The document discusses advertising agencies and their structure and functions. It begins by defining an advertising agency as an agency that designs advertisements to attract public attention to its clients. It then lists the top Indian advertising agencies and describes the main departments in an advertising agency, including account servicing, account planning, media, creative, production, and finance/accounting. The document outlines the roles and responsibilities of each department. It also discusses the agency-client relationship and tips for making the relationship successful. Finally, it covers laws and ethics of advertising in India as well as the Advertising Standards Council of India (ASCI).

1. Advertising AgenciesAdvertising Agencies
Mr. Amit GargMr. Amit Garg
Assistant Professor,Assistant Professor,
Deptt. of Management Studies,Deptt. of Management Studies,
Malout Institute of Management & Information Technology,Malout Institute of Management & Information Technology,
Malout - 152107Malout - 152107
Distt. Muktsar (Punjab)Distt. Muktsar (Punjab)
84271-0500284271-05002
Email:Email: amit.mimit@gmail.comamit.mimit@gmail.com

2. Advertising AgencyAdvertising Agency
• An agency that designs advertisement to callAn agency that designs advertisement to call
public attention to its clients.public attention to its clients.
• An agency employed by advertiser to plan,An agency employed by advertiser to plan,
design, place and supervise their advertisementsdesign, place and supervise their advertisements
or advertising campaigns.or advertising campaigns.

3. Top Indian Advertising AgenciesTop Indian Advertising Agencies
• Adbur Pvt LtdAdbur Pvt Ltd
• Akshara AdvertisingAkshara Advertising
• Chaitra Leo Burnett Pvt LtdChaitra Leo Burnett Pvt Ltd

4. Structure of ad agencyStructure of ad agency
Broadly there are 6 departments in any advertising agencyBroadly there are 6 departments in any advertising agency
• Account ServicingAccount Servicing
• Account PlanningAccount Planning
• MediaMedia
• CreativeCreative
• ProductionProduction
• Finance and AccountingFinance and Accounting
• Account service departmentAccount service department

5. ACCOUNT SERVICINGACCOUNT SERVICING
• The account service, or the account management department, isThe account service, or the account management department, is
the link between the ad agency and its clients. Depending uponthe link between the ad agency and its clients. Depending upon
the size of the account and its advertising budget one or twothe size of the account and its advertising budget one or two
account executives serve as liason to the client. The accountaccount executives serve as liason to the client. The account
executive’s job requires high degree of diplomacy and tact asexecutive’s job requires high degree of diplomacy and tact as
misunderstanding may lead to loss of an account. The accountmisunderstanding may lead to loss of an account. The account
executive is mainly responsible to gain knowledge about theexecutive is mainly responsible to gain knowledge about the
client’s business, profit goals, marketing problems andclient’s business, profit goals, marketing problems and
advertising objectives.advertising objectives.

6. ACCOUNT PLANNINGACCOUNT PLANNING
• The account executive is responsible for getting approved theThe account executive is responsible for getting approved the
media schedules, budgets and rough ads or story boards frommedia schedules, budgets and rough ads or story boards from
the client. The next task is to make sure that the agencythe client. The next task is to make sure that the agency
personnel produce the advertising to the client’s satisfaction. Thepersonnel produce the advertising to the client’s satisfaction. The
biggest role of the account executive is keeping the agency aheadbiggest role of the account executive is keeping the agency ahead
of the client through follow-up and communicationsof the client through follow-up and communications

7. MEDIA DEPARTMENTMEDIA DEPARTMENT
• The responsibility of the agency’s media department is toThe responsibility of the agency’s media department is to
develop a media plan to reach the target audience effectively in adevelop a media plan to reach the target audience effectively in a
cost effective manner. The staff analyses, selects and contractscost effective manner. The staff analyses, selects and contracts
for media time or space that will be used to deliver the adfor media time or space that will be used to deliver the ad
message. This is one of the most important decisions since amessage. This is one of the most important decisions since a
significantly large part of the client’s money is spent on thesignificantly large part of the client’s money is spent on the
media time and/or space. The media department has acquiredmedia time and/or space. The media department has acquired
increasing importance in an agency’s business as large advertisersincreasing importance in an agency’s business as large advertisers
seem to be more inclined to consolidate media buying with oneseem to be more inclined to consolidate media buying with one
or few agencies thereby saving money and improving mediaor few agencies thereby saving money and improving media
efficiency.efficiency.

8. CREATIVE DEPARTMENTCREATIVE DEPARTMENT
• To a large extent, the success of an ad agency depends upon theTo a large extent, the success of an ad agency depends upon the
creative department responsible for the creation and executioncreative department responsible for the creation and execution
of the advertisements. The creative specialists are known asof the advertisements. The creative specialists are known as
copywriters. They are the ones who conceive ideas for the adscopywriters. They are the ones who conceive ideas for the ads
and write the headlines, subheads and the body copy. They areand write the headlines, subheads and the body copy. They are
also involved in deciding the basic theme of the advertisingalso involved in deciding the basic theme of the advertising
campaign, and often they do prepare the rough layout of thecampaign, and often they do prepare the rough layout of the
print ad or the commercial story board.print ad or the commercial story board.
• Creation of an ad is the responsibility of the copywriters and theCreation of an ad is the responsibility of the copywriters and the
art department decides how the ad should look.art department decides how the ad should look.

9. PRODUCTION DEPARTMENTPRODUCTION DEPARTMENT
• After the completion and approval of the copy and theAfter the completion and approval of the copy and the
illustrations the ad is sent to the production department.illustrations the ad is sent to the production department.
Generally agencies do not actually produce the finished ads;Generally agencies do not actually produce the finished ads;
instead they hire printers, photographers, engravers,instead they hire printers, photographers, engravers,
typographers and others to complete the finished ad. For thetypographers and others to complete the finished ad. For the
production of the approved TV commercial, the productionproduction of the approved TV commercial, the production
department may supervise the casting of actors to appear in thedepartment may supervise the casting of actors to appear in the
ad, the setting for scenes and selecting an independentad, the setting for scenes and selecting an independent
production studio. The production department sometimes hiresproduction studio. The production department sometimes hires
an outside director to transform the creative concept to aan outside director to transform the creative concept to a
commercial.commercial.

10. FINANCE AND ACCOUNTINGFINANCE AND ACCOUNTING
DEPARTMENTDEPARTMENT
• An advertising agency is in the business of providing servicesAn advertising agency is in the business of providing services
and must be managed that way. Thus, it has to perform variousand must be managed that way. Thus, it has to perform various
functions such as accounting, finance, human resources etc. itfunctions such as accounting, finance, human resources etc. it
must also attempt to generate new business. Also thismust also attempt to generate new business. Also this
department is important since bulk of the agency’s incomedepartment is important since bulk of the agency’s income
approx. 65% goes as salary and benefits to the employees.approx. 65% goes as salary and benefits to the employees.

11. DAGMARDAGMAR
• Defining Advertising Goals for Measured Advertising ResultsDefining Advertising Goals for Measured Advertising Results

12. Define
Target Audience
Define
Target Audience
Define Desired
Percentage
Change
Define Desired
Percentage
Change
Define the Time
Frame for Change
Define the Time
Frame for Change
Goal ofGoal of
AdvertisingAdvertising
ObjectivesObjectives
Goal ofGoal of
AdvertisingAdvertising
ObjectivesObjectives

13. Advertising Agency FunctionsAdvertising Agency Functions
• Account ManagementAccount Management – Within an advertising agency the– Within an advertising agency the
account manager or account executive is tasked with handling allaccount manager or account executive is tasked with handling all
major decisions related to a specific client. These responsibilitiesmajor decisions related to a specific client. These responsibilities
include locating and negotiating to acquire clients. Once theinclude locating and negotiating to acquire clients. Once the
client has agreed to work with the agency, the account managerclient has agreed to work with the agency, the account manager
works closely with the client to develop an advertising strategy.works closely with the client to develop an advertising strategy.
For very large clients, such as large consumer productsFor very large clients, such as large consumer products
companies, an advertising agency may assign an account managercompanies, an advertising agency may assign an account manager
to work full-time with only one client and, possibly, with onlyto work full-time with only one client and, possibly, with only
one of the client’s product lines. For smaller accounts an accountone of the client’s product lines. For smaller accounts an account
manager may simultaneously manage several different, thoughmanager may simultaneously manage several different, though
non-competing, accounts.non-competing, accounts.

14. • Creative TeamCreative Team –The principle role of account managers is to–The principle role of account managers is to
manage the overall advertising campaign for a client, which oftenmanage the overall advertising campaign for a client, which often
includes delegating selective tasks to specialists. For largeincludes delegating selective tasks to specialists. For large
accounts one task account managers routinely delegate involvesaccounts one task account managers routinely delegate involves
generating ideas, designing concepts and creating the finalgenerating ideas, designing concepts and creating the final
advertisement, which generally becomes the responsibility of theadvertisement, which generally becomes the responsibility of the
agency’s creative team. An agency’s creative team consists ofagency’s creative team. An agency’s creative team consists of
specialists in graphic design, film and audio production,specialists in graphic design, film and audio production,
copywriting, computer programming, and much more.copywriting, computer programming, and much more.

15. • ResearchersResearchers – Full-service advertising agencies employ market– Full-service advertising agencies employ market
researchers who assess a client’s market situation, includingresearchers who assess a client’s market situation, including
understanding customers and competitors, and also are used tounderstanding customers and competitors, and also are used to
test creative ideas. For instance, in the early stages of antest creative ideas. For instance, in the early stages of an
advertising campaign researchers may run focus group sessionsadvertising campaign researchers may run focus group sessions
with selected members of the client’s target market in order towith selected members of the client’s target market in order to
get their reaction to several advertising concepts. Researchers areget their reaction to several advertising concepts. Researchers are
also used following the completion of an advertising campaign toalso used following the completion of an advertising campaign to
measure whether the campaign reached its objectives.measure whether the campaign reached its objectives.

16. • Media PlannersMedia Planners – Once an advertisement is created, it must be– Once an advertisement is created, it must be
placed through an appropriate advertising media. Eachplaced through an appropriate advertising media. Each
advertising media, of which there are thousands, has its ownadvertising media, of which there are thousands, has its own
unique methods for accepting advertisements, such as differentunique methods for accepting advertisements, such as different
advertising cost structures (i.e., what it costs marketers to placeadvertising cost structures (i.e., what it costs marketers to place
an ad), different requirements for accepting ad designs (e.g., sizean ad), different requirements for accepting ad designs (e.g., size
of ad), different ways placements can be purchased (e.g., directof ad), different ways placements can be purchased (e.g., direct
contact with media or through third-party seller), and differentcontact with media or through third-party seller), and different
time schedules (i.e., when ad will be run). Understanding thetime schedules (i.e., when ad will be run). Understanding the
nuances of different media is the role of a media planner, whonuances of different media is the role of a media planner, who
looks for the best media match for a client and also negotiateslooks for the best media match for a client and also negotiates
the best deals.the best deals.

17. Agency-Client RelationshipAgency-Client Relationship
• The agency-client relationship involves a dual responsibility.The agency-client relationship involves a dual responsibility.
• It is crucial to the growth and survival of the client's productsIt is crucial to the growth and survival of the client's products
and its corporate image.and its corporate image.

18. Tips For Making The Relationship WorkTips For Making The Relationship Work
BetterBetter
• Establish your expectations for your advertising agency. WriteEstablish your expectations for your advertising agency. Write
down the objectives very clearly.down the objectives very clearly.
• Make an internal communication map. It should clearly say whoMake an internal communication map. It should clearly say who
will communicate and who will make the decisions. Limit thewill communicate and who will make the decisions. Limit the
number of decision makers. It is a mistake to only work with thenumber of decision makers. It is a mistake to only work with the
heads of departments and ignore individuals who actually workheads of departments and ignore individuals who actually work
on your account. You may lose out on great advertising ideas.on your account. You may lose out on great advertising ideas.
• Integrate your advertising agency fully with every aspect of theIntegrate your advertising agency fully with every aspect of the
company to educate its employees about the firm, its values, itscompany to educate its employees about the firm, its values, its
brands, its services, its strengths, and its limitations. They willbrands, its services, its strengths, and its limitations. They will
deliver what they get.deliver what they get.

19. • Treat your advertising agency as a partner, not a vendor. HidingTreat your advertising agency as a partner, not a vendor. Hiding
sensitive information from it can be costly. Let the agency judgesensitive information from it can be costly. Let the agency judge
what is important and what isn't. Frequent meetings andwhat is important and what isn't. Frequent meetings and
discussions of diverse dimensions will resolve the agency'sdiscussions of diverse dimensions will resolve the agency's
doubts and equip it to do a better job of promoting your productdoubts and equip it to do a better job of promoting your product
or service.or service.
• Advertising is creative work, and people who work in this fieldAdvertising is creative work, and people who work in this field
tend to be sensitive and opinionated. Respect their individuality,tend to be sensitive and opinionated. Respect their individuality,
and acquire the skills you need to deal with them.and acquire the skills you need to deal with them.

20. • Rejecting creative ideas is an inherent part of the advertisingRejecting creative ideas is an inherent part of the advertising
process, and a few rejections should not make you nervous.process, and a few rejections should not make you nervous.
Unless rejections become very frequent, they do not indicate anyUnless rejections become very frequent, they do not indicate any
failure on behalf of the agency. In any case, you should notfailure on behalf of the agency. In any case, you should not
compromise your promotion plan.compromise your promotion plan.
• Make endeavors to quantify the results of advertisements, andMake endeavors to quantify the results of advertisements, and
don't hesitate to share them openly with your advertising agency.don't hesitate to share them openly with your advertising agency.
Learning from mistakes is the solution, and mistakes should notLearning from mistakes is the solution, and mistakes should not
result in abrupt termination of the contract with the advertisingresult in abrupt termination of the contract with the advertising
agency. Both success and failure usually result from joint efforts.agency. Both success and failure usually result from joint efforts.

21. • Don't interfere in professionals' work. Take care of the mainDon't interfere in professionals' work. Take care of the main
objectives of advertisements; leave the rest to the professionals.objectives of advertisements; leave the rest to the professionals.
It is not wrong to want to understand and discuss the purposeIt is not wrong to want to understand and discuss the purpose
behind the selection of illustrations, colors, copy, and media forbehind the selection of illustrations, colors, copy, and media for
your brand advertisement. However, a rigid approach on the partyour brand advertisement. However, a rigid approach on the part
of the client may confuse the advertising agency's professionalsof the client may confuse the advertising agency's professionals
and harm the project.and harm the project.

22. Laws and ethics of advertising in IndiaLaws and ethics of advertising in India
• Truthfulness in AdvertisingTruthfulness in Advertising
• The Dignity of the Human PersonThe Dignity of the Human Person
• Advertising and Social ResponsibilityAdvertising and Social Responsibility
• Dying to be noticed
• Puffery refers to exaggerated claim of a product’s superiority or
the use of subjective or vague statements that may not be literally
true.
• Deception is when the consumer is led to believe something
which is not true

23. ASCIASCI
• Advertising Standards Council of India is a self regulatoryAdvertising Standards Council of India is a self regulatory
voluntary organization of the advertising industry.voluntary organization of the advertising industry.
• The Role and Functioning of the ASCI & its CCC in dealingThe Role and Functioning of the ASCI & its CCC in dealing
with Complaints received from Consumers and Industry,with Complaints received from Consumers and Industry,
against Advertisements which are considered as False,against Advertisements which are considered as False,
Misleading, Indecent, Illegal, leading to Unsafe practices,Misleading, Indecent, Illegal, leading to Unsafe practices,
or Unfair to competition, and consequently in contraventionor Unfair to competition, and consequently in contravention
of the ASCI Code for Self-Regulation in Advertising.of the ASCI Code for Self-Regulation in Advertising.