Companies spend billions on advertising globally to establish brands and sell internationally. Advertising involves various players like advertisers, agencies, suppliers, and media. Approximately half of all US advertising is local, targeting customers within the same city or county. Regional and national advertisers operate in multiple states or regions. Advertising types include product, sales, institutional, and classified ads. Agencies work solely for clients, employing creative and business professionals. They provide services like planning, research, media buying, creative work, and production coordination. The relationship between agencies and their clients is important, developed through networking, presentations, chemistry, and reviews.

1. AdvertisingAdvertising
MKTMKT00350035

2. Chapter 3:Chapter 3:
TheThe BUSINESSBUSINESS ofof
AdvertisingAdvertising

4. Companies spendCompanies spend $$$$$$
billions all over the worldbillions all over the world
on advertising, toon advertising, to
establish their brands andestablish their brands and
sell internationally.sell internationally.

7. The Players
Advertisers Agencies
Suppliers Media

8. It’s ALL Local
 Half of all UUSS advertising is local –
targeting customers within the same
city/county as the advertiser.
 4 Types of local advertiser:
• Dealers/local franchises
• Stores (convenience, grocery, Dept.)
• Specialty services (banks, bars, restaurants)
• Gov’t & nonprofit orgs (charities,
municipalities, utilities)
 Ad manager performs most planning,
administrative & execution functions.

9. Regional/National
 Regional: operate in one or more states.
 National: in several regions of the
country.
 Share similar challenges as Local
advertisers, but the larger the firm the
bigger the need to strategically build and
maintain strong brands.

10. Types of Advertising
 Product
 Sales
 Institutional
 Classified

11. Serve Your Client
 To most effectively represent your
client you MUST understand their
challenges, business goals, market,
competitors, budget, culture, etc.
 3-A (text: page 61.)
 My experiences at TMP Worldwide.

12. Integrated MarketingIntegrated Marketing
CommunicationsCommunications

13. Building & reinforcing mutuallyBuilding & reinforcing mutually
profitable relationships with customers,profitable relationships with customers,
employees and other stakeholders andemployees and other stakeholders and
general public by coordinating ageneral public by coordinating a
strategic communications program thatstrategic communications program that
enables them to make contact with theenables them to make contact with the
company through a variety of media.company through a variety of media.

14. Co-op Advertising
 Wholesalers and manufacturers
often provide local advertisers
(retailers) with READY-MADE co-op
advertising, where the costs are
shared.

15. The Ad Department
 Centralized Versus Decentralized
 Centralized: ONE Team for all ad needs
 Decentralized: Separate departments
for different divisions, regions, brands,
or other categories.
 Transnational: Advertise globally. (Ex.
McDonald’s “I’m Lovin’ It“ in all 118
countries that it serves food in.)

17. The Ad AgencyThe Ad Agency

18. Ad Agency
 Works solely for the good of its
clients.
 Employs blend of business and
creative people.
 Runs independently of the
advertiser.

19. Types of Agency
 Geographic.
 Range of Services.
 Specialized Service: Assist their
clients with a limited type/range
of expertise.

20. Ad Agency Jobs
 Account Management: Teams that
serve as liaison between the agency
and the client.
 Research & Account Planning:
provide product, market and
competitive information.
 Media Planning & Buying.
 Creative: The prima donnasprima donnas.
 Traffic Management: Coordinates all
phases of production.

21. Client-Agency Relationship
 Clients come from referrals,
networking, and community
relationships.
 Soliciting new business.
 The presentation “pitch.”
 The chemistry between agency and
client matter most.
 Dwindling client loyalty as per the
agency REVIEW process.

22. The Suppliers
 Art studios.
 Web Designers.
 Printers.
 Film & video houses.
 Research companies.

23. The TopThe Top 5050

25. The Media PlanThe Media Plan

29. Why Work in AnWhy Work in An
Ad AgencyAd Agency

31. Remember Our TalkRemember Our Talk
About OffensiveAbout Offensive
Advertising?Advertising?