Advertising Agency by Pd

8/8/2019 Advertising Agency by Pd

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Advertising agenciesAdvertising agenciesAdvertising agenciesAdvertising agencies



Advertising agencyAdvertising agency

Advertising agency is an independent organizationAdvertising agency is an independent organization

that provides one or more specialized advertisingthat provides one or more specialized advertising

and promotion related services to assist companyand promotion related services to assist company

in developing, preparing and executing therein developing, preparing and executing thereadvertising and other promotional programmesadvertising and other promotional programmes



Top advertising co. in IndiaTop advertising co. in India

Ogilvy and Mather:Ogilvy and Mather: This company has offices across the globe.This company has offices across the globe.

J Walter Thompson India:J Walter Thompson India: About 200 offices in 90 countries. About 200 offices in 90 countries.

Mudra Communication Pvt. Ltd:Mudra Communication Pvt. Ltd: Established in the year 1980 at Mumbai.Established in the year 1980 at Mumbai.

FCBFCB--Ulka Advertising Ltd:Ulka Advertising Ltd: CBCB--Ulka Advertising Ltd. In US 3Ulka Advertising Ltd. In US 3rdrd rankrank

RK Swamy/BBDO Advertising Ltd:RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistentlyIt maintained the record of remaining consistentlyamong the top ten advertising agencies in India. Established in 1973 .among the top ten advertising agencies in India. Established in 1973 .

Grey Worldwide (I) Pvt. Ltd:Grey Worldwide (I) Pvt. Ltd: company is primarily based in Mumbai and has offices incompany is primarily based in Mumbai and has offices inKolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey WorldwideKolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide

Leo Burnett India Pvt. Ltd :Leo Burnett India Pvt. Ltd :it has a significant presence in about 96 offices in 10it has a significant presence in about 96 offices in 10countries .countries .

ccontract Advertising India Ltd:ontract Advertising India Ltd: It was founded in 1992 and is situated in Mumbai.It was founded in 1992 and is situated in Mumbai.Etc.Etc.



what agencies do.what agencies do.

Structure & organizationStructure & organizationStructure & organizationStructure & organization

and how they¶re organizedand how they¶re organizedand how they¶re organizedand how they¶re organized

to do it.to do it.to do it.to do it.



7 primary services:7 primary services:

complete acomplete a marketing analysismarketing analysis

develop andevelop an advertising planadvertising plan

prepare aprepare a creative strategycreative strategy createcreate advertising executionsadvertising executions

develop and implement adevelop and implement a media planmedia plan

h

andleh

andle billingbilling andand paymentspayments integrateintegrate other marketing communicationsother marketing communications



4 functions of full4 functions of full--service agenciesservice agencies

account managementaccount management

creativecreative media planning and placementmedia planning and placement

researchresearch



agency organization chartagency organization chart

Print

Traffic

Production ProductionBroadcast Analysts

OtherMarketingCommunications

Services

[PR , etc.]

Asst. Account

Executive

Account

Executive

Management

Supervisor

AccountMgmt.

Director

Copy Spvr.&

Copywriters

Art Supervisor

& Art Directors

Creative

Group:

Associate

Creative

Director

Creative

Exec CD

Research

Assistants

Project

Managers

Research

Director

Media

Planner

Media

Buyer

Media

Supervisor

Associate

Media

Director

Media Dept.

Director

StrategyReview Board

[Managment

Committee]

Office Management[Personnel,

Accounting,

Legal, etc.]

President

[COO]

Board of

Directors

[Chairman/CEO]



Typical FullTypical Full--Service Agency OrganizationService Agency Organization

Writers Art Directors

Traffic

TV Produciton

Traffic

Print Production

VP Creative

Services

Account

Executive

Account Supervision

VP Account

Services

Media Research SalesPromotion

VP MarketingServices

Personnel Accounting Finance

OfficeManagement

VP Management

and Finance

President

Board of Directors



Artists Writers Researchers

Photographers Media Analysts Other Skills

Ad Agencies Have Skilled Specialists Ad Agencies Have Skilled Specialists



Represents agency to clientRepresents agency to client

Client relationshipClient relationship Knowledge of client¶s businessKnowledge of client¶s business

Competitive actionsCompetitive actions

Consumer trendsConsumer trends Helps set goals & budgetHelps set goals & budget

Coordinates day to day workCoordinates day to day work

account managementaccount managementaccount managementaccount management



account managementaccount managementdirector director

management supervisor management supervisor account supervisorsaccount supervisors

account executivesaccount executives

assistant account execsassistant account execs account coordinatorsaccount coordinators

Traff ic

Asst. Acco nt

E ec tive

Acco nt

Coor inator

Acco nt

E ec tive

Acco nt

S pervisor

anagement.

S pervisor

Acco nt gmt.

Director

account managementaccount managementaccount managementaccount management



responsibilityresponsibility

the creative departmentthe creative department is responsibleis responsible

for creating and producing th

e print andfor creating and producing th

e print andbroadcast advertisingbroadcast advertising

good creative workgood creative work is always guidedis always guided

by aby a creative strategycreative strategy that sets forththat sets forth

goals to be accomplishedgoals to be accomplished andand keykeymessage pointsmessage points to be relayedto be relayed

the creative departmentthe creative department is responsibleis responsible

for creating and producing th

e print andfor creating and producing th

e print andbroadcast advertisingbroadcast advertising

good creative workgood creative work is always guidedis always guided

by aby a creative strategycreative strategy that sets forththat sets forth

goals to be accomplishedgoals to be accomplished andand keykeymessage pointsmessage points to be relayedto be relayed

creative departmentcreative departmentcreative departmentcreative department



creative departmentcreative department

executive & group creativeexecutive & group creativedirectorsdirectors

creative director creative director associate creative director associate creative director

copywriterscopywriters

art directorsart directors broadcast producersbroadcast producers

print production managersprint production managers

traffic coordinatorstraffic coordinatorsPrint

Traff ic

ProductionBroadcastProduction

Copy

pvr. ¡

Copywriters

Art

upervisor¡

Art Directors

CreativeGroup:

Associate

Creative

Director (ACD)

Creative

Director (CD)

Executive

Creative

Director (ECD)

trategy

Review

Board



media departmentmedia department

PlanningPlanning

Plan media schedulePlan media schedule

BuyingBuying

Execute media planExecute media plan

PlanningPlanning

Plan media schedulePlan media schedule

BuyingBuying

Execute media planExecute media plan



media director media director

associate media directorsassociate media directors

media supervisorsmedia supervisors

media plannersmedia planners

media buyersmedia buyers

media analystsmedia analystsAnalysts

e ia

Planner

e ia

Buyer

e ia

S pervisor

Associate

e ia

Director

e ia

Director

Media

MediaPlanPlan

media departmentmedia departmentmedia departmentmedia department



megamega--agency media departmentsagency media departments

have now becomehave now become profit centersprofit centers

agencies have set up their mediaagencies have set up their media

departments asdepartments as freefree--standing unitsstanding units

many large clients now look atmany large clients now look atmedia as amedia as a separate serviceseparate service

megamega--agency media departmentsagency media departments

have now becomehave now become profit centersprofit centers

agencies have set up their mediaagencies have set up their media

departments asdepartments as freefree--standing unitsstanding units

many large clients now look atmany large clients now look atmedia as amedia as a separate serviceseparate service

big changes in thebig changes in thebig changes in thebig changes in the

media departmentmedia departmentmedia departmentmedia department



research departmentresearch departmentresearch departmentresearch department

Strategic planningStrategic planning

Consumer researchConsumer research

How does consumer interact with brand?How does consumer interact with brand? How does brand fit into consumer lifestyle?How does brand fit into consumer lifestyle?

Pretest and posttestsPretest and posttests

ResearchResearchReportReport



research director research director

research project managersresearch project managers

research assistantsresearch assistants outside researchoutside research specialistsspecialists

research departmentresearch departmentresearch departmentresearch department

Researcliers

O tsi e

Researc

ssistants

Pr ject

anagers

Researc

irect r

ResearchResearchReportReport



Full-service advertising agency

Advantages Advantages

InIn--depth knowledge anddepth knowledge andskillsskills

Obtaining negotiatingObtaining negotiatingmuscle with the mediamuscle with the media

Coordinating advertisingCoordinating advertisingand marketing effortsand marketing efforts

DisadvantagesDisadvantages

Some control is lostSome control is lost

Larger clients are favoredLarger clients are favored

over small clientsover small clients Occasionally inefficient inOccasionally inefficient in

media buyingmedia buying



Poorperformance

Poorcommunications

Unrealisticdemands

Personnelchanges

Changesin size

Conflict of interests

Changesin strategy

Decliningsales

Paymentconflicts

Policychanges

Poorperformance

Poorcommunications

Unrealisticdemands

Personnelchanges

Changesin size

Conflict of interests

Changesin strategy

Decliningsales

Paymentconflicts

Why Agencies Lose ClientsWhy Agencies Lose Clients



R eferrals

How Agencies Gain ClientsHow Agencies Gain Clients

Solicitations

Presentations

Public R elations Image, R eputation



Selecting an agencySelecting an agency

What is their attitude toWhat is their attitude tocosts? Will they save uscosts? Will they save usmoney?money?

How will they relate to our How will they relate to our media buyingmedia buyingagency/other specialists?agency/other specialists?

How important to themHow important to themwill our account be? Willwill our account be? Will

we be one of their larger we be one of their larger accounts, or simply aaccounts, or simply asmall fish in a very largesmall fish in a very largepool?pool?

Will they fit with our waysWill they fit with our waysof working? Are theyof working? Are theywilling and able to bewilling and able to bebusiness partners, or willbusiness partners, or willthey simply be suppliers?they simply be suppliers?(This depends(This depends ± ± of of coursecourse ± ± on how we seeon how we seeour own style of dealingour own style of dealing

with agencies)with agencies)



agency commissionsagency commissions

Rebates offered by media advertisingRebates offered by media advertisingagencies (15%)agencies (15%)



Commission SystemCommission System

Agency creates commercial for Agency creates commercial for advertiser advertiser

Agency contacts TV station for air time Agency contacts TV station for air time

TV station bills ad agencyTV station bills ad agencyCost of air time $ 10,000Cost of air time $ 10,000

Less 15%Less 15% (1,500)(1,500)

DueDue $ 8,500$ 8,500 Agency bills advertiser $10,000 Agency bills advertiser $10,000



FeeFee--based Compensationbased Compensation

fi May vary according to departmentsfi May vary according to departmentsor levels of salaryor levels of salary

Or flat hourly rateOr flat hourly rate

Charges for outCharges for out--of of--pocket expenses,pocket expenses,travel, etc.travel, etc.

Media charges are net of Media charges are net of commissions xed fee (retainer)commissions xed fee (retainer)

costcost--plus feeplus fee

performance feeperformance fee commissioncommission



incentivesincentives

in theory, a good way to workin theory, a good way to work

get paid based on how well you do, not howget paid based on how well you do, not how

much you billmuch you bill in practice, difficult to implementin practice, difficult to implement

if client makes final decision (instead of if client makes final decision (instead of agency), how can agency be responsible for agency), how can agency be responsible for final results?final results?

results based on many factors, such asresults based on many factors, such ascompetitive efforts, not just advertisingcompetitive efforts, not just advertising



new businessnew business

three primary sourcesthree primary sources build existing client¶s businessbuild existing client¶s business

add and sell new IMC servicesadd and sell new IMC services

solicit new accountssolicit new accounts

two ongoing problemstwo ongoing problems ³spec´ work³spec´ work

teams ³walking´ with accountsteams ³walking´ with accounts

³ ³ The critical objective and role of any ad The critical objective and role of any ad

agency is gaining new businessagency is gaining new business.´ .´

³ ³ The critical objective and role of any ad The critical objective and role of any ad

agency is gaining new businessagency is gaining new business.´ .´



AssignmentAssignment

why might you be interested in going intowhy might you be interested in going intothe agency business?the agency business?

what might keep you from choosing awhat might keep you from choosing acareer in the agency business?career in the agency business?

Advertising Agency by Pd

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