The Agency World
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  • 1. The Agency World Chapter 2
  • 2. The Agency World
    • The traditional agency
    • New agency structures
    • The growing range of specialists
    • Selecting an agency
    • Paying the agency
  • 3. The agency world Objectives
    • Understand the role of advertising agencies and the relationship between agency and client
    • Appreciate the factors that promote creative and effective advertising
  • 4. Introduction
    • No business needs an agency
    • Can buy different services from separate specialists
    • Most businesses find it easier to use an agency
  • 5. Alternative ways to perform the advertising function
    • Necessitates employing an advertising staff and absorbing the operation costs
    • Unprofitable unless a company does a large and continuous advertising
    In-house advertising operation
  • 6. Full-service advertising agency
    • Advantages
    • In-depth knowledge and skills
    • Obtaining negotiating muscle with the media
    • Coordinating advertising and marketing efforts
    • Disadvantages
    • Some control is lost
    • Larger clients are favored over small clients
    • Occasionally inefficient in media buying
  • 7. A la carte
    • Advantages
    • Use services only when they are needed
    • Availability of high-caliber creative talent
    • Potential cost efficiencies
    • Disadvantages
    • Specialists approach client problems in a stereotyped fashion
    • Lack of cost accountability
    • Financial instability of smaller boutiques
  • 8. Advertising Agency Organization
    • Develop advertising copy and campaigns
    • Copywriters, production people, and creative directors
    Creative Services Account Management Media Services Research Services
  • 9. Advertising Agency Organization
    • Selecting the best advertising media
    • Media planners develop overall media strategy
    • Media buyers procure the selected media
    Creative Services Account Management Media Services Research Services
  • 10. Advertising Agency Organization
    • Study clients’ customers’ buying habits, purchase preferences, and responsiveness
    • Focus groups, mall intercepts, acquisition of syndicated research data
    Creative Services Account Management Media Services Research Services
  • 11. Advertising Agency Organization
    • Link the agency with the client
    • Act as liaisons so that the client does not need to interact directly with several different service departments and specialists
    Creative Services Account Management Media Services Research Services
  • 12. Memorable Advertising
    • Apple Computer’s “1984” TV Commercial
  • 13. What Makes Effective Advertising? Sound Strategy Consumer’s View Persuasive Doesn’t Overwhelm Deliver on Promises Break Clutter Effective Advertising
  • 14. Creating Effective Advertising
    • The Role of Creativity
  • 15. Being Creative
    • Characteristics of
    • creative campaigns
    • Differentiates itself
    • Out-if-the-ordinary
    • Energizer Batteries
  • 16. Energizer Batteries
    • Energizer Batteries keep going, and going, and going…
    • Like the drum-beating bunny that reinforces the argument
  • 17. Being Creative
    • Characteristics of
    • creative campaigns
    • Differentiates itself
    • Out-if-the-ordinary
    • Energizer Batteries
    • Pepsi-Cola
  • 18. Pepsi-Cola
    • Pepsi-Cola
    • commercial
    • pokes fun at its
    • competitor,
    • Coca-cola
    • and subtly
    • conveys the
    • message that
    • perhaps
    • Pepsi is better
    • than Coke
  • 19. Being Creative
    • Characteristics of
    • creative campaigns
    • Differentiates itself
    • Out-if-the-ordinary
    • Energizer Batteries
    • Pepsi-Cola
    • Volkswagen Golf
  • 20. Being Creative
    • Characteristics of
    • creative campaigns
    • Differentiates itself
    • Out-if-the-ordinary
    • Energizer Batteries
    • Pepsi-Cola
    • Volkswagen Golf
    • Bud Light
  • 21. Creating Effective Advertising The Role of Creativity
    • Spuds MacKenzie campaign
    • Budfrogs
    • Louie and Frank
    • Whassup?!
  • 22. Little Caesar’s
    • The toga-clad “Pizza,
    • Pizza” man captures
    • and holds the viewer’s
    • attention and provides
    • Little Caesar’s with a
    • unique image vis-a-vis
    • its more laid-back
    • competitors
  • 23. Volkswagen Golf
    • This simple ad dramatizes that the Volkswagen
    • Golf is a roomy car while holding the viewer’s
    • attention in an entertaining manner
  • 24. New agency structures
    • Three factors that influence the ways in which new agency formats have emerged
  • 25. The new agency structures
    • Technological changes
    • Growing importance of internationally held accounts for large agencies
    • Recognition that different clients have diversified needs
  • 26. Reorganizing the old
    • The ‘account room’ approach
    • Structure the agency around its clients
    • - creates a focus for the account team
    • - keeps them close to the brand
  • 27. Reorganizing the old
    • The “Virtual Account Group” or “Virtual agency”
    • Uses linked computers
    • Intranet
    • Video conferencing
    • High tech connections
  • 28. Reorganizing the old
    • “ hot desking”
    • First come first served offices
  • 29. Results of reorganization
    • Gets agencies away from what they always criticized in their clients.
    • - focus on products and production with less regard to customers needs
    • - Allows for anyone on the team to be involved in the creative process.
  • 30. Specialist Agencies
    • Media Buying agencies
    • Creative boutiques
    • Direct marketing
    • Account planning
    • Management consultants
  • 31. Media Buying Agencies
    • Buy blocks of space or time from media business
    • Effectively became media wholesalers
    • An important source of advertising research
  • 32. Creative Boutiques
    • Creative hot-shops
    • Using briefs from clients – create advertisements
    • Often freelancers
    • Assist full service agencies when under pressure
  • 33. Direct Marketing
    • Nowadays full service agencies are merging or aquiring direct specialists
    • Allows for common creative direction
    • Also developing new skills necessary for the internet advertising market
  • 34. Account Planning
    • Take over the planning role for an agency
    • Act as supplementary source of ideas for agency or advertiser
  • 35. Management consultants
    • Provide general consultancy on brand strategy
  • 36. Selecting an agency
    • Have they fully understood the brief?
    • Do they know how to use market research? Can they contribute to our thinking here?
    • Is their strategic thinking sound?
    • Is it imaginative? Have I learned anything useful from it?
    • Are they professional and businesslike?
    • Can I work with their senior people? And will they be actually working on my business?
    • Are their capabilities high in all key areas – management, strategy, creative, media?
    • Do they work well as a team – both among themselves and with our people?
  • 37. Selecting an agency
    • Is their creative work of a high quality?
    • Is this confined to TV, or does it go across all media?
    • Does this include below-the-line? New media? Can they offer an integrated service?
    • Do they have real expertise in the specialist areas which we are looking at, egl direct marketing, new media?
    • Can they work with us internationally (now or in the future)
    • How do they propose to evaluate the effectiveness of the campaign?
  • 38. Selecting an agency
    • What is their attitude to costs? Will they save us money?
    • How will they relate to our media buying agency/other specialists?
    • How important to them will our account be? Will we be one of their larger accounts, or simply a small fish in a very large pool?
    • Will they fit with our ways of working? Are they willing and able to be business partners, or will they simply be suppliers? (This depends – of course – on how we see our own style of dealing with agencies)
  • 39. Agency Compensation
    • Commissions from media (15%)
    • Reduced commission system(<15%)
    • Labor-based fee system
    • Outcome-based
    Three Sources