Types of Agencies Advertisment

8/19/2019 Types of Agencies Advertisment

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Amity School of Business

Advertising and Sales Promotion

Module-2


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Budgeting


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Factors afecting advertisingbudget decisions

• Market Size

• Market Potential

• Market Share Goals

• Economies of Scale in Advertising

• Organizational Characteristics


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Top-Down versus Bottom-UpBudgeting

Top Management sets the

spending limits

Total promotion budget is approved by

top management

Promotion budget set to stay

within spending limit

Promotion objectives are set

Activities needed to achieveobjectives are planned

Costs of promotion activities are

budgeted


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General Practices in

Budgeting• Competitive Parity (CompetitorStandards)

•Afordability (Small Firms)• Fixed Percentage o urnover (!"#$o turnover%

&imitation't ignores varyingreuirements o advertising efort atvarious stages o P&C)


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Advertising *valuationMeasuring the communication efect o an ad-copy testing-tells

whether the ad is communicating well.

Methods o Advertising Pretesting:Direct Rating (*xposes to consumer panel to alternative ads

and as+s t,em to rate t,e ads)Portfolio Tests (Consumers vie- or listen to a portolio o an

advertisements ta+ing as muc, as time as t,ey need. ,ey are

t,en as+ed to recall all t,e ads and t,eir contentLaboratory Tests (P,ysiological /eactions are measured',eartbeat0 B P0 pupil dilation0 perspiration. ,ese ,elp measuread1s attention getting po-er but reveal little on belie0 attitude orintentions)

Post Testing Methods:Recall Tests (/ecall everyt,ing t,ey can about t,e advertisers

and products t,ey sa-)Recognition Tests (*g. /eaders o a given issue o a maga2ine

are as+ed to point out -,at t,ey recogni2e as ,aving seenbeore)


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3easuring t,e Sales *fect

• Method

Past Sales comparison -it, pastadvertising expenditures.


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vmanager• Plans t,e ad campaign and prepares an ad

budget.

• n smaller org.0 creates and produce ad.

• n larger org.0 interacts -it, t,e accountexecutive o an ad agency also prepare salespromotional materials.

• 4andles admin department.

• Co"ordinates -it, operation and mar+eting deptto acilitate t,e -or+ing o t,e sales dept.

• Supervises t,e promotional activity and evaluatest,e result.


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Advertising Agency• An advertising agency or ad agency is a service business

dedicated to creating, planning and handling advertising (andsometimes 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.

• Typical ad agency clients include businesses and corporations,

non-profit organiations and government agencies• Agencies may be hired to produce an advertising campaign


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rgan 2a on o an aagency


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Functions o an ad agency

• 6nderstand t,e product0 tec,nology0mar+et

• 6nderstand t,e met,ods o distribution

and selling

• Assess t,e diferent media or conveyingt,e message

• Prepare an advertising plan• 3utually bene7cial partners,ip -it,

agencies and advertiser


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ypes o ad agencies• !ull service "gencies

&arge si2e agencies.

8eals -it, all stages o advertisement.

8iferent expert people or diferent departments.

Starts -or+ rom gat,ering data and analy2ing and ends on payment o bills to t,e mediapeople.

• #nteractive "gencies

3oderni2ed modes o communication are used.

6ses online advertisements0 sending personal messages on mobile p,ones0 etc.

,e ads produced are very interactive0 ,aving very ne- concepts0 and very innovative.

• $reative Bouti%ues

9ery creative and innovative ads.

:o ot,er unction is perormed ot,er t,an creating actual ads.

Small si2ed agencies -it, t,eir o-n copy-riters0 directors0 and creative people.

• Media Buying "gencies &"d Tech networ's(

Buys place or advertise and sells it to t,e advertisers.

Sells time in -,ic, advertisement -ill be placed.

Sc,edules slots at diferent television c,annels and radio stations.

Finally supervises or c,ec+s -,et,er t,e ad ,as been telecasted at opted time and place

or not.

• #n-)ouse "gencies

As good as t,e ull service agencies.

Big organi2ation preers t,ese type o agencies -,ic, are in built and -or+ only or t,em.

,ese agencies -or+ as per t,e reuirements o t,e organi2ations.


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Client ; Agency

/elations,ip(CA/)


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Client ; Agency relations,ip• ,e agency avoids advertising a close substitute

competing product. ,e client0 too0 avoidsengaging t,e services o anot,er competingagency

• Agency receive green signal orm clients

•Agency +eeps t,e media commission or itsel0and t,e client underta+es to oot t,e bill promptly

• media grant and cas, discount0 it is passed onto t,e client

• ,e agency is not ta+en to tas+ or media lapsesin terms o sc,eduling0 positioning etc


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Agency " media relations,ip

• Agency alone responsible or payment tot,e media

• Agency does not allo- any cut rom t,ecommission received rom t,e media to go

t,e client

• 3edia do not discriminate amongst t,eagencies dealt -it, and ollo- a uniorm

policy or all t,e agencies• 3edia do not alter t,e adverting material-it,out t,e prior consent o t,e agency


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&eading Advertisement Agencies5 ndia

• 5gilvy < 3at,er

• &o-e &intas

• BB85 india

• BB4 india• Saatc,i < Saatc,i

• = -alter ,omson

• FCB 6l+a

• 3cCann *ric+son• /edifusion >


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&eading Advertisement

Agencies 5 ndia• Adbur Pvt &td• A+s,ara Advertising

• 3udra communication ltd

• &eo Burnett Pvt &td

• Contract Advertising (ndia) &td

• Crayons Advertising and 3ar+eting Pvt &td

• *nterprise :exus Communications Pvt. &td

• *uro /SCG Advertising Pvt &td• *verest ntegrated Communications &imited

• 3atrix communications


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/ural Advertising!ural Media

Conventional Mass media"elevision!adioPress

CinemaOutdoor#$all %ainting& hoarding

'on(conventional media)aat and mela

*olk media +%u%%et sho$& magic sho$,-ideo vanmandi


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Personalized media.irect mailer Point of sale +demonstration& leaflet,/ord of mouth0nter%ersonal communication


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Advertising Business in ndia After $itnessing an average gro$th rate of only 12(13 %er cent over

the last three years& the 0ndian advertising industry is set to gro$ 41

%er cent 5y 26167

"he 0ndian advertising e8%enditure is dou5ling every four years

%rimarily dominated 5y s%ends on television and %rint cam%aigns7

*or every hundred ru%ees s%ent 5y advertisers& !s 91 is s%ent on

television and the %rint media $hile the outdoor media accounts for !s

:7 "he rest is divided 5et$een cinema& radio and the 0nternet7

0nternet advertising contri5utes only !" # of the country;s totaladvertising s%end7

+Source# Business Standard,

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Types of Agencies Advertisment