An advertising agency is a service business that creates, plans, and handles advertising campaigns for clients. Its roles include conducting research on products, target consumers, and companies; creating appealing ads; planning media placement; gathering feedback; and managing billing. Large full-service agencies handle all aspects of advertising, while smaller specialized agencies focus only on creative functions like copywriting. In-house agencies work solely for one advertiser.

2.  In 1948, an American Marketing Association
developed a definition which says,
‘Advertising is any paid form of non-
personal presentation and promotion of
idea, goods and services by an identified
sponsor.’

3.  An advertising agency or ad agency is a
service business dedicated to creating, planning
and handling advertising (and sometimes other
forms of promotion) for its clients.
 An Advertising Agency or ad agency is a service
provider that works for clients to create an
effective and goal oriented advertising campaign
aimed at representing the Company positively in
the eyes of its target customers.

4.  According to American Association of
Advertising “An advertising agency is an
independent organization of creative people and
business people who specialize in developing and
preparing market plans, advertisements, and
other promotional tools”.

5.  The agencies are expert in this field. They
have a team of different people for different
functions like copywriters, art directors,
planners, etc.
 The agencies make optimum use of these
people, their experience and their
knowledge.
 They work with an objective and are very
professionals.
 Hiring them leads in saving the costs up to
some extent.

6.  Creating an advertise on the basis of information
gathered about product
 Doing research on the company, product and target
consumers.
 Creating an appealing and innovative advertisement.
 Planning regarding type of media to be used, when &
where to be used, and for how much time.
 Taking the feedbacks from the clients as well as the
target consumers and then deciding the further line of
action
 handle billing and payments
 integrate other marketing communications

7. Full Service Agencies
 Large size agencies.
 Deals with all stages of advertisement such as
copywriting, artwork, production of ads, media
planning etc.
 Different expert people for different
departments.
 Starts work from gathering data and analyzing
and ends on payment of bills to the media
people.

8.  This type of agency is owned by the advertiser.
Big organization prefers these types of agencies
which are in built and work only for them .
 it is as good as full service agencies.
 It performs almost all functions that an outside
full service dos.

9.  Modernized modes of communication are
used.
 Uses online advertisements, sending personal
messages on mobile phones, etc.
 The ads produced are interactive, having
new concepts and very innovative.

10. o Small sized agencies with their own copywriters,
directors, and creative people. No other function
is performed other than creating actual ads.
o The specialized creative functions include copy
writing, artwork and production of
advertisement.
o Most of them convert into a full service agency
or merge with other agencies to provide a wide
range of services.
 These are shop agencies that provides only
creative functions and not full-service.

11.  There are some agencies who undertake
advertising work only in certain areas. There are
agencies that specialize only in financial
services.
 Buys place for advertise and sells it to the
advertisers.
 Sells time in which advertisement will be placed.
 Schedules slots at different television channels
and radio stations.
 Finally checks whether the ad has been placed
at opted time and place or not.

12.  1. They have the ability to buy media in bulk at
rates that a single business cannot obtain.
2. They are educated as to the best times and
places to run ads to reach your target consumer,
ultimately minimizing wastage
3. They can help you to fine tune your target
consumer so that the message is designed to
reach those you want to reach.
4. Easily Administered

13.  A main disadvantage of using an advertising
agency would be the communication factor. If an
agency does not communicate or relay it's clients
goals and creative wishes properly problems can
occur.
 Another disadvantage is media buying discounts.
You may not be able to take full advantage
because of commission barriers.