The advertising industry spends over $600 billion annually worldwide and $300 billion annually in the USA. The traditional structure includes advertisers who work with advertising agencies to develop campaigns. Agencies employ creative teams like copywriters, designers, and media buyers to develop campaigns and place ads through various media channels like TV, print, digital, and outdoor advertising. In South Africa, agencies typically charge hourly rates or commissions of around 15% of media spending, and work with a variety of external partners across the creative, research, production, technology, and media sectors.

1. Advertising Industry
Structure
Preapred by @heleenmills

2. World wide annual spend:
$600 billion
USA annual spend:
$300 billion

3. Source: Afrographique

4. Traditional structure
Advertiser (client)
Agency
External facilitator
Media
Target audience

5. The client side

6. The advertising agency

7. creative
director

8. account
executive

9. media
buyer

10. copy
writer

11. traffic
controller

12. Graphic designer
PR Specialist
Brand Manager
Social Strategist
Developer
UX Designer
Freelancers

13. Agencies
Advertising Agency:
• Full service
• Creative Boutique
• Digital/Interactive
• In-House
• Media Specialist
Promotion Agency:
• Direct Marketing
• Sales Promotion
• Event Planning
• Design
• Public Relations

14. In South Africa

15. Fee System:
• Hourly rates, or by project
Commissions
• Around 15% of airtime fees—
in flux
• 16 2/3 % for outdoor media
• Web media all negotiated
Markup charges:
• Production cost + fixed %
Pay-for-results:
• Tightly-specified objectives
• But, who is responsible for
“results”
how do you get paid?

16. Product/service?
Competition?
Proposed target market?
What consumer need/problem do we address ?
What does the consumer think of the brand?
What is the one thing we went them to believe?
What kan we do to make them believe this?
Tone of the advertisement?
the creative brief

17. Marketing & advertising research firms
Consultants
Databases, Web, CRM, Traditional management
Production
Facilities, technicians, shop displays
Software firms
Web tracking (Google analytics)
external facilitators

18. Broadcasting
TV, radio, satalite
Print
Magazine, direct mail, newspapers
Digital/Interactive Media
Internet, mobile, mobile techonology
Support Media
Outdoor, sponsorship, point-of-sale, branded entertainment
Media Conglomerates
Time Warner, Liberty Media
media organisations

19. types of agencies
• above the line
• through the line
• below the line

21. any questions?
• @heleenmills
• hmills@sun.ac.za