Name: - Sharad Yadav

Roll no: - 171249

Subject: - Integrated Marketing
Communications
Topic: - Advertising Agencies
Introduction
Advertising is a marketing communication that employs an openly sponsored, non-personal
message to promote or sell a product, service or idea. Sponsors of advertising are typically
businesses wishing to promote their products or services. Advertising is differentiated from
public relations in that an advertiser pays for and has control over the message. It differs from
personal selling in that the message is non-personal, i.e., not directed to a particular
individual. Advertising is communicated through various mass media, including traditional
media such as newspapers, magazines, television, radio, outdoor advertising or direct mail;
and new media such as search results, blogs, social media, websites or text messages. The actual
presentation of the message in a medium is referred to as an advertisement, or "ad" or advert for
short.

DEFINITION
Advertising:
Advertising is a form of communication used to promote products and services of
accompany primarily to generate sales and secondary to create a brand identity,
introduce new products and services, communicating a change in the existing
product line. It also helps in communicating social messages to the masses.

Meaning
An advertising agency, often referred to as a creative agency, is a business dedicated to creating,
planning, and handling advertising and sometimes other forms of promotion and marketing for
its clients. An ad agency is generally independent from the client; it may be an internal
department or agency that provides an outside point of view to the effort of selling the client's
products or services, or an outside firm. An agency can also handle overall marketing and
branding strategies promotions for its clients, which may include sales as well.
 Role of an Advertising Agency

The major role as advertising agency is to work alongside the clients to develop and sustain the
brands that they mutually serve, through consumer understanding and insight and through
creative and media delivery skills to provide best advice and the best execution thereof to those
clients for the advertising of those brands.

The role of advertising and the advertising agency is to help effect this transformation from
product or service to brand by clearly positioning the offering to the consumer – its role and its
benefits – and by communicating the brand’s own personality. In short its role is to provide
meaningful differentiation via the consumer connection.

Structure Of Advertising Agency

Structure of advertising agency
Usually advertising agency consists of the following different departments. Who are works together to
perform an effective and best output.

 Account department

 Marketing services

 Creative department

 Media planning

 Internal services department

 Client services
These departments are varying from company to company and organization to organization on it
working load and size of company.

Account Management department

In an advertising agency account department deal direct with client and help client to cover more
market in less money. Officers in account department mean they have to make never ending
negotiations between ad agency and its clients. They make efforts to contract renewal and
strengthen the firms’ client support. Account department doesn’t mean dealing with account
only. In advertising agency it’s mean to deal with client and managing with them.

They are responsible for coordinating with the creative department, media production staff that
are all behind the campaign. Throughout the campaign they keep in touch with the client to
updated him on ads progress and gain feedback. Upon completion of the creative work it is their
job to ensure the ads production and placement.
Marketing services Department

This is very important department of any advertising agency that helps in creating an effective
advertising agency. Officers in marketing services department are duty to search the attitude of
the people within the specific or targeted market.

They also put efforts to find out that which medium or combination of medium would be best for
the advertising campaign.

Researchers:

Market researcher services are being hired to access client market situation, including
understanding customers’ attitude and competition situation in the specific market.

They mostly do research in following department

Consumer research

Market survey

Market potential study

Sales Promotion

They use different technique for sales promotion.

Both sub-departments will be benefit for more mutual understanding of information early in the
agency research process. To work strategically both clients to create solution for variety of
marketing needs

Creative department

This is a department of highly skilled people who work in a team to give best results. It
comprises of technical experts, system architectures, graphics designers, art directors and artists,
sop writing section , film production section, computers programming etc.

There work to create and produce ads and public services messages for both Electronic and Print
media as per demand of client and as per instruction given to them. They are equipped with latest
technique and equipment’s.

Art directors and copy writer along with their team generate creative ideas and the remaining
team work in giving those ideas to appropriate physical shapes.
Media Planning Department

This department works on planning and buying the media. As if ad would not be placed on the
most appropriate medium or combination of medium them all efforts and cost on it would be
wastage.

Each medium, which they are hundreds are now, has its own unique method of accepting
advertising such as different cost structures. Media planning department on behalf of their clients
looks for the best media for advertising.

They buy space form media and place their client advertising there.

Internal services department

Internal services department mean department in advertising agency that make relations between
the internal employees for effective control over all advertising completion process. This is
divided further in three sub-departments.

Traffic Department

The traffic department regulates the flow of work in the agency. It increase agency
efficiency and profitability through the reduction of false job start, inappropriate job initiations,
incomplete information sharing, over and under cost estimation and answering the phone calls.

Finance Department

They are responsible for handing all the matters related to finance. They take care of all
the bills for example electricity, phones, house rent, building fares, internet charges, transport
allowance etc. they are responsible for getting money form advertisers as well. Employees’
salaries and daily payments also come under this department.

Human Resource department

This department looks after the man power in the agency. They know where to appoint new
person, whom to shift from one to another department. Where new training needed. When to
conduct seminars to enhance different skills of workers.
Client Services Department

Usually this separated department is seen in very larger ad agencies.

Client services department helps their clients for the promotion of their business but other than
making ads. They can prepare PR (Public Relations) campaign for their clients, can arrange
exhibition for then and even can do some research on their demand. They also help their client
on designing the wrappers or other packaging material.
Four Types of Advertising Agencies
Here are basically four types of ad agencies. They are:

 In-house agencies

 Creative boutiques

 Media buying agencies

 Full service agencies

In- house agencies

Some companies, in an effort to reduce costs and maintain greater control over agency activities,
have set up their own advertising agencies internally. An in-house agency is an ad agency set up,
owned and operated by the advertiser. Many companies use in-house agencies exclusively;
others combine in-house efforts with those of outside agencies.

A major reason for using in-house agency is to reduce advertising and promotional costs.
Companies with very large advertising budgets pay a substantial amount to outside agencies in
the form of media commissions. With an internal structure, these commissions go to the in-house
ad agency. An in-house ad agency can also provide related work such as sales presentations and
sales force material, package design, and public relations at a lower cost than the outside
agencies.

Saving money is not the only reason companies use in-house ad agencies. Time savings, bad
experience with outside agencies, and the increased knowledge and understanding of the market
that come from working advertising and promotion for the product or service day by day are also
reasons. Companies can also maintain a tighter control over the process and more easily
coordinate promotions with the firm’s overall marketing programmers.

Opponents of the in-house agencies say that they can give the advertiser neither the experience
nor the objectivity of the outside agency and nor the range of services. They argue that the
outside agencies have a more specialized staff and attract the best creative staff. Also flexibility
is higher since if the company is not satisfied with the agency it can be dismissed, whereas
changes in an in-house agency could be slower and more disruptive.

Thus we can summarize by saying that

Ad agency Advantages Disadvantages

In house Cost saving Less experience

agency
More control Less objectivity

Increased coordination Less flexibility

In-house agencies in India are:

 Levers - Lintas (previously)

 Videocon – Confidence
 Reliance – Mudra (when Mudra started out)

Creative boutiques
Creative boutique is an agency that provides only creative services. These specialized companies
have developed in response to some client’s desires to use only the creative talent of an outside
provider while maintaining the other functions internally.

The client may seek outside creative talent for two reasons:

 Because he wants an extra creative effort

 May be because its own employees of the in-house agency or the agency that he has
appointed do not have sufficient skills in this regard.

The full-service agencies also sub-contract work creative boutiques when they are very busy or
want to avoid adding full time employees to their pay roll. Creative boutiques are usually found
by members of the creative departments of full service agencies who leave the firm and take with
them clients who want to retain their creative talents. These boutiques generally perform
creative function on a fee basis.

Few creative boutiques in India:

 RMG David
 Vyas Gianetti Creatives
 Chlorophyll
Media buying agencies
Media buying agencies are independent companies that specialize in the buying of media,
particularly radio and television. The task of purchasing advertising media has grown more
complex as specialized media proliferate, so media buying services have found a niche by
specializing in the analysis and purchase of the advertising time and space. Agencies and clients
generally develop their own media plans and then hire the buying services to execute them.

Some media buying agencies do help advertisers plan their media strategies. Because media
buying agencies purchase such large amounts of time and space, they receive large discounts and
can save the small ageny’s or client’s money on media buying. Media buying agencies are paid a
fee or commission for their work.

 Mindshare
 Initiative Media (LOWE)
 Zenith Media (Bates, Saatchi & Saatchi)
 Optimedia (Publicis)
 Starcom (Leo Burnett)
 Fulcrum (HTA) Normal 0 MicrosoftInternetExplorer4

Full – service agency

The function of an advertising agency is to see to it that its client’s advertising leads to greater
profits in the long run than could be achieved without the ad agency. Most such agencies are
large in size and offer their clients a full range of services in the area of marketing,
communications and promotions. These include planning, creating and producing the
advertisement, media selection and research. Other services offered include strategicmarketing
planning, sales training, package design, sales promotion, event management, trade shows,
publicity and public relations.

The full service agency is composed of various departments; each is responsible to provide
required inputs to perform various functions to serve the client.

Interactive agency
An interactive agency, also known as a digital agency, is similar to a traditional advertising
agency. The increasing number of internet users and the development of social networks has
significantly increased the need to offer consumers a personalized experience, adapted to current
requirements. Here's where an interactive agency comes in handy, by providing creative services,
focused mainly on the online world.

 JetBlue Free Flights

 Peru's Drinking Water Billboards

 SNCF 3D Video Doors

Company Introduction
JWT, or J. Walter Thompson as it was formerly known, is one of the largest advertising agencies
in the world. It has offices in 90 countries and over 10,000 employees. They boast of clients that
are leading global brands, many of whom have had a relationship with JWT for a long time.
HSBC, Ford, Kellogg, Nestle, Shell, Unilever and de Beers are just among a few of these
illustrious names.

So what exactly does JWT do for these clients, and how does it serve them so as to keep them
coming back time and again. Simply put, if any client has a message it wants to communicate to
its consumers, JWT will find the most creative way to package that message and make sure it
reaches out via the most suitable media, whether print, radio, TV or the internet to make just the
impact the client wished for. It does this through an extensive global creative talent pool and
years of experience.
The advertising industry is lucrative, exciting but not without its challenges. Being creative is
one thing, getting the right message across to increase the clients share is another. Creativity is
by its very nature subjective. How does one judge how good an idea is? The space itself is
crowded by other competitors vying for similar clients. To top it all, consumers needs and
demand change in the blink of an eyelid. The recent explosion in the Internet/mobile space has
meant that JWT and other firms must be quick to integrate this change or perish.
This report aims to take an objective view of JWT as an organisation and critically examine the
way it is structured and governed. The report also places these findings both within the context
of the advertising industry as a whole and within certain academic frameworks used for analysis.
The report starts with the organisation’s structure, move on to how it differentiates itself to
remain competitive, and how it fosters a culture of creativity. The report then goes on to describe
how JWT deals with the conflicts inherent in an organization and how it controls its employees
and processes. Towards the end, an analysis of the threats JWT perceives from the environment
he near future and how it plans its road ahead is presented.

Service Range
The services provided by JWT for its clients range from print media to advergaming to internet
advertising & promotion to television commercials. JWT is ready to use any kind of medium
which will enable them to fully express their creative thinking and ideas. The management in
JWT feels that service is related to “anything to do with communication”.

Dynamic Processes in JWT

The highly dynamic environment to which JWT has been exposed has the major influence in the
internal processes of the organization. The various departments work in close interaction with
each other and this leads to critical issues during decision making due to the enormous scope of
inter-group conflicts.
Decision Making Process
In an advertising agency the major decision making issue related to the core process is the final
product to be delivered to the client. In JWT, usually, only the account management team
interacts directly with the client to collect the requirements.
During the process of development of the advertisement/product, there is a high degree of
reciprocal interdependence between the account management and the creativity teams.

Environment at JWT

JWT India, like other organizations, is impacted tremendously by the various sectors of the
external environment. However, being a creative organization, it is affected most by human
resources sector, market sector and the socio cultural sector. The following analyses the impact
of various sectors of the external environment on JWT.

6.1 Task Environment

The task environment includes sectors that directly impact an organization. The following
sectors constitute the task environment

1. Market sector

JWT, being an advertising firm, has to adjust itself to the demands and environmental
changes of its very diverse client base. For example, the advertising strategy for luxury
soaps would be very different from that of high-end mobile phones. The company
typically conducts a market survey to understand the market sentiment so as to devise a
successful campaign.

2. Human resources sector

The employees of JWT are the most important asset for the organization.

a. Creative team

The creative team comes up with various ideas for the advertising campaigns, in turn,
resulting in higher revenues for the organization. The work expected out of the
creative team is non-routine, and hence the team requires a lot of flexibility in terms
of deadlines, work timings to explore the creative insights required for a successful
campaign.
Recruitment for creative employees can be a challenge, because judging creativity is
very subjective. Moreover, advertising professions do not pay that well, so it becomes
a challenge finding the right talent for the company. This is why JWT Bangalore has
 restricted itself to 60 employees, and does not have any immediate plans for
expansion so as to maintain the quality.
b. Account Management

The account management has to sell the idea to the client. They need to have strong
persuasive skills and communication skills. They also have to cope with the challenge
of working with the unstructured creative team and complex client requirements, and
achieve a fine balance between the two.
This role is very prone to being poached by the clients, since only account
management executives interact directly with the client, and clients want to hire them
for handling their strategy and branding divisions, because these executives have a
broad understanding about their business processes, while working for their
campaigns. Hence, the advertising companies have to prepare themselves against
such threats.
c. Account Planning

This role involves understanding market trends, and hence requires individuals who
are motivated by research and analysing data about markets.

3. Industry sector

JWT Bangalore may not face competition from other JWT centres, but it has to tackle the
intense competition posed by other advertising agencies, and it does so by focusing its
energy on the sales pitch. For example, Nike had given their international advertising
campaign to Weiden+Kennedy, and when they were planning to reinvent themselves in
India, JWT aggressively put up a creative sales pitch to weed out competition faced by
Ogilvy & Mather and Weiden+Kennedy, even though Weiden+Kennedy had a higher
chance of getting it, being the global advertising partner for Nike. This resulted in them
getting the prestigious Nike contract.

4. Government sector

The advertising agency has to keep in mind the constraints imposed by various
government regulations as well as the censor board. For example, Kingfisher is an
important client for JWT, but they cannot develop advertisements for Kingfisher beer
directly, because Government of India does not allow direct advertisements for alcoholic
products. Hence, the creative team has to develop surrogate advertisements so as to
establish a brand for Kingfisher. Such constraints limit the creative potential, but the
teams have to deliver their best output working under such constraints.

5. Financial resources sector

Every organization needs financial resources to sustain itself and continue its operations.
The advertising companies, in particular, are being motivated to come up with better campaigns,
by tying their revenues with the sales of the product. The ad agencies currently get fixed
revenue for the campaigns that they develop, but the clients feel that this does not give them
enough incentive to prepare a successful campaign, and they should be made stakeholders in the
success of the campaign.
Thus, the clients have devised a revenue structure which includes a variable pay
component, according to which companies pay the advertising firm a certain percentage of
revenue, depending on the success of the campaign. JWT has not yet adopted this structure,
because it feels that it may be unjust in certain situations, wherein they may have come up with
a brilliant campaign, but it still fails because the product itself does not click with the
consumers. Hence, the company may not get its fair share of revenue in spite of putting in so
much hard work for the campaign.

WELL KNOWN PROJECTS OF THE ORGANISATION:

Ford

Times of India

Murugappa group

Reynolds

Parry’s sugar

Univecell

Radisson Blu

Horlicks

MRF

Airtel

TMB Bank

Fiama Di Wills

Tulsian Steel

Spirolina

Amurtanjan(new pitch)