Transcript Types and Functions of Advertising Agency

Introduction to Advertising
Topic 5
TYPES AND FUNCTIONS OF
ADVERTISING AGENCY
Definition of Advertising Agency
“Advertising Agency is an independent
organization of creative and business people who
specialized in developing and preparing
advertising plans, advertisements and other
promotional tools.
It purchases advertising space and time in the
media on behalf of their client”
AAAA-American Advertising Agencies
Association
What an Ad Agency does for their clients
In essence, the advertising agency is the clients
marketing communication consultant. Therefore:
 It must understand the clients marketing
problems
 Prepare plans and strategy to provide
solutions to the problems
 Helps the clients business grow
Client-Agency Work Relation
 The agency-client work relation is best viewed
as a partnership.
 As the client business grows, the agency’s
business also grows.
 The ensure a good partnership the agency
must:
 Provide excellence service
 Provide effective plan, strategy and exceptional
creative
Basic Structure in Ad Agency
Board of
Director (BOD)
Operations
Department
Account
Management
Department
Creative
Department
Media
Department
Production
Department
Account
Manageme
nt
Account Management / Handling
 Responsible for all client contact to establish
the broad requirements (needs and wants) of
the client
 Ensure that the various internal departments
are briefed, to come up with a solution that
meets the client’s needs and wants / aims and
objectives
Account Management / Handling
 Responsible for initiating assignments within
the agency, providing deadline, outlining
budgets and ensuring all the works are
consistent with the strategy before presented
to client.
 Level: Account Director, Account Planner
/Account Manager, Account Executive
Creative
Departmen
t
Creative Department
 The creative department is the producer of
ideas and concepts of an advertising
 One of the important responsibility of creative
team is establishing the reputation of the
agency, because creativity is what really builds
and agency’s reputation.
 Responsible: think long and hard about the
message (visual & copy) and how it will affect
branding and positioning.
Creative Department
 Levels: Creative Director, Art Director / Copywriter,
Graphic Designer / Visualizer
 Copywriter is the individual who conceive the ideas
for the ads and write the headlines, subheads,
body copy or radio commercial script
 Art director is responsible for how the ad looks;
prepare visual of the advertisement (layout for print
ad and storyboard for TVC)
 Both copywriters and art directors work under the
direction of the agency’s Creative Director that
usually risen from both positions.
Media Department
 Media Department recommends client about
what is the most efficient means / mediums to
deliver the message to the target audience
 The department has 3 functions: Research,
Planning and Buying
 Media Researcher: work through all of the
data that available on the media, make
comparison of the media which have same
audience profile
Media Department
 Media Planner: takes the statistical research
taken by the media researcher as the basis for
deciding which medium would be the most
appropriate to carry the advertising. They produce
the media plan which provide media objective and
strategy, including media schedule.
 Media buyer: the person who has responsibility to
buy these space and air-time with maximum
discount for agency.
 Levels: Media Director, Media Planner / Media
Buyer, Media Monitoring
Production
Department
Production Department
 Coordinating and supervising the work of the
selected external production suppliers/vendors.
 Make sure everything that is needed to
produce the final advertisement is prepared,
cost effectively to the highest quality, delivered
to the right place at the right time and in the
right format.
 Functions: Producers, Traffic
Types of
Agencies
Types of Advertising Agency
A. Full Service Advertising Agency

An agency that handles all aspects of the
advertising process, including planning, design,
production, and placement.

Today, full-service generally suggests that the
agency also handles other aspects of marketing
communication, such as public relations, sales
promotion, Internet and direct marketing.
Types of Advertising Agency
B. A la Carte

The client can choose the service of an advertising
agency on an occasional basis or handled
internally
C. Freelance designer and copywriter

The client can choose the service of an advertising
agency on an occasional basis or handled
internally. Advantages for client: may bring fresh
approach or have special style
Types of Advertising Agency
D. Media Independents

Act independently of the ad agency and the
media department selling space and air-time.

Media independents therefore have immense
buying power and so can negotiate favorable
prices
Associated Agencies & Consultants
1.
2.
3.
4.
Sales Promotion Agencies
Direct Response Marketing Agencies
Public Relations (PR) Consultants
Digital Agencies