advertisement agency

ADVERTISING AGENCY

Prepared By

Nijaz Nizar

Advertising Agency

• Is a service business dedicated to creating, planning, and

handling advertising (and sometimes other forms of

promotion) for its clients.

• An ad agency is independent from the client and provides

an outside point of view to the effort of selling the client's

products or services.

• An agency can also handle overall marketing and branding

strategies and sales promotions for its clients.

Types of Advertising Agency

1. Full service agencies

2. Creative agencies

3. Specialized agencies

4. In-house advertising agencies

5. Interactive agencies

6. Search engine agencies

7. Social media agencies

8. Healthcare communications agencies

9. Medical education agencies

10. Other agencies


• Full service agencies

These agencies are involved in planning, creating, producing

advertising, performing research and selecting media.

Some full service agencies also provide non-advertising related

services including strategic market planning, direct market promotion

programs, interactive marketing and web site design, and public

relations.

Creative agencies

Creative agencies specialize in "creative" or design-based business

models.

Their basic interest is in the creation of the advertisement or

branding.


Specialized agencies

These agencies specialized in a particular activity of the whole

communication process.

They may specialize in certain functions (copy, art, media),

audiences (minority youth)or industries (health, computers) or in a

marketing communication area (direct marketing, sales promotion,

public relation).

In-house advertising agencies

Is a team within a company that focuses on selling the company's

product; they will handle all aspects of the brand


Interactive agencies

Interactive agencies may differentiate themselves by offering a mix of

web design / web development, search engine marketing, internet

advertising/marketing, or e-business/e-commerce consulting.

most successful interactive agencies are defined as companies that

provide specialized advertising and marketing services for the digital

space

Search Engine Agencies

Creative agencies specialize in "creative" or design-based business

models.

Their basic interest is in the creation of the advertisement or

branding.


Social Media Agencies

Social media agencies specialize in promotion of brands in the

various social media platforms like blogs, social networking sites,

Q&A sites, discussion forums, and micro blogs.

The two key services of social media agencies are:

Social media marketing

Online reputation management

Healthcare Communications Agencies

Healthcare communications agencies specialize in strategic

communications and marketing services for the Healthcare and Life

Science industries


Medical education agencies

Medical education agencies specialize in creating educational content for

the healthcare and life science industries.

These agencies typically specialize in one of two areas:

Promotional education

Continuing Medical Education

Other Agencies

While not advertising agencies, enterprise technology agencies often

work in tandem with advertising agencies to provide a specialized subset

of services offered by some interactive agencies: Web 2.0 website design

and development, Content management systems, web application

development, and other intuitive technology solutions for the web,

mobile devices and emerging digital platforms.

How do Advertising Agency Earn Revenue

• Large amount of revenue for the agencies comes from the

15% commission they earn from the media.

• 15% commission is standard between media and the

agencies.

• From clients : they must arrange voucher copies / certificates

of broadcast/telecast from the media houses and submit

them to the client.

• There may be fees for additional work requested by the client

such as producing original market research

Selecting an Advertising Agency

1. Establish a selection committee of managers who will work with the

agency. Establish written criteria for the search process.

2. Compile a list of eligible agencies. Some important criteria to consider:

a) Size—Where does your company rank in budget size in relation to other

clients? You don’t have to be the largest, but it’s often foolish for a small client

to select a large agency.

b) Reputation—Find out the agency’s reputation among clients, vendors and

competitors.

c) Credit rating—Evaluate this periodically, even after you choose an agency. A

company may discover that although it’s paid for the agency’s services, the

agency has not paid its suppliers.

d) Current accounts—How many accounts does the agency handle? What percent

is consumer-oriented? Is it involved with your competitors?


3. After you have assembled the business capabilities of a prospective

agency, get a taste of its creative flair.

Speculative work is generally more glitz than substance. And if the

agency wins the account, you’ll pay for the work in future billings.

Look at recent work performed for an agency’s current clients.

Pick campaigns done for companies with marketing situations

similar to yours.

4. Examine media planning and buying for the same clients whose creative

work you have studied. Media is one of the toughest, most important and

underemphasized areas to be judged. It’s where the bulk of your dollars

go. Ask about planning and buying strategies. How do they evaluate media

and audience data


5. Evaluate production services. Ask about the relationship between the

agency and the printers, film houses and others who do outside work

for it.

6. Arrange for committee discussion. Discuss the chemistry between you

and the agency. No matter how competent an agency may seem, if you

don’t have a good feeling about working with the agency team, you

may be headed for trouble.

7. Notify the winning agency by phone and letter. Also notify the other

agencies by phone and letter the same day, and thank them for their

efforts. You never know when you may need to switch agencies