ADVERTISING AGENCY AND ITS FUNCTIONS

BY: HARSHITA TANDON

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.

• 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.

• 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”.

Primary services of Advertising agencies

• 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

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

Modular Agencies

• A modular agency 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 some agencies who undertake advertising work only in certain areas. There are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc.

Creative Boutiques

• These are shop agencies that provides only creative functions and not full-service. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services.

Benefits of using an Advertising Agency

• 1. They have the ability to buy media in bulk at rates that a single business cannot obtain.

2. They are educated as to the best times and places to run ads to reach your target market, ultimately minimizing wastage

3. They can help you fine tune your target market so that the message is designed to reach those you want to reach.

4. Easily Administered

Disadvantages of using an Advertising Agency

• A main disadvantage of using an advertising agency would be the communication factor. If an agency does not communicate or relay it's clients goals and creative wishes properly problems can occur within a contract and lawyers may have to become involved.

• Another disadvantage would be the media buying discounts you may not be able to take full advantage of due to commission barriers within an agency,

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.

• Once an advertising agency gets acquainted with its clients' business objectives, it starts creating and planning its ad campaigns.

• For this it keeps in mind certain points such as increasing sales, pushing new products in the market, restating benefits of its clients' brands, and drawing new customers in addition to establishing and maintaining contacts with their existing customers.

• An advertising agency's professional teams put in their best efforts to develop attractive slogans, jingles, and body copy for ads. All this is done within the defined parameters of its clients and their budgetary allocations.

Functions of Advertising Agencies

• Account Planning• Advertising agencies typically have account planners who

work as the go-between for the client and the agent. They ensure that client needs are expressed to the research and creative teams.

• They also work to ensure that necessary information is transferred to the client regarding creative, research, competition or any of other factor that may somehow affect how the client's product gets marketed to consumers. Account planning is where agencies start their initial interaction with clients.

• Marketing Research• Advertising agencies work with companies to establish the

characteristics of their target markets through marketing research.

• Advertising agencies spend a substantial amount of time researching consumers to understand what they buy and what motivates them to buy.

• Market Research• Knowing the competition, account managers at advertising

agencies research the environment, identify competitors, and research their marketing tactics.

• Through market research, advertising agencies also identify political, social, technological and economic factors that may affect a client's campaign.

• Creative• Advertising agencies are known for their creative output,

which can include website design, advertising copy, magazine advertisements, and radio and television commercials.

• The medium of advertising often varies by campaign. Graphic designers, web designers, writers, editors and creative directors make up an advertising agency's creative department.

• Selling Advertising Space• Advertising agencies don't just create advertising pieces for

clients; they also give clients insight as to which media will be most effective for their product, service, event or cause.

• In the process, they work to secure advertising placements for customers either online, in print, on television or on the radio. They negotiate terms and work to get clients the best deals to maximize their money and their reach.

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.

Thank You