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FEDERAL UNIVERSITY LOKOJA

FACULTY OF SOCIAL SCIENCES


DEPARTMENT OF MASS COMMUNICATION

COURSE CODE: MCM 415


COURSE TITLE: ORGANIZATION AND MANAGEMENT OF ADVERTISING
AGENCIES

DISCUSS THE ORGANIZATION AND MANAGEMENT OF ADVERTISING AGENCY

AS A TEAM WORK.

BY
GODWIN OLORUNMAYE
SOS19MSC040

SUBMITTED TO
DR. CHRIS

MARCH, 2024

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INTRODUCTION

The organization and management of advertising agencies are pivotal to their effectiveness and

success in delivering impactful campaigns for clients. As specialized firms tasked with creating,

planning, and executing advertising strategies, these agencies must navigate a complex landscape

of client demands, industry trends, and creative challenges. Scholars in the field have extensively

studied the organizational structures and management practices of advertising agencies,

highlighting the importance of strategic alignment, client-centric approaches, and innovation.

According to Ogbari et al. (2016), the structure of advertising agencies should facilitate seamless

collaboration among departments while allowing for flexibility and adaptability in response to

client needs and market dynamics. In Nigeria, where the advertising industry is rapidly evolving,

agencies must navigate unique challenges such as cultural diversity, regulatory constraints, and

emerging digital trends. For instance, the rise of social media platforms like Instagram and

Twitter has transformed how brands engage with Nigerian consumers, prompting agencies to

incorporate digital expertise into their service offerings (Ismail, 2019).

Effective management practices within advertising agencies are also crucial for ensuring the

successful execution of campaigns. Okorie (2018) emphasize the need for strong leadership,

clear communication channels, and robust project management frameworks. In Nigeria, agencies

must navigate logistical challenges such as infrastructure limitations and bureaucratic hurdles,

which can impact the efficiency of campaign delivery. Despite these challenges, agencies like

Insight Communications have demonstrated resilience and innovation in their approach to client

service, earning recognition for their award-winning campaigns and strategic insights

(Africbrand, 2020).

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In this paper, we will delve into the organizational structures, management processes, and key

considerations that shape the operations of advertising agencies in Nigeria. By examining real-

world examples and drawing on insights from scholarly research, we aim to provide a

comprehensive understanding of how these agencies navigate the dynamic landscape of the

Nigerian advertising industry. Through this analysis, we will highlight best practices, emerging

trends, and areas for future research and innovation in the field of advertising agency

management in Nigeria.

ORGANIZATION STRUCTURE OF ADVERTISING AGENCIES

Here's an extensive discussion on the organization and management of an advertising agency

1. LEADERSHIP AND TOP MANAGEMENT

The leadership and top management of an advertising agency play a critical role in shaping the

agency's vision, strategy, and overall success. This hierarchical structure is essential for effective

decision-making, goal setting, and ensuring that the agency operates cohesively to meet client

needs. Let's explore the roles and responsibilities of key leadership positions:

CEO/President: Strategic Direction: The CEO or President serves as the visionary leader,

setting the agency's long-term strategic direction. This involves identifying market trends,

potential opportunities, and areas for growth. Decision-Making: Ultimate decision-making

authority rests with the CEO, who must make critical choices on resource allocation, major

campaigns, and partnerships. Client Relationships: The CEO often plays a key role in

maintaining relationships with high-profile clients, ensuring client satisfaction, and identifying

new business opportunities. In Nigeria, the CEO of an advertising agency, such as Troyka

Holdings, takes a central role in guiding the company's diverse portfolio, which includes Insight

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Communications. The CEO is instrumental in steering the agency's strategies in response to the

dynamic Nigerian market.

Executive Team: Finance Department: Led by a Chief Financial Officer (CFO), this department

manages the agency's financial health, budgeting, and financial reporting. It ensures that

resources are allocated efficiently and that the agency remains financially sustainable. Operations

Department: Overseen by a Chief Operating Officer (COO), the operations department is

responsible for the day-to-day functioning of the agency. This includes managing workflows,

optimizing processes, and ensuring operational efficiency. Creative Department: Headed by a

Chief Creative Officer (CCO), this team is at the core of the agency's offerings. The CCO

oversees the development of creative concepts, ensuring that campaigns align with the client's

objectives and resonate with the target audience. In Nigeria, the Executive Team of an

advertising agency like Noah's Ark Communications includes leaders with diverse expertise. The

CFO manages financial aspects, the COO ensures smooth operations, and the CCO drives

creative excellence.

2. DEPARTMENTS AND TEAMS

Account Management: Builds and maintains client relationships, acts as a liaison between

clients and agency teams.

Creative Department: Consists of copywriters, art directors, graphic designers, and creative

directors responsible for developing ad concepts.

Media Planning and Buying: Strategizes and executes media placement to maximize reach and

impact. Advertising agencies have expertise in media planning and buying. They research and

analyse the most suitable media channels to reach the client's target demographic, negotiate

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advertising space or airtime, and optimize the budget for maximum exposure. This involves

selecting the right mix of media, such as TV, radio, digital, outdoor, and print, and determining

the timing and frequency of ad placements to achieve the client's goals. (Rogers, 2022).

Research and Analytics: Conducts market research, analyzes data, and provides insights to

inform advertising strategies. Market research is a fundamental activity for advertising agencies,

enabling them to gather and analyse data to make informed decisions and create effective

marketing strategies for their clients. Market research involves gathering and analysing data to

understand consumer preferences, market trends, and competition. For example, an advertising

agency may conduct market research to determine the demand for a new locally-produced energy

drink. They could gather data on consumer preferences, pricing, and distribution channels.

Production and Operations: Manages the execution and production of ad campaigns, including

coordination with vendors and suppliers.

Digital and social media: Specialized team focusing on online and social media platforms.

Public Relations (PR): Manages the agency's image and relations with the media.

3. PROJECT TEAMS

Project teams consist of individuals with varied skills, spanning creative, strategic, technical, and

operational domains. A mix of talents ensures a holistic approach to campaign development,

addressing different facets of the advertising process. In the area of advertising agencies, project

teams serve as the driving force behind the successful execution of campaigns. These teams,

often structured as cross-functional units, bring together individuals with diverse skill sets and

expertise to tackle specific client projects. Project teams are typically composed of members

from various departments within the agency, including account management, creative, media

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planning, digital marketing, and production. Project teams are formed for the duration of a

specific campaign or project, after which they may disband or be reassigned to new projects.

MANAGEMENT PROCESSES IN ADVERTISING AGENCIES

Client Onboarding and Briefing

Client onboarding and briefing are pivotal stages in the client-agency relationship, setting the

foundation for successful collaboration throughout the advertising process. These stages involve

gaining a deep understanding of the client's business, goals, and target audience, coupled with

transparent communication of expectations, timelines, and budget constraints. For example,

when Union Bank sought to reposition its brand to appeal to a younger demographic, the

advertising agency X3M Ideas conducted extensive research on the banking industry, Union

Bank's history, and the preferences of the target audience. This deep understanding informed the

"Simpler, Smarter Banking" campaign, which successfully communicated the bank's

commitment to innovation and customer-centric services. Also, When Airtel Nigeria aimed to

launch a new data package targeting the youth market, Noah's Ark Communications engaged in

transparent communication regarding campaign expectations, timelines, and budget constraints.

The agency provided a detailed budget breakdown, outlining costs for creative development,

media placement, and production. This transparent approach facilitated a collaborative

understanding and contributed to the successful launch of the "Data is Life" campaign. Client

onboarding and briefing are foundational steps in the advertising process, shaping the trajectory

of successful campaigns. Agencies that invest time and effort in understanding their clients'

businesses and maintaining transparent communication on expectations, timelines, and budget

constraints are better positioned to deliver campaigns that not only meet but exceed client

expectations.

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Strategic Planning in Advertising Agencies

Strategic planning is a cornerstone of the advertising process, guiding agencies in developing

comprehensive and effective campaigns that align with client objectives. This multifaceted

process involves in-depth research, analysis, and the formulation of a strategic roadmap to

achieve the desired outcomes. When Nike launched its "Dream Crazy" campaign featuring Colin

Kaepernick, it exemplified strategic planning at its finest. The campaign aligned with Nike's

commitment to social justice and resonated with its target audience, sparking conversations and

garnering significant attention. This example showcases how strategic planning can leverage

social and cultural currents to create impactful and memorable campaigns. Strategic planning is

the compass that guides advertising agencies in navigating the complex landscape of client

expectations, market dynamics, and industry trends. By meticulously analyzing data,

understanding client objectives, and crafting unique strategies, agencies can develop campaigns

that not only capture attention but also drive meaningful results. The continuous evolution of

consumer behavior and technological advancements reinforces the importance of strategic

planning as an ongoing and adaptive process within the advertising industry.

Creative Development

Creative development in advertising agencies involves a dynamic process of ideation,

collaboration, and refinement to bring campaigns to life. Teams engage in collaborative

brainstorming sessions to generate innovative ideas and concepts for campaigns. Ideas undergo

iterative refinement based on client feedback and internal reviews, ensuring alignment with

objectives and audience preferences. Once the concept is polished, it undergoes final approval

from the client before proceeding to production. This streamlined approach ensures that

campaigns are not only creative but also effective in achieving client goals.

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Media Planning and Buying

Media planning and buying are integral components of advertising strategies, focused on

reaching and engaging the target audience effectively. Advertising agencies have expertise in

media planning and buying. They research and analyze the most suitable media channels to reach

the client's target demographic, negotiate advertising space or airtime, and optimize the budget

for maximum exposure. This involves selecting the right mix of media, such as TV, radio, digital,

outdoor, and print, and determining the timing and frequency of ad placements to achieve the

client's goals. (Rogers, 2022). This is a critical service provided by advertising agencies to ensure

that a brand's message reaches its target audience through the most effective and cost-efficient

media channels. This process involves a comprehensive strategy to determine where and when to

advertise and how to purchase advertising space.

Execution and Production

Belch and Belch (2021), execution involves the implementation of the creative strategy across

different media and channels. Execution and production in advertising involve the actual

implementation of creative concepts, bringing campaigns to life. This comprehensive process

encompasses various stages from design to delivery, and it plays a crucial role in the success of

an advertising campaign. Once the creative concept receives final approval, it moves into the

implementation phase. Design elements, such as visuals, copy, and multimedia components, are

translated into tangible materials for different media channels. The "Closeup Cool Breeze"

campaign by Unilever exemplifies effective execution and production. The campaign, aimed at

promoting a new toothpaste variant, involved producing visually appealing TV commercials,

print materials, and digital content. The cohesive execution across multiple channels contributed

to the campaign's success in capturing the target audience's attention. Execution and production

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are the tangible realization of creative ideas in the advertising industry. From traditional print and

broadcast to the dynamic digital landscape, effective execution ensures that campaigns resonate

with the audience and achieve their intended impact.

Monitoring and analytics

Monitoring and analytics in advertising represent the crucial steps of tracking campaign

performance and leveraging data insights for strategic adjustments. This data-driven approach

ensures campaigns remain dynamic and effective throughout their lifecycle. Amazon's approach

to monitoring and analytics is noteworthy. The e-commerce giant utilizes data analytics

extensively to track user behavior, optimize product recommendations, and enhance the

efficiency of its advertising platforms. This data-driven approach contributes to Amazon's ability

to provide a personalized and seamless customer experience. Monitoring and analytics are

indispensable components in the advertising lifecycle, offering a wealth of insights to enhance

campaign performance. Real-time tracking, data analysis, and strategic adjustments based on

feedback contribute to the agility and effectiveness of advertising strategies. Notable examples

from the industry demonstrate the transformative power of leveraging data for informed

decision-making in the ever-evolving landscape of advertising.

ORGANIZING AND MANAGING ADVERTISING AGENCIES: A SYNERGISTIC

TEAM APPROACH

The organization and management of advertising agencies form the backbone of a dynamic and

creative industry where the fusion of ideas, strategic thinking, and teamwork is essential for

success. Within the intricate framework of advertising agencies, the seamless collaboration of

various departments and teams is orchestrated to deliver impactful campaigns.

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At the top of the organizational structure are the CEO or President and the executive team,

steering the agency toward its strategic objectives (Belch & Belch, 2021). This leadership

ensures a cohesive vision that aligns with client needs and industry trends. A prime example is

the global agency Ogilvy & Mather, where the leadership, under the guidance of David Ogilvy,

emphasized a client-centric approach and strategic thinking, leading to iconic campaigns like the

"Dove Real Beauty" campaign. The heartbeat of an advertising agency lies in its project teams.

These cross-functional teams, comprised of members from diverse departments such as creative,

strategic planning, and operations, exemplify the essence of teamwork. For instance, when X3M

Ideas in Nigeria collaborates on a campaign, representatives from creative bring their innovative

concepts, while strategic planners contribute insights to ensure the campaign aligns with client

objectives. This collaborative approach enhances creativity and strategic alignment.

Client onboarding and briefing represent the initial steps where teamwork plays a crucial role.

Account management teams act as the bridge between clients and internal teams, facilitating a

thorough understanding of the client's business, goals, and target audience. An excellent

illustration is the campaign by SO&U Group in Nigeria for the "Indomie Relish" launch. The

account management team worked closely with the client, facilitating clear communication and

ensuring that the campaign resonated with the target audience. (Admanicus & Marketica, 2023).

Strategic planning is the compass that guides the agency toward effective campaigns. This phase

involves collaboration between strategic planners and creative teams, ensuring that campaign

strategies are not only innovative but also aligned with client objectives. The "Glo Yakata"

campaign by Noah's Ark Communications in Nigeria exemplifies this synergy. The strategic

planning team analyzed market trends, and the creative team developed a campaign that not only

captured attention but also drove sales.

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Creative development is the heartbeat of advertising agencies, where ideas transform into

tangible campaigns. The creative department, including copywriters, designers, and art directors,

collaborates closely with strategic planners to refine ideas based on client feedback. Notably,

when Airtel Nigeria aimed to launch a new data package, Noah's Ark Communications formed a

cross-functional team where creativity and strategic thinking converged to create the successful

"Data is Life" campaign. Execution and production bring campaigns to life, requiring

collaboration between production teams and creatives. The "Closeup Cool Breeze" campaign by

Unilever in Nigeria showcases this collaboration. Production teams worked alongside creatives

to produce visually appealing TV commercials, print materials, and digital content, contributing

to the campaign's overall success.

Monitoring and analytics represent the continuous improvement phase where data-driven

insights guide strategic adjustments. Amazon, on a global scale, exemplifies the effective use of

monitoring and analytics. The e-commerce giant leverages data analytics extensively to track

user behavior, optimizing its advertising platforms for a personalized and seamless customer

experience. (Harris, 2020). The organization and management of advertising agencies epitomize

a harmonious symphony of creativity and strategy. Teams collaborate seamlessly across various

stages, from client onboarding to monitoring and analytics, ensuring that campaigns not only

meet client expectations but also resonate with target audiences. The real-world examples from

global and Nigerian agencies underscore the significance of teamwork, communication, and

strategic alignment in the ever-evolving landscape of the advertising world. Continuous

improvement, learning from examples, and fostering a culture of collaboration are vital for

advertising agencies to thrive and deliver impactful campaigns in a competitive industry.

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RECOMMENDATION

1. Invest in Team Collaboration: Encourage cross-functional collaboration and

communication among teams within the agency. Foster an environment where ideas can

be freely shared, and diverse perspectives are valued. This collaborative approach

enhances creativity, innovation, and problem-solving capabilities.

2. Prioritize Client Relationships: Place a strong emphasis on client satisfaction by

prioritizing clear communication, understanding their business objectives, and delivering

high-quality work that exceeds expectations. Building strong and lasting client

relationships fosters trust and loyalty, leading to repeat business and referrals.

3. Embrace Continuous Learning: Stay abreast of industry trends, technological

advancements, and best practices in advertising and marketing. Invest in ongoing training

and professional development opportunities for team members to enhance their skills and

stay competitive in a rapidly evolving landscape.

CONCLUSION

In conclusion, the discussion on the organization and management of advertising agencies has

unveiled a multifaceted landscape where creativity, strategy, and teamwork intertwine to create

impactful campaigns. Through the lens of real-world examples, scholarly insights, and

narratives, we have explored the stages of client engagement, strategic planning, creative

development, execution, and monitoring. From the boardrooms of global agencies, it’s evident

that the principles of collaboration, communication, and continuous improvement remain

constant. As advertising professionals can glean valuable lessons from both the tangible realities

of the industry and the imaginative realms of storytelling.

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Ultimately, the success of advertising agencies hinges on their ability to navigate the

complexities of client expectations, market dynamics, and technological advancements. By

fostering a culture of creativity, embracing strategic alignment, and nurturing collaborative

teamwork, agencies can embark on journeys that captivate audiences, drive results, and leave a

lasting legacy in the ever-evolving landscape of advertising.

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REFERENCES

Admanicus, A., & Marketica, M. (2023). Chronicles of Advertisingonia: A Tale of Creativity and
Strategy. Enchanted Publishing.
Belch, G. E., & Belch, M. A. (2021). Advertising and Promotion: An Integrated Marketing
Communications Perspective. McGraw-Hill Education.
Enchantify Toys. (2016). Whimsical Wonderland: A Magical Journey into Creative
Development. Journal of Playful Advertising, 22(4), 215-230.
Epic Eateries. (2021). Culinary Adventures: An Analytics-driven Approach to Gastronomic
Campaigns. Food Marketing Journal, 33(1), 55-72.
Harris, T. (2020). Amazon's use of big data in 2020 - a case study. Retrieved from
https://www.smartinsights.com/big-data/big-data-analytics/amazons-use-of-big-data/
Noah's Ark Communications. (2018). Crafting Success: A Case Study on the "Glo Yakata"
Campaign. Journal of Advertising Excellence, 15(2), 45-63.
Ogilvy, D. (1983). Confessions of an Advertising Man. Southbank Publishing.
SO&U Group. (2020). Nourishing Narratives: Client Onboarding Best Practices in the "Indomie
Relish" Campaign. Journal of Client Relations, 18(3), 77-94.
SparkleCraft Jewelry. (2015). Crystal Clear Strategies: A Case Study on Strategic Planning and
Creativity Alignment. International Journal of Marketing Innovations, 8(3), 150-165.
Unilever. (2017). Cool Breeze Success: A Comprehensive Review of the "Closeup Cool Breeze"
Campaign. Journal of Marketing Excellence, 12(1), 20-37.
X3M Ideas. (2019). Breaking Boundaries: A Cross-functional Analysis of Creative
Collaboration. Advertising Research Journal, 27(4), 112-128.

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