Creativity running in the blood, filled with unpredictable structures as a flat organization, advertising agency are the incubators behind viral successful campaigns. In-house Agency or Outdoor Agency , learn the variations and key operating procedures in an Advertising Agency.

3. Six active participants in modern communication
• The advertiser
• The ad agency: Organizations which accept the brief from the
advertiser and do a campaign on advertiser’s behalf.
• Media Owners: Publishing houses Special magazines(industry
journal),directories, year books etc. Broadcast media for TV Radio
and films. Outdoor advertisers, Organizers of Exhibitions, Event
management companies etc.
• PR Consultants: They operate independently or they can be found in
the PR department of an ad agency.
• Ancillary Services: They are needed to produce/create an
advertisement. They render services like studio service, photography
service, printing service, gift item producers etc.
• Free lancers: Copywriters, jingle singers, radio announcers, artists,
visualizers, technical writers etc.

4. Ad Agencies
• Ad agencies are a kind of service organization that specializes in
planning and executing advertisement programs for its clients.
Why agencies??
• Provides specialized services.
• Holds experience in marketing communication. The agencies are
expert in this field
• Employs specialists like artists, writers, media analysts, researchers
and others with specific skills. The agencies make optimum use of
these people
• Many agencies are specialized in a particular type of business. E.g.
Mentus Inc., An US based firm. is an agency specializes in IMC for the
high tech, E commerce, and bioscience industries.
• Hiring them leads in saving the costs up to some extent.

5. Functions of an Advertising Agency
• Planning and Managing Advertising Tasks
• Creative Work
• Branding
• Marketing and Public Relations
Role of Advertising Agencies
1.Creating an advertise on the basis of information gathered about product
2.Doing research on the company and the product and reactions of the
customers.
3.Planning for type of media to be used, when and where to be used, and for
how much time to be used.
4.Taking the feedbacks from the clients as well as the customers and then
deciding the further line of action

6. Types of ad agencies
• Full service agencies: It offers its clients a full range of marketing,
communications and promotions services including planning creating
and producing the ad, performing research and selecting media. It
may also offer non advertisement services like public relations,
publicity, direct marketing and sales promotion etc.
• Internet/Interactive/Digital Agency: These agencies design websites,
social media networks and manage blogs.
• Direct Marketing Agency: These agencies specializes in direct mailing.
• Creative Boutiques: These agencies create ads only. They perform no
task other than developing the actual ad that too in a very creative
manner.

7. • Media Buying agencies
• Buys place for advertise and sells it to the advertisers.
• Sells time in which advertisement will be placed.
• Schedules slots at different television channels and
radio stations.
• Finally supervises or checks whether the ad has been
telecasted at opted time and place or not.
• In House agencies: Big organizations prefer this kind of structure
wherein they have their own ad agency in the organization.

8. Other marketing agencies
• Promotion agencies: This type of agencies generally with retail and
package-goods clients for promotional campaigns that include
advertising, coupons, sweepstakes, contests, loyalty programs,
merchandising displays, packaging and related; today many promotion
agencies are hybrids that will do all other types of marketing.
• PR Agencies: Media relations, investor relations, and crisis
communications. Traditional PR activities include news announcements,
article writing and placement, and press conferences or events. PR firms
often engage in event marketing, new product launches, website
development, social media, and educational initiatives. Also, advertising
or marketing agencies often provide PR services.
• Social Media Agencies: Social media agencies specialize in creating and
managing a brands social media networks. Social media agencies
command most of the effort including Facebook, Twitter, YouTube,
LinkedIn, along with newer networks like Instagram. Beyond profile
design and implementation, social media agencies often manage blogs,
content research and development, video, and increasingly web design,
and search engine optimization.

9. • Specialty Agencies : This kind of agencies either focus on a functional
marketing discipline or niche market segment. functional specialists
include search optimization or paid search, packaging and
merchandising, video, or brand name development. Market or category
specialists include different cause marketing, healthcare marketing, and
software marketing agencies etc.
• Design Agencies: Design agencies often perform a variety of services
including brand identity, website design, advertising, packaging,
brochures and all types of print collateral, and more.
• Branding agencies: Branding agencies provide a range of services from
logos, to brand name development, to packaging, graphic identities,
signage, and environmental design (typically retail store design).

10. Types Of Advertising Agencies. (Summary)
Full service Agencies
1. Large size agencies.
2. Deals with all stages of advertisement.
3. Different expert people for different departments.
4. Starts work from gathering data and analyzing and ends on payment of bills to the media
people.
Interactive Agencies
1. Modernized modes of communication are used.
2. Uses online advertisements, sending personal messages on mobile phones, etc.
3. The ads produced are very interactive, having very new concepts, and very innovative.
Creative Boutiques
1. Very creative and innovative ads.
2. No other function is performed other than creating actual ads.
3. Small sized agencies with their own copywriters, directors, and creative people.
Media Buying Agencies
1. Buys place for advertise and sells it to the advertisers.
2. Sells time in which advertisement will be placed.
3. Schedules slots at different television channels and radio stations.
4. Finally supervises or checks whether the ad has been telecasted at opted time and place
or not.
In-House Agencies
1. As good as the full service agencies.
2. Big organization prefers these type of agencies which are in built and work only for them.
3. These agencies work as per the requirements of the organizations.

11. Client Agency Relationship
• Client-agency relationship commences when an advertised hires an
agency to make an ad.
• Following are the points that needs to be taken care of for cordial
relationship between the client and the agency:
Meaningful two way communication
Focus on long term relationship
Honest and sincere efforts towards win-win situation.

12. Agency Compensation
• Commission from the media (Percentage based)
• Fixed Commission
• Fee, cost and incentive based systems
• Percentage charges

13. Organizing for Advertising and Promotion
•The way a company (the client) organizes
depends on
•Its size
•The number of products it markets
•The role of advertising and promotion in the
marketing mix
•The budget
•Its marketing organization structure

14. Advertising Dept. Under Centralized System
President
Production Finance Marketing
Research and
develop-ment
Human
resources
Marketing
research
Advertising Sales
Product
planning

15. Pros & Cons of a Centralized System
Fewer
personnel
Better
communications
Continuity
Longer
response time
Less goal
involvement
The
Centralized
System
+ Positive - Negative
Impractical for
multiple brands,
products, divisionsMore top
management
involvement

16. Decentralized Advertising System
Production Finance
Sales
Brand
Manager
Ad agency
Product
Management
Sales promotion
Package design
Marketing
services
Marketing R & D Human
Resources
Corporate
Brand
Manager
Ad agency
Advertising
Dept
Marketing
Research
Merchandising

17. Pros & Cons of Decentralization
Internal conflicts
Ineffective decision
making
Rapid problem
response
Concentrated
attention
Increased
flexibility
The
Decentralized
System
+ Positive - Negative
Unequal distribution
of funds
Lack of
Authority

18. In-House Agencies
Benetton’s in-house agency works with
outside agencies to develop ads

19. Pros & Cons of In-House Agencies
More
control
Cost
savings
Better
coordination
Less
objectivity
Less
experience
The
In-house
Agency
+ Positive - Negative
Less
flexibility

20. The Ad Agency’s Role
•Reasons for using an ad agency
•Highly skilled specialists
•Specialization in a particular industry
•Objective viewpoint of the market
•Broad range of experience

21. Ad Agencies Have Skilled Specialists
Artists Writers Researchers
Photographers Media Analysts Other Skills

22. Full-Service Agencies
Creating advertising
Planning advertising
Producing
advertising
Performing research
Selecting media
Sales promotions
Strategic market
planning
Direct marketing
Interactive
capabilities
Package design
Full range of
marketing
communication and
promotion services
Nonadvertising
services
Public relations and
publicity

23. Typical Full-Service Agency Organization
Writers
Art directors
TV
production
Traffic
Print
production
Account
Executive
Account
supervision
VP account
services
Media
Research
Sales
Promotion
VP marketing
services
Personnel
Accounting
Finance
Office
management
VP management
and finance
President
Board of
directors
VP creative
services

24. Services Provided by Agencies
Agency Services
Research
department
May include
account
planners
Media dept.
obtains
media
space, time
Marketing
Services
The link
between
agency
and client
Managed
by the
account
executive
Account
Services
Creation,
execution
of ads
Copywriter
artists,
other
specialists
Creative
Services
Accounting
Finance
Human
resources
New
business
generation
Mgmt &
Finance

25. The Role of Creative Boutiques
Creative
Boutiques
Provide only creative services
Full-service agencies may subcontract
with creative boutiques
Ability to turn out inventive creative
work quickly

26. Media Buying Can be Specialized
Specialize in buying media, especially
broadcast time
Agencies and clients develop media
strategy
Media Specialist
Companies
Media buying organizations implement
the strategy and buy time and space

27. Methods of Agency Compensation
Commissions
from media
Fee, cost, and incentive-
based systems
Percentage
charges
Compensation
Methods

28. Evaluating Agencies
Financial Audit Qualitative Audit
Verify costs, expenses
Personnel hours charged
Payments to media
Payments to suppliers
Planning
Program development
Implementation
Results achieved

29. Steps in Selecting an Advertising Agency
 Set goals.
 Select process and criteria.
 Screen initial list of applicants.
 Request client references.
 Reduce list to two or three viable agencies.
 Request creative pitch.
 Select agency.

30. •Size of the agency
•Relevant experience of the agency
•Conflicts of interest
•Creative reputation and capabilities
•Production capabilities
•Media purchasing capabilities
•Other services available
•Client retention rates
•Personal chemistry
Evaluation Criteria in Choosing an Ad Agency

31. Top Agency Value-Add Activities
New media
guidance,
solutions
Integrated
disciplines &
functions
Creative ideas
Collaboration
Ideas/programs
for multi comm.
programs
Talented
people
Brand driver
evaluation

32. Loyalty to a Single Agency
Young & Rubicam
has handled the
Dr Pepper account
for over 30 years

33. Why Agencies Lose Clients
Poor
performance
Poor
communications
Unrealistic
Client demands
Personality
conflicts
Personnel
changes
Changes
in size of client
or agency
Conflicts of
interest
Change in
client’s strategy
Declining
sales
Payment
conflicts
Policy Changes

34. How Agencies Gain Clients
Referrals
Solicitations
Presentations
Public Relations Image, Reputation

35. Direct-Marketing Agency Activities
Direct
mail
Database
management
Research
Creative
Media services
Direct-
Marketing
Agencies
Production
Database
development,
management

36. Direct-Marketing Agency
•Departments in a typical direct-marketing agency
•Account management
•Creative
•Media
•Database development and management

37. Sales Promotion Agencies
Catalog production
Promotional planning
Creative research
Tie-in coordination
Fulfillment
Premium design and manufacturing
Contest/sweepstakes management

38. Functions Performed by Public Relations Firms
Strategy
development
Generating
publicity
Lobbying
Public
affairs
News releases,
communication
Research
Managing
crises
Coordination
with promotional
areas
Special events

39. Functions Performed by Interactive Agencies
Web
banner ads
Search engine
optimizationKiosks
Interactive Media
Creation
CD-ROMs
Web sites Text messages

40. Pros and Cons of Integrated Services
Convenience
Greater synergy
Single image for
product or service
Poor
communication
Budget politics
Integrated
Services
+ Positive - Negative
No synergy

41. FCB Grid Foote, Cone, Belding matrix
This matrix was developed by Foot, Cone & Belding and marries the way
consumers approach the purchase process with the selling strategy you should
adopt for maximum ROI of your budgets.
This is also a good revisit when you feel you have a strong communication idea
but feel that the consumer is just not picking it up.