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05 agencies
 

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?