The Advertising Agency: How Does It Work

THE ADVERTISING
AGENCY
how does it work
LECTURE 5
INTRODUCTION TO ADVERTISING
MODULE STRUCTURE
Ana Bermejillo Ibez
LECTURE 5. THE ADVERTISING AGENCY
THE AGENCY
ETYMOLOGY:
latin words AGENTIA - AGENTIS - the one who does something
A MEDIATOR FOR A THIRD PARTY
INTER-MEDIATOR
expert mediating in a process
Xinhua.
Doom&Dickinson. Netherlands
Free Picture. Saudi Arabia
Turn. Hong Kong
THE AGENCY
DEFINITION
COMMUNICATOR IN THE ADVERTISING PROCESS
SPECIALIZED IN THIS KIND OF COMMUNICATION (EXPERT)
CAPABLE OF MEDIATING (client - media- public)
AND ALSO OF HELPING/ADVICING THE ADVERTISER
TO PRODUCE A SUCCESFUL ADVERTISING CAMPAIGN
HOW?
CONSIDERING BEST WAY TO PROMOTE COMPANY/PRODUCT/
SERVICE TO TARGET AUDIENCE
CHOSING CHANNELS AND CODE
Y&R. Ukraine
Y&R. Ukraine
Y&R. Ukraine
THE AGENCY
DEFINITION. LEY GENERAL DE PUBLICIDAD (ESPAA)
Art 10
Physical or legal person
professionally dedicated in an organized way
to create, program and execute
services of advertising
under the name of an advertiser or client.
THE ADVERTISING AGENCY
ITISATOUGHJOB,
BUTIFYOULOVEIT...
YOUWILLBETHE
HAPPIEST
PROFESSIONAL
greenland . Europe
ITISATOUGHJOB,
BUTIFYOULOVEIT...
YOUWILLBETHE
HAPPIEST
PROFESSIONAL
greenland . Europe
ITISATOUGHJOB,
BUTIFYOULOVEIT...
YOUWILLBETHE
HAPPIEST
PROFESSIONAL
greenland . Europe
THE AGENCY
ADVERTISING COMPANY
WHOSE GOAL IS TOADVISETHECLIENT
(brand/company/Public Administration, NGOs...
IN ALL ASPECTS
RELATED TO THE COMERCIAL COMMUNICATION
OF COMPANYS PRODUCTS AND SERVICES
WHOSE GOAL IS TOCREATESUCCESSFULCAMPAIGNS
OPTIMIZING - media / code / impact
WHOSE GOAL IS TOMAKETHECOMMUNICATIONPROCESS
ASPERSUASIVEANDMEANINGFULASPOSSIBLE
h-57. Italy
h-57. Italy
h-57. Italy
THE AGENCY
extremelly brief history
- VOLNEY PALMER. Philadelphia. 1st newspaper agent
- 1STAGENCIESINTHEUS
N.W.AYER & SON - contract + design of ads
writing copy, drawing, illustration, manage press insertion...
LORD & THOMAS
-THECREATIVEREVOLUTION(MADISONAVE)
Ogilvy, Bernbach vs Reality in Advertising (Reeves)
THE AGENCY
- 70S. SPECIALIZATION
1ST MEDIA AGENCIES
Advertising companies whose business is to buy wholesale
advertising spaces and to sell retailing to the advertisers, thus
obtaining the best rates.
1ST CREATIVE BOUTIQUES
agencies exclusively dedicated to the creative aspects of
the campaign, leaving the rest of the process to the Media
Agencies.
THE AGENCY
- 90S. TOWARDS GLOBAL COMMUNICATION
Not only advertising but reaching other activities such as sales
promotions, PR, Direct Marketing They move from advertising
agencies to Communication groups.
Muchimuchi. France
THE AGENCY
Summing up, agencies have historically evolved

as follows:
1. Press agent
2. Full service agencies
3. Communication groups
Riccardo Froscianti
AGENCYS TYPOLOGY
(based on specialization)
-Communication groups
-Full services agencies
-Media agencies
-Creative Boutiques
-Direct Marketing agencies
-PR Agencies
-Sales promotion agencies
-Product placement agencies
AGENCYS TYPOLOGY
(based on scope)
-Local or regional
-National
-International (genuine or mixed)
AGENCYS TYPOLOGY
International Agency Networks
An agency established in different countries.
Its headquarters could be based in London, New York,
Amsterdam, Chicago, Paris...
Most of the main Agencies belong to a Network, that can be
genuine (an international Agency setting in a country) or
mixed (an International Agency teaming up with a
local Agency).
MostimportantNetworkspresentinSpain:
Omnicom,Interpublic,WPP,Publicis,TrueNorth
andHavasAdvertising
THE BEST
AGENCIES IN
SPAIN - 2011
ranking: El Publicista. awards received in 2010

El Publicista. n 238. feb. 2011
Awardsincluded: ADCE. Adprint. Cannes.CdeC.Clio Awards. Cresta Awards. Echo Awards. Eficacia. El
Ojo de Iberoamrica. El Sol. Epica. Eurobest. Fiap. London International Awards. NY Festivals.Premios
Imn. Premios Ondas. The Cup. The One Show.
THE BEST AGENCIES IN SPAIN - 2010

AGENCIES
AWARDS 2009
McCannErickson
59
Shakelton
32
winner
Sra Rushmore
24
+10
Momentum
23
+10
TBWA Espaa
21
DDB Espaa
19
Leo Burnett
18
Euro SRGC Espaa
16
+10
SCPF
16
+10
Contrapunto BBDO
15
Bungalow25
13
+10
Radio
AGENCIES
AWARDS
TBWA
McCann Erickson
Publicis
Remo
Contrapunto BBDO
Arrontes y Barrera
Cia Comunicacion
DDB Espaa
Diresis
Tafe
Events
AGENCIES
AWARDS
Global Events
Draft FCB
Desafo Global
Gaps
Prisma Global
Audiomic Pro
Best Rel / Offlimits
d6
di.com
Dimarco
Television (2009 data)

AGENCIES
AWARDS
JWT
McCann Erickson
17
Vitrubio Leo Burnett
17
DDB Espaa
16
SCPF
10
Publicis Espaa
10
Contrapunto
Grey Espaa
Tapsa
Bassat Ogilvy
Print (2009 data. El publicista)

AGENCIES
AWARDS
Contrapunto
TBWA Espaa
20
DDB Espaa
12
Grey Espaa
12
McCann Erickson
10
SCPF
JWT Espaa
Tiempo BBDO
Villaross
El Laboratorio
Online
AGENCIES
AWARDS
Doubleyou
Shackelton
19
Netthink
Contrapunto
CP Proximity
Tiempo BBDO
Sra. Rushmore
Villaross
DDB Espaa
Grey Espaa
Direct Marketing
AGENCIES
AWARDS
Shackelton 49
CP Proximity 8
Ogilvyone Worldwide Spain 6

Doubleyou
Ogilvy Healthworld Espaa
Leo Burnett
Delfin Group
Dimensin
El Laboratorio
Imaginarte
Media Planning
AGENCIES
AWARDS
OMD Spain
Universal McCann
Ymedia
MPG Espaa
Contrapunto
Gaps Espaa
Carat Espaa
Doubleyou
JWT Espaa
Optimedia
Production
AGENCIES
AWARDS
Agosto
10
Bus Producciones 3
DDB Espaa 3
Garlic Producciones
JWT Espaa
Publicis Espaa
Alamo Films
BAP & Conde
Bassat Ogilvy
Got Film
Design & Branding

AGENCIES
AWARDS
Sanca 8
Grey Espaa
Bassat Ogilvy
Contrapunto
Euro RSCG Espaa
Imaginarte
Tribu 3
AGR Machine
BB Grfics
Grupo Publips
Photography
AGENCIES
AWARDS
Garrigosa Estudio
Jos Manuel Bielsa
Gonzalo Puertas
Roberto de Lara
Astrid y Oliver Haupt
Bleda y Rosa
David Campos
David Matellanes
Domenec Freixedes
Santi Cabezas
AND
THE BEST
AGENCIES
OF
THE WORLD?
according to YoungGuns (2010)

10 best agencies of the year were
AGENCIES
ColensoBBDO New Zealand
TBWACHIATDAY, New York USA
Crispin Porter + Bogusky USA
Del Campo Nazca Saatchi & Saatchi Argentina
10 MOST AWARDED COUNTRIES
US
New Zealand
Australia
United Kingdom
Mother London UK
Singapore
Leo Burnett, Chicago USA
India
Ogilvy & Mather, Mumbai India
South Africa
DDB, London UK
Argentina
Saatchi & Saatchi, London UK
Brazil
Saatchi & Saatchi, Australia Australia
France
HOW
DOES
THE
AGENCY
WORK?
traffic
production
media planning
accounts
creative
CAMPAIGN
CLIENT
accounts
accounts department
account = client (brand or divission in a brand)
ACCOUNT DEPARTMENT deals with clients
Its the clients voice in the Agency
And the agencys voice in front of the client
MEDIATOR or BRIDGE aimed to facilitate the
information exchange between the client and the agency
- Understands clients needs and priorities
- Studies strategies & methods
- ADVICES CLIENT ABOUT BEST ACTIONS
accounts department
accountmanager
executive
executive
junior
executive
junior
intern
creative department
THE IDEA-MAKERS
1. To elaborate the basic message to be communicated

2. To find the creative expression to that message
3. To design the story, script, graphic layout...
4. To create and produce, along with the Production
Department (or company), the necessary material to
carry on the campaign
5. To overview the resulting material: spots, radio
commercial breaks, artwork
creative department
creativedirector
ART
COPY
COPY
COPY
COPY
ART
ART
junior
intern
junior
intern
intern
production department
THE BUILDERS
Most of the times, through outsourcing

- printing
- manufacturing
- products
- lighting / audiovisual
- cattering for events, flowers...
- models...
media planning
THE BEST MEDIA TO REACH THE TARGET WITH THE

BUDGET
Must define which media (TV, press, radio, web) is going to
be used to spread the message.
In which spaces the ad will be shown (Outdoors)
The decision is based upon:
- previous information about the media
- how well they relate to the target audience
- advertising rates.
media planning
goals
1. Find documentation about media and outlets

2. Find research about media and outlets: EGM, Sofres,
Infoadex...
3. Four functions of media planning
- Media strategy
- Media plan: Insertion calendar
- Space purchase
- Insertion control
media planning
TO KNOW MORE ABOUT
PUBLIC/ PHYLOSOPHY / RATES / SPECIAL NUMBERS
FORMATS
OF THE MEDIA IN WHICH YOU WANT TO INCLUDE
YOUR ADS
YOU WILL CHECK THE PUBLICATIONS MEDIAKITS
media planning
Oblicua. Ad.Agency
media planning
Cheap doesnt mean

worse if its clever enough
CASE: THE CHASER. Australia
(video)
media planning
Mediadepartment
planner
planner
junior
junior
intern
traffic department
THE FACILITATORS
Coordinates and controls the relationships

between all other departments in the campaign production
process
to guarantee established timings and a proper
adjustment to the budget.
.
control department
THE MEASURERS
Check results and impacts of campaign

ROI (Return on Investment)
other departments
FINANCES
ADMINISTRATION
NEW BUSINESS
LEGAL
...
how does an agency get

clients?
By agency contests
By agency dossiers . credentials
By direct contract
WHEN AN AGENCY WORKS 'PRO BONO'
IT MEANS THAT IT DOES THE JOB WITHOUT BEING PAID
FREE OF CHARGE
SIMPLY BECAUSE IT BELIEVES THAT WHAT IT IS
ADVERTISING IS WORTH IT
the agency dossier credentials

1. Identification: resume, name, history, mission
statement, staff members...
2. Work philosophy: Set of values guiding the Agencys
work. Work methodology.
3. Book of previous work (prints, reels, webs...)
credentials
credentials - about us
1) THE AGENCY. Brief history. (founded when, where, by
whom, hits)
2) Headquarters and international pressence
3) Our style
4) Our clients / projects
5) Our staff
lets see some examples
how does the agency

make money?
1. Commission over the gross media investment
(traditional way)
2. Fees: The advertiser will only pay from the services
agreed with the Agency
3. Monthly fee: Agency agrees monthly rate for regular
services
PROBONO = the agency works without being paid

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THE ADVERTISING

LECTURE 5. THE ADVERTISING AGENCY

LECTURE 5. THE ADVERTISING AGENCY

LECTURE 5. THE ADVERTISING AGENCY

Free Picture. Saudi Arabia

LECTURE 5. THE ADVERTISING AGENCY

Turn. Hong Kong

LECTURE 5. THE ADVERTISING AGENCY

LECTURE 5. THE ADVERTISING AGENCY

LECTURE 5. THE ADVERTISING AGENCY

LECTURE 5. THE ADVERTISING AGENCY

LECTURE 5. THE ADVERTISING AGENCY