COURSE MATERIAL

Program : BBA INDUSTRY INTEGRATED Semester :V

Course : ADVERTISING Course Code : B18BB5312
Unit. No. :4
Unit Title : ORGANIZATIONAL ARRANGEMENTS
Course Presenter: PROF. ABHISHEK DUTTAGUPTA
Course Mentor: PROF. JOHN PRAVIN & PROF. RAGHAVENDRA KUMAR SINGH
ADVERTISING AGENCY
The American Association of Advertising Agency (AAAA) defines an advertising agency as
“An Independent Organization Of Creative People And Business People Who Specialize In
Developing And Preparing Advertising Plans, Advertisements And Other Promotional
Tools.”

ROLE OF ADVERTISING AGENCY

1- Attracting clients
Advertising agency needs clients (advertisers). Without them, it cannot survive.
2- Account Management
Within an advertising agency the account manager or account executive is tasked with
handling all major decisions related to a specific client.
The account manager works closely with the client to develop an advertising strategy.
3- Creative Team
The principle role of account managers is to manage the overall advertising campaign for a
client, which often includes delegating selective tasks to specialists.
Advertising agency put the advertising-plan into action under its creative function. Creation
of ads is the most important function of an ad agency. Generally, it involves activities like:
Copy writing, Drawing photographs, Making illustrations, layouts, an effective ad message,
etc.
These jobs are done by experts like copy writers, artists, designers, etc. These people are
highly skilled and creative. They make an advertisement more appealing. Attractive ads help
to increase the sales of the product.
4- Researchers
Full-service advertising agencies employ market researchers who assess a client’s market
situation, including understanding customers and competitors, and also are used to test
creative ideas.
Advertising agency gathers information related to the client's product. It collects following
information about a product under its research function:
Features, quality, advantages and limitations of a product, Present and future market
possibilities, Competition in the market, Situation in the market, Distribution methods,
Buyers' preferences, so on
Ad agency analyses (studies) all this collected information properly and draws conclusions
for its research. It helps in planning an advertising campaign, selecting proper media and
creation function.
5- Media Planners
Advertising agency helps an advertiser to select a proper media (ad platform) to promote his
advertisement effectively.
Media selection is a highly specialized function of an ad agency. It must select the most
suitable media for its client's ad.
Advertising agency plans the entire ad campaign of its client. Advertising planning is a
primary function of an ad agency. It is done when its research function is completed. That is,
after analyzing the client's product, its competitors, market conditions, etc. It is done by
experts who use their professional experience to make a result-oriented advertising-plan.
Once an advertisement is created, it must be placed through an appropriate advertising media.
Each advertising media, of which there are thousands, has its own unique methods for
accepting advertisements, such as different advertising cost structures (i.e., what it costs
marketers to place an ad), different requirements for accepting ad designs (e.g., size of ad),
different ways placements can be purchased (e.g., direct contact with media or through third-
party seller), and different time schedules (i.e., when ad will be run). Understanding the
nuances of different media is the role of a media planner, who looks for the best media match
for a client and also negotiates the best deals.
6- Advertising budget
Advertising agency helps an advertiser to prepare his ad budget. It helps him to use his
budget economically and make the best use of it.

Without a proper advertising budget, there is a risk of client's funds getting wasted or lost.
7- Coordination
Advertising agency brings a good coordination between the advertiser, itself, media and
distributors.
8- Sales promotion
Advertising agency performs sales promotion. It helps an advertiser to introduce sales
promotion measures for the dealers and consumers. This helps to increase the sales of the
product.
9- Public relations
Advertising agency does the public relations (PR) work for its clients. It increases the
goodwill between its clients and other parties like consumers, employees, middlemen,
shareholders, etc. It also maintains good relations between the client and media owner.
10- Non-advertising functions
Advertising agency also performs many non-advertising functions:
It fixes the prices of the product, It determines the discounts, It designs the product, It also
designs its package, trademarks, labels, etc.

TYPES OF ADVERTISING AGENCY

Full-Service Ad Agency
A full-service advertising agency offers a comprehensive range of services that address both
the traditional and digital marketing aspects of a business. Full-service ad agencies are made
up of a team of experts, and they’re a one-stop shop of services:

Ad Campaigns
Strategic Planning
TV Ads
Social Media Management
Content Creation
Web Development
Radio Commercials
SEO
Graphic Design
Lead Nurturing
When to use: A full-service ad agency is appropriate if your business needs the full-stack of
marketing. They’ll be able to deliver results through a TV ad as well as a social media
campaign. Because their marketing activities are so comprehensive, you’ll also want an
internal hire who can devote a lot of their time to working with this agency.

Traditional Ad Agency
Traditional ad agencies primarily work with traditional forms of media, such as newspapers,
television commercials, radio, and print.

When to use: Traditional ad agencies are best suited towards companies who are trying to
reach a local audience. A strategic direct mail campaign for a local restaurant or a billboard
promoting the opening day of a new museum can be an effective use of traditional forms of
media.

Digital Ad Agency
A digital advertising agency specializes in all things online. They probably have familiarity
with traditional media, but their primary focus lies in the digital sphere, including:

Search Engine Optimization (SEO)

Social Media Marketing
Website Design and Development
Lead Generation
Email Marketing
Account Based Marketing
Marketing Automation
When to use: Digital ad agencies are the best fit for companies trying to reach a very specific
audience because digital marketing platforms allows for advanced targeting capabilities and
wide reach. Digital ad agencies are also a good fit for companies looking to improve their
online presence and generate more leads through their website. Digital marketing agencies
tend to have a mix of graphic designers, web developers, copywriters, ad specialists,
photographers, and videographers.
Social Media Ad Agency
Social media ad agencies focus on one thing and one thing only: social media. They are a
team of content creators and ad optimizers that will max out your social channels. They may
focus on many social channels or be experts in a single channel, such as LinkedIn. Because of
recent social media algorithm changes that resulted in a drop-off in organic reach, expect
social media ad agencies need to charge a budget for ad spend.

When to use: Social media agencies are a good fit for companies who are looking to
accomplish a single goal, such as selling skateboards, through social media platforms. These
marketing agencies usually have a creative team, a content team, and might even have
photographers and videographers.

Public Relations Ad Agency

Public relations, or PR, agencies serve to improve and manage the public image of a
company and its employees. PR agencies are often used for enterprise-level companies and
CEOs, focusing on getting the company or the CEO featured in the news, on industry
websites, and in the community.

When to use: PR agencies are best for organizations looking to improve the public’s
awareness of the brand or their public image. PR agencies are especially important for brands
that are frequently in the public view because they help manage the public’s impression of
the organization or its leader.

Branding Ad Agency
Branding agencies specialize in, you guessed it, branding. They’ll usually conduct thorough
market research to better understand the competitive landscape and offer a range of services
that include logo design, brand name development, creative identities, and signage.

When to use: A branding agency is best if you are considering or planning an organizational
rebrand, or are interested in seeing how your current brand is perceived in the market.

Creative Ad Agency
Creative agencies focus on the design and graphics of a brand, but outsource the strategy and
execution to other marketing partners. They usually excel in logo design, print marketing,
letterheads, billboards, and business cards.

When to use: These types of agencies are well suited for organizations who need to create a
cohesive look and feel of their brand or who need to create some new marketing collateral.

Media Buying Ad Agency

Media buying ad agencies focus on media planning and media buying, and they usually tailor
their services to a specific channel. They identify a time frame, recommend a budget, and
establish markets for reaching the target audience.

When to use: Media buying agencies are great for organizations looking to only use a single
channel. These agencies may have a creative team in-house, but they are typically most
effective when paired with a creative ad agency.

SELECTION OF ADVERTISING AGENCY

1. Planning techniques:
Do they know how to plan a Glossary Link campaign effectively? For example, do they
provide an effective time-line for developing a campaign? Do they consider alternative
strategies? Do they have contingency plans? Did they plan this meeting effectively? Much
evidence exists that formal planning techniques will improve the performance of an
organization. Are they aware of this research and of the recommended procedures? ( 9%)
2. Objectives:
Do they focus on your primary objectives? Do they know how to assess the effectiveness of
advertising so as to be able to determine whether the advertising is meeting these objectives?
Can they tell whether the advertising is providing a good ROI? What are the measurable
outcomes and what level of success might be expected on each? Will they provide any
guarantees on the success of the campaign? Is their own compensation tied into your success?
( 11%)
3. Target market research:
If it is necessary to obtain additional information about the target market, do they know how
to design and evaluate such studies so that they will relate effectively to the advertising
campaign? Do they know how to effectively use survey research methods? An examination
of one of their prior reports might be useful here. Are they aware of the research in this area?
[One way to assess this would be to compare one of their target market research reports with
the research-based advice provided by Dillman, 1978]. ( 9%)
4. Persuasion research:
Are they familiar with the extensive research findings on how to persuade people? If yes,
how do they ensure that this research is brought to bear on the advertising campaign? Do they
have good grounds for violating this research (for example, research on the specific product
may show that it is an exception from the general principles.) ( 4%)
5. Creativity techniques:
What techniques and procedures do they use to enhance creativity? For example, when they
say that they used brainstorming, does this merely mean that a group of people sat around and
tossed out ideas, or does it mean that they actually followed a highly structured brainstorming
procedure? Whereas clients may not be able to judge the level of creativity of a proposal,
they should be able to judge whether the procedures seem to be useful, so they should ask the
agencies to explain these procedures. It is difficult to predict whether a group will come up
with another creative idea just because they came up with a creative idea for the proposal.
Worse yet, it is difficult to judge the creativity of a given idea. But much evidence exists to
show that structured creativity techniques are superior to unstructured group processes.( 16%)
6. Copy alternatives:
What Glossary Link copy alternatives would they consider and why? If they base this on the
“big idea,” what alternative “big ideas” were considered. And why was this big idea selected?
( 9%)
7. Copy testing:
What procedures would they recommend to test and select the most effective of their copy
alternatives? ( 7%)
8. Media alternatives:
What media alternatives would they consider and why? ( 9%)
9. Media testing:
How would they determine the optimal amount to spend on an advertising campaign? What
procedures would they recommend to select the most effective media? Do they focus on the
objectives? For example, how would they calculate ROI by media? (7%)

10. Capabilities of the team:

What are the capabilities of the people who will be working on the proposed account? Do
they have any conflicts of interest? Do they have a complete list of clients served so that
failed as well as successful relationships might be examined? ( 15%)

11. Taste/legal/ethical guidelines:

What procedures does the agency take to protect your company from causing offense to
interest groups, from boycotts, or from legal or ethical consequences? For example, do they
have a formal review board that has legal expertise and that recognizes the interests of groups
that might be affected? Do they have a written code of ethics that they formally apply to each
campaign? ( 4%)

RECENT ISSUES IN ADVERTISING

Rapid Growth
The digital landscape just keeps growing. If you look at the web alone, the number of
websites is proliferating at a rapid rate. Trying to decide where to advertise can require
extensive research and hours of work. You have to find new sites, evaluate them, and develop
strategies for them. The Internet is no longer the only digital game in town. We’re seeing the
growth of personal devices like home assistants, smart watches, smart glasses, and even
virtual reality. Figuring out all the new avenues for advertising and how to make the most of
them can take up extensive time and resources.
Reduced Exposure
Social media was a gift to businesses. It allowed them to reach millions of potential
customers for FREE. Not so much anymore. The social giants have gotten savvier about what
they are doing for businesses on their sites. They’ve stopped giving away the milk for free.
Brands can’t even expect their posts to be seen by the people that follow their page. Facebook
has locked down the reach of the posts unless brands pay to promote them. And, sure, brands
have other social networks they can use to reach audiences, but no other network has the
same audience or the same potential for engagement.

Increasing Costs
Brands are expected to increase their digital ad spend this year. Part of the reason is that they
are putting more money in more places, but part of the reason is that the cost of ads is going
up. Webmasters know what they have. They know how much their traffic is worth. They
know how valuable their social media influence is. Smaller brands looking to make a splash
will have to get major capital. Or so it seems.

Elusive Audiences
Today’s consumers are more stretched than ever. They don’t have as much disposable
income as the generation before them, yet they work more than ever and have more demands
on their time. The Internet is a 24/7 assault on their senses and is trying to grab their limited
attention in every direction it can. Most people don’t have the time to read an online article,
let alone watch a brand’s video ad. Brands are fighting to capture their audience’s attention,
as well as to engage them. Segmentation has helped brands reach more of their audience.
Instead of creating ads for the general audience, which is quite large, brands are focusing on
creating ads for smaller segments of that audience. The ads are tweaked according to the
specific needs of the individuals based on the research that the brand uncovers. Greater
targeting options from publishers also help (Facebook leads here), as do the use of intent-
based signals (Google leads here). Brands are better able to learn what their audiences want
or need, and they are better able to target their ads so that they appear only to the people who
are going to be most interested in what’s being sold.