TheThe Advertising Advertising AgenciesAgencies

Presented By:Presented By:

Sunil Singh PariharSunil Singh Parihar

Advertising AgencyAdvertising Agency

Meaning:Meaning:

An advertising agency creates, plans and An advertising agency creates, plans and manages all aspects of a client's manages all aspects of a client's advertising.advertising.

Ad agencies can specialize in specific areas, Ad agencies can specialize in specific areas, such as interactive advertising, or they such as interactive advertising, or they can be a full-service agency that creates can be a full-service agency that creates advertising materials like brochures, advertising materials like brochures, catalogs, direct mail, print ads, radio and catalogs, direct mail, print ads, radio and TV commercials, sales letters, etc.TV commercials, sales letters, etc.

Functions of Advertising Functions of Advertising AgencyAgency

Primary Services:Primary Services:• Complete a marketing analysisComplete a marketing analysis• Develop an advertising planDevelop an advertising plan• Prepare a creative strategyPrepare a creative strategy• Create advertising executionsCreate advertising executions• Develop and implement a media planDevelop and implement a media plan• Handle billing and paymentsHandle billing and payments• Integrate other marketing Integrate other marketing

communicationscommunications

FFunctions of full-service unctions of full-service agenciesagencies

AAccount managementccount management CreativeCreative Media planning and placementMedia planning and placement ResearchResearch

Agency Organization Agency Organization ChartChart

Print

Traffic

Production ProductionBroadcast Analysts

Other MarketingCommunications

Services[PR, etc.]

Asst. AccountExecutive

AccountExecutive

ManagementSupervisor

Account Mgmt.Director

Copy Spvr. &Copywriters

Art Supervisor& Art Directors

CreativeGroup:

AssociateCreativeDirector

CreativeExec CD

ResearchAssistants

ProjectManagers

ResearchDirector

MediaPlanner

MediaBuyer

MediaSupervisor

AssociateMedia

Director

Media Dept.Director

StrategyReview Board[ManagmentCommittee]

Office Management[Personnel,Accounting,Legal, etc.]

President[COO]

Board ofDirectors

[Chairman/CEO]

Functions of Advertising Functions of Advertising AgencyAgency

Account management Account management LLiaison between agency and iaison between agency and

client client Responsible for understanding... Responsible for understanding...

the client’s businessthe client’s business the client’s marketing needsthe client’s marketing needs strategy developmentstrategy development

Representing client point of view Representing client point of view within the agencywithin the agency

Account ManagementAccount Management Account management Account management

directordirector Management Management

supervisorsupervisor Account supervisorsAccount supervisors Account executivesAccount executives Assistant account Assistant account

execsexecs Account coordinators Account coordinators TrafficTraffic

Traffic

Asst. AccountExecutive

AccountCoordinator

AccountExecutive

AccountSupervisor

Management.Supervisor

Account Mgmt.Director

Creative DepartmentCreative Department ResponsibilityResponsibility The creative department The creative department is responsible for is responsible for

creating and producing the print and creating and producing the print and broadcast advertisingbroadcast advertising

strategy is keystrategy is key good creative work good creative work is always guided by ais always guided by a

creative strategy creative strategy that sets forththat sets forth goals to be goals to be accomplishedaccomplished and and key message points key message points to be to be relayedrelayed

Creative DepartmentCreative Department Executive & group Executive & group

creative directors creative directors Creative directorCreative director Associate creative Associate creative

directordirector CopywritersCopywriters Art directorsArt directors Broadcast producersBroadcast producers Print production Print production

managersmanagers Traffic coordinatorsTraffic coordinators

Print

Traffic

ProductionBroadcast

Production

Copy Spvr. &Copywriters

Art Supervisor& Art Directors

CreativeGroup:

AssociateCreative

Director (ACD)

CreativeDirector (CD)

ExecutiveCreative

Director (ECD)

StrategyReviewBoard

Media DepartmentMedia Department

The media department has two main The media department has two main functions - planning and buying.functions - planning and buying.

The planning groupThe planning group handles more handles more strategic marketing and media issues. strategic marketing and media issues.

The buying groupThe buying group handles media handles media negotiations and implementation.negotiations and implementation.

Creative DepartmentCreative Department

Media directorMedia director

Associate media Associate media

directorsdirectors

Media supervisorsMedia supervisors

Media plannersMedia planners

Media buyersMedia buyers

Media analystsMedia analystsAnalysts

MediaPlanner

MediaBuyer

MediaSupervisor

AssociateMedia

Director

MediaDirector

BBig changes in the ig changes in the media media departmentdepartment

Mega-agency media departments Mega-agency media departments have now become have now become profit centersprofit centers

Agencies have set up their media Agencies have set up their media departments as departments as free-standing unitsfree-standing units

Many large clients now look at media Many large clients now look at media as a as a separate serviceseparate service

RResearch Departmentesearch Department

IInterpret market environmentnterpret market environment GGather and analyze research data. ather and analyze research data. Primary and secondary techniquesPrimary and secondary techniques

DDetermine consumer etermine consumer needs/perceptionsneeds/perceptions UUnderstand problemsnderstand problems

AAdvise how ads can meet dvise how ads can meet Strategic goalsStrategic goals

HHelp find solutionselp find solutions

RResearch Departmentesearch Department

Research directorResearch director

Research project Research project managersmanagers

Research Research assistantsassistants

Outside research Outside research

specialistsspecialistsResearchSuppliers

Outside

ResearchAssistants

ProjectManagers

ResearchDirector

Auxiliary Agency Auxiliary Agency FunctionsFunctions

AAccount planningccount planning Strategy/creative review boardStrategy/creative review board Office managementOffice management

Human resourcesHuman resources Legal servicesLegal services AccountingAccounting RecruitmentRecruitment

3 ways agencies make 3 ways agencies make moneymoney

CommissionsCommissions usually 15% of gross costsusually 15% of gross costs

FeesFees usually based on negotiated hourly rateusually based on negotiated hourly rate

IncentivesIncentives still relatively new and problematicstill relatively new and problematic usually based on performance goalsusually based on performance goals

Agency CommissionsAgency Commissions

MMedia commission systemedia commission system 15% media commission15% media commission

Adjustable commission ratesAdjustable commission rates Negotiate to match client budgetNegotiate to match client budget Sliding scaleSliding scale

Markups-production & serviceMarkups-production & service Add a percentage markup to costsAdd a percentage markup to costs 17.65% of net = 15% of gross17.65% of net = 15% of gross

4 Types of fee systems4 Types of fee systems

FFixed fee (retainer)ixed fee (retainer) Cost-plus feeCost-plus fee Performance feePerformance fee Hybrid fee & commissionHybrid fee & commission

Top Indian Advertising Top Indian Advertising Agencies Agencies Adbur Pvt LtdAdbur Pvt Ltd..

Clients: Sanat Products (Bioslim slimming Clients: Sanat Products (Bioslim slimming agent); Dabur Pharmaceuticals (Lona Low-agent); Dabur Pharmaceuticals (Lona Low-sodium salt). Dabon International Ltd (Lebon-sodium salt). Dabon International Ltd (Lebon-Cheese) Cheese)

Akshara AdvertisingAkshara Advertising

Major Clients: Rajasthan (University of Major Clients: Rajasthan (University of Rajasthan); ONGC; MTNL.Rajasthan); ONGC; MTNL.

Ambience D'arcy Ambience D'arcy

Major clients: Times of India Group , Emami Major clients: Times of India Group , Emami Group of companies ,TVS Suzuki Ltd , Philips Group of companies ,TVS Suzuki Ltd , Philips India Ltd.India Ltd.

Top Indian Advertising Top Indian Advertising Agencies Agencies Chaitra Leo Burnett Pvt Ltd.Chaitra Leo Burnett Pvt Ltd.

Major Clients: ICICI; Bajaj Auto; Dabur India; BPL Major Clients: ICICI; Bajaj Auto; Dabur India; BPL Ltd; Coca -cola(mazaa/beverage); Toyota (Qualis); Ltd; Coca -cola(mazaa/beverage); Toyota (Qualis); Amtrex Hitachi(Air-conditioner)Amtrex Hitachi(Air-conditioner)

Contract Advertising (India) LtdContract Advertising (India) LtdMajor Clients: Bajaj Ltd (spirit scooterettes); Major Clients: Bajaj Ltd (spirit scooterettes); Cadbury India Ltd (picnic, milk treatChocobix); Cadbury India Ltd (picnic, milk treatChocobix); Dabur foods Ltd(real/fruit juice); MTNL Dabur foods Ltd(real/fruit juice); MTNL (corporate).(corporate).

Crayons Advertising and Marketing Pvt Ltd Crayons Advertising and Marketing Pvt Ltd

Major Clients: Marshal (Mahindra & Major Clients: Marshal (Mahindra & Mahindra/jeep); Jindal art glass (Jindal Mahindra/jeep); Jindal art glass (Jindal Dyechem/Stained glass).Dyechem/Stained glass).

Top Indian Advertising Top Indian Advertising Agencies Agencies Creative Advertising Creative Advertising

Major Clients: trendly systems (TSL/telemedia Major Clients: trendly systems (TSL/telemedia service).service).

Enterprise Nexus Communications Pvt. Ltd Enterprise Nexus Communications Pvt. Ltd Major Clients: Nimbus (Nirvanazone/youth Major Clients: Nimbus (Nirvanazone/youth portal); Daewoo (Matiz,Nexia/cars); portal); Daewoo (Matiz,Nexia/cars); Emami(Herbal skin & hair care range).Emami(Herbal skin & hair care range).

EverestEverest Integrated Communications Integrated Communications LimitedLimited Major Clients: Ajanta Pharma Ltd (Pinkoo Major Clients: Ajanta Pharma Ltd (Pinkoo Cough Syrup & Gripe Water/healthcare); Honda Cough Syrup & Gripe Water/healthcare); Honda Motors; National Panasonic India Ltd (Washing Motors; National Panasonic India Ltd (Washing Machines/Consumer goods).Machines/Consumer goods).

The EndThe End