertising Agencies
• There are some agencies who undertake advertising work
only in certain areas. There are agencies that specialize only in
financial services or only in publicity or only in point-of-
purchase material etc.

11. Creative Boutiques
• These are shop agencies that provides only creative functions
and not full-service. The specialized creative functions include
copy writing, artwork and production of ads, they charge a fee
or percentage of full service agencies, and as such most of
them convert into a full service agency or merge with other
agencies to provide a wide range of services.

12. Benefits of using an Advertising
Agency
• 1. They have the ability to buy media in bulk at rates that a
single business cannot obtain.
2. They are educated as to the best times and places to run
ads to reach your target market, ultimately minimizing
wastage
3. They can help you fine tune your target market so that the
message is designed to reach those you want to reach.
4. Easily Administered

13. Disadvantages of using an Advertising
Agency
• A main disadvantage of using an advertising agency would be
the communication factor. If an agency does not communicate
or relay it's clients goals and creative wishes properly
problems can occur within a contract and lawyers may have to
become involved.
• Another disadvantage would be the media buying discounts
you may not be able to take full advantage of due to
commission barriers within an agency,

14. Role of Advertising Agencies
• Advertising agency is a service provider that helps its clients
by developing suitable ad campaigns for them.
• Their aim is to represent its clients' products and services
before customers in such a way that a positive image is
created in their minds.
• Advertising agency's role start with the identification of its
clients' goals and objectives.
• This turns out to be of immense value in planning and
creating the future course of action concerning ad campaigns.

15. • · For whom is the product or service designed?
• · Who would use it?
• · Who is the "target group"?
• · What's special about the product? In what way is it distinct?
• Unique? Different?
• · What's its "position" in relation to other similar products?
• · What do you want to convey to the public about your
product?
• · How should your company contact the public?
• · What medium should it use? Radio? TV? Newspapers?
Magazines?
Bus/subway ads? Direct mail? etc.

16. • Once an advertising agency gets acquainted with its clients'
business objectives, it starts creating and planning its ad
campaigns.
• For this it keeps in mind certain points such as increasing
sales, pushing new products in the market, restating benefits
of its clients' brands, and drawing new customers in addition
to establishing and maintaining contacts with their existing
customers.
• An advertising agency's professional teams put in their best
efforts to develop attractive slogans, jingles, and body copy
for ads. All this is done within the defined parameters of its
clients and their budgetary allocations.

17. Functions of Advertising Agencies
• Account Planning
• Advertising agencies typically have account planners who
work as the go-between for the client and the agent. They
ensure that client needs are expressed to the research and
creative teams.
• They also work to ensure that necessary information is
transferred to the client regarding creative, research,
competition or any of other factor that may somehow affect
how the client's product gets marketed to consumers.
Account planning is where agencies start their initial
interaction with clients.

18. • Marketing Research
• Advertising agencies work with companies to establish the
characteristics of their target markets through marketing
research.
• Advertising agencies spend a substantial amount of time
researching consumers to understand what they buy and
what motivates them to buy.

19. • Market Research
• Knowing the competition, account managers at advertising
agencies research the environment, identify competitors, and
research their marketing tactics.
• Through market research, advertising agencies also identify
political, social, technological and economic factors that may
affect a client's campaign.

20. • Creative
• Advertising agencies are known for their creative output,
which can include website design, advertising copy, magazine
advertisements, and radio and television commercials.
• The medium of advertising often varies by campaign. Graphic
designers, web designers, writers, editors and creative
directors make up an advertising agency's creative
department.

21. • Selling Advertising Space
• Advertising agencies don't just create advertising pieces for
clients; they also give clients insight as to which media will be
most effective for their product, service, event or cause.
• In the process, they work to secure advertising placements
for customers either online, in print, on television or on the
radio. They negotiate terms and work to get clients the best
deals to maximize their money and their reach.

22. Examples of Top Advertising Agencies
• Ogilvy & Mather- Hutch (Vodafone), Cadbury, Asian Paints
and Fevicol.
• JWT, J Walter Thompson- Nestle, Bayer, Ford, Nokia and
Unilever.
• Mudra Communication-Neutrogena, HBO, Philips, Reliance
NetConnect, Big Bazaar.
• FCB Ulka Advertising Ltd-Tata Indicom, Whirlpool, Zee
Cinema, Santoor, Sunfeast and Amul.
• Grey Worldwide (I) Pvt. Ltd- Hero Honda, Maruti Suzuki,
Nestle, Ambuja Cement, UTV, P&G and Godrej.

23. Thank You