Advertising Agency-Structure & Processes

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Advertising Bodies in India

Advertising as an industry is more than two hundred years old. From the simple job of buying and selling space in newspapers, the ad agencies over a period of time have become complex structures with niche specializations. The dependence of ad agencies, however on media for earning a major chunk of revenue remains the same.

Advertising Bodies
The Advertising Agencies Association of India (AAAI)

is a professional body created to provide a forum to ad agencies & to serve their interests.
Advertising Standard Council of India (ASCI) is an

independent body, which looks at the complaints received, tries to impress upon the ad agencies or clients to look at the issues & take corrective actions.

Types of Advertising Agencies

Full service ad agency (provides a whole range of services to the clients, both advertising and non-advertising). A la carte services (Such outfits specialize in creative concepts, strategy development, media planning). The house agency (A house agency is an advertising agency established by a company to look after its advertising requirements).

Specialist departments in an ad agency

Account Services/Client Servicing Creative services Media services

Production

How do agencies earn revenue?

They charge a fee for creative work, and make a 15% commission on media. If they place media buys, such as television or radio air time, or print media space, such as newspapers, magazines, or billboards, they add the standard 15% commission on the costs of the media. If they produce print work, they add a commission on to that as well. They may charge a flat monthly rate for creative work and sign a long term contract with a client guaranteeing X amount of work for X amount of money. (A one to three year contract is normal.)

 Ogilvy & Mather- An ad agency started in 1928

Business units of O&M

Ogilvy Activation for out-of-home communication

Ogilvy Interactive for online marketing

Ogilvy Live for events and promotions Ogilvy PR for public relations Ogilvy One for one-to-one marketing Ogilvy Signscapes for retail design solutions

Major Media buying companies in India

Media Agencies Mindshare, Maxus, MEC-CIA Zenith Optimedia Madison Lodestar Universal McCann Carat Holding Company WPP Publicis Madison FCB IPG Aegis

Global holding of advertising agencies

Global holding company Their Indian ad agencies

Omnicom

R K Swami, BBDO. TBWA-Anthem, minor stakes in Mudra JWT, O&M, Contract, RMG David, Bates, Red Cell, Everest, Rediffusion/DY&R Lowe, SSC&B, Quadrant, McCann, FCB Ulka Leo Burnett, Saatchi & Saatchi, Publicis, Ambience DArcy Dentsu Communication, Dentsu Marcom, Dentsu Creative Euro RSCG

WPP

Interpublic

Publicis Dentsu Havas (Source: www.adage.com)

Availing services from many.

HUL has its brands split across.

WPP group (JWT & O&M) & Interpublic group (Lowe) in India. Media is entirely handled by Fulcrum-Mindshare, which is a WPP company.

The Pitch Process

Proactive pitching: Agency taking a lead in contacting a prospect

Reactive Pitching: The client contacts the agency

The Pitch Process

1. Identifying the crack team
2. Generating leads 3. Finding the right contact

4. Establishing the contact

5. Opening the doors 6. First Client meeting 7. Subsequent meeting 8. Research

9. Evolution of the agency strategy and brief

The Pitch Processcontd..

10. Briefing of the relevant internal departments 11. Assimilating the output 12. Finalizing the presentation 13. Pitch presentation meeting 14. Follow-up 15. Post result

What does an advertiser looks for in advertising agencies?

Quality of advertising output
Demographics Attitude & involvement Servicing Specific expertise Word of mouth People power

Marketing orientation
Connections & associations

Agency pitching process from clients perspective

The client generally has a team that sits during the presentation of campaigns by agencies. The team can be internal, with members from marketing, brand management, publicity, public relations and finance forming a team. Depending on the importance of the campaign, it is not uncommon to see the CEO also participating in exercise.

In case of the government and public sector accounts, they often bring in outside experts drawn from academia and those who have no vested interest to form the panel of judges.

What does an advertiser looks for in advertising agencies?

The prime consideration on the mind of an advertiser while retaining an advertising agency is that it is able to build a brand. All other reasons are secondary.

India Shining & Bhaarat Nirman

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