1. Advertising Agencies and Interactive Media
Chapter 5:
Advertising Agencies and Interactive Media

2. Payam Hanafizadeh and Mehdi Behboudi

3. NATURE OF THE INDUSTRY
Generally, advertising agencies have two tasks to fulfill:
The first task is the procurement of all advertising requirements such as artistic, graphic, written and audiovisual aspects, and the second task is strategic placement.

4. NATURE OF THE INDUSTRY
To improve customer satisfaction and to gain more clients, advertising and public relations agencies have incorporated marketing to increase the variety of their services.

5. ADVERTISING AGENCIES
An advertising agency principally is skilled in advertisement design, production and placement.
The Association of Advertising Agencies of America (AAAA) defines advertising agencies as independent commercial institutions consisting of innovative individuals and commercial experts who produce ads and find proper media for publishing (for sellers or advertisers who seek customers).

6. History of Advertising Agencies
First Period
Wholesaling Period
Semi-Service Period
Service Period

7. DIFFERENT TYPES OF ADVERTISING AGENCIES
Comprehensive Advertising Agencies
Modular Agencies
In-House Agencies
Creative Boutiques
Mega Agencies
Specialist Agencies

8. ORGANIZATIONAL STRUCTURE
Like any other social group, advertising agencies also have an exclusive internal framework of activities, which are divided into four groups:
Customer management
Innovation department
Purchasing media
Research

9. Interactive Agencies
These interactive agencies generally provide these four major services to online advertisers:
Strategic consulting
Media purchasing and planning
Website creation and design
Analysis of business information

10. Interactive Agencies
Strategic Consulting usually includes two major activities:
Analyzing customers, their products, and their competitors' status.
Planning to optimize the marketing budget.

11. Interactive Agencies
Media Purchasing and Planning involves a broad range of services usually divided into some subsidiary activities such as:
Development of a media strategy and production of an advertisement
Execution of advertising activities (media purchasing and distribution of advertisements)
Analysis and optimization of advertising activities

12. Interactive Agencies
Website improvement usually includes the following stages:
Strategic planning
Improving data architecture
Set-up and execution of a new website design.

13. NEW ISSUES FOR INTERACTIVE AGENCIES
As predicted by the Internet Media Institute (2007), most advertising agencies will merge to form a perfect combination of services for their users.

14. NEW ISSUES FOR INTERACTIVE AGENCIES
New services presented by interactive agencies include:
Engagement Marketing
Improving Main Content
Virtual Marketing

15. USING INTERACTIVE AGENCIES
Interactive agencies are usually expert in one of the following fields of activity:
Online branding
Performance-based marketing (direct response and searching)
Relationship marketing

16. ADVERTISING SERVICES AND TECHNOLOGIES
In general, there are three major service-providing and marketing groups:
Search engine marketing companies
Analytics companies
Ad-serving companies

17. ADVERTISING SERVICES AND TECHNOLOGIES
Moreover, there are two other types of interactive companies that play an intermediating role:
Ad networks
Lead generations

18. WEB ANALYTICS The key trends of web analytics are:
Central analysis development
Shifting to confidential and customized analysis
Multi-channel analysis
Gaining profit through developing online advertising and e-commerce

19. Key Web Analytics Tasks
Web analytics generally enables organizations to fulfill the following tasks:
Pursuing website tracking by user.
Analyzing change rate by product, price, customer source, search word and tracking route.
Studying transfer trends.
Identifying sources referring users to websites (site traffic source).
Measuring efficiency of all processes.
Identifying online processes of high transfer prices.

20. ADVERTISING BROADCASTING
Publication of an advertisement includes four major activities:
Moving toward a consolidated policy
Pushing toward online videos
Developing new advertising methods
Optimizing technology

21. Advertisement Publishing Method
Creation of an advertising server by an advertiser allows the advertiser's publishing tools to:
Plan activities
Execute activities (deliver advertisements)
Analyze the results and move toward optimization

22. ADVERTISING NETWORKS
An advertising network is a mediator that collects or buys ads (banners, hypertexts, and rich media) from websites and sells them to agencies or advertisers.

23. Advantages of Advertising Networks
Reach
Pricing
Targeting in Network
Optimization

24. Targeting Technologies
By developing their targeting methods, advertising networks are adding value for their advertisers. These methods include studying demographics, activity at certain times of day and consumer behavioral analysis with today's targeting more focused on behavioral analysis.
Generally, there are two types of behavioral analyses:
Cookies
Buying intention

25. Variety of Advertising Networks
During the first days of online advertising, most advertising networks focused their attention on a pricing model based on what advertisers were charged depending on a network's performance after ads were displayed one thousand times (pay-per-thousand exposures).

26. Market Size
Generally, advertising networks are divided into three groups, and most advertising networks are categorized under at least one of these groups:
Dynamic ad networks
Traditional ad networks
Ad representation

27. LEAD GENERATION
Lead generation is a process by which an advertiser can be aware of customers' future tendencies.

28. LEAD GENERATION
Lead generation agencies actually provide advertisers with customer information such as their previous shopping habits, addresses, telephone numbers or information specified in a registration form, and this way advertisers can publish ads that are more targeted.

29. LEAD GENERATION
According to a report issued by the Interactive Advertising Bureau (2009), 7% of online advertising incomes in 2008 were the result of lead generation.

30. LEAD GENERATION
Since online Advertising Revenue in 2009 exceeded 23 billion dollars, it can be inferred that the revenue earned through lead generation in that year amounted to more than 1,644 million dollars.

31. The End Of Chapter 5 http://www.netwaveinteractive.com/