#6 Ad Agency.ppt

8/12/2019 #6 Ad Agency.ppt

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Advertising

Photography

Ad Agencies--How TheyOperate


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Pioneer Agencies Wayland Ayer

20 year old entrepreneur in 1869

Founded first advertising agency in Philadelphia Because of his age, he used his fathers name to start his

business: N.W. Ayer & Son

Created advertisements and offered services similar towhat agencies still provide:

Counsel on selling products and services Design services for ads & campaigns

Expertise on placing ads in media


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Types of Ad Agencies

Full-Service Agency

Media Specialists

Creative Boutiques

Vendors (freelance writers,photographers, designers, interactive

media specialists, etc.)


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Types of Advertising Handled

by Agencies Brand

Most visible--national consumer

Retail/Local Focuses on local geographical retailers/manufacturers

Business-to-Business B2B--one business to another

Institutional

Corporate advertising-corporate identity Nonprofit

Charities, foundations, hospitals, museums, etc.

Public Service Advertising PSAs-communicate causes for social good


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Ad Agenciestoday

Full-Service AgenciesCreate ad & place in media for clients

Conduct market research for clients Design & produce advertisements

Choose media--buy time and space for ads


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Job Assignments & Responsibilities

Account Services

Media Placement

Market Research

Creative


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Account Services

Most people in this department areaccount executives (AE).

Work directly with client Liaison between client and agency

AEs bring in new business to the agency


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Media Placement

They determine most effective media fordelivering clients ad message

Buy time and space in the media (e.g.,radio, TV, or magazines)

Responsible for getting ad to media

Job title for these folksmedia buyers


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Market Research

Also known as Research & Development(R&D)

Generates information on demographics Targets ads to specific consumer markets

This information used by creative &

media staffs to guide their decisions


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Creative

Copywriters

Graphic designers

Layout people

Photographers (rare

occasion)

Web designers &developers

Art directors

Copy supervisors

Creative directors

Responsible for actual execution of creating the ads


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Ad Agency Structure

Account Services Manager

Layout & Web Graphic Designers

Art Director

Copy Writers

Copy Supervisor

Producer/writer

Broadcast Director

Creative Director Media Director

Ad Agency CEO


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How Agencies make MONEY

Until recent historyall agencies charged15% of clients total outlay for space/time

Commission contract--this was the 15%charge, broke down in the 1990s Advertising Agereports only 10-20% use contracts today

Today, generally negotiated

Performance contracts--client pays costsplus negotiated profit


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Some Interesting Ad Facts

Largest Advertisers

General Motors

Time Warner

Procter & Gamble

Dollars Spent per Year

$3.7 Billion

$2.0 Billion

$2.7 Billion


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A Few More Ad Facts

Largest Ad Agencies Headquarters World $$$

Omnicom New York $7.5 billionWPP London $5.8 billion

Publicis Paris $2.7 billion

Dentsu Tokyo $2.1 billion


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Recap

Advertising is BIG money!

Ad Agencies service external clients

Agencies provide a broad ranges ofservices for clients


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Client w/o in-house ad agency

AdvertisingOrganization

Advertising Department

External Agencies:Full-Service AgencyMedia SpecialistsCreative Boutiques

Vendors


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Client with in-house ad agency

AdvertisingOrganization

Internal Advertising Department

In-house Agency:Research/PlanningCreativeDevelopment

MediaProduction


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This concludes Lecture #3

References: Campbell, R., Martin, C. R., & Fabos, B., (2005). Media

and culture: An introduction to mass

communications(5th ed.). Boston: Bedford/St.Martins.

Vivian, John, (2005). The Media of Mass

Communications(7th ed.). New York: Pearson

Documents

#6 Ad Agency.ppt