agency types 1

8/12/2019 Agency Types 1

1/49

advertising agencies


2/49

the first advertising agents

1843 volney palmer

agent for media, not advertisers

1864 - george p. rowell

thejohnny appleseedof advertising

Rowells American

Newspaper Directo ryspace wholesaler

shared his secret

1888 - Printers Ink


3/49

founded in 1864 by

francis w. ayer, 20

the first advertising agency

& son made the

business seem more

established

worked for advertiserslogan - keeping

everlast in gly at it

brings success.

n.w. ayer & son


4/49

4 full-service agency functions:

today,full-service agenciesprovide the following:

account management

creativemedia planning and media

placement (media buying)

research

many adding below the lineservices - PR, sales promotion,Interactive


5/49

major types of agency:

mega-agency groups

independent agencies

national, regional, and local

specialized/niche agencies

agency service suppliersmedia buying, creative services


6/49

mega-agency groups

prompted by mergers and

client globalization

financial pressures

service multinational

accounts

subsidiaries provide

IMC (integrated marketing

communication) services


7/49

Some mega-agency groups:

OmniCom Group $4.15 billion

WPP Group $3.64 billion

Interpublic Group $3.38 billion

Dentsu (Japan) $1.98 billionYoung & Rubicam $1.49 billion


8/49

mega-agency groups:

WPP Group(including Y&R)

$6.69 billion

Omnicom Group 5.74 billion

Interpublic Group $5.08 billion

Havas $2.39 billion

Publicis(including Saatchi)

$2.17 billion


9/49

mega-agency pros & cons

positives: larger talent pool

negotiating clout financial rewards

account security

competitive edge strong partnerships

more services

international link

negatives: people vs. profit

creativity vs. size conflict of

interests

people business


10/49

national, regional & local

these areindependent agencies

there are nowfewer national

agencies which are not part of

mega-agency groups

regionaland local agencies workwith smaller clients who are usually

located nearby


11/49

Famous ad agencies

1. J. Walter Thompson

2. Leo Burnett Worldwide

3. McCann-Erickson Worldwide

4. BBDO Worldwide

5. Grey Advertising

6. DDB Worldwide

7. Ogilvy & Mather Worldwide8. FCB Worldwide

9. Y&R Advertising

10. Publicis Worldwide


12/49

specialized/niche agencies

industry specialists

ethnic agencies

internet agencies

business-to-business agencies

creative boutiques anddesign houses


13/49

other suppliers

provide unbundled services

one part of what an agency does

media buying servicesfreelancers & consultants

production companies

in-house or house agencies

agencies owned by clients


14/49

in-house agencies

advantages&disadvantages


15/49

in-house agencies

advantages&disadvantagesfamiliarity

specializationfast service

cost savings

confidentiality


16/49


17/49

2 primary roles of agencies

idea generation

brand-building


18/49

idea generation

manufacture ideas

ideas are lifeblood of the agency

create intellectual capitalcreate and sell different

kinds of ideas

marketing strategies

promotional opportunities

even new product ideas...


19/49

brand-building

The agencys purpose is to create

and directcommunication about a

product or service so that the brandis perceived to have a unique

value or brand personality.

Lets look at some examples...


20/49

brand-building

Marlboro

Leo Burnett


21/49

brand-building

McDonalds

DDB Needham


22/49

brand-building

Pepsi

BBDO


23/49

brand-building

Nike

Wieden + Kennedy

QuickTime an d a

Sorenson Video 3 decompressorare needed to see this picture.


24/49

brand-building

American Express

Ogilvy & Mather


25/49

brand-building

Apple

Chiat/Day


26/49

brand-building

more and more, agencies are being

involved inall areas of marketersbrand-building activities

today, its more thanadvertising

itsintegrated marketing

communications (IMC)

means integration


27/49

integrated marketing communication

advertising

public relationsdirect response

sales promotion

personal selling

the imc promotion mix


28/49

what agencies do.

structure & organization

and how theyre organized

to do it.


29/49

7 primary services:

complete amarketing analysis

develop anadvertising plan

prepare acreative strategy create advertising executions

develop and implement amedia plan

handle billingand payments

integrate other marketing

communications


30/49

4 functions of full-service agencies

account management

creative

media planning and placement

research


31/49

agency organization chart

Print

Traffic

Production ProductionBroadcast Analysts

Other Marke ting

CommunicationsServices

[PR, e tc.]

Asst. Account

Executive

Account

Executive

Management

Supe rvisor

Account Mgmt.

Director

Copy Spvr. &

Copywriters

Art Supervisor

& Art Directors

Creative

Group:

Associate

Creative

Director

Creative

Exec CD

Rese arch

Assistants

Project

Managers

Rese arch

Director

Media

Planner

Media

Buyer

Media

Supe rvisor

Associate

Media

Director

Media Dept.

Director

Strate gy

Review Board[Managment

Committee]

Office Management

[Personnel,Accounting,

Legal, etc.]

Pre sident

[COO]

Board of

Directors

[Chairman/CEO]


32/49


33/49

account management

director

management supervisor account supervisors

account executives

assistant account execs account coordinators

trafficTraffic

Asst. Account

Executive

Account

Coordinator

Account

Executive

Account

Supervisor

Management.

Supervisor

Account Mgmt.

Director

account management


34/49

responsibility

the creative department is responsible

for creating and producing the print and

broadcast advertising

strategy is key

good creative work is always guided by a

creative strategy that sets forthgoals tobe accomplishedand key message

points to be relayed

creative department


35/49

creative department

executive & group creativedirectors

creative director

associate creative director

copywriters

art directors

broadcast producers

print production managers

traffic coordinatorsPrint

Traffic

ProductionBroadcastProduction

Copy Spvr. &Copywriters

Art Supervisor& Art Directors

CreativeGroup:

Associate

CreativeDirector (ACD)

CreativeDirector (CD)

Executive

CreativeDirector (ECD)

StrategyReview

Board


36/49

media department

The media departmenthas two main

functions - planningand buying.

The planning grouphandles morestrategic marketing and media issues.

The buying grouphandles media

negotiations and implementation.


37/49

media director

associate media directors

media supervisors

media planners

media buyers

media analystsAnalysts

Media

Planner

Media

Buyer

Media

Supervisor

Associate

MediaDirector

Media

Director

MediaPlan

media department


38/49

mega-agency media departments

have now becomeprofit centers agencies have set up their media

departments asfree-standing units

many large clients now look at mediaas aseparate service

big changes in the

media department


39/49

research department

interpret market environment gather and analyze research data.

primary and secondary techniques

determine consumer needs/perceptions

understand problems

advise how ads can meetstrategic goals

help find solutions

ResearchReport


40/49

research director

research project managers

research assistants

outside researchspecialists

research department

ResearchSuppliers

Outside

Research

Assistants

ProjectManagers

Research

Director

Research

Report


41/49

auxiliary agency functions

account planning

strategy/creative review board

office management

human resources

legal servicesaccounting

recruitment


42/49

3 ways agencies make money

commissions

usually 15% of gross costs

feesusually based on negotiated hourly rate

incentives

still relatively new and problematic

usually based on performance goals


43/49

agency commissions

media commission system

15% media commission

adjustable commission ratesnegotiate to match client budget

sliding scale

markups-production & serviceadd a percentage markup to costs

17.65% of net = 15% of gross


44/49

4 types of fee systems

fixed fee (retainer)

cost-plus fee

performance fee

hybrid fee &

commission


45/49

beyond 2000

advertising

agency trends


46/49

agency trends

clutter, overload, overchoice

increasedmedia options

increasing audience fragmentation

more messages everywhere

doing more with less

economic pressures, downsizing

ongoing client budget pressures managing sizemore mergersand mega-agencies


47/49

agency trends

managingtechnology

interactive marketing

e-mail, web sites

improving internal systems

account planning

re-engineeringagency organization

improving delivery ofimc services


48/49

as long as marketers need

ideasto build their brands,theyre going to need

in conclusion...

advertising agencies


49/49

agency types 1

Documents