asp- session 2 -role of ad agency

7/30/2019 ASP- Session 2 -Role of Ad Agency

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ROLE OF ADVERTISING AGENCYAND ITS FUNCTIONS

November 11, 2012 1www.vanguardbschool.com

By,Dr. Vasanth Kiran


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It is the advertising agencies advertisements whichportray ideas to the audience agencies that compete tobe ranked as the best.

The advertising agencies are ranked in order of theircreativity as well as the expertise to deliver the contentand message to the clientle.

Advertising Agencies


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Advertising is a big business in this era in India.

Indian Advertising industry has witnessed a prominentglobalisation.

Indian consumer's deepening pocket and bloomingmarkets for ad-spends have touched new heights inIndia.

Advertising Companies of India


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Advertising agencies in India service their client bypreparing slogans, brochure and logos in a way that thebrand connects well with the consumers and attractstheir attention.

They come up with descriptive copy for sales materials.

Apart from these activities, they also issues pressreleases for upcoming programs, events, as well asproducts.

Cont.,


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The use of Internet for advertising is yet another trend.

With about 25 million users, Internet advertising in Indiais increasingly on the rise.

This may well explain the growth of Graphic Design &Advertising Agencies servicing their clients with highquality professional graphics, advertising material.

Cont.,


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With mobile phones and FM climbing the popularity

chart, telecom firms and FM radios have joined handswith advertising agencies in India.

Likewise outdoor advertising like billboards, hoardinghave also become a reckoning force.

Cont.,


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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)
http://www.jimyellowpages.com/mumbai/1/advertising_agencies.htmhttp://www.jimyellowpages.com/chennai/1/advertising_agencies.htmhttp://www.jimyellowpages.com/delhi/1/advertising_agencies.htmhttp://www.jimyellowpages.com/kolkata/1/advertising_agencies.htmhttp://www.jimyellowpages.com/ahmedabad/1/advertising_agencies.htmhttp://www.jimyellowpages.com/chandigarh/1/advertising_agencies.htmhttp://www.jimyellowpages.com/pune/1/advertising_agencies.htmhttp://www.jimyellowpages.com/jaipur/1/advertising_agencies.htmhttp://www.jimyellowpages.com/bangalore/1/advertising_agencies.htmhttp://www.jimyellowpages.com/indore/1/advertising_agencies.htmhttp://www.jimyellowpages.com/products/1/advertising_agencies_1.htmhttp://www.jimyellowpages.com/products/1/advertising_agencies_1.htmhttp://www.jimyellowpages.com/products/1/advertising_agencies_1.htmhttp://www.jimyellowpages.com/products/1/advertising_agencies_1.htmhttp://www.jimyellowpages.com/indore/1/advertising_agencies.htmhttp://www.jimyellowpages.com/bangalore/1/advertising_agencies.htmhttp://www.jimyellowpages.com/jaipur/1/advertising_agencies.htmhttp://www.jimyellowpages.com/pune/1/advertising_agencies.htmhttp://www.jimyellowpages.com/chandigarh/1/advertising_agencies.htmhttp://www.jimyellowpages.com/ahmedabad/1/advertising_agencies.htmhttp://www.jimyellowpages.com/kolkata/1/advertising_agencies.htmhttp://www.jimyellowpages.com/delhi/1/advertising_agencies.htmhttp://www.jimyellowpages.com/chennai/1/advertising_agencies.htmhttp://www.jimyellowpages.com/mumbai/1/advertising_agencies.htm


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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.


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An advertising agency or ad agency is aservice business dedicated to creating, planning andhandling advertising (and sometimes other formsof promotion) for its clients.

An Advertising Agency or ad agency is a service providerthat works for clients to create an effective and goaloriented advertising campaign aimed at representing theCompany positively in the eyes of its target customers.


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


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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


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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

November 11, 2012www.vanguardbschool.com 12


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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 providesservices that are directly related to advertising such ascopywriting, artwork, production of ads, media planningetc. It also provides such services in respect of pricing,distribution, packaging, product design etc


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Modular Agencies

A modular agency is a full service agency that sells itsservices on a piece meal basis. Thus an advertiser maycommission an agencys creative department to developan ad campaign while obtaining other agency serviceselsewhere.

Or, an advertiser may hire an agencies mediadepartment to plan and execute a program foradvertising that another agency has developed. Fees arecharged for actual work undertaken.


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In House Agencies

Those companies, which prefer to have closer controlover advertising, have their own in-house agency. Thistype is owned completely by the advertiser.

It performs almost all functions that an outsideadvertising agency would perform and thats why somepeople refer to it as full-service advertising department ofthe advertiser.


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The difference between an in-house agency and anadvertising department is that the in-house agency canundertake to serve several other clients, if the owner sodesires, but an advertising department solely undertakesthat work of its owner and not of outside clients.


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Specialist Advertising Agencies

There are some agencies who undertake advertisingwork only in certain areas. There are agencies thatspecialize only in financial services or only in publicity oronly in point-of-purchase material etc.


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Creative Boutiques

These are shop agencies that provides only creativefunctions and not full-service. The specialized creativefunctions include copy writing, artwork and production of

ads, they charge a fee or percentage of full serviceagencies, and as such most of them convert into a fullservice agency or merge with other agencies to providea wide range of services.


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Benefits of using an Advertising Agency

1. They have the ability to buy media in bulk at rates thata single business cannot obtain.

2. They are educated as to the best times and places torun ads to reach your target market, ultimatelyminimizing wastage

3. They can help you fine tune your target market so thatthe message is designed to reach those you want toreach.

4. Easily Administered


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Disadvantages of using an Advertising Agency

A main disadvantage of using an advertising agencywould be the communication factor. If an agency doesnot communicate or relay it's clients goals and creativewishes properly problems can occur within a contractand lawyers may have to be involved.

Another disadvantage would be the media buyingdiscounts you may not be able to take full advantage ofdue to commission barriers within an agency,


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Role of Advertising Agencies

Advertising agency is a service provider that helps itsclients by developing suitable ad campaigns for them.

Their aim is to represent its clients' products andservices before customers in such a way that a positiveimage is created in their minds.

Advertising agency's role start with the identification of itsclients' goals and objectives.

This turns out to be of immense value in planning andcreating the future course of action concerning adcampaigns.


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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.


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Once an advertising agency gets acquainted with its

clients' business objectives, it starts creating andplanning 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 newcustomers in addition to establishing and maintainingcontacts with their existing customers.

An advertising agency's professional teams put in theirbest efforts to develop attractive slogans, jingles, andbody copy for ads. All this is done within the definedparameters of its clients and their budgetary allocations.


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Functions of Advertising Agencies

Account Planning

Market research

Creativity

Media planning


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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 & Mather- JWT, J Walter Thompson- Mudra Communication- FCB Ulka Advertising. Grey Worldwide (I) Pvt. Ltd-


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Thank You

asp- session 2 -role of ad agency

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