Advertising Agency

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What is advertising?:

What is advertising? Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. The time or space devoted to it is paid for It uses a set format to carry the message rather than personal, one-on-one selling It identifies the sponsor of the message

How Many Ads do You See Each Week?:

How Many Ads do You See Each Week? The average person is exposed to approximately 2000 ads each week. Do you see that many or more?


DEFINITION An 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


FUNCTIONS OF AD AGENCY TALENT AND CREATIVE PRODUCTION : This includes formulating plans for creative strategies, copy or script writing, visualization, designing, layout, shooting of films, editing , giving music.


Contd.. RESEARCH : This includes the study about the product and the company by the agencies in order to distribute the message to the public and is used as a tool to test the consumer reaction towards the products and services. DISTRIBUTION A MEDIA PLANNING : In this function, decisions are taken for the type of message you will create for the company and what media will be most helpful in sending this message to the public.


Contd… MONITORING FEEDBACK : By monitoring consumer feedback, a decision on whether to revise the message, the medium, the target audience or all of them can be made.


CONTD… OTHER SERVICES : Merchandising Public relations Organizing exhibitions and fairs Preparing all kinds of publicity material Planning and organizing special events (event management) Direct marketing

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IMPORTANCE OF AD AGENCY OBJECTIVITY & PROFESSIONALISM : Advertising agencies are highly professional. Objectivity is a major virtue of ad agency. They operate in a strange way. While they take up advertising for others, agencies hardly advertise themselves. Ad agencies being outside intermediaries can be objective.

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Cost effective : If an organization wants to hire people to do its advertising, it can not provide them work all through the year. Also most experts in the fields of advertising like directors, musicians, photographers, charge huge amounts and are often not affordable..

Services Provided by Agencies:

Services Provided by Agencies © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Agency Services The link between agency and client Managed by the Account Executive Research department may design and execute research programs Media department may analyze, select and contract media resources Creation and execution of ads Copywriters, artists, other specialists Marketing Services Account Service Creative Services Marketing Services Account Service


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


TOP 5 AD AGENCIES IN INDIA Adbur Pvt Ltd Akshara Advertising Mudra Communications Ltd Chaitra Leo Burnett Pvt ltd Crayons Advertising and Marketing Pvt. Ltd


TOP 5 AD AGENCIES IN THE WORLD Rank Agency Headquarters Revenue ( US$ millions) 1 Omnicom Group New York City 10,481.1 2 WPP Group LONDON 10,032.2 3 Interpublic Group of Companies New York City 6,700.0 4 Publicis Groupe Paris 5,107.2 5 Dentsu * Tokyo 2,887.8

agency organization chart:

agency organization chart

creative department:

creative department responsibility the creative department is responsible for creating and producing the print and broadcast advertising strategy is key good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

media department:

media department The media department has two main functions - planning and buying. The planning group handles more strategic marketing and media issues. The buying group handles media negotiations and implementation.

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research department interpret market environment gather and analyze research data. primary and secondary techniques determine consumer needs/perceptions understand problems advise how ads can meet strategic goals help find solutions Research Report


TYPES OF AD AGENCY Generalized Advertising Agencies Creative agencies specialize in "creative" or design-based business models: their basic interest is in the creation of the advertisement or branding. Other ("full-service") agencies offer design in conjunction with media buying. Media agencies concentrate on media buying. (In the 1990s, media and creative were often unbundled in the interests of economies of scale in buying media.) The client who chooses to use a design only based advertising agency must assume some of the advertising purchasing. These are activities that are routinely handled by an agency with a media buying option.

Specialist Advertising Agencies :

Specialist Advertising Agencies In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in particular kinds of advertising: recruitment, help-wanted, medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment,

In-House Advertising Agencies :

In-House Advertising Agencies Some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency.

Interactive agencies :

Interactive agencies Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space

Search engine agencies :

Search engine agencies Lately, pay per click (PPC) and search engine optimization (SEO) firms have been classified by some as 'agencies' because they create media and implement media purchases of text based ads. This relatively young industry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases, they do technically qualify as 'advertising agencies'.

Social media agencies :

Social media agencies Social media agencies specialize in promotion of brands in the various social media platforms like blogs, social networking sites, Q&A sites, discussion forums, microblogs etc. The two key services of social media agencies are: social media marketing online reputation management

Healthcare communications agencies :

Healthcare communications agencies Healthcare communications agencies specialize in strategic communications and marketing services for the Healthcare and Life Science industries. These agencies distinguish themselves through an understanding of the strict labeling and marketing guidelines mandated by the U.S. Food and Drug Administration (FDA) and industry group guidelines, most notably ADVAMED and PHARMA.

Medical education agencies:

Medical education agencies Medical education agencies specialize in creating educational content for the Healthcare and Life Science industries. These agencies typically specialize in one of two areas: Promotional education - education and training materials tied to the promotion of a given product or therapy Continuing medical education - accredited education and training materials created for continuing physician and medical professional education.

Planning The Best Message:

Planning The Best Message “A I D A” A - Attention I - Interest D - Desire A - Action

How Agencies Gain Clients:

Referrals How Agencies Gain Clients Solicitations Presentations Public Relations Image, Reputation

Why Agencies Lose Clients:

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

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Advertising Strategy Target Audience Advertising Objectives Advertising Budget Creative Strategy Advertising Media and Programming Schedules Evaluate the Effectiveness of the Strategy

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Advertising Agency Role of the Advertising Agency Target Audience Advertising Objectives Advertising Budget Creative Strategy Advertising Media and Programming Evaluate the Effectiveness of the Strategy

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Advertising Agencies in Perspective Fast change has come to the advertising industry. Huge, integrated agencies face a challenging future. Do clients want a full-service agency? The business model is in need of change. The basis of compensation continues to be debated and altered. Specialists (e.g. media buying services) are being used. Importantly, the core of the creative process is the agency. Several methods are available to evaluate advertising results.

Pros & Cons of In-House Agencies:

More Control Cost Savings Better Coordination Less Objectivity Less Experience Less Objectivity Less Experience Better Coordination More Control Cost Savings Pros & Cons of In-House Agencies © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The In-house Agency + Positive - Negative Less Flexibility

Coca Cola’s in-house boutique created this popular spot:

Coca Cola’s in-house boutique created this popular spot

Young & Rubicam has handled Dr. Pepper for over 30 years:

Young & Rubicam has handled Dr. Pepper for over 30 years

Case Study.:

Case Study. In 1983, Apple computer was planning the introduction of macintosh pc :- to take on IBM. Apples strategy called for the introduction of the macintosh to be a major event that would generate immediate support for the new product. The ad agency, chiat/ days, was given the creative challenge of coming up with a blockbuster idea that would result in a dramatic commercial to introduce the mac. Chiat/days team developed a commercial based on the concept of Big Brother.(purportedly symbolizing IBM) from George Orwell’s classic novel 1984. Who castigated communism with Big Brother attitude. The ad. Used stark images of orwell’s dystopia (life is extremley bad because of deprivation or oppression or terror due to communism) and a dramatic scene of a young women throwing a mallet (wooden hammer) through a movie screen to desteroy the controling force. More than $ 500000 was spent to the produce the “1984” commercial. when the commercial was first shown at annual sales meeting in october 1983, there was stunned silence followed by a 15 minutes standing ovation. Apple was ready to showcase the 60 second commercial in two spots during the 1984 super bowl that was cost $ 500000 each. But there was one problem – getting approval from apples board for the avant-garde ad and the million dollar media purchase. The board thought the commercial was too

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Cont. Controversial and might be detrimental to apple’s image, particularly in the business market. The cost-consious board also thought the super bowl rates were too expensive and asked the agency to sell off the two spot. The agency could sell one spot, and the offer for the second spot was not attractive. Two days before the game , apple board reluctantly approved airing the commercial after a great deal of persuasion by the agency for the second spot. The Super bowl is the biggest football game of the year, in USA, a premier marketing event. It draws the largest TV audience, its appeal spans various age groups, regions and it is seen in more than 60 countris. It is one occasion where as much attention is paid to commercials as to the program and the spots receive enormus amount of hype and publicity and its exorbitant cost could be matched by huge viewing audience. The super bowl showing of “1984” was the only time it ever appeared as a commercial spot on network TV. The impact of the ad was tremendous. Most importantly, the ad. Helped Apple achieve a very ambitious sales goal. Apple projected sales of 50,000 macs in the first 100 years: actual sales surpassed 72,000 units.

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Questions:- “Advertising New macintosh on a super bowl was indeed a famous cutting edge creative work and a bold initiative”. Critically evaluate the role and contribution of the agency and the Apple’s board. How did Apple’s bold “1984” commercial score on all fronts? “1984” commercial was perhaps the beginning of integrated marketing communications. Elaborate.

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