The document provides an overview of advertising agencies, including their definition, functions, and the various types of agencies in the industry. It emphasizes the importance of advertising in promoting goods and services and outlines various services and organizational structures involved in advertising agencies. Additionally, it covers the criteria for selecting an agency and the necessary attributes of creative team members within the industry.

1. ADVERTISING AGENCY
AND IT’S
FUNCTIONS

2. What is Advertising?
• Promotion of goods, services, companies and ideas.
• Marketers see advertising as part of an overall
promotional strategy.
• Other components of the promotional mix include
publicity, public relations, personal selling, and sales
promotion.
• Process where in a message is designed.

3. • Various mediums used for communication.
• Attract, modify, change and influences public
opinion.
• Everyone needs to advertise.
• Various ways for advertising(trade magazines, transit
sign on buses, lamp posters, banners, etc).

4. Advertising Industry Has
Three Major Sectors
• Business or organization which wishes to
advertise.
• Media which provides the medium for
advertising.
• Ad-agency which creates the ad to suit the
need of the firm.

5. What is an Advertising
Agency?
The Association of Advertising Agencies of
America (AAAA) defines advertising agency as
“An independent business organization
composed of creative and business people
who develop, prepare and place advertising
media for sellers seeking to find customers for
their goods and services.”

6. Advertising Agency
• Getting the best out of advertising is a highly skilled job.
• Biggest advertisers cannot afford to employ all these experts.
• It is one of the most important components of advertising
industry.
• It has evolved to provide the specialized knowledge, skills and
experience needed to produce effective advertising
campaigns.

7. • Service business dedicated to creating, planning and
handling advertising for their clients.
• It is independent from the client and provides an outside
point of view.
• clients include businesses and corporations, non-profit
organizations and government agencies

8. Advertising Process

9. Typical Work Flow in an Ad
Agency

10. Types of Advertising
Agencies
• All Sizes
• In house work
• Selecting an Ad Agency

11. 1. Full Service Agency
• Provides a range of marketing services.
 Services directly related to advertising such
as copywriting, artwork, production of ads,
media planning etc.

12. 2. In House agencies
• Owned completely by the advertiser
• Can undertake to serve several other clients, if
the owner so desires

13. 3. Creative Boutiques
• Provide only creative functions and not full-
service.
• Copy writing, artwork and production of ads
• Merge with other agencies to provide a wide
range of services

14. 4. Mega agencies
• Concept of 1980s
• Merger of two agencies
• 1986, Saachi & Saachi, a London based - the third
largest, strarted the movement
5. The Specialists Agency
• Agency that specializes only in certain specific
area
• Eg: Soubhagya advertising agency concentrate
on specialized financial advertising.

15. Functions of an Ad Agency
• To accelerate create public awareness
• To provide a total, professional, experienced
service
• To take the advertiser's message and
convert it into an effective and memorable
communication

16. Services Offered by Ad
Agency
• Total Advertising Services
– Strategic planning
– Creative development
– Media services, particularly in television,
newspapers, magazines and radio
• Marketing Services
– Sales promotion, market research, PR and event
marketing

17. • E-Solution Services
System integration services, e-business consulting,
customer relationship management (CRM), Search
Engine Marketing (SEM) and e-promotions using the
Internet and mobile.
• Content Business
Sale of sponsorship, broadcasting and other rights,
production and marketing of media / content such as
sporting events, films, TV programs, animated
content, music and other forms of entertainment

18. • Integrated Media Services
Bringing value to both clients and media-
related companies by offering a wide range of
media solution services
• Sales Promotion
Providing comprehensive sales promotion
planning designed to complement mass media
and other activities

19. • Event Marketing
Assisting clients by providing dynamic vehicles
for their messages in the form of on-the-spot
interactive communications
• Integrated Branding Services
Assuring clients the highest quality of
branding services for their communication
needs

20. Organization Structure
• The activities within an ad agency are
divided into 4 broad groups:
1. Account management
2. The creative department
3. Media buying
4. Research
• Recently added: public relations, direct
marketing, and promotional services

21. Organization Chart
Board of Directors
Managing Director
Client Services
Director
Creative
Director
Servicing Group
Media
Research
Creative Groups
Audio Visual
Language
Studio
Production
Finance /
Accounts
Secretarial /
Legal Personnel

22. Structure of an advertising agency

23. What Makes Effective Advertising?
Sound
Strategy
Consumer’s
View Persuasive
Doesn’t
Overwhelm
Deliver on
Promises
Break
Clutter
Effective
Advertising

24. Selecting an agency
• Have they fully
understood the brief?
• Do they know how to
use market research?
Can they contribute to
our thinking here?
• Is their strategic
thinking sound?
• Is it imaginative? Have I
learned anything useful
from it?
• Are they professional and
businesslike?
• Can I work with their
senior people? And will
they be actually working
on my business?
• Are their capabilities high
in all key areas –
management, strategy,
creative, media?
• Do they work well as a
team – both among
themselves and with our
people?

25. Selecting an agency
• Is their creative work
of a high quality?
• Is this confined to
TV, or does it go
across all media?
• Does this include
below-the-line? New
media? Can they
offer an integrated
service?
• Do they have real
expertise in the
specialist areas
which we are looking
at, egl direct
marketing, new
media?
• Can they work with
us internationally
(now or in the
future)

26. Function of and advertising
agency
• Account Services / Account Management

27. • Creative department

28. The Creative Team
Creative Team
Creative Concept
Art Director
Copywriter

29. Copywriting and the Creative
Plan
Copywriting is
the process of
expressing the
value and
benefits a brand
has to offer.
A creative plan is
the guideline that
specifies the
message
elements of
advertising copy.

30. Creative Department people
need following attributes
• A good psychologist.
• Willing and able to set high standards.
• An efficient administrator & Research minded
• Capable of strategic thinking – ‘positioning’ and all that.
• Equally good at package goods and other kinds of accounts
• Well versed in graphics and photography
• A hard worker and fast
• Slow to quarrel
• Prepared to share credit for good work, and accept blame for
bad work
• A good presenter & good recruiter

31. Copy Approval Process
Senior Executives
Product Manager, Brand
Manager, Marketing Staff
Client
Account Management Team
Legal Department
Agency
Senior Writer
Creative Director
Copywriter
Account Planning

32. • Media Department

33. Broadcast Television
Cable Television
Radio
Newspaper
Direct Mail
Magazines- Consumer/Business
Outdoor
Internet
Media selection

34. • After selecting media, marketers determine the most effective
timing and sequence for a series of advertisements.
• Influenced by seasonal sales patterns, repurchase cycles, and
competitors’ activities.
• Measure effectiveness in three ways:
• Reach—the number of people exposed to an advertisement.
• Frequency—the number of times an individual is exposed
to an advertisement. Minimum of three exposures is recommended.
• Gross rating point—the product of the reach times the
frequency.
Media scheduling

35. Marketing research department
• The identification of information needs
• Data collection & interpretation
• Analysis & evaluation

37. • Creative service department
• Event management & promotion
department
• Traffic Department
• Radio & TV broadcast production
department
−Producer
−Production co-ordinator

38. Print production department
• Meet deadlines
• Use sophisticated technology
• Co-ordinate and manage
• Skills and training

39. Agency Personnel
• Production Team
• Storyboard artist
• Graphic designer

40. THANK YOU