05 agencies
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05 agencies

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05 agencies 05 agencies Presentation Transcript

  • advertising agencies
  • what agencies do. structure & organization and how they’re organized to do it.
  • 7 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
  • 4 functions of full-service agencies
    • account management
    • creative
    • media planning and placement
    • research
  • agency organization chart
    • liaison between agency and client
    • responsible for understanding...
      • the client’s business
      • the client’s marketing needs
      • strategy development
    • representing client point of view within the agency
    account management
    • account management director
    • management supervisor
    • account supervisors
    • account executives
    • assistant account execs
    • account coordinators
    • traffic
    account management
    • responsibility
    creative department
      • 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
  • creative department
    • executive & group creative directors
    • creative director
    • associate creative director
    • copywriters
    • art directors
    • broadcast producers
    • print production managers
    • traffic coordinators
  • 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.
    • media director
    • associate media directors
    • media supervisors
    • media planners
    • media buyers
    • media analysts
    media department Media Plan
    • mega-agency media departments have now become profit centers
    • agencies have set up their media departments as free-standing units
    • many large clients now look at media as a separate service
    big changes in the media 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 department Research Report
    • research director
    • research project managers
    • research assistants
    • outside research specialists
    research department Research Report
  • auxiliary agency functions
    • account planning
    • strategy/creative review board
    • office management
      • human resources
      • legal services
      • accounting
      • recruitment
  • 3 ways agencies make money
    • commissions
      • usually 15% of gross costs
    • fees
      • usually based on negotiated hourly rate
    • incentives
      • still relatively new and problematic
      • usually based on performance goals
  • agency commissions
    • media commission system
      • 15% media commission
    • adjustable commission rates
      • negotiate to match client budget
      • sliding scale
    • markups-production & service
      • add a percentage markup to costs
      • 17.65% of net = 15% of gross
  • 4 types of fee systems
    • fixed fee (retainer)
    • cost-plus fee
    • performance fee
    • hybrid fee & commission
  • incentives
    • in theory, a good way to work
    • get paid based on how well you do, not how much you bill
    • in practice, difficult to implement
    • if client makes final decision (instead of agency), how can agency be responsible for final results?
    • results based on many factors, such as competitive efforts, not just advertising
  • new business
    • three primary sources
      • build existing client’s business
      • add and sell new IMC services
      • solicit new accounts
    • two ongoing problems
      • “ spec” work
      • teams “walking” with accounts
    “ The critical objective and role of any ad agency is gaining new business.”
  • things to think about:
    • why might you be interested in going into the agency business?
    • what might keep you from choosing a career in the agency business?