ROLE OF ADVERTISING AGENCY AND ITS FUNCTIONS

By, Dr. Vasanth Kiran

www.vanguardbschool.com

November 11, 2012

Advertising Agencies
It is the advertising agencies advertisements which portray ideas to the audience agencies that compete to be ranked as the best. The advertising agencies are ranked in order of their creativity as well as the expertise to deliver the content and message to the clientle.

Advertising Companies of India

Advertising is a big business in this era in India. Indian Advertising industry has witnessed a prominent globalisation. Indian consumer's deepening pocket and blooming markets for ad-spends have touched new heights in India.

Cont.,
Advertising agencies in India service their client by preparing slogans, brochure and logos in a way that the brand connects well with the consumers and attracts their attention. They come up with descriptive copy for sales materials. Apart from these activities, they also issues press releases for upcoming programs, events, as well as products.

Cont.,
The use of Internet for advertising is yet another trend. With about 25 million users, Internet advertising in India is increasingly on the rise. This may well explain the growth of Graphic Design & Advertising Agencies servicing their clients with high quality professional graphics, advertising material.

Cont.,

With mobile phones and FM climbing the popularity chart, telecom firms and FM radios have joined hands with advertising agencies in India. Likewise outdoor advertising like billboards, hoarding have also become a reckoning force.

Advertising Agencies
Mumbai 544 Chennai 383 Delhi 375 Kolkata 146 Ahmedabad 137 Chandigarh 134

Pune 112 Jaipur 111 Bangalore 97 Indore 91 All listing of Advertising Agencies in India 3358 (approx)

Advertising Agency
Firm that (1) creates new promotional ideas, (2) designs print, radio, television, and internet advertisements, (3) books advertisement space and time, (4) plans and conducts advertising campaigns, (5) commissions research and surveys, and (6) provides other such services that help a client in entering and succeeding in a chosen market.

 An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its clients. An Advertising Agency or ad agency is a service provider that works for clients to create an effective and goal oriented advertising campaign aimed at representing the Company positively in the eyes of its target customers.

 According to American Association of Advertising An advertising agency is an independent organization of creative people and business people who specialize in developing and preparing market plans, advertisements, and other promotional tools.

Primary services of Advertising agencies

complete a marketing analysis
develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications

Types of Agencies
Full-service Agencies
Offer account management, creative services, media planning, account planning, accounting, traffic, production, and HR

Specialized by:
Function (copy, art, media) Audience (minority, youth) Industry (healthcare, computers, agriculture) Market (minority groups)

Creative Boutiques
Small agencies focused on the creative product

Media-buying Services
Focused on purchasing media for clients

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November 11, 2012

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Types of Advertising Agencies

Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc

Modular Agencies

A modular agency is a full service agency that sells its services on a piece meal basis. Thus an advertiser may commission an agencys creative department to develop an ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. Fees are charged for actual work undertaken.

In House Agencies
Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform and thats why some people refer to it as full-service advertising department of the advertiser.

 The difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes that work of its owner and not of outside clients.

Specialist Advertising Agencies

There are some agencies who undertake advertising work only in certain areas. There are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc.

Creative Boutiques
These are shop agencies that provides only creative functions and not full-service. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services.

Benefits of using an Advertising Agency

1. They have the ability to buy media in bulk at rates that a single business cannot obtain.
2. They are educated as to the best times and places to run ads to reach your target market, ultimately minimizing wastage 3. They can help you fine tune your target market so that the message is designed to reach those you want to reach. 4. Easily Administered

Disadvantages of using an Advertising Agency

A main disadvantage of using an advertising agency would be the communication factor. If an agency does not communicate or relay it's clients goals and creative wishes properly problems can occur within a contract and lawyers may have to be involved. Another disadvantage would be the media buying discounts you may not be able to take full advantage of due to commission barriers within an agency,

Role of Advertising Agencies

Advertising agency is a service provider that helps its clients by developing suitable ad campaigns for them. Their aim is to represent its clients' products and services before customers in such a way that a positive image is created in their minds. Advertising agency's role start with the identification of its clients' goals and objectives. This turns out to be of immense value in planning and creating the future course of action concerning ad campaigns.

Some Questions to be answered

For whom is the product or service designed? Who would use it? Who is the "target group"? What's special about the product? In what way is it distinct? Unique? Different? What's its "position" in relation to other similar products? What do you want to convey to the public about your product? How should your company contact the public? What medium should it use? Radio? TV? Newspapers? Magazines? Bus/subway ads? Direct mail? etc.

 Once an advertising agency gets acquainted with its clients' business objectives, it starts creating and planning its ad campaigns. For this it keeps in mind certain points such as increasing sales, pushing new products in the market, restating benefits of its clients' brands, and drawing new customers in addition to establishing and maintaining contacts with their existing customers. An advertising agency's professional teams put in their best efforts to develop attractive slogans, jingles, and body copy for ads. All this is done within the defined parameters of its clients and their budgetary allocations.

Functions of Advertising Agencies

Account Planning Market research Creativity Media planning

How Agency Jobs Are Organized

Account Management
Serves as a liaison between the client and agency Three levels: management supervisor, account supervisor, account executive

Account Planning and Research

Acts as the voice of the consumer

Creative Development and Production

People who create and people who inspire Creative directors, copywriters, art directors, producers

Media Planning and Buying

Recommend most efficient means of delivering the message

Internal Agency Services

Traffic, print production, financial services, human resources

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How Agency Are Paid

Commissions
A percentage of the media cost

Fees
Hourly fee or rate plus expenses and travel

Retainers
Amount billed per month based on projected amount of work and hourly rate charged

Performance-based
Based on percentage of sales or marketing budget

Profit-based
Greater risk if campaign doesnt have desired impact

Value Billing
Based on value of creative strategy or ideas
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Examples of Top Advertising Agencies

Ogilvy & MatherJWT, J Walter ThompsonMudra CommunicationFCB Ulka Advertising. Grey Worldwide (I) Pvt. Ltd-

Thank You