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Uploaded byRohitha Sankar
Agency types
The document outlines the evolution and structure of advertising agencies, highlighting the emergence of mega-agencies and the various types of agencies that exist today. It details the primary functions of full-service agencies, the roles of account management, creative departments, and media buying, as well as how agencies generate revenue through commissions and fees. Additionally, it discusses current trends in the advertising industry, such as the impact of technology and changing client needs.
Agency types
- 1.
- 2. the first advertisingagents 1843 volney palmer agent for media, not advertisers 1864 - george p. rowell “the johnny appleseed of advertising” Rowell’s American Newspaper Directory space wholesaler shared his “secret” 1888 - “Printer’s Ink”
- 3. the first advertisingagency n.w. ayer & son founded in 1864 by francis w. ayer, 20 “& son” made the business seem more established worked for advertiser slogan - “keeping everlastingly at it brings success.”
- 4. 4 full-service agencyfunctions: today, “full-service” agencies provide the following: account management creative media planning and media placement (media buying) research many adding “below the line” services - PR, sales promotion, Interactive
- 5. major types ofagency: mega-agency groups independent agencies national, regional, and local specialized/niche agencies agency service suppliers media buying, creative services
- 6. mega-agency groups promptedby mergers and client globalization financial pressures service multinational accounts subsidiaries provide “IMC” (integrated marketing communication) services
- 7. Some mega-agency groups: OmniComGroup $4.15 billion WPP Group $3.64 billion Interpublic Group $3.38 billion Dentsu (Japan) $1.98 billion Young & Rubicam $1.49 billion
- 8. mega-agency groups: WPPGroup $6.69 billion (including Y&R) Omnicom Group 5.74 billion Interpublic Group $5.08 billion Havas $2.39 billion Publicis $2.17 billion (including Saatchi)
- 9. mega-agency pros &cons positives: negatives: larger talent pool people vs. profit negotiating clout creativity vs. size financial rewards conflict of account security interests competitive edge people business strong partnerships more services international link
- 10. national, regional &local these are independent agencies there are now fewer national agencies which are not part of mega-agency groups regional and local agencies work with smaller clients who are usually located nearby
- 11. Famous ad agencies 1.J. Walter Thompson 2. Leo Burnett Worldwide 3. McCann-Erickson Worldwide 4. BBDO Worldwide 5. Grey Advertising 6. DDB Worldwide 7. Ogilvy & Mather Worldwide 8. FCB Worldwide 9. Y&R Advertising 10. Publicis Worldwide
- 12. specialized/niche agencies industryspecialists ethnic agencies internet agencies business-to-business agencies creative boutiques and design houses
- 13. other suppliers provide“unbundled” services one part of what an agency does media buying services freelancers & consultants production companies in-house or “house” agencies agencies owned by clients
- 14. in-house agencies advantages& disadvantages
- 15. in-house agencies advantages& disadvantages familiarity specialization fast service cost savings confidentiality
- 16. in-house agencies advantages& disadvantages familiarity objectivity specialization resources fast service fresh ideas cost savings extra cost and confidentiality overhead
- 17. 2 primary rolesof agencies idea generation brand-building
- 18. idea generation manufactureideas ideas are lifeblood of the agency create intellectual capital create and sell different kinds of ideas marketing strategies promotional opportunities even new product ideas...
- 19. brand-building “The agency’spurpose is to create and direct communication about a product or service so that the brand is perceived to have a unique value or brand personality.” Let’s look at some examples...
- 20. brand-building Marlboro Leo Burnett
- 21. brand-building McDonald’s DDB Needham
- 22. brand-building Pepsi BBDO
- 23. brand-building Nike Wieden + Kennedy QuickTime™ and a Sorenson Video 3 decompressor are needed to see this picture.
- 24. brand-building American Express Ogilvy & Mather
- 25. brand-building Apple Chiat/Day
- 26. brand-building means integration more and more, agencies are being involved in all areas of marketers’ brand-building activities today, it’s more than advertising it’s integrated marketing communications (IMC)
- 27. integrated marketing communication theimc promotion mix advertising public relations direct response sales promotion personal selling
- 28. structure & organization what agencies do. and how they’re organized to do it.
- 29. 7 primary services: complete a marketing analysis develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications
- 30. 4 functions offull-service agencies account management creative media planning and placement research
- 31. agency organization chart B a do or f D et r i co s r [ h i mnC O C ar a / E ] Pe i e t r sd n [ O ] C O O e Mr e i g t r a k tn h Sr t g t ae y O i eMn g mn f c f a ae e t C m u i ai n o m nc t o s Rve B a d ei w or [ e s n e, Pr o n l Sr i e e vc s [ a a mn Mn g e t Ac u t n , c o ni g [ R e c] P , t. Cm i t e o m e] t L g l e c] e a, t . Ac u t Mm co n g t. Ce t v r ai e Rs a c ee r h M i Dp. e a e t d D et r i co r Ee C xc D D et r i co r D et r i co r Mn g mn a ae e t As ca e soi t P oe t rjc As cae soi t S pr i o u e vs r Ce t v r ai e Mn g r a aes M i e a d D et r i co r D et r i co r Ac u t co n Ce t v r ai e Rs a c ee r h M i e a d E e ui e x c tv Go p ru: As s a t s i t ns S pr i o u e vs r As . Ac u t st co n Cp S v . & o y pr At S p r i o r u e vs r M ie a d M i e a d E e ui e x c tv C p wi e s o y rt r & r D et r At i c o s r Pa n r l ne Byr ue Broadcast Print Analysts Production Production Traffic
- 32. account management liaisonbetween agency and client responsible for understanding... the client’s business the client’s marketing needs strategy development representing client point of view within the agency
- 33. account management A c c o u n t M g m t. D ir e c to r account management director M a n a g e m en t. S u p e r v is o r management supervisor A ccount S u p e r v is o r account supervisors A ccount account executives E x e c u tiv e assistant account execs A sst. A c c o u n t A ccoun t E x e c u tiv e C o o r d in a to r account coordinators Traffic traffic
- 34. creative department responsibility the creative department is responsible for creating and producing the print and broadcast advertising strategy is key good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed
- 35. creative department S tr a te g y R e v ie w B oard executive & group creative E x e c u tiv e directors creative director C r e a tiv e D ir e c to r (E C D ) C r e a tiv e D ir e c to r (C D ) associate creative director A s s o c ia te C r e a tiv e D ir e c to r (A C D ) copywriters C r e a tiv e art directors G roup: C opy Spvr. & A r t S u p e r v is o r broadcast producers print production managers C o p y w r ite r s & A r t D ir e c to r s Broadcast Print Production Production Traffic traffic coordinators
- 36. media department The media department has two main functions - planning and buying. The planning group handles more strategic marketing and media issues. The buying group handles media negotiations and implementation.
- 37. media department media director M e d ia D ir e c to r A s s o c ia te M e d ia associate media directors D ir e c to r media supervisors M e d ia media planners S u p e r v is o r Media M e d ia M e d ia Plan P la n n e r B uyer media buyers Analysts media analysts
- 38. big changes inthe media department mega-agency media departments have now become profit centers agencies have set up their media departments as free-standing units many large clients now look at media as a separate service
- 39. research department interpret marketenvironment gather and analyze research data. primary and secondary techniques determine consumer needs/perceptions understand problems advise how ads can meet Research strategic goals Report help find solutions
- 40. research department R esearch D ir e c to r research director P r o je c t M anagers research project managers R esea rch research assistants A s s is ta n ts Research Outside outside research Report Research Suppliers specialists
- 41. auxiliary agency functions account planning strategy/creative review board office management human resources legal services accounting recruitment
- 42. 3 ways agenciesmake money commissions usually 15% of gross costs fees usually based on negotiated hourly rate incentives still relatively new and problematic usually based on performance goals
- 43. agency commissions mediacommission system 15% media commission adjustable commission rates negotiate to match client budget sliding scale markups-production & service add a percentage markup to costs 17.65% of net = 15% of gross
- 44. 4 types offee systems fixed fee (retainer) cost-plus fee performance fee hybrid fee & commission
- 45.
- 46. agency trends clutter, overload,“overchoice” increased media options increasing audience fragmentation more messages everywhere doing more with less economic pressures, “downsizing” ongoing client budget pressures managing size more mergers and mega-agencies
- 47. agency trends managingtechnology interactive marketing e-mail, web sites improving internal systems account planning re-engineering agency organization improving delivery of imc services
- 48. in conclusion... as longas marketers need ideas to build their brands, they’re going to need advertising agencies