AD AGENCY

• Definition :
“ An independent business organisation, composed of
creative and business people, who develop, prepare
and place advertising in advertising media for
sellers seeking to find customers for their goods and
services.”
Types of Advertising agencies
 Full service agencies
Planning
advertising

Creating
advertising

Producing
ads

Selecting
Media

Performing
Research
 Provides only
Creative Services
Creative Boutiques Tie up with
freelancers

Bill on actual work

completed
Media Independents
Global agencies
Agency Selection Criterion

1) Creativity of an agency
2)Services Offered by an agency

3)Size of the ad agency

4) Market standing

5) Type of clients of the agency

6) Media connections of the agency

7) Compensation of the agency services

8) Accreditation of the agency

AGENCY CLIENT

RELATIONSHIP
Proper rapport MUTUAL
between the UNDERSTANDING
representatives AND TRUST

Avoid
SUGGESTIONS confusion
FOR THE CLIENT and gave
AND THE AGENCY
direct
interactions

Honour
the terms Work sincerely
and and honestly

conditions
 CLIENT TURNOVER
• When an advertiser leaves one agency and
shifts to another agency it is termed as client
turnover
REASONS FOR CLIENT TURNOVER
 REASONS FOR CLIENT TURNOVER
1. Absence of profitable/ result oriented services
2. Use of new media
3. Absence of cordial relations
4. Lack of confidence
5. Inadequate services
6. Change in personnel
7. High rates
8. Entry of new ad agency
 MEASURES FOR AVOIDING CLIENT
TURNOVER
• Provide quality services
• Ensure timely delivery
• Sound allocation of funds
• Fulfill client’s expectations
• Non- advertising activities
• Understanding clients business goals
• Connect on a personal level
• Proper understanding
• Trust dominating
• Relationship supreme
 CREATIVE PITCH
• Relates to agency selection
• Ad agency pitch can be of four types:
 Agency credential pitch
 Strategy pitch
 Creative pitch
 IMC pitch
 Steps involved in preparing creative pitch

1. To locate clients
2. To fix the meetings with the client
3. To outline the scope of work
4. To present details of the pitch
5. To finalise the deal
 AGENCY COMPENSATION
1. Commission method
2. Fee payment method
3. Agency charges method
4. Cost plus system
5. Performance based compensation
 CAREERS IN ADVERTISING
• Ad agencies
• Account management
• Account planning
• Creative department
• Media planning and operations
• Production department
• Market research
• Provision of other services
 SKILLS REQUIRED FOR A CAREER IN
ADVERTISING
• Communication skills
• Sales skills
• Web skills
• Creative skills
• Social skills
• Analytical skills
• Adapting skills
 FREE LANCING CAREER OPTION
• Production houses
• Research and allied fields
 Printing
 Graphics and animation
 Modelling
 dubbing
 Functions of an ad agency
• Selection of prospect/ Client servicing
• Advertising Planning
• Creative function
• Production function
• Client approval
• Media planning and buying
• Marketing functions
• Research function
• Accounting function
• Coordination with client
 Types of Ad Agencies
• Full service ad agencies eg. O&M(Ogilvy and Mather), JWT (J.
Walter Thompson)
• Creative boutiques eg. Chlorophyll, Vyas Gianetti Creatives
• Media buying agencies eg. Mindshare, Initiative Media
(Lintas)
• In house agencies eg. LG- LGAds, Samsung- Cheil Worldwide,
Reliance- Mudra (When it started)
• Specialist agencies eg. Sobhagya Advertising Agency –
Financial advertising
• Social Media Agencies eg. Alivenow – PVR, ITC, Reliance
footprints.