1. Types and functions of advertising agency
Introduction to Advertising
Topic 5
Types and functions of advertising agency

2. Definition of Advertising Agency
“Advertising Agency is an independent organization of creative and business people who specialized in developing and preparing advertising plans, advertisements and other promotional tools.
It purchases advertising space and time in the media on behalf of their client”
AAAA-American Advertising Agencies Association

3. What an Ad Agency does for their clients
In essence, the advertising agency is the clients marketing communication consultant. Therefore:
It must understand the clients marketing problems
Prepare plans and strategy to provide solutions to the problems
Helps the clients business grow

4. Client-Agency Work Relation
The agency-client work relation is best viewed as a partnership.
As the client business grows, the agency’s business also grows.
The ensure a good partnership the agency must:
Provide excellence service
Provide effective plan, strategy and exceptional creative

5. Basic Structure in Ad Agency
Board of Director (BOD)
Account Management Department
Creative Department
Media Department
Production Department
Operations Department

6. Account Management

7. Account Management / Handling
Responsible for all client contact to establish the broad requirements (needs and wants) of the client
Ensure that the various internal departments are briefed, to come up with a solution that meets the client’s needs and wants / aims and objectives

8. Account Management / Handling
Responsible for initiating assignments within the agency, providing deadline, outlining budgets and ensuring all the works are consistent with the strategy before presented to client.
Level: Account Director, Account Planner /Account Manager, Account Executive

9. Creative
Department

10. Creative Department
The creative department is the producer of ideas and concepts of an advertising
One of the important responsibility of creative team is establishing the reputation of the agency, because creativity is what really builds and agency’s reputation.
Responsible: think long and hard about the message (visual & copy) and how it will affect branding and positioning.

11. Creative Department
Levels: Creative Director, Art Director / Copywriter, Graphic Designer / Visualizer
Copywriter is the individual who conceive the ideas for the ads and write the headlines, subheads, body copy or radio commercial script
Art director is responsible for how the ad looks; prepare visual of the advertisement (layout for print ad and storyboard for TVC)
Both copywriters and art directors work under the direction of the agency’s Creative Director that usually risen from both positions.

13. Media Department
Media Department recommends client about what is the most efficient means / mediums to deliver the message to the target audience
The department has 3 functions: Research, Planning and Buying
Media Researcher: work through all of the data that available on the media, make comparison of the media which have same audience profile

14. Media Department
Media Planner: takes the statistical research taken by the media researcher as the basis for deciding which medium would be the most appropriate to carry the advertising. They produce the media plan which provide media objective and strategy, including media schedule.
Media buyer: the person who has responsibility to buy these space and air-time with maximum discount for agency.
Levels: Media Director, Media Planner / Media Buyer, Media Monitoring

15. Production
Department

16. Production Department
Coordinating and supervising the work of the selected external production suppliers/vendors.
Make sure everything that is needed to produce the final advertisement is prepared, cost effectively to the highest quality, delivered to the right place at the right time and in the right format.
Functions: Producers, Traffic

17. Types of Agencies

18. Types of Advertising Agency
Full Service Advertising Agency
An agency that handles all aspects of the advertising process, including planning, design, production, and placement.
Today, full-service generally suggests that the agency also handles other aspects of marketing communication, such as public relations, sales promotion, Internet and direct marketing.

19. Types of Advertising Agency
A la Carte
The client can choose the service of an advertising agency on an occasional basis or handled internally
Freelance designer and copywriter
The client can choose the service of an advertising agency on an occasional basis or handled internally. Advantages for client: may bring fresh approach or have special style

20. Types of Advertising Agency
Media Independents
Act independently of the ad agency and the media department selling space and air-time.
Media independents therefore have immense buying power and so can negotiate favorable prices

21. Associated Agencies & Consultants
Sales Promotion Agencies
Direct Response Marketing Agencies
Public Relations (PR) Consultants
Digital Agencies