Ad Agencies

1. ADVERTISING
AGENCIES
BY
SANKAR.N

2.  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

3. 4 functions of full-service agencies
 account management
 creative
 media planning and placement
 research

4. Print
Traffic
Production Production
Broadcast Analys ts
Other Marketing
Communications
Services
[PR, etc.]
As st. Account
Executive
Account
Executive
Management
Supervis or
Account Mgmt.
Director
Copy Spvr. &
Copywriters
Art Supervisor
& Art Directors
Creative
Group:
As sociate
Creative
Director
Creative
Exec CD
Research
As sistants
Project
Managers
Research
Director
Media
Planner
Media
Buyer
Media
Supervis or
As sociate
Media
Director
Media Dept.
Director
Strategy
Review Board
[Managment
Committee]
Office Management
[Personnel,
Accounting,
Legal, etc.]
Pres ident
[COO]
Board of
Directors
[Chairman/CEO]

5.  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

6.  account management director
 management supervisor
 account supervisors
 account executives
 assistant account execs
 account coordinators
 traffic
Traffic
Asst. Account
Executive
Account
Coordinator
Account
Executive
Account
Supervisor
Management.
Supervisor
Account Mgmt.
Director

7.  RESPONSIBILITY
 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

8.  executive & group creative
directors
 creative director
 associate creative director
 copywriters
 art directors
 broadcast producers
 print production managers
 traffic coordinators
Print
Traffic
Production
Broadcast
Production
Copy Spvr. &
Copywriters
Art Supervisor
& Art Directors
Creative
Group:
Associate
Creative
Director (ACD)
Creative
Director (CD)
Executive
Creative
Director (ECD)
Strategy
Review
Board

9.  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.

10.  media director
 associate media directors
 media supervisors
 media planners
 media buyers
 media analysts
Analysts
Media
Planner
Media
Buyer
Media
Supervisor
Associate
Media
Director
Media
Director

11.  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

12. research 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

13.  research director
 research project managers
 research assistants
 outside research specialists
Research department
Research
Suppliers
Outside
Research
Assistants
Project
Managers
Research
Director

14.  account planning
 strategy/creative review board
 office management
 human resources
 legal services
 accounting
 recruitment

15.  commissions
 usually 15% of gross costs
 fees
 usually based on negotiated hourly rate
 incentives
 still relatively new and problematic
 usually based on performance goals

16.  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

17.  fixed fee (retainer)
 cost-plus fee
 performance fee
 hybrid fee &
commission

18.  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

19.  Ogilvy & Mather:
Hutch (Vodafone), Cadbury, Asian
Paints and Fevicol.
 J Walter Thompson:
Nestle, Cadbury, Bayer, Ford, Nokia
and Unilever.
 Mudra Communication:
Neutrogena, HBO, Philips, Reliance
NetConnect, Big Bazaa.

20.  FCB Ulka Advertising Ltd:
Tata Indicom, Whirlpool, Zee
Cinema, Santoor, Sunfeast.
 Leo Burnett India Pvt. Ltd:
McDonald’s, Heinz, Complan,
Bajaj and HDFC.