Your SlideShare is downloading. ×
The Agency World
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Agency World


Published on

Published in: Business
1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 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