Вы находитесь на странице: 1из 11

ADVERTISING MANAGEMENT

DIGITAL ASSIGNMENT 2

ADVERTISING AGENCIES

FACULTY UMA PRISCILDA

SLOT- G1

BY

M. SRI SRAVYA

15BBA0031
ADVERTISING AGENCIES
1. INTRODUCTION:

An advertising agency is a professional services firm, generally hired to conceive, produce and
manage the showing of commercial messages (radio, TV, outdoor, print, Internet, etc.) as well as
provide marketing and merchandising advice and general business and promotional counsel
regarding the goods or services produced, distributed and/or sold by the agencys client(s).

An advertising agency (ad agency) is independent from the client and provides a third-party
perspective on the selling of the clients goods or services. Typical agency clients include
businesses (sole proprietorships, partnerships, LLCs) and corporations, non-profit organizations
and government agencies. An ad agency may be hired to produce single commercial messages or
an ongoing series of related commercial messages, called an advertising campaign.

For economic reasons, and because taking on a new client includes many initial internal agency
expenses that are generally meant to be amortized over time, advertising agencies prefer to
establish an Agency of Record (AOR) relationship with their clients. An AOR relationship
includes a contract for a stipulated duration, encompassing details regarding fees, commissions,
ownership and rights, as well as termination clauses.

1.1 ROLE OF ADVERTISING AGENCIES:


Creating an advertisement on the basis of information gathered about product
Doing research on the company and the product and reactions of the customers.
Planning for type of media to be used, when and where to be used, and for how much
time to be used.
Taking the feedbacks from the clients as well as the customers and then deciding the
further line of action
All companies can do this work by themselves. They can make ads, print or advertise them on
televisions or other media places; they can manage the accounts also. Then why do they need
advertising agencies? The reasons behind hiring the advertising agencies by the companies are:

The agencies are expert in this field. They have a team of different people for different
functions like copywriters, art directors, planners, etc.
The agencies make optimum use of these people, their experience and their knowledge.
They work with an objective and are very professionals.
Hiring them leads in saving the costs up to some extent.

2 .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 provides services that are directly related to advertising such as copywriting, artwork,
production of ads, media planning etc. It also provides such services in respect of pricing,
distribution, packaging, product design etc

Modular agencies:

A modular agency is a full service agency that sells its services on a piece meal basis. Thus an
advertiser may commission an agencys creative department to develop an ad campaign while
obtaining other agency services elsewhere.Or, an advertiser may hire an agencies media
department to plan and execute a program for advertising that another agency has developed.
Fees are charged for actual work undertaken.

In house agencies:

Those companies, which prefer to have closer control over advertising, have their own in-house
agency. This type is owned completely by the advertiser..It performs almost all functions that an
outside advertising agency would perform and thats why some people refer to it as full-service
advertising department of the advertiser.
Specialist Advertising Agencies:

There are some agencies who undertake advertising work only in certain areas. There are
agencies that specialize only in financial services or only in publicity or only in point-of-
purchase material etc.

Creative Boutiques:

These are shop agencies that provides only creative functions and not full-service. The
specialized creative functions include copy writing, artwork and production of ads, they charge a
fee or percentage of full service agencies, and as such most of them convert into a full service
agency or merge with other agencies to provide a wide range of services.

3. THE SIX MAJOR DEPARTMENTS

1. Account Services

The account service department comprises account executives, account managers, and account
directors, and is responsible for liaising with the agency's many clients.

This department is the link between the many departments within the agency and the clients who
pay the bills. In the past they were referred to as "the suits," and there have been many battles
between the account services department and the creative department. But as most creatives
know, a good account services team is essential to a good advertising campaign.A solid creative
brief is one of the main duties of account services.

2. Account Planning

This department combines research with strategic thinking. Often a mix of researchers and
account managers, the account planning department provides consumer insights, strategic
direction, research, focus groups and assists helps keep advertising campaigns on target and on
brand. Chris Cowpe described account planning as "the discipline that brings the consumer
into the process of developing advertising. To be truly effective, advertising must be both
distinctive and relevant, and planning helps on both counts."
3. Creative

This is the engine of any advertising agency. It's the lifeblood of the business because the
creative department is responsible for the product. And an ad agency is only as good as the ads
the creative department puts out. The roles within the creative department are many and varied,
and usually include:

Copywriters
Art Directors
Designers
Production Artists
Web Designers
Associate Creative Directors
Creative Director(s)

In many agencies, copywriters and art directors are paired up, working as teams. They will also
bring in the talents of other designers and production artists as and when the job requires it.

Sometimes, traffic is handled by a position within the creative department, although that is
usually part of the production department. Everyone within creative services reports to the
Creative Director. It is his or her role to steer the creative product, making sure it is on brand, on
brief, and on time.

4. Finance and Accounts

Money. At the end of the day, that's what ad agencies want. And it's what their clients want, too.
At the center of all the money coming into, and going out of, the agency is the finance and
accounts department. This department is responsible for handling payment of salaries, benefits,
vendor costs, travel, day-to-day business costs and everything else you'd expect from doing
business.

It's been said that approximately 70 percent of an ad agency's income pays salary and benefits to
employees. However, this figure varies depending on the size and success of the agency in
question.

5. Media Buying
It is the function of the media buying department to procure the advertising time and/or space
required for a successful advertising campaign. This includes TV and radio time, outdoor
(billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and
takeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close
collaboration with the creative department who came up with the initial ideas, as well as the
client and the kind of exposure they want. This department is usually steered by a media director.

6. Production

Ideas are just ideas until they're made real. This is the job of the production department. During
the creative process, the production department will be consulted to talk about the feasibility of
executing certain ideas. Once the ad is sold to the client, the creative and account teams will
collaborate with production to get the campaign produced on budget. This can be anything from
getting original photography or illustration produced, working with printers, hiring typographers
and TV directors, and a myriad of other disciplines needed to get an ad campaign published.
Production also works closely with the media department, who will supply the specs and
deadlines for the jobs.

4. AGENCY COMPENSATION:

Commissions From Media


Fee ,Cost And Incentive Based Sytems
Percentage Charges

5. ADVERTISING CONGLOMERATES: ( WORLD)

The Big Four


WPP
Omnicom
Publicis
Interpublic

WPP:

WPP plc, (Wire and Plastic Products) is a British multinational advertising and public relations
company with its main management office in London, England, and its executive office in
Dublin, Ireland.It is the world's largest advertising company by revenues, and employs around
190,000 people in 3,000 offices across 112 countries.It owns a number of advertising, public
relations and market research networks, including IMRB, Millward Brown, Grey, Burson-
Marsteller, Hill & Knowlton, JWT, Ogilvy & Mather, TNS, Young & Rubicam and Cohn &
Wolfe. It is now one of the "Big Four" agency companiesWPP has a primary listing on the
London Stock Exchange and is a constituent of the FTSE 100 Index. It has a secondary listing on
NASDAQ.

OMNICOM :

Omnicom Group, Inc. is an American-based global marketing and corporate communications


holding company, headquartered in New York City. Omnicom's branded networks and specialty
firms provide services in four disciplines: advertising, customer relationship management
(CRM), public relations and specialty services. The services included in these disciplines are
media planning and buying, digital and interactive marketing, sports and events marketing, field
marketing and brand consultancy. Omnicom Group was ranked as one of the four largest
advertising agencies in the world by The New York Times in 2002. In 2014, Omnicom was
considered the second largest advertising holding company by The Wall Street Journal.The
company employs more than 74,000 employees in about 100 countries worldwide.

PUBLICIS GROUP:

Publicis Groupe is a French multinational advertising and public relations company, and is one
of the largest marketing and communications companies in the world, by revenue,headquartered
in Paris. After 1945 the little-known Paris-based advertising agency grew rapidly, becoming the
world's fourth-largest agency.It was a leader in promoting France's post-war economic boom,
especially the expansion of the advertising industry; it was successful because of its close ties
with top officials of the French government, its clever use of symbols to promote itself, and its
ability to attract clients from widely diverse growing industries.

INTERPUBLIC GROUP:

The Interpublic Group of Companies, Inc. (IPG) is a publicly traded advertising company.The
company consists of three major networks: McCann Worldgroup, Lowe and Partners, and FCB.
Its media agencies are bundled under the IPG Mediabrands entity. It also owns a number of
specialty agencies, including public relations, sports marketing, talent representation, and
healthcare.It is now one of the "Big Four" agency companies. Michael Roth is the current CEO.

5.1 INDIAN ADVERTISING AGENCIES:

The following are the top Indian advertising agencies :

Ogilvy & Mather


McCann Erickson India
Lowe Lintas
JWT India
Leo Burnett India
Mudra Communications (DDB)
Grey Worldwide India Pvt Ltd
FCB Ulka
Rediffusion DY&R
RK Swamy BBDO

OGILVY & MATHER:

This Company was born in 1948 and has its corporate office in New York, USA. It is a name
well known and listed among the best advertising companies functioning in India. The company
was founded by David Ogilvy and presently operates in more than 150 countries worldwide.
Notable ad campaigns by Ogilvy & Mather include Cadbury Dairy Milk and Vodafone.
MCCANN-ERICKSON INDIA LTD

A reputed advertising agency in India, McCann-Erickson operates in 120 countries. It was


established in the year 1930 and has its head office based in USA. Also, the company owns the
credit for thrice receiving the Global Agency of the Year by Adweek. Some notable
advertisements created by this company include MasterCard commercial, Coca-Cola, and
Nescaf.

MUDRA COMMUNICATIONS LTD

With its head office in Ahmedabad, Gujarat, Mudra Communications Ltd. is a premier
advertising company. It was founded in 1980 and has offices in fifteen Indian cities. Prominent
clientele includes HDFC, Asian Paints, Akai, Reebok, Bata, Future Group, Ashok Leyland,
Cipla, and Aircel.

REDIFFUSION-DY&R

Rediffusion is parented by WPP group, which is a leading advertising agency in the country. Its
corporate office is in New Delhi, India and it offers various services including advertisement,
web design, consultancy, social media, promotions, and program setups

JWT

JWT is holding its strong position among top ten advertising agencies since last many years. It is
also referred as J.Walter Thompson. It is a international advertising company. Its head office is
located in New York city. The company is present in 90 countries with its 200 offices. It has
made its remarkable presence in advertising sector.

FCB

FCB is among the top 10 advertising agencies. In 2006, major change taken place when
company merged with Draft Worldwide. The company is owned by Interpublic group .Since its
inception, company is doing successful advertising campaigns and winning many awards.

LOWE LINTAS
IPG group holds the controlling interest over this agency which commands respect simply
because of the large number of diverse clients they represent. They hold more brands in Top 100
of AC Nielsen-Brand Equitys 2013 edition of Indias most trusted brands list than any other ad
agency. It has worked on many famous campaigns including Idea, ICICI Prudential and Star
Sports (the recent Cricket World Cup theme #Wont give it back was the agencys work).

RK SWAMY/BBDO ADVERTISING LTD:

It maintained the record of remaining consistently among the top ten advertising agencies in
India. Established in 1973,this advertising reached great heights. This is also India's No.1
research company in the market sector and is fully run by Indians. Brand Equity is an integral
part of the company.

GREY WORLDWIDE (I) PVT. LTD:

A significant name in India in the world of advertising agencies is Grey Worldwide (I) Pvt Ltd.
The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore
and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising
and marketing services.

LEO BURNETT INDIA PVT. LTD :

It has a significant presence in about 96 offices in 10 countries. This advertising agency was
awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a
single image is worth thousand words and can break the barriers of language but not at the cost
of the ad's emotional power.

6. CONCLUSION:

We can conclude that advertising agencies play a vital role in the process of marketing. The roles
and functions of agencies were discussed. The worlds big four advertising agencies WPP
,Omnicom ,Publicis and Interpublic own major agencies all over the world .
REFERENCES :

http://www.agencyfinder.com/advertisers/advertising-

agencydefinition/&gws_rd=cr&ei=0N7cWIunNcOmjwONsZdg
https://www.thebalance.com/the-structure-of-an-advertising-agency-38911
http://srimca.edu.in/srijan/Srijanjan2011/Management/Top10AdvertisingCompanies.ht

ml
http://www.managementstudyguide.com/advertising-agencies.htm
https://en.wikipedia.org/wiki/List_of_advertising_agencies

Вам также может понравиться