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Every organization broadcast their products or services through the medium of advertising agency. In this lesson, students will study about how advertising agencies assist marketers by providing the correct medium of broadcasting their ad.
What is an advertising agency , types of agency - Basics of advertising
An advertising agency or ad agency or advert agency is a service
based business dedicated to creating, planning, and
handling advertising (and sometimes other forms of promotion) for its
An ad agency is independent from the client and provides an outside
point of view to the effort of selling the client's products or services.
An agency can also handle overall marketing and branding strategies
and sales promotions for its clients.
FUNCTIONS OF ADVERTISING
RESEARCH TARGET MARKET AND ENVIRONMENT FOR THE
ADVERTISING PRODUCTION-PRINT AND BROADCAST
MEDIA PLANNING AND BUYING
MEET TARGET DATES ON CAMPAIGNS
ESTABLISH STRONG RELATIONSHIP WITH CLIENT
Agency Organization Chart
Copy S pvr. &
Art S upervisor
& Art Directors
liaison between agency and client
responsible for understanding...
the client’s business
the client’s marketing needs
representing client point of view within the agency
The creative department is responsible for creating and producing
the print and broadcast advertising
strategy is key
Good creative work is always guided by a creative strategy that
sets forth goals to be accomplished and key message points to be
executive & group creative directors
associate creative director
print production managers
Copy Spvr. &
& Art Directors
The media department has two main functions - planning and buying.
The planning group handles more strategic marketing and media
The buying group handles media negotiations and implementation.
associate media directors
mega-agency media departments have now become profit centers
agencies have set up their media departments as free-standing units
many large clients now look at media as a separate service
Big changes in the media department
interpret market environment
gather and analyze research data.
primary and secondary techniques
determine consumer needs/perceptions
advise how ads can meet strategic goals
help find solutions
research project managers
outside research specialists
3 ways agencies make money
usually 15% of gross costs
usually based on negotiated hourly rate
still relatively new and problematic
usually based on performance goals
Media commission system
15% media commission
Adjustable commission rates
negotiate to match client budget
Markups-production & service
add a percentage markup to costs
17.65% of net = 15% of gross
In the theory, a good way to work
Get paid based on how well you do, not how much you bill
In practice, difficult to implement
If client makes final decision (instead of agency), how can agency be
responsible for final results?
Results based on many factors, such as competitive efforts, not just
Three primary sources
build existing client’s business
add and sell new IMC services
solicit new accounts
Two ongoing problems
teams “walking” with accounts
Types of Ad Agency
Full service agencies
In-house advertising agencies
Search engine agencies
Social media agencies
Healthcare communications agencies
Medical education agencies