Types and functions of advertising agency Introduction to Advertising Topic 5 Types and functions of advertising agency

Definition of Advertising Agency “Advertising Agency is an independent organization of creative and business people who specialized in developing and preparing advertising plans, advertisements and other promotional tools. It purchases advertising space and time in the media on behalf of their client” AAAA-American Advertising Agencies Association

What an Ad Agency does for their clients In essence, the advertising agency is the clients marketing communication consultant. Therefore: It must understand the clients marketing problems Prepare plans and strategy to provide solutions to the problems Helps the clients business grow

Client-Agency Work Relation The agency-client work relation is best viewed as a partnership. As the client business grows, the agency’s business also grows. The ensure a good partnership the agency must: Provide excellence service Provide effective plan, strategy and exceptional creative

Basic Structure in Ad Agency Board of Director (BOD) Account Management Department Creative Department Media Department Production Department Operations Department

Account Management

Account Management / Handling Responsible for all client contact to establish the broad requirements (needs and wants) of the client Ensure that the various internal departments are briefed, to come up with a solution that meets the client’s needs and wants / aims and objectives

Account Management / Handling Responsible for initiating assignments within the agency, providing deadline, outlining budgets and ensuring all the works are consistent with the strategy before presented to client. Level: Account Director, Account Planner /Account Manager, Account Executive

Creative Department

Creative Department The creative department is the producer of ideas and concepts of an advertising One of the important responsibility of creative team is establishing the reputation of the agency, because creativity is what really builds and agency’s reputation. Responsible: think long and hard about the message (visual & copy) and how it will affect branding and positioning.

Creative Department Levels: Creative Director, Art Director / Copywriter, Graphic Designer / Visualizer Copywriter is the individual who conceive the ideas for the ads and write the headlines, subheads, body copy or radio commercial script Art director is responsible for how the ad looks; prepare visual of the advertisement (layout for print ad and storyboard for TVC) Both copywriters and art directors work under the direction of the agency’s Creative Director that usually risen from both positions.

Media Department Media Department recommends client about what is the most efficient means / mediums to deliver the message to the target audience The department has 3 functions: Research, Planning and Buying Media Researcher: work through all of the data that available on the media, make comparison of the media which have same audience profile

Media Department Media Planner: takes the statistical research taken by the media researcher as the basis for deciding which medium would be the most appropriate to carry the advertising. They produce the media plan which provide media objective and strategy, including media schedule. Media buyer: the person who has responsibility to buy these space and air-time with maximum discount for agency. Levels: Media Director, Media Planner / Media Buyer, Media Monitoring

Production Department

Production Department Coordinating and supervising the work of the selected external production suppliers/vendors. Make sure everything that is needed to produce the final advertisement is prepared, cost effectively to the highest quality, delivered to the right place at the right time and in the right format. Functions: Producers, Traffic

Types of Agencies

Types of Advertising Agency Full Service Advertising Agency An agency that handles all aspects of the advertising process, including planning, design, production, and placement. Today, full-service generally suggests that the agency also handles other aspects of marketing communication, such as public relations, sales promotion, Internet and direct marketing.

Types of Advertising Agency A la Carte The client can choose the service of an advertising agency on an occasional basis or handled internally Freelance designer and copywriter The client can choose the service of an advertising agency on an occasional basis or handled internally. Advantages for client: may bring fresh approach or have special style

Types of Advertising Agency Media Independents Act independently of the ad agency and the media department selling space and air-time. Media independents therefore have immense buying power and so can negotiate favorable prices

Associated Agencies & Consultants Sales Promotion Agencies Direct Response Marketing Agencies Public Relations (PR) Consultants Digital Agencies