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ADVERTISING AGENCY AND IT’S FUNCTIONS

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PRESENTED BY <ul><li>NAME </li></ul>

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

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

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

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What is an Advertising Agency? <ul><li>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.” </li></ul>

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

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

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History Of Ad Agency <ul><li>Period of early growth 1841 – 1865 </li></ul><ul><li>Wholesaling Period 1865 – 1880 </li></ul><ul><li>Semi Service Period 1880 – 1917 </li></ul><ul><li>Service Period 1917 – Present </li></ul>

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Advertising Process

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Typical Work Flow in an Ad Agency

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Types of Advertising Agencies <ul><li>All Sizes </li></ul><ul><li>In house work </li></ul><ul><li>Selecting an Ad Agency </li></ul>

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<ul><li>Full Service Agency </li></ul><ul><li>Provides a range of marketing services. </li></ul><ul><li>Services directly related to advertising such as copywriting, artwork, production of ads, media planning etc. </li></ul>

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<ul><li>2. Modular agencies </li></ul><ul><li>A full service agency that sells its services on a piece meal basis </li></ul><ul><li>Fee is charged for actual work undertaken </li></ul><ul><li>3. In House agencies </li></ul><ul><li>Owned completely by the advertiser </li></ul><ul><li>Can undertake to serve several other clients, if the owner so desires </li></ul>

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<ul><li>4. Creative Boutiques </li></ul><ul><li>Provide only creative functions and not full-service. </li></ul><ul><li>Copy writing, artwork and production of ads </li></ul><ul><li>Merge with other agencies to provide a wide range of services </li></ul>

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<ul><li>5. Mega agencies </li></ul><ul><li>Concept of 1980s </li></ul><ul><li>Merger of two agencies </li></ul><ul><li>1986, Saachi & Saachi, a London based - the third largest, strarted the movement </li></ul><ul><li>6. The Specialists Agency </li></ul><ul><li>Agency that specializes only in certain specific area </li></ul><ul><li>Eg: Soubhagya advertising agency concentrate on specialized financial advertising. </li></ul>

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Functions of an Ad Agency <ul><li>To accelerate create public awareness </li></ul><ul><li>To provide a total, professional, experienced service </li></ul><ul><li>To take the advertiser's message and convert it into an effective and memorable communication </li></ul>

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Services Offered by Ad Agency <ul><li>Total Advertising Services </li></ul><ul><ul><li>Strategic planning </li></ul></ul><ul><ul><li>Creative development </li></ul></ul><ul><ul><li>Media services, particularly in television, newspapers, magazines and radio </li></ul></ul><ul><li>Marketing Services </li></ul><ul><ul><li>Sales promotion, market research, PR and event marketing </li></ul></ul>

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<ul><li>E-Solution Services </li></ul><ul><li>System integration services, e-business consulting, customer relationship management (CRM), Search Engine Marketing (SEM) and e-promotions using the Internet and mobile. </li></ul><ul><li>Content Business </li></ul><ul><li>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 </li></ul>

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

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<ul><li>Event Marketing </li></ul><ul><li>Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications </li></ul><ul><li>Integrated Branding Services </li></ul><ul><li>Assuring clients the highest quality of branding services for their communication needs </li></ul>

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Organization Structure <ul><li>The activities within an ad agency are divided into 4 broad groups: </li></ul><ul><li>Account management </li></ul><ul><li>The creative department </li></ul><ul><li>Media buying </li></ul><ul><li>Research </li></ul><ul><li>Recently added: public relations, direct marketing, and promotional services </li></ul>

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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

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Structure of an advertising agency

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

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

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

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Function of and advertising agency <ul><li>Account Services / Account Management </li></ul>

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<ul><li>Creative department </li></ul>

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The Creative Team Creative Team Creative Concept Art Director Copywriter

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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.

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

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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

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<ul><li>Media Department </li></ul>

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

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Media scheduling • 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.

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Marketing research department <ul><li>The identification of information needs </li></ul><ul><li>Data collection & interpretation </li></ul><ul><li>Analysis & evaluation </li></ul>

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<ul><li>Creative service department </li></ul><ul><li>Event management & promotion department </li></ul><ul><li>Traffic Department </li></ul><ul><li>Radio & TV broadcast production department </li></ul><ul><li>− Producer </li></ul><ul><li> − Production co-ordinator </li></ul>

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Print production department <ul><li>Meet deadlines </li></ul><ul><li>Use sophisticated technology </li></ul><ul><li>Co-ordinate and manage </li></ul><ul><li>Skills and training </li></ul>

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Agency Personnel <ul><li>Production Team </li></ul><ul><li>Storyboard artist </li></ul><ul><li>Graphic designer </li></ul>

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Case study

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Company Profile <ul><li>Advertising / Full Service / Integrated </li></ul><ul><li>It is a subsidiary of WPP group, the world’s best-known marketing communications brand with a global network of more then 200 offices in over 85 countries. </li></ul>

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Brief History <ul><li>William James Carlton in 1864 </li></ul><ul><li>James Walter Thompson ( JWT ) </li></ul><ul><li>in 1995 </li></ul>

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Scope of Operation <ul><li>Sir Martin Sorrell 's WPP Group </li></ul><ul><li>HQ = NewYork </li></ul><ul><li>10,000 employees </li></ul><ul><li>200 offices </li></ul><ul><li>90 countries </li></ul><ul><li>1,200 clients. </li></ul>

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Setting new benchmark <ul><li>Invent copy and layouts </li></ul><ul><li>Build the first full-service advertising agency </li></ul><ul><li>Pioneer ad careers for women </li></ul><ul><li>Create the first international network </li></ul><ul><li>Develop account planning </li></ul>

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Chief clients

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Solution it provides <ul><li>360 degree solutions </li></ul><ul><li>Creative </li></ul><ul><li>Digital </li></ul><ul><li>Market planning </li></ul><ul><li>Specialized communication </li></ul><ul><li>Strategic communication </li></ul><ul><li>Trend spotting </li></ul>

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In news <ul><li>Effie 2008 Awards </li></ul><ul><li>Grand Prix at GOAFEST 2009 </li></ul><ul><li>Agnello Dias,( 'Lead India Poised ' ; </li></ul><ul><li>Film Single Grand Prix for the Nike Cricket 'Traffic'.) </li></ul><ul><li>Viral and Email Marketing’ initiatives </li></ul><ul><li>Three Astrid Awards </li></ul><ul><li>28 creative excellence award </li></ul>

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JWT Exemplar !!

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Definitive and Final say …. <ul><li>Future Outlook </li></ul><ul><li>Advertising glorified !! </li></ul>

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THANK YOU