Advertising industry - Structure & practices


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Advertising industry - Structure & practices

  1. 1. Symbiosis Institute of Media and Communication, PuneAdvertising Industry & Practices Prof. Nandita Khaire Assignment Submitted By: Yasmin Hussain 144 MBA - Ad 2013
  2. 2. ADVERTISING AGENCY – STRUCTURE & KEY FUCTIONSAdvertising agencies come in all shapes and sizes. Some are smallboutique shops that have just a few people. Others are giants thatemploy thousands of people in offices all around the world.But, however large or small the agency, there is a basic structure thatmost advertising agencies stick to. In the smaller agencies, somepeople will perform more than one role. One person my actually bethe entire department. But the fundamentals are the same.There are 6 major departments in any advertising agency. These canbe split into other sub-departments, or given various creative names,but the skeleton is the same.These departments are:• Account Management• Account Planning• Creative• Finance & Accounts• Media Buying• ProductionLarger agencies may also separate out the following departments:• Human Resources & Facilities• Research• Web development• TrafficAccount Management / Client ServiceThe account management department comprises of account executives,account managers and account directors, and is responsible forliaising with the agencys many clients. This department is the linkbetween the many departments within the agency, and the clients whopay the bills. In the past they were referred to as "the suits," andthere have been many battles between the account servicesdepartment and the creative department. But as most creatives know,a good account services team is essential to a good advertising
  3. 3. campaign. A solid creative brief is one of the main duties of accountservices.Account PlanningThis department combines research with strategic thinking. Often a mixof researchers and account managers, the account planningdepartment provides consumer insights, strategic direction, research,focus groups and assists helps keep advertising campaigns on targetand on brand. It can be described as “the discipline that brings theconsumer into the process of developing advertising”. To be trulyeffective, advertising must be both distinctive and relevant, andplanning helps on both counts.CreativeThis is the engine of any advertising agency. Its the lifeblood of thebusiness, because the creative department is responsible for theproduct. And an ad agency is only as good as the ads the creativedepartment puts out. The roles within the creative department aremany and varied, and usually include:• Copywriters• Art Directors• Designers• Production Artists• Web Designers• Associate Creative Directors• Creative Director(s)In many agencies, copywriters and art directors are paired up, workingas teams. They will also bring in the talents of other designers andproduction artists as and when the job requires it. Sometimes, traffic ishandled by a position within the creative department, although that isusually part of the production department. Everyone within creativeservices reports to the Creative Director. It is his or her role to steerthe creative product, making sure it is on brand, on brief and on time.Finance & AccountsMoney. At the end of the day, thats what ad agencies want. And itswhat their clients want, too. At the center of all the money coming
  4. 4. into, and going out of, the agency is the finance and accountsdepartment. This department is responsible for handling payment ofsalaries, benefits, vendor costs, travel, day-to-day business costs andeverything else youd expect from doing business. Its been said thatapproximately 70% of an ad agencys income pays salary and benefitsto employees. However, this figure varies depending on the size andsuccess of the agency in question.Media BuyingIt is the function of the media buying department to procure theadvertising time and/or space required for a successful advertisingcampaign. This includes TV and radio time, outdoor (billboards,posters, guerrilla), magazine and newspaper insertions, internet bannersand takeovers, and, well, anywhere else an ad can be placed for afee. This usually involves close collaboration with the creativedepartment who comes up with the initial ideas, as well as the clientand the kind of exposure they want. This department is usually steeredby a media director.ProductionIdeas are just ideas until theyre made real. This is the job of theproduction department. During the creative process, the productiondepartment will be consulted to talk about the feasibility of executingcertain ideas. Once the ad is sold to the client, the creative andaccount teams will collaborate with production to get the campaignproduced on budget. This can be anything from getting originalphotography or illustration produced, working with printers, hiringtypographers and TV directors, and a myriad of other disciplinesneeded to get an ad campaign published. Production also worksclosely with the media department, who will supply the specs anddeadlines for the jobs.In small to mid-sized agencies, traffic is also a part of the productiondepartment. It is the job of traffic to get each and every job throughthe various stages of account management, creative development,media buying and production in a set timeframe. Traffic will alsoensure that work flows through the agency smoothly, preventing jamsthat may overwhelm creative teams and lead to very long hours,
  5. 5. missed deadlines and problematic client relationships. Traffic keeps theagencys heart beating. EVOLUTION OF MODERN ADVERTISING IN USAIn United States history, advertising has responded to changingbusiness demands, media technologies, and cultural contexts, and it ishere, not in a fruitless search for the very first advertisement, that weshould begin.In the eighteenth century, many American colonists enjoyed importedBritish consumer products such as porcelain, furniture, and musicalinstruments, but also worried about dependence on importedmanufactured goods. Advertisements in colonial America were mostfrequently announcements of goods on hand, but even in this earlyperiod, persuasive appeals accompanied dry descriptions. BenjaminFranklin’s Pennsylvania Gazette reached out to readers with newdevices like headlines, illustrations, and advertising placed next toeditorial material. Also, a particularly disturbing form of early Americanadvertisements were notices of slave sales or appeals for the captureof escaped slaves.Despite the ongoing “market revolution,” early and mid-nineteenth-century advertisements rarely demonstrate strikingchanges in advertising appeals. Newspapers almost never printed adswider than a single column and generally eschewed illustrations andeven special typefaces. Magazine ad styles were also restrained, withmost publications segregating advertisements on the back pages.In the 1880s, industries ranging from soap to canned food tocigarettes introduced new production techniques, created standardizedproducts in unheard-of quantities, and sought to find and persuadebuyers. National advertising of branded goods emerged in thisperiod in response to profound changes in the business environment.Along with the manufacturers, other businesses also turned toadvertising. Large department stores in rapidly-growing cities, such asWanamaker’s in Philadelphia and New York, Macy’s in New York, andMarshall Field’s in Chicago, also pioneered new advertising styles. Byone commonly used measure, total advertising volume in the UnitedStates grew from about $200 million in 1880 to nearly $3 billion in1920.
  6. 6. Advertising agencies, formerly in the business of peddling advertisingspace in local newspapers and a limited range of magazines, becameservants of the new national advertisers, designing copy and artworkand placing advertisements in the places most likely to attract buyerattention.While advertising generated modern anxieties about its social andethical implications, it nevertheless acquired a new centrality in the1920s. Consumer spending–fueled in part by the increased availabilityof consumer credit–on automobiles, radios, household appliances, andleisure time activities like spectator sports and movie going paced agenerally prosperous 1920s. Advertising promoted these products andservices. The rise of mass circulation magazines, radio broadcastingand to a lesser extent motion pictures provided new media foradvertisements to reach consumers.Since the 1920s, American advertising has grown massively, andcurrent advertising expenditures are eighty times greater than in thatdecade. New media–radio, television, and the Internet–delivercommercial messages in ways almost unimaginable 80 years ago. Thetriad of advertiser, agency, and medium remains the foundation ofthe business relations of advertising. Perhaps the most strikingdevelopment in advertising styles has been the shift from attempting tomarket mass-produced items to an undifferentiated consuming publicto ever more subtle efforts to segment and target particular groupsfor specific products and brands. In the 1960s, what Madison Avenueliked to call a “Creative Revolution” also represented a revolution inaudience segmentation. Advertisements threw a knowing wink to thetargeted customer group who could be expected to buy a Volkswagenbeetle or a loaf of Jewish rye instead of all-American white bread.Creative Revolution1960-1969Cultural ForcesCountercultural movements“Break the rules”1950-1969Business ForcesA New Breed of AgenciesA New communication styleThree Influential individuals: Bernbach, Leo Burnett, David Ogilvy
  7. 7. Marketing Revolution1970-1979Tougher economic timesNew, more “scientific” tools:Brand ManagementMarket ResearchSegmentation“Positioning” STALWARTS OF ADVERTISING INDUSTRY – STYLE AND IMPACTLeo BurnettLeo Burnett used dramatic realism in his advertising, the Softsell approach to build brand equity, Burnett believed that in findingthe inherent drama of products and presenting it in advertisingthrough warmth, shared emotions and experiences.   His advertising drewfrom heartland-rooted values using simple, strong and instinctiveimagery that talked to people. He was also known for using culturalarchetypes in his copy, by creating mythical creatures thatrepresented American values.His creative process could be summed up in three points: 1. There is an inherent drama in every product. Our No.1 job is to dig for it and capitalize on it. 2. When you reach for the stars, you may night quite get one, but you wont come up with a handful of mud either. 3. Steep to yourself in your subject, work like hell, and love, honor and obey your hunches.Burnetts approach to advertising set a distinct style, the so-called"Chicago school", named after the city where the agency establisheditself. Its key virtues were simplicity and drama. In many cases thismeant encouraging an emotional bond between consumers and hisclients products, by creating a visual symbol that would leaveconsumers with a "brand picture engraved on their consciousness".Burnett did this most successfully with a series of friendly iconiccharacters: the Jolly Green Giant, the Pillsbury Dough-boy, Tony theTiger or the Marlboro Man. But sometimes this visual symbolism wasembodied in other ways. In a 1945 press campaign for the American
  8. 8. Meat Institute for example, the agency broke the unwritten rule thatsaid that the depiction of uncooked meat in advertising wasdistasteful. "We convinced ourselves that the image of meat should bea virile one, best expressed in red meat." Instead Burnetts ads showedthick slices of raw red meat set against a bright red background. "Redagainst red was a trick," he explained, "but it was a natural thing todo. It just intensified the red concept and the virility and everythingelse we were trying to express. This was inherent drama in its purestform."He was obsessed with finding visual triggers that could effectivelycircumvent consumers critical thought. Though an advertising messagemight be rejected consciously, he maintained that it was acceptedsubliminally. Through the "thought force" of symbols, he said, "weabsorb it through our pores, without knowing we do so. By osmosis."Although Burnett is best remembered for his visualising input intoadvertising (and the effect of this on television advertising) he is alsoremembered for taking on a more emotional / evocative approachto advertising, overall, compared to many of his important competitorsat the time, who were often much more research-based andmarketing-focused.David OgilvyHe was 38 years old -- and unemployed.He was a college dropout. He has been a cook, a door-to-door ovensalesman, a diplomatist and a farmer.He knew nothing about marketing and had never written any copy. Heprofesses to be interested in advertisingYet, he became one of the most revered marketing minds in the world.He helped to establish modern advertising with his big ideas. Heproduced many of the worlds most famous and sophisticated adcampaigns. His style, wit and convictions helped mold an industry.But most importantly, he knew how to sell.His copy followed the basic rules of advertising: research and positionthe product, develop a brand image, build culture, and have a bigidea.One of the first ads he wrote as the head of his own agency was"Guinness Guide to Oysters".Ogilvy always stressed that "every advertisement must contribute tothe complex symbol which is the Brand Image". Brand Image meant
  9. 9. the personality of the product -- a combination of its name,packaging, price, its advertising style, the nature of the product, etc.An ad campaign, Ogilvy said, must always revolve around a sharplydefined personality -- a coherent image that you must stick to yearafter year. “You now have to decide what ‘image’ you want for yourbrand. Image means personality. Products, like people, havepersonalities, and they can make or break them in the market place”,Ogilvy said.In 1951, a small shirtmaker, C. F. Hathaway, came asking for help. Thisled Ogilvy to create the image of a man with the black eye patch,and "The Man in The Hathaway Shirt" campaign was born. Thisnarrative, creative campaign ran for 25 years.For Schweppes, Ogilvy persuaded the client, Commander Whitehead, toappear in his own advertisements. The campaign featuring thedistinguished looking, bearded Brit in various ads and commercials ranfor eighteen years.For Rolls-Royce, he used the headline, "At 60 Miles An Hour TheLoudest Noise In This New Rolls-Royce Comes From The ElectricClock". This remains the most famous automobile advertisement of alltime.The basic format Ogilvy developed was his advertising road to glory:a beautiful picture would take up about 60% or more of the ad space.Beneath it would be a short headline, something, that would catchyour eye, something easy to read, that would make you want to readon. Beneath the headline would be three neatly lined-up copy blocks.Ogilvy was responsible for coining the infamous phrase ‘the big idea’.‘The big idea’ involved creating something big about the brand thatwould appeal to a mass audience. Things have, perhaps, developedsince then (due to the emergence of new media, as well as importantchanges in consumer behaviour and attitudes towards advertising,general). Nevertheless, ‘the big idea’ had a radical impact on the worldof advertising in the 1960′s and 1970′s, and it is still important today,in varying degrees of importance.William BernbachWas it only yesterday that a "new" Volkswagen Beetle campaignappeared, one that proudly recalls its Bernbach lineage? Talked toadvertisings creative stars lately? Or their mentors? It is still,"Bernbach, Bernbach, Bernbach." His influence is alive and well andready to help lead the industry through the 21st century.
  10. 10. "Rules are what the artist breaks; the memorable never emerged froma formula." -- Bill BernbachAs the single most influential creative force in advertisings history,Bernbach served as an inspiring father figure to some of advertisingsmost brilliant talents. His copywriters and art directors lived for hisapproval, competed to make his blue eyes sparkle, to produce workthat would earn a Bernbachian smile.Bernbach, a conservative in his dress and manner would focus insteadon richly empathic adult, fresh and relevant ideas. Unpretentious ideas.And the craftmanship would always be beautiful, as close to perfect ashumanly possible. While examining an already short block of copy,Bernbach might say, "Make it a half-line shorter." He would toss off aheadline and ask one of his creative stars to write "all the littlewords." It was UBA: the University of Bernbach Advertising."Advertising doesnt create a product advantage. It can only conveyit." -- Bill BernbachWhen DDB came along, the TV commercial landscape was filled withdevices and lively gimmicks. Enter DDB and an era of creative energyunknown since Ray Rubicams Young & Rubicam explosive work of the1920s. Bernbach insisted on first learning how his clients productsrelated to their users, what human qualities and emotions came intoplay. Then the challenge turned to deciding how best to communicatethose elements, in TV and print, and capture the consumersunderstanding and support."Logic and over-analysis can immobilize and sterilize an idea. Its likelove -- the more you analyze it, the faster it disappears." -- BillBernbachBernbachs leadership maintained a consistent tonal quality. In print,VWs "Think Small" ad challenged our acquisitive tendencies even asthe "ugly" Beetle became the first successful import car and the adcampaign altered advertising for all time."Research can trap you into the past." -- Bill BernbachBernbachs advocacy of advertising as art was grounded in the radicalnotion that the public had to be respected. Underlying respect wouldencourage favorable reactions to intelligent and imaginative advertising.Bernbach was at the heart of the advertising ’Creative Revolution’ (ofthe 1950′s and 1960′s). The ‘Creative Revolution’ was about creating amore informal and egalitarian atmosphere / work model in the adagency so as to encourage creativity. And his approach to creativeoutput was just as dramatic, adding, in particular, personality, humourand an overall creative touch that was quite different to what was,
  11. 11. typically, going on in the ad industry in general at the time. Bernbachwas, also, noted for trying to make creative work, and in particularcopywriting, as simple as possible. He, also, played an important rolein the development of creative visual work (focusing on the wayimages can be powerful communication tools) which had an importantimpact on the burgeoning (in the 1950′s at least) advertising channelof television.Rosser ReevesReeves believed the purpose of advertising is to sell. He insisted thatan advertisement or commercial should show off the value of aproduct, not the cleverness of a copywriter. His most typical ad isprobably that for Anacin, a headache medicine. The ad was consideredgrating and annoying by almost all viewers but it was remarkablysuccessful, tripling the products sales.His ads were focused around what he called the unique sellingproposition, the one reason the product needed to be bought or wasbetter than its competitors. These often took the form of slogans —Reeves oversaw the introduction of dozens, some that still exist to thisday, such as M&M’s "melt in your mouth, not in your hand." Heargued that advertising campaigns should be unchanging with a singleslogan for each product. His commercials for Bic pens, MinuteMaid orange juice, M&M candies, Colgate toothpaste and otherproducts used similar methods, often making dramatic demonstrations.Reeves pointed out that to work, advertising had to be honest. Heinsisted the product being sold actually be superior, and argued thatno amount of advertising could move inferior goods. He alsodisagreed that advertising was able to create demand where it did notexist. Successful advertising for a flawed product would only increasethe number of people who tried the product and became dissatisfiedwith it. If advertising is effective enough and a product flawed enough,the advertising will accelerate the destruction of the brand. Similarly,Reeves believed it was a waste of money to claim uniqueness thatdoesnt exist, because consumers will soon find out, and they wontcome back to the brand.Reeves advised clients to be wary of brand image advertising, whichis less likely to be successful than his claim-based strategy. This isbecause when communication relies on an image, the claim isunarticulated. An image can almost always be interpreted differentways, many if not most of which wont do a product any good. The
  12. 12. message that a viewer takes away from an image is often verydifferent than what the advertiser had intended.Paul RandPaul Rand was a well-known American graphic designer, best knownfor his corporate logo designs.Before this design revolution came many great art movements:Cubism, Constructivism, De Stijl, Expressionism, Bauhaus and Randused these movements as inspiration for his own style. He came toappreciate a relationship between geometric form and colorPaul Rand believed in the importance of transforming the familiar,often mundane, visual world with aesthetically pleasing, yet simpledesign that could appeal to a mass cultural base. He believed “Designis the method of putting form & content together. Design, just as art,has multiple definitions; there is no single definition. Design can be art.Design can be aesthetics. Design is so simple, that’s why it is socomplicated.” Rand looked for what he considered a proper balance ofvisual content (the image) and technical content (type). He strived fora “functional-aesthetic perfection” of modern art. Rand alsoincorporated symbolism into his work, part of what he referred to as“New Advertising”, the idea that design should create a relationshipbetween the designer and the viewer through the interpretation ofthese simple symbols.In the 1940s, Paul Rand strayed from conventional standards oftypography and layout, and started incorporating Swiss style of designinto his creations. He merged American visual culture into moderndesign, incorporating Cubism, Constructivism, the Bauhaus and De Stijlinto his work. Rand was best known for his corporate logo designs.He revolutionized how businesses identify themselves through simpleyet functional logos and packaging, further bringing design as an artform into the mainstream. His most famous logo design was forInternational Business Machines (IBM) Corporation.Claude HopkinsClaude Hopkins was one of the great advertising pioneers. He believedadvertising existed only to sell something and should be measurableand justify the results that it produced.Claude Hopkins was one of the first to experiment with changing copybased on results. If copy with headline A resulted in more sales than
  13. 13. the same copy with headline B, headline A was proven scientifically tobe superior.Hopkins cut a pretty wide swathe with those techniques, and deservesto be read by a modern audience. Scientific Advertising wasintroduced by him.Three Hopkinsian concepts: • Tell the truth. Always. • Research your product completely. Provide reason-why copy. • Psychology is key, especially when it comes to marketing.John CaplesJohn Caples is also known as the “Father of Direct response”.Caples’ Three-Step Approach to Creativity: 1. Capture the prospect’s attention. Nothing happens unless something in your ad, your mailing, or your commercial makes the prospect stop long enough to pay attention to what you say next. 2. Maintain the prospect’s interest. Keep the ad, mailing, or commercial focused on the prospect, on what he or she will get out of using your product or service. 3. Move the prospect to favorable action. Unless enough “prospects” are transformed into “customers”, your ad has failed, no matter how creative. That’s why you don’t stop with A/I/A (Attention, Interest/Action), but continue right on with testing.