Chap 4,role of ad agency


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Chap 4,role of ad agency

  1. 1. .. ....
  2. 2. Ad Agency:An ad agency is a service organization that specialize in planning & executing advertising programme for its client.“The standard directory of Advertising Agencies”It is the most comprehensive directory in the world, segmented according to the size of industries. Approx 15,000 US & international agencies listed in it.
  3. 3. .. Top ad agencies(World):Lintas, Y & R, Ogilvy & Mather, Grey worldwideTop ad agencies(India):Mudra Communication, Madison, Leo Burnet, Satchi & satchi
  4. 4. The role of an ad agency:An organization hire ad agency because of following reasonService of highly skilled individuals• Specialize in their respective field• They have good bunch of artist, writer, Media analyst, Researcher• All person have specific knowledge skill & Experience• Specialized in particular domain• They can provide object view point, not related to company politics & unbiased• Experience in working in diverse set of marketing field.
  5. 5. Types of Ad agency:It can be from one man to big organization. Broadly it is of 4 types• Full-Services Agencies• Creative Boutiques• Media Buying Services
  6. 6. Board of directors President VP creative VP account VP marketing VP management services services services and finance Writers TV Print Account Media Research SalesArt directors production production supervision promotion Traffic Account executive Office Finance management Accounting Personnel
  7. 7. Account Service :Most important division of Ad agency• Link between ad agency & Clients• Understand advertiser’s marketing & Promotion needs &interpret to ad agency• Coordinates agency effort in planning, creating & producing ads• Present agency recommendations & obtain client approval
  8. 8. .. Ideal Person: • Strong Analytical skill • Strong marketing background • Understanding all phase of marketing
  9. 9. Marketing Service:This dept of ad agency play vital role & understand the target audience of customer. Three different services comes under marketing services• Research Department• Media Department• Sales Promotion Department
  10. 10. Research Department:• Gather, analyze & interpret information for developing advertising• Design & Conduct MR for effectiveness of present ad• Data can be obtain by primary as well secondary
  11. 11. .. Media Department: • Analyze, selects, & contracts for space or time in media • Responsible for deliver client’s advertisement. • Develop media plan effectively as cost of the ad depends on it • Develop the plan for right target audience • The person should have through knowledge of space, slot, time, Reach & their rates Sales & Promotion: Some Ad agency also do sales & promotion activity
  12. 12. Research Department:
  13. 13. Creative service:• Create & Execute the advertisement• Determine the basic appeal or theme of ad• Prepare rough initial layout for approval Three different services comes under it.• Writer & Art Directors• TV Production• Print Production
  14. 14. .. Three different services comes under it. • Writer & Art Directors • TV Production • Print Production
  15. 15. Writer & Art DirectorsWriter• Responsible for conceive the ideas for ad• Write headlines, Subheads, & body copy• They also known as copywriterArt Directors:• Responsible for look of the ad• For print ad art director & Graphic designer prepare layout• For TV ad this layout is known as Storyboard(sequence of film in still form)All members of writers & art directors work under the watchful eyes of creative director
  16. 16. .. Art Directors: • Responsible for look of the ad • For print ad art director & Graphic designer prepare layout • For TV ad this layout is known as Storyboard(sequence of film in still form) All members of writers & art directors work under the watchful eyes of creative director
  17. 17. Production Dept:• Give the ad into actual shape• Basically this dept is outsourced
  18. 18. The Role of Creative Boutiques ..Creative Provide Only Creative ServicesBoutiques Full-Service Agencies May Subcontract With Creative Boutiques Other Functions Provided by the Internal Client Departments
  19. 19. .. Creative Boutiques:Like: Vyas Gianneti Creative:Client: Aditya Birla Group, Godfrey Philips, BBC world, ICL, Tata group
  20. 20. Media Specialist Company::• These companies are specialize in buying of media, particularly radio & television time• They are specialize in analyze & purchase of advertisement time & space• Receive good discount as they buy space & time in large amount• Came in the main frame as the viewers have been increased dramatically.
  21. 21. Media Buying Can Be Specialized .. Media Buying Specialize in Buying Media, EspeciallyServices Broadcast Time Agencies and Clients Develop Media Strategy Media Buying Organizations Implement the Strategy and Buy Time and Space
  22. 22. Agency Compensation:Agencies are typically compensated in three ways• Commissions: Usually 15% & 2% in cash• Some type of fee arrangement: Fee Arrangement Cost Plus Agreement Incentive based Compensation• Percentage Charges
  23. 23. Evaluating Agencies:Basically the relation between client & agencies are depend on the performance, bt in some case it also long term prospect as well short term.Like:General Electric:: BBDO worldwide for (80 yrs)Marlboro:: Leo Burnett(50 yrs)McDonald’s::DDB worldwide(37 yrs)
  24. 24. Reason for loosing Client:• Poor performance or services:• Poor Communication:• Unrealistic demand by the client:• Personality Conflict:• Change in Size:• Conflicts of interest of Clients:• Changing strategy of client: