Organizational Structure of Advertising Agencies

structure & organization

what agencies do. and how theyre organized to do it.

Why
Companies have to seek a channel of communication.
Advertising companies: agencies exist to help

communicate with the public market the company's product

How
The process of advertising involves considerable specialized knowledge and expertise
About people - their interests, preferences, needs, wants, lifestyles, expectations About media - their "reach", their effectiveness, their specific appeal About the company and its product and about competing companies and their products

7 primary services:
complete a marketing analysis develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications

4 functions of full-service agencies

account management creative media planning and placement research

agency organization chart

Board o f Direct ors [Cha irm an/CEO] Pre sident [COO]

Other Mark e ting Com munica tions Services [PR, e tc. ]

St rate gy Review Bo ard [Mana gme nt Com mitt ee]

Off ice Manag eme nt [Perso nnel, Acco unting, Lega l, et c. ]

Acco unt Mg mt . Direct or

Crea tive Exec CD

Rese arch Direct or

Media Dept. Direct or

Manage ment Supe rvisor

Asso ciate Crea tive Direct or

Pro ject Manage rs

Asso ciate Media Direct or

Acco unt Executive

Crea tive Group:

Rese arch Assist ants

Media Supe rvisor

Asst . Acco unt Executive

Copy Spvr. & Copywrit ers

Art Supervisor & Art Directors

Media Planner

Media Buyer

Broa dcas t Pro duct ion

Print Pro duct ion

Analyst s

Tra ffic

account management
liaison between agency and client responsible for understanding...
the clients business the clients marketing needs strategy development

representing client point of view within the agency

account management
Account management personnel, used to their fullest capabilities, perform a dual function as consultants and co-ordinators:
advise the client on a variety of marketing/strategic/financial issues. identify and motivate the correct agency resources to build the client's business. co-ordinate overall agency involvement and projects between client and agency.

expert on consumer behaviour

account management
Account Mgmt. Director Management. Supervisor Account Supervisor Account Executive Asst. Account Executive Account Coordinator

Deals with senior members of the client. Responsible for agency performance, long-term planning, deployment of agency personnel overall account profitability. A middle management position, manages the account within a medium term perspective includes strategic planning, market analysis, competitive activity analysis

Entry-level position, client contact, planning of projects, budget control, annual advertising plans and advising on strategic issues with the help of the Account Supervisor. Entry-level position, control of client budget, issuing of status reports, keeping track of a project

Traffic

creative department
responsibility
Creative Department is responsible for ideas. Creating them. Selling them. And executing them.

creative sessions are held and ideas are generated and ultimately presented in preliminary, rough form.

creative department
strategy is key
good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

creative department
Strategy Review Board Executive Creative Director (ECD) Creative Director (CD) Associate Creative Director (ACD) Creative Group: Copy Spvr. & Copywriters Broadcast Production Traffic Art Supervisor & Art Directors Print Production

Group of senior member of the department who review all the decisions at top level. Middle level management of Creative group Creative Director is a senior member of the department who started either as an Art Director or Copywriter.

Associate creative director.

-Copywriters traditionally responsible for words -Art Director is responsible for pictures.

media department
The media department has two main functions - planning and buying.
The planning group handles more strategic marketing and media issues. The buying group handles media negotiations and implementation.

media department
responsible for
the planning and placement of advertising time and space. the preparation and the actual presentation of the media plan. best fulfil the client's marketing and advertising objectives.
Media Planning

media department
production team's main function is
to purchase the services of the correct film or videotape administer and produce the TV commercial production on behalf of the advertising agency and the client.

media department
Media Director Associate Media Director Media Supervisor Media Planner Media Buyer

Media Plannerpreparation and the actual presentation of the media plan. This document recommends media and media vehicles that in the agency's opinion best fulfil the client's marketing and advertising objectives Media BuyerOnce a media plan has been approved by a client, it must then be purchased. The procedures for this vary according to the medium under consideration. Every single purchase made by the Media Buyer must be recorded in advance of the actual running of the advertisement. This is to enable the agency to bill the client for monies spent on their behalf and to check the invoices submitted by the media. This document is called an estimate.

Analysts

research department
The single most important reason then for doing marketing research is to guide the marketer in the analysis, planning, implementation and control of marketing and communications programs to satisfy both customer needs and organizational goals.

research department
Marketing research is three things:
The identification of information needs (i.e. defining the problem) The systematic gathering, recording, analyzing and interpreting of data (i.e. providing a solution to the problem) The analysis and evaluation of action taken on the basis of information (i.e. monitoring and modifying the initial solution).

research department
interpret market environment
gather and analyze research data.

primary and secondary techniques

determine consumer needs/perceptions understand problems

advise how ads can meet

strategic goals
help find solutions

Research Report

research department
Research Director Project Managers Research Assistants Outside Research Suppliers

research director research project managers research assistants

outside research specialists

Research Report

auxiliary agency functions

office management
human resources legal services accounting recruitment

References
So You Want to be in an Advertising Agency?, 1995, Institute of Communications and Advertising Canadian Advertising in Action,(second edition) Keith J. Tuckwell; Prentice-Hall Canada Inc., 1991 Kleppner's Advertising Procedure, J. Thomas Russell, Ronald Lane; Prentice-Hall Inc., 1985 http://www.adboyworld.com/advertising-agencystructure

Thank you.