ROLE OF AD AGENCIES

TEAM - 8

SUKEERTI
TANUSHREE
NEETHU
ANANDU
HARISANKAR
 Ad Agency
• An ad agency is a service organization that
specialize in planning & executing advertising
program for its client
• According to American Association of
Advertising “An advertising agency is an
independent organization of creative people
and business people who specialize in
developing and preparing market plans,
advertisements, and other promotional tools”.
 TOP ADVERTISING AGENCIES
• Ogilvy and Mather: Vodafone, Cadbury, Asian
paints, Fevicol, Dove
• JWT( J Walter Thompson): Nestle, Bayer, Ford,
Nokia, Unilever
• Mudra Communications: Neutrogena, HBO,
Philips, Reliance Netconnect, Big bazar
• FCB ulka advertising Ltd: Tata Indicom, Whirlpool,
Zee cinema, Santoor, Sunfeast,Amul
• Grey Worldwide Pvt Ltd: Hero Honda,Maruti
suzuki, Ambuja cement, UTV, P&G, Godrej.
THE ROLE OF AN AD AGENCY:

An organization hire ad agency because of following

reasons:
• Service of highly skilled individuals specialized in
their respective field
• They have good bunch of artist, writer, Media
analyst, Researcher
• All person have specific knowledge skill & Experience
• They can provide object view point, not related to
company politics & unbiased.
• Experience in working in diverse set of marketing
field.
 ROLE OF AD AGENCY
• https://www.youtube.com/watch?v=9b1QFyF
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 Types of Ad agency
It can be from one man to big organization.
Broadly it is of 4 types
 Full-Services Agencies
 In house agencies
Creative Boutiques
Media Specialist Services
FULL SERVICE AD AGENCY
 FULL SERVICE AD AGENCY
Account Service :Most important division of
Ad agency
• Link between ad agency & Clients
• Understand advertiser’s marketing &
Promotion needs &interpret to ad agency
• Coordinates agency effort in planning,
creating & producing ads
• Present agency recommendations & obtain
client approval
Marketing service: This department of ad
agency play vital role & understand the target
audience of customer.
Three different services comes under marketing
services
• Research Department
• Media Department
• Sales Promotion Department
 Research Department:
• Gather, analyze & interpret information for developing
advertising
• Design & Conduct MR for effectiveness of present ad
• Data can be obtain by primary as well secondary.
 Media Department
• Analyze, selects, & contracts for space or time in media
• Responsible for deliver client’s advertisement.
• Develop media plan effectively as cost of the ad depends on it
• Develop the plan for right target audience
• The person should have through knowledge of space, slot,
time, Reach & their rates
 Sales & Promotion: Some Ad agency also do sales &
promotion activity
Creative service:
• Create & Execute the advertisement
• Determine the basic appeal or theme of ad
• Prepare rough initial layout for approval.

Three different services comes under it.

• Writer & Art Directors
• TV Production
• Print Production
 Writer
• Responsible for conceive the ideas for ad.
• Write headlines, Subheads, & body copy.
• They are also known as copywriter.
 Art Directors:
• Responsible for look of the ad.
• For print ad art director & Graphic designer prepare
layout.
• For TV ad this layout is known as Storyboard(sequence
of film in still form).
 Production Department
• Give the ad into actual shape
• Basically this dept is outsourced
 IN HOUSE AGENCIES
• This type of agency is owned by the advertiser.
• Big organization prefers these types of
agencies which are in built and work only for
them .
• it is as good as full service agencies.
• It performs almost all functions that an
outside full service dose.
 CREATIVE BOUTIQUES
• Small sized agencies with their own copywriters,
directors, and creative people. No other function
is performed other than creating actual ads.
• The specialized creative functions include copy
writing, artwork and production of
advertisement.
• Most of them convert into a full service agency or
merge with other agencies to provide a wide
range of services.
• These are shop agencies that provides only
creative functions and not full-service.
THE ROLE OF CREATIVE BOUTIQUES
 MEDIA SPECIALIST SERVICES
• There are some agencies who undertake
advertising work only in certain areas. There are
agencies that specialize only in financial services.
• Buys place for advertise and sells it to the
advertisers.
• Sells time in which advertisement will be placed.
• Schedules slots at different television channels
and radio stations.
• Finally checks whether the ad has been placed at
opted time and place or not.
Media buying can be specialized
Advantages of using an ad agency
• They have the ability to buy media in bulk at
rates that a single business cannot obtain.
• They are educated as to the best times and
places to run ads to reach your target
consumer, ultimately minimizing wastage
• They can help you to fine tune your target
consumer so that the message is designed to
reach those you want to reach.
• Can be easily Administered.
 Disadvantages of using an ad agency
• A main disadvantage of using an advertising
agency would be the communication factor. If
an agency does not communicate it's clients
goals and creative wishes properly, problems
can occur.
• Another disadvantage is media buying
discounts. You may not be able to take full
advantage because of commission barriers.
 Evolution of Ad agencies
• Choosing the Right Ad Media
• Branding, Blogs and Beyond
• Being Strategic Partners
• Marketing Analytic Specialist
• Lead and Revenue Generator
• Client Development Specialist
 Agency Compensation
Agencies are typically compensated in three
ways
• Commissions: Usually 15% & 2% in cash
• Some type of fee arrangement:
Fee Arrangement
Cost Plus Agreement
Incentive based Compensation
• Percentage Charges
 Evaluating Agencies
• Basically the relation between client &
agencies are depend on the performance, but
in some case it is also long term prospect.
eg:
• General Electric::BBDO worldwide for(80 yrs)
• Marlboro:: Leo Burnett(50 yrs)
• McDonald’s::DDB worldwide(37 yrs)
 Why agency loose the client
Reasons for loosing Clients:
• Poor performance or services
• Poor Communication
• Unrealistic demand by the client
• Personality Conflict
• Change in Size
• Conflicts of interest of clients
• Change in strategy of clients.