© 2006 pearson education canada inc. 2.1 canadian advertising in action chapter 2 the advertising...
TRANSCRIPT
© 2006 Pearson Education Canada Inc. 2.1
Canadian Advertising in Action
Chapter 2
The Advertising Industry
© 2006 Pearson Education Canada Inc. 2.2
Learning Objectives
Identify organizations in ad industry Identify & describe advertising management systems Identify roles & responsibilities of clients Describe roles, responsibilities, & types of agencies Discuss relationships between clients & agencies Outline structure of agencies & functions of
personnel Identify key concepts in managing client’s business Identify methods of compensation for agencies
© 2006 Pearson Education Canada Inc. 2.3
Industry Participants
AdvertisersAdvertisers
• ACA
AgencyAgency
• ICA
• Production Firms
MediaMedia
• Broadcasters
• Out-of-Home
• Direct
• Internet
© 2006 Pearson Education Canada Inc. 2.4
Client Side Management
Brand and Category Management
Regional Management
Global Management
© 2006 Pearson Education Canada Inc. 2.5
Client Role and Responsibility
1. Ad planning and budgeting
2. Advertising coordination
3. Monitoring program implementation
4. Evaluation (effectiveness)
5. Liaison with agency
© 2006 Pearson Education Canada Inc. 2.6
Agency Role and Responsibility
1. Experience / expertise in
communications
2. Strategic planning assistance
3. Objectivity in preparing strategy
© 2006 Pearson Education Canada Inc. 2.7
Agency - Client Relationships
Key to business success depends on:
• A healthy and prosperous client-agency relationship
• A partnership that encourages open and honest communications
• Trust and respect for each other
© 2006 Pearson Education Canada Inc. 2.8
Account Shifting
Client-agency relationships sour for a variety of reasons:
Quality of ads or service provided
New communications demands not adequately served
Philosophical differences
Lack of team concept
Client consolidates advertising with fewer agencies
Conflict situations
© 2006 Pearson Education Canada Inc. 2.9
action item
• Read the ‘action’ item on page 44 of the text.
• Visit Marketing Magazine online and prepare to discuss other articles that comment on client-agency relations.
© 2006 Pearson Education Canada Inc. 2.10
Types of Ad Agencies
Services required by client determine the type of agency they work with.
• Full Service
• Creative Boutiques
• Media Buying Service
• Other Specialists: Direct and Interactive
© 2006 Pearson Education Canada Inc. 2.11
The Full Service Agency
FullService Agency
FullService Agency
• Account Management
• Creative
• Media
• Research
• Direct Response
• PR
© 2006 Pearson Education Canada Inc. 2.12
Functional Areas of the Ad Agency
Account Management
Account Management
CreativeDepartment
CreativeDepartment
MediaDepartment
MediaDepartment
Business & Marketing Orientation
Conceptual & Creative Orientation
Analytical & Strategic Orientation
© 2006 Pearson Education Canada Inc. 2.13
Account Management
Account Director
Account Director
Account SupervisorAccount
Supervisor
Account ExecutiveAccount Executive
© 2006 Pearson Education Canada Inc. 2.14
Creative Department
Creative Director
CopywriterArt
Director
Creative director oversees the team. Team develops creative concept.
© 2006 Pearson Education Canada Inc. 2.15
Media Department
Media department plans media strategy & places messages with media. A media director heads up the department.
• Media Planner
• Media Buyer
• Media Supervisor
© 2006 Pearson Education Canada Inc. 2.16
Managing the Client’s Business
1. Agency Teams
• Account Exec / Supervisor
• Art Director / Copywriter
• Media Planner / Media Buyer
2. Competing Accounts
3. Agency of Record
© 2006 Pearson Education Canada Inc. 2.17
The Creative Boutique
Creative BoutiqueCreative Boutique
• Specialist
• Creative concept development (message ideas)
• Staffed by ex-FSA personnel
© 2006 Pearson Education Canada Inc. 2.18
Media Buying Service
MediaBuying Service
MediaBuying Service
• Media Planning
• Media Buying
• Media Research
© 2006 Pearson Education Canada Inc. 2.19
The Agency of Record
Media
Agency B(AOR)
Client
Agency CAgency A
Flow of creative informationFlow of media information
© 2006 Pearson Education Canada Inc. 2.20
Agency Compensation
Commissions:
• Standard Commission Rate (15%)
• Reduced Rate Commissions
© 2006 Pearson Education Canada Inc. 2.21
Agency Compensation
Fee System:
• Minimum Guarantees
• Hourly Rates
• Costs Plus Profit
© 2006 Pearson Education Canada Inc. 2.22
Agency Compensation
Payment by Results:
• Usually a reduced rate percentage plus incentives for achieving goals
• Typical goals may be brand market share, advertising effectiveness and advertising recall