2. AN AD AGENCY An ad agency is a service business dedicated to creating, planning and handling advertising for its clients. It is independent of the client. It can also handle the marketing and branding strategies and sales promotion for the clients.
3. TYPES OF ADVERTISING AGENCIES Full Service Agency Specialized Agencies Virtual Agencies
4. FULL SERVICE AGENCY An agency that handles all of a clients’ advertising efforts and offers four major staff functions- account management, creative services, media planning and buying, and research.
5. SPECIALIZED AGENCIES Industry focused agencies – specialize in working for a specific field like agriculture, medicine etc. Minority Agencies – focus on creating ads for minority groups. Creative Boutiques – Only work on the creative execution of client’s communication. Media – Buying Services – A company that offers to buy media for advertisers. In house Agencies – Advertising departments within an organization. Freelancers – provide creative services but are different in nature of employment.
6. IN-HOUSE SYSTEMAdvantages Disadvantages Cost saving  Less experience More control  Less Objectivity Increased coordination  Less flexible
7. VIRTUAL AGENCIES People who work from home or from their clients’ offices. They are an agency but work like freelancers. Meetings are conducted over the internet using video conferencing or emails.
8. A TYPICAL AD AGENCY A typical ad agency has the following departments  Accounts Management - Serves as a liaison between the agency and the client.  Creative Services – provides the creatives based on guidelines determined by the accounts managers.  Media Services – They plan the use of media, buy media accordingly, and research the effectiveness of the plan.  Research – Perform research before creating an ad, and after an ad campaign to evaluate the success of the campaign