An advertising agency or ad agency is a

service business dedicated to creating, planning and

handling advertising (and sometimes other forms
of promotion) for its clients.
An Advertising Agency or ad agency is a service provider that
works for clients to create an effective and goal oriented
advertising campaign aimed at representing the Company
positively in the eyes of its target customers.
 Advertising Agency

Firm that
(1) creates new promotional ideas,
(2) designs print, radio, television, and internet
advertisements,
(3) books advertisement space and time,
(4) plans and conducts advertising campaigns,
(5) commissions research and surveys, and
(6) provides other such services that help a client in entering
and succeeding in a chosen market.
According to American Association of Advertising “An
advertising agency is an independent organization of creative
people and business people who specialize in developing and
preparing market plans, advertisements, and other
promotional tools”.
Advertising Agencies
 FEATURES
•Independent organisation
•Works for advertisers
•Composed of creative people
•Develops, prepares and places advertisement
in media
•Service organisation
•Commercial organisation
 Organization of Ad
Agency on
Departmental Basis
On departmental basis, organization structure
of Ad – Agency
may consist of following functional departments:

1. Client Department
2. Research Department
3. Copy Writing Department
4. Art Department
 Organization of Ad
Agency on
Departmental Basis
5. Audio-Visual Ad Production
Department
6. Media Department
7. Accounts Department
8. Marketing Service Department
9. Public Relations Department
10. Evaluation Department
FUNCTIONS OF
ADVERTISING Agency
SELECTION OF CLIENTS

ADVERTISING PLANNING

CREATIVE FUNCTION

DEVELOPING AND
PREPARING AD COPY
FUNCTIONS
APPROVAL OF CLIENTS

MEDIA SELECTION

AD -EXECUTION

EVALUATION - FUNCTION
FUNCTIONS
MARKETING FUNCTION

RESEARCH FUNCTION

ACCOUNTING FUNCTION
 BENEFITS
Benefits of Ad Agency can be classified into
two parts:

1. Benefits of Ad Agency to its clients

2. Benefits of Ad Agency to media

 Benefits of Ad Agency to its
Clients

1. Eliminates the need of advertising department

2.Services of experts

3. Reduction in media cost

4. Helps to solve advertising problems

 Benefits of Ad Agency
to its Clients
5. Helps in allocating advertising budget more
effectively

6. Non-advertising activities

7. Effective advertising campaigns

8. Conducting marketing research

BENEFITS OF AD
AGENCY TO MEDIA
1.Agency delivers the advertisement in
appropriate form to media.
2.Helps the media in advertising scheduling
 Types of Advertising Agencies

Full Service Agencies

A full service ad agency is one that provides a range of
marketing services. A full services agency provides services
that are directly related to advertising such as copywriting,
artwork, production of ads, media planning etc. It also
provides such services in respect of pricing, distribution,
packaging, product design etc
Jab ghar ki raunak badhani ho, diwaron ko jab sajana ho… Come to
us. A full-service Ad Agency offering end-to-end creative solutions
for energizing brands.

Paani mein rehkar bhi yeh kam gale, dhero kapde dhoye aur
zyaada chale!
 Creative boutiques

A Creative boutiques is a full service agency that sells its

services on a piece meal basis. Thus an advertiser may
commission an agency’s creative department to develop an
ad campaign while obtaining other agency services
elsewhere.

Or, an advertiser may hire an agencies media department to

plan and execute a program for advertising that another
agency has developed. Fees are charged for actual work
undertaken.
 In House Agencies

Those companies, which prefer to have closer control over

advertising, have their own in-house agency. This type is
owned completely by the advertiser.
It performs almost all functions that an outside advertising
agency would perform and that’s why some people refer to it
as full-service advertising department of the advertiser.
The difference between an in-house agency and an
advertising department is that the in-house agency can
undertake to serve several other clients, if the owner so
desires, but an advertising department solely undertakes that
work of its owner and not of outside clients.
 Specialist Advertising
Agencies

There are many agencies, which take up only specialize

advertising jobs. Certain fields like medicine etc. require
specialized knowledge. So there are agencies, which
concentrate only on areas like medicine and employ people
with the required talents. These agencies are usually small in
size.
 Role of Advertising Agencies

Advertising agency is a service provider that helps its clients

by developing suitable ad campaigns for them.
Their aim is to represent its clients' products and services
before customers in such a way that a positive image is
created in their minds.
Advertising agency's role start with the identification of its
clients' goals and objectives.
This turns out to be of immense value in planning and
creating the future course of action concerning ad
campaigns.
For whom is the product or service designed?
·

Who would use it?

Who is the "target group"?
What's special about the product? In what way is it distinct?
Unique? Different?
What's its "position" in relation to other similar products?
What do you want to convey to the public about your product?
How should your company contact the public?
What medium should it use? Radio? TV? Newspapers? Magazines?
Bus/subway ads? Direct mail? etc.
 Examples of Top Advertising
Agencies
Ogilvy & Mather- Hutch (Vodafone), Cadbury, Asian Paints and Fevicol.

JWT, J Walter Thompson- Nestle, Bayer, Ford, Nokia and Unilever.

Mudra Communication-Neutrogena, HBO, Philips, Reliance NetConnect, Big

Bazaar.

FCB Ulka Advertising Ltd-Tata Indicom, Whirlpool, Zee Cinema, Santoor,

Sunfeast and Amul.

Grey Worldwide (I) Pvt. Ltd- Hero Honda, Maruti Suzuki, Nestle, Ambuja
Cement, UTV, P&G and Godrej.