Advertising agency by rajeshPresentation Transcript
Advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist company in developing, preparing and executing there advertising and other promotional programmes
Top advertising co. in India
Ogilvy and Mather: This company has offices across the globe.
J Walter Thompson India: About 200 offices in 90 countries.
Mudra Communication Pvt. Ltd: Established in the year 1980 at Mumbai.
FCB-Ulka Advertising Ltd: CB-Ulka Advertising Ltd. In US 3 rd rank
RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973 .
Grey Worldwide (I) Pvt. Ltd: company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide
Leo Burnett India Pvt. Ltd : it has a significant presence in about 96 offices in 10 countries .
c ontract Advertising India Ltd: It was founded in 1992 and is situated in Mumbai.
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
media planning and placement
agency organization chart
Typical Full-Service Agency Organization Writers Art Directors Traffic TV Produciton Traffic Print Production VP Creative Services Account Executive Account Supervision VP Account Services Media Research Sales Promotion VP Marketing Services Personnel Accounting Finance Office Management VP Management and Finance President Board of Directors
Ad Agencies Have Skilled Specialists Artists Writers Researchers Photographers Media Analysts Other Skills
Represents agency to client
Knowledge of client’s business
Helps set goals & budget
Coordinates day to day work
account management director
assistant account execs
the creative department is responsible for creating and producing the print and broadcast advertising
good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed
executive & group creative directors
associate creative director
print production managers
Plan media schedule
Execute media plan
associate media directors
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
How does consumer interact with brand?
How does brand fit into consumer lifestyle?
Pretest and posttests
research department Research Report
research project managers
outside research specialists
research department Research Report
Full-service advertising agency
In-depth knowledge and skills
Obtaining negotiating muscle with the media
Coordinating advertising and marketing efforts
Some control is lost
Larger clients are favored over small clients
Occasionally inefficient in media buying
Why Agencies Lose Clients Poor performance Poor communications Unrealistic demands Personnel changes Changes in size Conflict of interests Changes in strategy Declining sales Payment conflicts Poor performance Poor communications Unrealistic demands Personnel changes Changes in size Conflict of interests Changes in strategy Declining sales Payment conflicts Policy changes
How Agencies Gain Clients Referrals Solicitations Presentations Public Relations Image, Reputation
What Makes Effective Advertising? Sound & other Creative strategies Consumer’s View Persuasive Doesn’t Overwhelm Deliver on Promises Break Clutter Effective Advertising
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)
Paying the Agency
Rebates offered by media advertising agencies (15%)
Agency creates commercial for advertiser
Agency contacts TV station for air time
TV station bills ad agency
Cost of air time $ 10,000
Less 15% (1,500)
Due $ 8,500
Agency bills advertiser $10,000
fi May vary according to departments or levels of salary
Or flat hourly rate
Charges for out-of-pocket expenses, travel, etc.
Media charges are net of commissions xed fee (retainer)
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
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 .”
why might you be interested in going into the agency business?
what might keep you from choosing a career in the agency business?