1. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-1 Industry Participants Advertisers Agency Media ACA ICA Production Firms Broadcasters Print Out-of-Home Direct

2. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-2 Client Side Management  Brand and Category Management  Regional Management  Global Management

3. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-3 Client Role and Responsibility 1. Ad planning and budgeting 2. Advertising coordination 3. Monitoring program implementation 4. Evaluation (effectiveness) 5. Liaison with agency

4. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-4 Agency Role and Responsibility 1. Experience / expertise in communications 2. Strategic planning assistance 3. Objectivity in preparing strategy

5. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-5 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

6. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-6 The Full Service Agency Full Service Agency Full Service Agency Account Management Creative Media Research Direct Response PR

7. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-7 Functional Areas of the Ad Agency Account Management Account Management Creative Department Creative Department Media Department Media Department Business and Marketing Orientation Conceptual and Creative Orientation Analytical and Strategic Orientation

8. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-8 Account Management Account Director Account Director Account Supervisor Account Supervisor Account Executive Account Executive

9. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-9 Creative Department Creative Director Copywriter Art Director Creative director oversees the team. Team develops creative concept.

10. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-10 Media Department The media department plans media strategy and places messages with the media. A media director heads up the department. Media Planner Media Buyer Media Supervisor

11. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-11 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

12. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-12 The Creative Boutique Creative Boutique Creative Boutique Specialist Creative concept development (message ideas) Staffed by ex-FSA personnel

13. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-13 Media Buying Service Media Buying Service Media Buying Service Media Planning Media Buying Media Research

14. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-14 The Agency of Record Media Agency B (AOR) Client Agency CAgency A Flow of creative information Flow of media information

15. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-15 Agency -Client Relationships The 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

16. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-16 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

17. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-17 Agency Compensation Commissions: Standard Commission Rate (15%) Reduced Rate Commissions

18. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-18 Agency Compensation Fee System: Minimum Guarantees Hourly Rates Costs Plus Profit

19. Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc. 2-19 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