advertising

advertising agencies
agencies
structure
structure &
& organization
organization

what
what agencies
agencies do.do.
and
and how
how they’re
they’re organized
organized
to
to do
do it.
it.
77 primary
primary services:
services:

 complete
complete aa marketing
marketing analysis
analysis

 develop
develop an
an advertising
advertising plan
plan

 prepare
prepare aa creative
creative strategy
strategy

 create
create advertising
advertising executions
executions

 develop
develop and
and implement
implement aa media
media plan
plan

 handle
handle billing
billing and
and payments
payments

 integrate
integrate other
other marketing
marketing communications
communications
4 functions of full-service agencies

 account management
 creative
 media planning and placement
 research
agency
agency organization
organization chart
chart
Board of
Directors
[Chairman/CEO]

President
[COO]

Other Marketing Strategy Office Management

Communications Review Board [Personnel,
Services [Managment Accounting,
[PR, etc.] Committee] Legal, etc.]

Account Mgmt. Creative Research Media Dept.

Director Exec CD Director Director

Management Associate Project Associate

Supervisor Creative Managers Media
Director Director

Account Creative Research Media

Executive Group: Assistants Supervisor

Asst. Account Copy Spvr. & Art Supervisor Media Media

Executive Copywriters & Art Directors Planner Buyer

Broadcast Print Analysts

Production Production

Traffic
account
account management
management

 liaison
liaison between
between agency
agency and
and client
client
 responsible
responsible for
for understanding...
understanding...
 the
the client’s
client’s business
business
 the
the client’s
client’s marketing
marketing needs
needs
 strategy
strategy development
development
 representing
representing client
client point
point of
of view
view
within
within the
the agency
agency
 account
account management
management
Account Mgmt.
Director
 account
 account management
management director
director
 management
 management supervisor
supervisor
Management.
Supervisor  account
 account supervisors
supervisors
Account  account
 account executives
executives
Supervisor
 assistant
 assistant account
account execs
execs
Account
Executive  account
 account coordinators
coordinators
Asst. Account Account
 traffic
 traffic
Executive Coordinator

Traffic
creative
creative department
department
 responsibility
responsibility
 the
 the creative
creative department
department isis responsible
responsible
for
for creating
creating and
and producing
producing the
the print
print and
and
broadcast
broadcast advertising
advertising
 strategy
strategy is
is key
key
 good
 good creative
creative work
work is
is always
always guided
guided by
by aa
creative
creative strategy
strategy that
that sets
sets forth
forth goals
goals to
to
be
be accomplished
accomplished and and key
key message
message
points
points to
to be
be relayed
relayed
 creative
creative department
department
Strategy
Review
Board
 executive
 executive & & group
group creative
creative
directors
directors
Executive
Creative
Director (ECD)  creative
 creative director
director
Creative  associate
 associate creative
creative director
director
Director (CD)

 copywriters
 copywriters
Associate
Creative
Director (ACD)  art
 art directors
directors
Creative
Group:
 broadcast
 broadcast producers
producers
Copy Spvr. & Art Supervisor
 print
 print production
production managers
managers
 traffic
 traffic coordinators
Copywriters & Art Directors

Broadcast Print
coordinators
Production Production

Traffic
media
media department
department
 The
The media
media department
department hashas two
two main
main
functions
functions -- planning
planning and
and buying.
buying.
 The
The planning
planning group
group handles
handles more
more
strategic
strategic marketing
marketing and
and media
media issues.
issues.
 The
The buying
buying group
group handles
handles media
media
negotiations
negotiations and
and implementation.
implementation.
 media
media department
department
Media  media
 media director
director
Director
 associate
 associate media
media directors
directors
Associate
Media  media
 media supervisors
supervisors
Director
 media
 media planners
planners
Media
Supervisor  media
 media buyers
buyers

Media Media  media

 media analysts
analysts Media
Planner Buyer Plan

Analysts
big
big changes
changes in
in the
the
media
media department
department
 mega-agency
mega-agency media media departments
departments
have
have now
now become
become profit
profit centers
centers
 agencies
agencies have
have set
set up
up their
their media
media
departments
departments as as free-standing
free-standing units
units
 many
many large
large clients
clients now
now look
look at
at media
media
as
as aa separate
separate service
service
 research
research department
department
 interpret
interpret market
market environment
environment
 gather
 gather and
and analyze
analyze research
research data.
data.
 primary
 primary and
and secondary
secondary techniques
techniques
 determine
 determine consumer
consumer needs/perceptions
needs/perceptions
 understand
 understand problems
problems
 advise
 advise how
how ads
ads can
can meet
meet strategic
strategic goals
goals
 help
 help find
find solutions
solutions Research
Report
 research
research department
department
Research
Director  research
 research director
director
 research
 research project
project managers
managers
Project
Managers  research
 research assistants
assistants
 outside
 outside research
research specialists
specialists
Research
Assistants

Outside
Research
Research Report
Suppliers
auxiliary
auxiliary agency
agency functions
functions

 account
account planning
planning
 strategy/creative
strategy/creative review
review board
board
 office
office management
management
 human
human resources
resources
 legal
legal services
services
 accounting
accounting
 recruitment
recruitment
33 ways
ways agencies
agencies make
make money
money

 commissions
commissions
 usually
 usually 15%
15% of
of gross
gross costs
costs
 fees
fees
 usually
 usually based
based on
on negotiated
negotiated hourly
hourly rate
rate
 incentives
incentives
 still
 still relatively
relatively new
new and
and problematic
problematic
 usually
 usually based
based onon performance
performance goals
goals
agency
agency commissions
commissions
 media
media commission
commission system
system
 15%
 15% media
media commission
commission
 adjustable
adjustable commission
commission rates
rates
 negotiate
 negotiate to
to match
match client
client budget
budget
 sliding
 sliding scale
scale
 markups-production
markups-production &
& service
service
 add
 add aa percentage
percentage markup
markup to
to costs
costs
 17.65%
 17.65% ofof net
net == 15%
15% of
of gross
gross
44 types
types of
of fee
fee systems
systems

 fixed
fixed fee
fee (retainer)
(retainer)
 cost-plus
cost-plus fee
fee
 performance
performance feefee
 hybrid
hybrid fee
fee &
&
commission
commission
incentives
incentives

 in
in theory,
theory, aa good
good way
way toto work
work

 get
get paid
paid based
based on on how
how well
well you
you do,
do, not
not
how
how muchmuch you
you bill
bill
 in
 in practice,
practice, difficult
difficult to
to implement
implement
 ifif client
 client makes
makes final
final decision
decision (instead
(instead of
of
agency),
agency), how how can
can agency
agency be be responsible
responsible
for
for final
final results?
results?
 results
 results based
based onon many
many factors,
factors, such
such as
as
competitive
competitive efforts,
efforts, not
not just
just advertising
advertising
new
new business
business
 three
three primary
primary sources
sources
““The
The critical
critical
build
build objective
objective
existing
existing client’s and
and role
role
client’s business
business
of
ofanyaddad
any
addad
andagency
andagency
sell is
sell new
new gaining
isIMC
gaining
IMC new
services
servicesnew
 solicit business.”
business.”
solicit new
new accounts
accounts
 two
two ongoing
ongoing problems
problems
 ““spec”
spec” work
work
 teams
teams “walking”
“walking” with
with accounts
accounts
 things
things to
to think
think about:
about:
 why
why might
might youyou be
be interested
interested in
in
going
going into
into the
the agency
agency business?
business?
 what
what might
might keepkeep you
you from
from choosing
choosing
aa career
career in
in the
the agency
agency business?
business?