Advertising

Advertising agencies
agencies
 Advertising agency
 Advertising agency is an independent organization
that provides one or more specialized advertising
and promotion related services to assist company
in developing, preparing and executing there
advertising and other promotional programmes
 Top advertising co. in India
 Ogilvy and Mather: This company has offices across the globe.

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

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

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

 RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently

among the top ten advertising agencies in India. Established in 1973 .

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

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

 contract Advertising India Ltd: It was founded in 1992 and is situated in Mumbai.
Etc.
 Structure
Structure &
& organization
organization

what agencies do.

and
and how
how they’re
they’re organized
organized
to
to do
do it.
it.
 7 primary services:
 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
4 functions of full-service agencies

 account management
 creative
 media planning and placement
 research
 agency organization chart
Board of
Directors
[Chairman/CEO]

President
[COO]

Other Marketing Strategy Office Management

Communications Review Board [Personnel,
Services [Managment Accounting,
[PR, etc.] Committee] Legal, etc.]

Account Mgmt. Creative Research Media Dept.

Director Exec CD Director Director

Management Associate Project Associate

Supervisor Creative Managers Media
Director Director

Account Creative Research Media

Executive Group: Assistants Supervisor

Asst. Account Copy Spvr. & Art Supervisor Media Media

Executive Copywriters & Art Directors Planner Buyer

Broadcast Print Analysts

Production Production

Traffic
 Typical Full-Service Agency Organization

Board of
Directors

President

VP Creative VP Account VP Marketing VP Management

Services Services Services and Finance

Writers TV Print Account Media Research Sales Office

Art Directors Produciton Production Supervision Promotion Management

Traffic Traffic Account Personnel Accounting Finance

Executive
 Ad Agencies Have Skilled Specialists

Artists
Artists Writers
Writers Researchers
Researchers

Photographers
Photographers Media
Media Analysts
Analysts Other
Other Skills
Skills
 account
account management
management

 Represents agency to client

 Client relationship
 Knowledge of client’s business
 Competitive actions
 Consumer trends

 Helps set goals & budget

 Coordinates day to day work
 account
account management
management
Account Mgmt.
Director  account management director
Management.
 management supervisor
Supervisor
 account supervisors
Account
Supervisor
 account executives
Account
 assistant account execs
Executive
 account coordinators
Asst. Account Account
Executive Coordinator

Traffic
 creative
creative department
department
 responsibility

 the
the creative
creative department
department is
is responsible
responsible
for
for creating
creating and
and producing
producing the
the print
print and
and
broadcast
broadcast advertising
advertising
 good
 good creative
creative work
work is
is always
always guided
guided
by
by aa creative
creative strategy
strategy that
that sets
sets forth
forth
goals
goals to
to be
be accomplished
accomplished andand key
key
message
message points
points to
to be
be relayed
relayed
 creative department
Strategy
Review
 executive & group creative
directors
Board

Executive
Creative  creative director
Director (ECD)

Creative
 associate creative director
Director (CD)
 copywriters
Associate
Creative
Director (ACD)
 art directors

Creative
 broadcast producers
Group:
 print production managers
Copy Spvr. & Art Supervisor
Copywriters & Art Directors
 traffic coordinators
Broadcast Print
Production Production

Traffic
 media department


 Planning
Planning
 Plan
 Plan media
media schedule
schedule
 Buying
 Buying
 Execute
 Execute media
media plan
plan
 media
media department
department
Media  media director
Director
 associate media directors
Associate
Media  media supervisors
Director
 media planners
Media
Supervisor  media buyers

Media Media
 media analysts Media
Planner Buyer Plan

Analysts
 big
big changes
changes in
in the
the
media
media department
department

 mega-agency
mega-agency media
media departments
departments
have
have now
now become
become profit
profit centers
centers
 agencies
 agencies have
have set
set up
up their
their media
media
departments
departments asas free-standing
free-standing units
units
 many
 many large
large clients
clients now
now look
look at
at
media
media as
as aa separate
separate service
service
 research
research department
department
 Strategic planning
 Consumer research
 How does consumer interact with brand?
 How does brand fit into consumer lifestyle?
 Pretest and posttests

Research
Report
 research
research department
department
Research
 research director
Director 
research project managers
Project
 research assistants
Managers outside research specialists
Research
Assistants

Outside Research
Research Report
Suppliers
 Full-service advertising agency
Advantages Disadvantages
 In-depth knowledge and  Some control is lost
skills  Larger clients are favored
 Obtaining negotiating over small clients
muscle with the media  Occasionally inefficient in
 Coordinating advertising media buying
and marketing efforts
 Why Agencies Lose Clients

Personnel
changes Changes
Poor in strategy
performance
Poor Declining
communications sales
Unrealistic
demands
Changes
in size Payment
conflicts
Conflict of
interests Policy
changes
 How Agencies Gain Clients

Referrals
Referrals Presentations
Presentations

Solicitations
Solicitations

Public
Public Relations
Relations Image,
Image, Reputation
Reputation
What Makes Effective Advertising?
Sound & Consumer’s
other View Persuasive
Creative
strategies
Effective
Advertising

Break Deliver on Doesn’t

Clutter Promises Overwhelm
 Selecting an agency
 What is their attitude to
costs? Will they save us
money?
 How will they relate to our
media buying
agency/other specialists?
 How important to them will
our account be? Will we
be one of their larger
accounts, or simply a
small fish in a very large
pool?
 Will they fit with our ways
of working? Are they
willing and able to be
business partners, or will
they simply be suppliers?
(This depends – of
course – on how we see
our own style of dealing
with agencies)
 Paying the Agency
 Commission system
 Fees goals
 agency commissions
 Rebates offered by media advertising
agencies (15%)
 Commission System
 Agency creates commercial for
advertiser
 Agency contacts TV station for air time
 TV station bills ad agency
Cost of air time $ 10,000
Less 15% (1,500)
Due $ 8,500
 Agency bills advertiser $10,000
 Fee-based Compensation

 fi May vary according to departments

or levels of salary
 Or flat hourly rate
 Charges for out-of-pocket expenses,
travel, etc.
 Media charges are net of
commissions xed fee (retainer)
 cost-plus fee
 performance fee
 commission
 incentives

 in 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 advertising
 new business
““The
The critical
critical objective
objective and
and role
role of
of any
any ad
ad
agency
agency is
is gaining
gaining new business.”
new business .”
 three primary sources
 build existing client’s business
 add and sell new IMC services
 solicit new accounts
 two ongoing problems
 “spec” work
 teams “walking” with accounts
 Assignment
 why might you be interested in going into
the agency business?
 what might keep you from choosing a
career in the agency business?