Is a service business dedicated to creating, planning, and handling advertising (and sometimes other forms of promotion) for its clients

1. ADVERTISING AGENCY
Prepared By
Nijaz Nizar

2. Advertising Agency
• Is a service business dedicated to creating, planning, and
handling advertising (and sometimes other forms of
promotion) for its clients.
• An ad agency is independent from the client and provides
an outside point of view to the effort of selling the client's
products or services.
• An agency can also handle overall marketing and branding
strategies and sales promotions for its clients.

3. Types of Advertising Agency
1. Full service agencies
2. Creative agencies
3. Specialized agencies
4. In-house advertising agencies
5. Interactive agencies
6. Search engine agencies
7. Social media agencies
8. Healthcare communications agencies
9. Medical education agencies
10. Other agencies

4. Types of Advertising Agency
• Full service agencies
 These agencies are involved in planning, creating, producing
advertising, performing research and selecting media.
 Some full service agencies also provide non-advertising related services
including strategic market planning, direct market promotion
programs, interactive marketing and web site design, and public
relations.
 Creative agencies
 Creative agencies specialize in "creative" or design-based business
models.
 Their basic interest is in the creation of the advertisement or branding.

5. Types of Advertising Agency
Specialized agencies
 These agencies specialized in a particular activity of the whole
communication process.
 They may specialize in certain functions (copy, art, media),
audiences (minority youth)or industries (health, computers) or in a
marketing communication area (direct marketing, sales promotion,
public relation).
In-house advertising agencies
 Is a team within a company that focuses on selling the company's
product; they will handle all aspects of the brand

6. Types of Advertising Agency
Interactive agencies
 Interactive agencies may differentiate themselves by offering a mix of
web design / web development, search engine marketing, internet
advertising/marketing, or e-business/e-commerce consulting.
 most successful interactive agencies are defined as companies that
provide specialized advertising and marketing services for the digital
space
Search Engine Agencies
 Creative agencies specialize in "creative" or design-based business
models.
 Their basic interest is in the creation of the advertisement or branding.

7. Types of Advertising Agency
Social Media Agencies
 Social media agencies specialize in promotion of brands in the
various social media platforms like blogs, social networking sites,
Q&A sites, discussion forums, and micro blogs.
 The two key services of social media agencies are:
 Social media marketing
 Online reputation management
Healthcare Communications Agencies
 Healthcare communications agencies specialize in strategic
communications and marketing services for the Healthcare and Life
Science industries

8. Types of Advertising Agency
Medical education agencies
 Medical education agencies specialize in creating educational content
for the healthcare and life science industries.
 These agencies typically specialize in one of two areas:
 Promotional education
 Continuing Medical Education
Other Agencies
 While not advertising agencies, enterprise technology agencies often
work in tandem with advertising agencies to provide a specialized
subset of services offered by some interactive agencies: Web 2.0
website design and development, Content management systems, web
application development, and other intuitive technology solutions for
the web, mobile devices and emerging digital platforms.

9. How do Advertising Agency Earn
Revenue
• Large amount of revenue for the agencies comes from the
15% commission they earn from the media.
• 15% commission is standard between media and the
agencies.
• From clients : they must arrange voucher copies /
certificates of broadcast/telecast from the media houses
and submit them to the client.
• There may be fees for additional work requested by the
client such as producing original market research

10. Selecting an AdvertisingAgency
1. Establish a selection committee of managers who will work with the
agency. Establish written criteria for the search process.
2. Compile a list of eligible agencies. Some important criteria to consider:
a) Size—Where does your company rank in budget size in relation to other
clients? You don’t have to be the largest, but it’s often foolish for a small client
to select a large agency.
b) Reputation—Find out the agency’s reputation among clients, vendors and
competitors.
c) Credit rating—Evaluate this periodically, even after you choose an agency. A
company may discover that although it’s paid for the agency’s services, the
agency has not paid its suppliers.
d) Current accounts—How many accounts does the agency handle? What percent
is consumer-oriented? Is it involved with your competitors?

11. Selecting an AdvertisingAgency
3. After you have assembled the business capabilities of a prospective agency,
get a taste of its creative flair.
 Speculative work is generally more glitz than substance. And if the
agency wins the account, you’ll pay for the work in future billings.
 Look at recent work performed for an agency’s current clients.
Pick campaigns done for companies with marketing situations
similar to yours.
4. Examine media planning and buying for the same clients whose creative
work you have studied. Media is one of the toughest, most important and
underemphasized areas to be judged. It’s where the bulk of your dollars
go. Ask about planning and buying strategies. How do they evaluate media
and audience data

12. Selecting an AdvertisingAgency
5. Evaluate production services. Ask about the relationship between the
agency and the printers, film houses and others who do outside work
for it.
6. Arrange for committee discussion. Discuss the chemistry between you
and the agency. No matter how competent an agency may seem, if you
don’t have a good feeling about working with the agency team, you
may be headed for trouble.
7. Notify the winning agency by phone and letter. Also notify the other
agencies by phone and letter the same day, and thank them for their
efforts. You never know when you may need to switch agencies