jomc 170 advertising agencies 05adagencies.ppt the first advertising agents n 1843 volney palmer l...
TRANSCRIPT
JOMC 170JOMC 170JOMC 170JOMC 170
Advertising Advertising AgenciesAgencies
05AdAgencies.ppt05AdAgencies.ppt
Advertising Advertising AgenciesAgencies
05AdAgencies.ppt05AdAgencies.ppt
the first advertising agentsthe first advertising agentsthe first advertising agentsthe first advertising agents
1843 Volney Palmer1843 Volney Palmer agent for agent for mediamedia, not advertisers, not advertisers
1864 - George P. Rowell1864 - George P. Rowell
1843 Volney Palmer1843 Volney Palmer agent for agent for mediamedia, not advertisers, not advertisers
1864 - George P. Rowell1864 - George P. Rowell “ “the johnny appleseed the johnny appleseed
of advertising”of advertising” Rowell’s American Rowell’s American
Newspaper DirectoryNewspaper Directory space wholesaler space wholesaler shared his “secret”shared his “secret” 1888 - 1888 - “Printer’s Ink”“Printer’s Ink”
“ “the johnny appleseed the johnny appleseed of advertising”of advertising”
Rowell’s American Rowell’s American Newspaper DirectoryNewspaper Directory
space wholesaler space wholesaler shared his “secret”shared his “secret” 1888 - 1888 - “Printer’s Ink”“Printer’s Ink”
founded in 1864 by founded in 1864 by Francis W. Ayer, 20Francis W. Ayer, 20
founded in 1864 by founded in 1864 by Francis W. Ayer, 20Francis W. Ayer, 20
the first advertising agencythe first advertising agencythe first advertising agencythe first advertising agency
“ “& son” made the & son” made the business seem more business seem more establishedestablished
worked for worked for advertiseradvertiser slogan - slogan - “keeping “keeping
everlastingly at it brings everlastingly at it brings success.”success.”
“ “& son” made the & son” made the business seem more business seem more establishedestablished
worked for worked for advertiseradvertiser slogan - slogan - “keeping “keeping
everlastingly at it brings everlastingly at it brings success.”success.”
N.W. Ayer N.W. Ayer & Son& Son N.W. Ayer N.W. Ayer & Son& Son
4 full-service agency functions:4 full-service agency functions:4 full-service agency functions:4 full-service agency functions:
today,today, “full-service” agencies “full-service” agencies provide the followingprovide the following::
today,today, “full-service” agencies “full-service” agencies provide the followingprovide the following:: account managementaccount management creativecreative media planning and media media planning and media
placement (media buying)placement (media buying) research research
account managementaccount management creativecreative media planning and media media planning and media
placement (media buying)placement (media buying) research research
many adding many adding “below the line”“below the line” services - services - PR, sales promotion, InteractivePR, sales promotion, Interactive
many adding many adding “below the line”“below the line” services - services - PR, sales promotion, InteractivePR, sales promotion, Interactive
U.S. agency business todayU.S. agency business todayU.S. agency business todayU.S. agency business today
over $285.1 billion in media over $285.1 billion in media billings billings (2006 (2006 www.mccann.comwww.mccann.com))
over 5,000 agenciesover 5,000 agencies over 243,000 people employedover 243,000 people employed New York and Chicago dominateNew York and Chicago dominate
over $285.1 billion in media over $285.1 billion in media billings billings (2006 (2006 www.mccann.comwww.mccann.com))
over 5,000 agenciesover 5,000 agencies over 243,000 people employedover 243,000 people employed New York and Chicago dominateNew York and Chicago dominate
agency billing by city/stateagency billing by city/stateagency billing by city/stateagency billing by city/state
CityCity Billings in MillionsBillings in MillionsNew YorkNew York $61,264.4$61,264.4ChicagoChicago 17,739.9 17,739.9Los AngelesLos Angeles 10,545.6 10,545.6DetroitDetroit 7,946.3 7,946.3MinneapolisMinneapolis 6,087.2 6,087.2San FranciscoSan Francisco 5,101.9 5,101.9BostonBoston 3,993.7 3,993.7DallasDallas 3,234.8 3,234.8AtlantaAtlanta 2,620.9 2,620.9PhiladelphiaPhiladelphia 2,379.6 2,379.6
(Source(Source: Ad Age, 2001 )
CityCity Billings in MillionsBillings in MillionsNew YorkNew York $61,264.4$61,264.4ChicagoChicago 17,739.9 17,739.9Los AngelesLos Angeles 10,545.6 10,545.6DetroitDetroit 7,946.3 7,946.3MinneapolisMinneapolis 6,087.2 6,087.2San FranciscoSan Francisco 5,101.9 5,101.9BostonBoston 3,993.7 3,993.7DallasDallas 3,234.8 3,234.8AtlantaAtlanta 2,620.9 2,620.9PhiladelphiaPhiladelphia 2,379.6 2,379.6
(Source(Source: Ad Age, 2001 )
major types of agency:major types of agency:major types of agency:major types of agency: mega-agency groupsmega-agency groups independent agenciesindependent agencies
national, regional, and local national, regional, and local
specialized/niche agenciesspecialized/niche agencies agency service suppliersagency service suppliers
media buying, creative servicesmedia buying, creative services
mega-agency groupsmega-agency groups independent agenciesindependent agencies
national, regional, and local national, regional, and local
specialized/niche agenciesspecialized/niche agencies agency service suppliersagency service suppliers
media buying, creative servicesmedia buying, creative services
mega-agency groupsmega-agency groupsmega-agency groupsmega-agency groups
prompted by mergers and prompted by mergers and client globalizationclient globalization
financial pressures financial pressures
prompted by mergers and prompted by mergers and client globalizationclient globalization
financial pressures financial pressures
martin sorrell,chairman WPP
service multinational service multinational accountsaccounts
subsidiaries provide subsidiaries provide “IMC” (integrated marketing “IMC” (integrated marketing communication) services communication) services
service multinational service multinational accountsaccounts
subsidiaries provide subsidiaries provide “IMC” (integrated marketing “IMC” (integrated marketing communication) services communication) services
5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:
OmniCom Group $4.15 billion
WPP Group $3.64 billion
Interpublic Group $3.38 billion
Dentsu (Japan) $1.98 billion
Young & Rubicam $1.49 billion
1997199719971997
5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:
WPP Group(including Y&R)
$6.69 billion
Omnicom Group 5.74 billion
Interpublic Group $5.08 billion
Havas $2.39 billion
Publicis(including Saatchi)
$2.17 billion
1999199919991999
5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:
WPP Group(including Y&R)
$7.9 billion
Omnicom Group $6.9 billion
Interpublic Group $6.6 billion
Dentsu $3.1 billion
Havas $2.76 billion
2000200020002000
5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:
2003200320032003
Omnicom GroupOmnicom Group $8.62 billion$8.62 billionWPP Group WPP Group 6.76 billion 6.76 billionInterpublic (IPG)Interpublic (IPG) 5.86 billionPublicis Publicis 4.41 billion 4.41 billion
(Including Leo Burnett)(Including Leo Burnett)
Dentsu (Japan)Dentsu (Japan) 2.55 billion 2.55 billionHavas AdvertisingHavas Advertising 1.88 billion 1.88 billion
5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:
2005200520052005
Omnicom GroupOmnicom Group $10.48 billion$10.48 billionWPP GroupWPP Group
(with Grey) (with Grey) 10.03 billion 10.03 billionInterpublic Interpublic 6.27 billionPublicis Publicis 5.11 billion 5.11 billionDentsu (Japan)Dentsu (Japan) 2.89 billion 2.89 billionHavas AdvertisingHavas Advertising 1.81 billion 1.81 billion
5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:5 top mega-agency groups:
Source: Ad Age 2004Source: Ad Age 2004Source: Ad Age 2004Source: Ad Age 2004
Together, the five international mega-Together, the five international mega-agencies are now 75% of worldwide agencies are now 75% of worldwide billingsbillings
18%18%17%17%
25%25%
6%6%
18%18%
16%16%
OmnicomWPPIPGPublicisOtherHavas
mega-agency pros & consmega-agency pros & consmega-agency pros & consmega-agency pros & cons
positives:positives: larger talent poollarger talent pool negotiating cloutnegotiating clout financial rewardsfinancial rewards account securityaccount security competitive edgecompetitive edge strong partnershipsstrong partnerships more servicesmore services international linkinternational link
positives:positives: larger talent poollarger talent pool negotiating cloutnegotiating clout financial rewardsfinancial rewards account securityaccount security competitive edgecompetitive edge strong partnershipsstrong partnerships more servicesmore services international linkinternational link
negatives:negatives: people vs. profitpeople vs. profit creativity vs. sizecreativity vs. size conflict of conflict of
interestsinterests people businesspeople business
negatives:negatives: people vs. profitpeople vs. profit creativity vs. sizecreativity vs. size conflict of conflict of
interestsinterests people businesspeople business
national, regional & localnational, regional & localnational, regional & localnational, regional & local
these arethese are independent agencies independent agencies
there are nowthere are now fewer national agencies fewer national agencies which are not part of mega-agency groupswhich are not part of mega-agency groups
regionalregional and and local agencies local agencies work with work with smaller clients who are usually located nearbysmaller clients who are usually located nearby
these arethese are independent agencies independent agencies
there are nowthere are now fewer national agencies fewer national agencies which are not part of mega-agency groupswhich are not part of mega-agency groups
regionalregional and and local agencies local agencies work with work with smaller clients who are usually located nearbysmaller clients who are usually located nearby
Top independent U.S. agenciesTop independent U.S. agenciesTop independent U.S. agenciesTop independent U.S. agencies
specialized/niche agenciesspecialized/niche agenciesspecialized/niche agenciesspecialized/niche agencies
industry specialistsindustry specialists industry specialistsindustry specialists
specialized/niche agenciesspecialized/niche agenciesspecialized/niche agenciesspecialized/niche agencies
industry specialistsindustry specialists ethnic agenciesethnic agencies
industry specialistsindustry specialists ethnic agenciesethnic agencies
specialized/niche agenciesspecialized/niche agenciesspecialized/niche agenciesspecialized/niche agencies
industry specialistsindustry specialists ethnic agenciesethnic agencies
industry specialistsindustry specialists ethnic agenciesethnic agencies internet agencies internet agencies internet agencies internet agencies
specialized/niche agenciesspecialized/niche agenciesspecialized/niche agenciesspecialized/niche agencies
industry specialistsindustry specialists ethnic agenciesethnic agencies
industry specialistsindustry specialists ethnic agenciesethnic agencies internet agenciesinternet agencies internet agenciesinternet agencies
business-to-business agenciesbusiness-to-business agencies business-to-business agenciesbusiness-to-business agencies creative boutiques and creative boutiques and
design housesdesign houses
creative boutiques and creative boutiques and design housesdesign houses
other suppliersother suppliersother suppliersother suppliers provide “unbundled” servicesprovide “unbundled” services
one part of what an agency doesone part of what an agency does
media buying servicesmedia buying services freelancers & consultantsfreelancers & consultants production companies production companies in-house or “house” agenciesin-house or “house” agencies
agencies owned by clients agencies owned by clients
provide “unbundled” servicesprovide “unbundled” services one part of what an agency doesone part of what an agency does
media buying servicesmedia buying services freelancers & consultantsfreelancers & consultants production companies production companies in-house or “house” agenciesin-house or “house” agencies
agencies owned by clients agencies owned by clients
in-house agenciesin-house agenciesin-house agenciesin-house agencies advantagesadvantages && disadvantagesdisadvantages advantagesadvantages && disadvantagesdisadvantages
from the gap’sfrom the gap’s““house agency”house agency”from the gap’sfrom the gap’s
““house agency”house agency”
in-house agenciesin-house agenciesin-house agenciesin-house agencies advantagesadvantages && disadvantagesdisadvantages advantagesadvantages && disadvantagesdisadvantages
from the gap’sfrom the gap’s““house agency”house agency”from the gap’sfrom the gap’s
““house agency”house agency”
familiarityfamiliarity specializationspecialization fast servicefast service cost savingscost savings confidentialityconfidentiality
familiarityfamiliarity specializationspecialization fast servicefast service cost savingscost savings confidentialityconfidentiality
in-house agenciesin-house agenciesin-house agenciesin-house agencies advantagesadvantages && disadvantagesdisadvantages
familiarityfamiliarity specializationspecialization fast servicefast service cost savingscost savings confidentialityconfidentiality
advantagesadvantages && disadvantagesdisadvantages familiarityfamiliarity specializationspecialization fast servicefast service cost savingscost savings confidentialityconfidentiality
objectivityobjectivity resourcesresources fresh ideasfresh ideas extra cost and extra cost and
overheadoverhead
objectivityobjectivity resourcesresources fresh ideasfresh ideas extra cost and extra cost and
overheadoverhead
2 primary roles of agencies2 primary roles of agencies2 primary roles of agencies2 primary roles of agencies
idea generationidea generation brand-buildingbrand-building
idea generationidea generation brand-buildingbrand-building
idea generationidea generationidea generationidea generation manufacture ideasmanufacture ideas manufacture ideasmanufacture ideas
ideas are lifeblood of the agencyideas are lifeblood of the agency
create intellectual capitalcreate intellectual capital create and sell different create and sell different
kinds of ideaskinds of ideas marketing strategiesmarketing strategies promotional opportunitiespromotional opportunities even new product ideas...even new product ideas...
ideas are lifeblood of the agencyideas are lifeblood of the agency
create intellectual capitalcreate intellectual capital create and sell different create and sell different
kinds of ideaskinds of ideas marketing strategiesmarketing strategies promotional opportunitiespromotional opportunities even new product ideas...even new product ideas...
brand-buildingbrand-buildingbrand-buildingbrand-building
““The agency’s purpose is to The agency’s purpose is to createcreate and and directdirect communication about a communication about a product or service product or service so that the brand so that the brand is perceived to have a unique is perceived to have a unique value or brand personality.”value or brand personality.”
Let’s look at some examples...Let’s look at some examples...
““The agency’s purpose is to The agency’s purpose is to createcreate and and directdirect communication about a communication about a product or service product or service so that the brand so that the brand is perceived to have a unique is perceived to have a unique value or brand personality.”value or brand personality.”
Let’s look at some examples...Let’s look at some examples...
brand-buildingbrand-buildingbrand-buildingbrand-building
MarlboroMarlboro Leo Burnett Leo Burnett
MarlboroMarlboro Leo Burnett Leo Burnett
brand-buildingbrand-buildingbrand-buildingbrand-building
McDonald’sMcDonald’s DDB Needham DDB Needham
McDonald’sMcDonald’s DDB Needham DDB Needham
brand-buildingbrand-buildingbrand-buildingbrand-building
NikeNike Wieden + Kennedy Wieden + Kennedy
NikeNike Wieden + Kennedy Wieden + Kennedy
brand-buildingbrand-buildingbrand-buildingbrand-building
American ExpressAmerican Express Ogilvy & Mather Ogilvy & Mather
American ExpressAmerican Express Ogilvy & Mather Ogilvy & Mather
brand-buildingbrand-buildingbrand-buildingbrand-building
AppleApple Chiat/DayChiat/Day
AppleApple Chiat/DayChiat/Day
brand-buildingbrand-buildingbrand-buildingbrand-building
more and more, agencies are being more and more, agencies are being involved ininvolved in all areasall areas of marketers’of marketers’ brand-building activitiesbrand-building activities
today, it’s more thantoday, it’s more than advertisingadvertising it’sit’s integrated marketing integrated marketing
communicationscommunications (IMC) (IMC)
more and more, agencies are being more and more, agencies are being involved ininvolved in all areasall areas of marketers’of marketers’ brand-building activitiesbrand-building activities
today, it’s more thantoday, it’s more than advertisingadvertising it’sit’s integrated marketing integrated marketing
communicationscommunications (IMC) (IMC)
means means integrationintegrationmeans means integrationintegration
integrated marketing communicationintegrated marketing communicationintegrated marketing communicationintegrated marketing communication
more and more, more and more, agencies are agencies are becoming the becoming the integratorsintegrators of the of the whole range of whole range of brand-building brand-building activities... activities...
more and more, more and more, agencies are agencies are becoming the becoming the integratorsintegrators of the of the whole range of whole range of brand-building brand-building activities... activities...
““done right,done right, IMC IMC is theis the planningplanning and and implementation implementation of the of the various various communications communications disciplinesdisciplines as a single, as a single, overall communications overall communications system --system -- making all making all the channels work.”the channels work.”
““done right,done right, IMC IMC is theis the planningplanning and and implementation implementation of the of the various various communications communications disciplinesdisciplines as a single, as a single, overall communications overall communications system --system -- making all making all the channels work.”the channels work.”
integrated marketing communicationintegrated marketing communicationintegrated marketing communicationintegrated marketing communication
advertising advertising public relationspublic relations direct response direct response sales promotionsales promotion personal sellingpersonal selling
advertising advertising public relationspublic relations direct response direct response sales promotionsales promotion personal sellingpersonal selling
the imc promotion mixthe imc promotion mix the imc promotion mixthe imc promotion mix
what agencies do.what agencies do.what agencies do.what agencies do.
structure & organizationstructure & organizationstructure & organizationstructure & organization
and how they’re organizedand how they’re organizedand how they’re organizedand how they’re organizedto do it.to do it.to do it.to do it.
7 primary services:7 primary services:7 primary services:7 primary services:
complete acomplete a marketing analysis marketing analysis develop andevelop an advertising plan advertising plan prepare aprepare a creative strategy creative strategy create create advertising executionsadvertising executions develop and implement adevelop and implement a media plan media plan handle handle billingbilling and and paymentspayments integrate integrate other marketing communicationsother marketing communications
complete acomplete a marketing analysis marketing analysis develop andevelop an advertising plan advertising plan prepare aprepare a creative strategy creative strategy create create advertising executionsadvertising executions develop and implement adevelop and implement a media plan media plan handle handle billingbilling and and paymentspayments integrate integrate other marketing communicationsother marketing communications
4 functions of full-service agencies4 functions of full-service agencies
account managementaccount management creativecreative media planning and placementmedia planning and placement researchresearch
agency organization chartagency organization chartagency organization chartagency organization chart
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]
liaison between agency and client liaison between agency and 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
liaison between agency and client liaison between agency and 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 management account management account management account management
account management directoraccount management director management supervisormanagement supervisor account supervisorsaccount supervisors account executivesaccount executives assistant account execsassistant account execs account coordinators account coordinators traffictraffic
account management directoraccount management director management supervisormanagement supervisor account supervisorsaccount supervisors account executivesaccount executives assistant account execsassistant account execs account coordinators account coordinators traffictraffic
Traffic
Asst. AccountExecutive
AccountCoordinator
AccountExecutive
AccountSupervisor
Management.Supervisor
Account Mgmt.Director
account management account management account management account management
responsibilityresponsibility responsibilityresponsibility the creative department the creative department is responsible is responsible
for creating and producing the print and for 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 goals to be accomplishedbe accomplished and and key message key message points points to be relayedto be relayed
the creative department the creative department is responsible is responsible for creating and producing the print and for 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 goals to be accomplishedbe accomplished and and key message key message points points to be relayedto be relayed
creative departmentcreative departmentcreative departmentcreative department
creative departmentcreative departmentcreative departmentcreative department
executive & group creative executive & group creative directors directors
creative directorcreative director associate creative directorassociate creative director copywriterscopywriters art directorsart directors broadcast producersbroadcast producers print production managersprint production managers traffic coordinatorstraffic coordinators
executive & group creative executive & group creative directors directors
creative directorcreative director associate creative directorassociate creative director copywriterscopywriters art directorsart directors broadcast producersbroadcast producers print production managersprint production managers traffic coordinatorstraffic coordinatorsPrint
Traffic
ProductionBroadcast
Production
Copy Spvr. &Copywriters
Art Supervisor& Art Directors
CreativeGroup:
AssociateCreative
Director (ACD)
CreativeDirector (CD)
ExecutiveCreative
Director (ECD)
StrategyReviewBoard
media departmentmedia departmentmedia departmentmedia department
The The media departmentmedia department has two main has two main functions - functions - planningplanning and and buying.buying.
The The media departmentmedia department has two main has two main functions - functions - planningplanning and and buying.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.
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.
media directormedia director
associate media directorsassociate media directors
media supervisorsmedia supervisors
media plannersmedia planners
media buyersmedia buyers
media analystsmedia analysts
media directormedia director
associate media directorsassociate media directors
media supervisorsmedia supervisors
media plannersmedia planners
media buyersmedia buyers
media analystsmedia analysts
Analysts
MediaPlanner
MediaBuyer
MediaSupervisor
AssociateMedia
Director
MediaDirector
MediaMediaPlanPlan
media departmentmedia departmentmedia departmentmedia department
mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers
agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units
many large clients now look at media many large clients now look at media as aas a separate serviceseparate service
mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers
agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units
many large clients now look at media many large clients now look at media as aas a separate serviceseparate service
big changes in thebig changes in thebig changes in thebig changes in themedia departmentmedia departmentmedia departmentmedia department
research departmentresearch departmentresearch departmentresearch department
interpret market environmentinterpret market environment gather and analyze research data. gather and analyze research data. primary and secondary techniquesprimary and secondary techniques
determine consumer needs/perceptionsdetermine consumer needs/perceptions understand problemsunderstand problems
advise how ads can meet advise how ads can meet strategic goalsstrategic goals
help find solutionshelp find solutions
interpret market environmentinterpret market environment gather and analyze research data. gather and analyze research data. primary and secondary techniquesprimary and secondary techniques
determine consumer needs/perceptionsdetermine consumer needs/perceptions understand problemsunderstand problems
advise how ads can meet advise how ads can meet strategic goalsstrategic goals
help find solutionshelp find solutionsResearchResearch
ReportReport
research directorresearch director research project managersresearch project managers research assistantsresearch assistants outside research outside research specialistsspecialists
research directorresearch director research project managersresearch project managers research assistantsresearch assistants outside research outside research specialistsspecialists
research departmentresearch departmentresearch departmentresearch department
ResearchSuppliers
Outside
ResearchAssistants
ProjectManagers
ResearchDirector
ResearchResearchReportReport
auxiliary agency functionsauxiliary agency functionsauxiliary agency functionsauxiliary agency functions
account planningaccount planning strategy/creative review boardstrategy/creative review board office managementoffice management
human resourceshuman resources legal serviceslegal services accountingaccounting recruitmentrecruitment
account planningaccount planning strategy/creative review boardstrategy/creative review board office managementoffice management
human resourceshuman resources legal serviceslegal services accountingaccounting recruitmentrecruitment
3 ways agencies make money3 ways agencies make money3 ways agencies make money3 ways agencies make money
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
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 commissionsagency commissionsagency commissions
media commission systemmedia 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
media commission systemmedia 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 systems4 types of fee systems4 types of fee systems
fixed fee (retainer)fixed fee (retainer) cost-plus feecost-plus fee performance feeperformance fee hybrid fee & hybrid fee &
commissioncommission
fixed fee (retainer)fixed fee (retainer) cost-plus feecost-plus fee performance feeperformance fee hybrid fee & hybrid fee &
commissioncommission
incentivesincentivesincentivesincentives
in theory, a good way to workin theory, a good way to work get paid based on how well you do, not get paid based on how well you do, not
how much you billhow much you bill in practice, difficult to implementin practice, difficult to implement if client makes final decision (instead of if client makes final decision (instead of
agency), how can agency be responsible agency), how can agency be responsible for final results?for final results?
results based on many factors, such as results based on many factors, such as competitive efforts, not just advertisingcompetitive efforts, not just advertising
in theory, a good way to workin theory, a good way to work get paid based on how well you do, not get paid based on how well you do, not
how much you billhow much you bill in practice, difficult to implementin practice, difficult to implement if client makes final decision (instead of if client makes final decision (instead of
agency), how can agency be responsible agency), how can agency be responsible for final results?for final results?
results based on many factors, such as results based on many factors, such as competitive efforts, not just advertisingcompetitive efforts, not just advertising
new businessnew businessnew businessnew business
three primary sourcesthree primary sources build existing client’s businessbuild existing client’s business add and sell new IMC servicesadd and sell new IMC services solicit new accountssolicit new accounts
two ongoing problemstwo ongoing problems “ “spec” workspec” work teams “walking” with accountsteams “walking” with accounts
three primary sourcesthree primary sources build existing client’s businessbuild existing client’s business add and sell new IMC servicesadd and sell new IMC services solicit new accountssolicit new accounts
two ongoing problemstwo ongoing problems “ “spec” workspec” work teams “walking” with accountsteams “walking” with accounts
““The critical objective and role The critical objective and role of any ad agency is gaining new of any ad agency is gaining new
business.”business.”
““The critical objective and role The critical objective and role of any ad agency is gaining new of any ad agency is gaining new
business.”business.”
beyond 2007beyond 2007beyond 2007beyond 2007
advertising advertising agency trendsagency trends
advertising advertising agency trendsagency trends
agency trendsagency trendsagency trendsagency trends clutter, overloadclutter, overload, , “overchoice”“overchoice”
increasedincreased media options media options increasing increasing audience fragmentationaudience fragmentation more messages more messages everywhereeverywhere
doing more with lessdoing more with less economic pressures, economic pressures, “downsizing”“downsizing” ongoing ongoing client budget pressuresclient budget pressures
managing sizemanaging size more more mergersmergers and and mega-agenciesmega-agencies
clutter, overloadclutter, overload, , “overchoice”“overchoice” increasedincreased media options media options increasing increasing audience fragmentationaudience fragmentation more messages more messages everywhereeverywhere
doing more with lessdoing more with less economic pressures, economic pressures, “downsizing”“downsizing” ongoing ongoing client budget pressuresclient budget pressures
managing sizemanaging size more more mergersmergers and and mega-agenciesmega-agencies
agency trendsagency trendsagency trendsagency trends managingmanaging technology technology
interactive marketinginteractive marketing e-mail, web sitese-mail, web sites
improving improving internal systems internal systems account planning account planning re-engineeringre-engineering agency organization agency organization improving delivery ofimproving delivery of imc services imc services
managingmanaging technology technology interactive marketinginteractive marketing e-mail, web sitese-mail, web sites
improving improving internal systems internal systems account planning account planning re-engineeringre-engineering agency organization agency organization improving delivery ofimproving delivery of imc services imc services
as long as marketers need as long as marketers need ideasideas to build their to build their brands,brands, they’re going to needthey’re going to need
as long as marketers need as long as marketers need ideasideas to build their to build their brands,brands, they’re going to needthey’re going to need
in conclusion...in conclusion...in conclusion...in conclusion...
advertising agenciesadvertising agenciesadvertising agenciesadvertising agencies