structure & organization what agencies do.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 account management creative media planning and placement research
agency organization chart B a do or f D et r i co s r [ h i mnC O C ar a / E ] Pe i e t r sd n [ O ] C O O e Mr e i g t r a k tn h Sr t g t ae y O i eMn g mn f c f a ae e t C m u i ai n o m nc t o s Rve B a d ei w or [ e s n e, Pr o n l Sr i e e vc s [ a a mn Mn g e t Ac u t n , c o ni g [ R e c] P , t . Cm i t e o m e] t L g l e c] e a, t .Ac u t Mm co n g t. Ce t v r ai e Rs a c ee r h M i Dp. e a e t d D et r i co r Ee C xc D D et r i co r D et r i co r Mn g mn aae e t As ca e soi t P oe t rjc As ca e soi t S pr i o u e vs r Ce t v r ai e Mn g r a aes M i e a d D et r i co r D et r i co r Ac u t co n Ce t v r ai e Rs a c ee r h M i e a d E e ui e x c tv Go p ru: As s a t s i t ns S pr i o u e vs rAs . Ac u t st co n Cp S v . & o y pr At S p r i o r u e vs r M ie a d M i e a d E e ui e x c tv C p wi e s o y rt r & r D et r At i c o s r Pa n r l ne Byr ue Broadcast Print Analysts Production Production Traffic
account management liaison between agency and client responsible for understanding... the client’s business the client’s marketing needs strategy developmentrepresenting client point of viewwithin the agency
account management A c c o u n t M g m t. D ir e c to r account management director M a n a g e m en t. S u p e r v is o r management supervisor A ccount S u p e r v is o r account supervisors A ccount account executives E x e c u tiv e assistant account execsA sst. A c c o u n t A ccoun t E x e c u tiv e C o o r d in a to r account coordinators Traffic traffic
creative department 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
creative department S tr a te g y R e v ie w B oard executive & group creative E x e c u tiv e directors creative director C r e a tiv e D ir e c to r (E C D ) C r e a tiv e D ir e c to r (C D ) associate creative director A s s o c ia te C r e a tiv e D ir e c to r (A C D ) copywriters C r e a tiv e art directors G roup:C opy Spvr. & A r t S u p e r v is o r broadcast producers print production managers C o p y w r ite r s & A r t D ir e c to r s Broadcast Print Production Production Traffic traffic coordinators
media department 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.
media department media director M e d ia D ir e c to r A s s o c ia te M e d ia associate media directors D ir e c to r media supervisors M e d ia media planners S u p e r v is o r Media M e d ia M e d ia PlanP la n n e r B uyer media buyers Analysts media analysts
big changes in themedia department 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
research departmentinterpret market environment gather and analyze research data. primary and secondary techniquesdetermine consumer needs/perceptions understand problemsadvise how ads can meet Research strategic goals Report help find solutions
research departmentR esea rchD ir e c to r research director P r o je c tM anagers research project managers R esea rch research assistantsA s s is ta n ts Research Outside outside research Report Research Suppliers specialists
3 ways agencies make money commissions usually 15% of gross costs fees usually based on negotiated hourly rate incentives still relatively new and problematic usually based on performance goals
agency commissions 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
4 types of fee systems fixed fee (retainer) cost-plus fee performance fee hybrid fee & commission
incentives in theory, a good way to work get paid based on how well you do, nothow much you bill in practice, difficult to implement if client makes final decision (instead ofagency), how can agency be responsiblefor final results? results based on many factors, such ascompetitive efforts, not just advertising
new business three primary sources “The critical objective business build existing client’s and roleof any ad agency is IMC services add and sell new gaining new business.” solicit new accounts two ongoing problems “spec” work teams “walking” with accounts
things to think about: why might you be interested ingoing into the agency business? what might keep you from choosinga career in the agency business?