UNIT 2

Advertising agency

1. Attracting clients – advertising agency needs client who wants to advertise their products and services. Without the advertiser, it is difficult for the agency to survive.
2. Account management – the account manager within the advertising agency is tasked with handling all major decisions related to a specific client. The account manager works closely with the client to develop an advertising strategy.
3. Advertising plan - Advertising agency helps in preparing advertising plans and programmes for its clients. Preparing an advertising plan needs coordinated efforts and investigative information. In performing this function, the agency should have full information about the products. It may pertain to

• The product’s positive aspects,
• Past record,
• Its position in the competitive market, and
• Competitors’ negative aspects, strengths and weaknesses.

1. Contact department - Contact department is also known as client department. They are in charge of keeping contact with their prospective clients (mostly the advertiser) of the advertising agency.

• Carrying the important information to the clients,
• Efforts for retaining and creating new clients,
• Building the bridge between the advertising agency and the client,
• Helps in boosting revenues,
• Promotion of their agency to create new prospects,
• Efficient working for the quick growth of its organization.

• It selects and uses the best media possible to communicate the ad message to the ultimate consumers.
• It can also fail, as a wrong selection will result in the failure of the advertised product.
• Preparation of media plans for its clients.
• Media scheduling.
• Supervising the execution.
• It keeps constant contact with the media and the client.

• Preparing an attractive copy for its clients and customers.
• Participate in brain- storming sessions and come up with ideas.
• While preparing a copy using their extraordinary skills of putting flair and fluent language.

• Transform the idea that the client wants to convey, into a simple and beautiful imagery.
• Preparing layouts and visuals for the clients.
• To work closely with the copywriters for developing the visual messages.
• Making painted bulletins, posters, car cards, illustrations, slogans, etc.

• Produces the final advertisements for the markets.
• Making contacts in the industry for the easy carrying out of tasks.
• Assemble the typographic design patterns, engraved photos, illustrations, copy, etc. and prepare the final advertisement.
• Sending the final product to its clients and get the approval.
• Once the approval is received, then it can be sent for final printing or production for the market.
• Keeping them updated about the latest trends and technologies.

• Carrying out research and deriving out useful information.
• Critically analyze the information, which they have derived.
• Apply the results in different ways.
• Agency makes use of above information for executing an excellent ad campaign.

1. Accounting and finance department - the financial and accounting matters of the organization are taken care by the accounting and finance department of an advertising agency.
   • To generate and keep a record of the invoices that the company incurs or gains.
   • Sending out regular reminders to the clients for un-cleared payments.
   • Clear accounts before or within the due dates.
   • Issue payments to vendor parties within or on the due date.
   • Keep a track of the monthly and yearly accounts.
   • Deposit the government fees on time.
   • Manage salary accounts of the employees.

• Redressing the grievances of the consumers.
• Taking feedback from clients and customers and working on it immediately.
• Serve as a road between the advertising agency and the other parties.
• Maintain a repo, by maintaining the goodwill.

• Recruiting the office staff.
• Carrying out training and development of the newly hired staff.
• Carry out promotions of the deserving candidates.
• Provide welfare facilities to staff.
• Filing and record keeping of all the essential documents.

1. Selection of Clients : The first and the foremost function of an advertising agency is to contact and select clients who are desirous of advertising their products, services or anything which they want to sell. The preference in contacting and choosing the clients is given to those firms which have sound values, able management, efficient operative products and services. The financial position, size and nature of business, efficient management and operative products etc. must be given due weight.
2. Media Selection: Media selection is another major function of the advertising agency. In making a media selection several factors such as cost, circulation, population which it serves, audiences, nature of the product, types of customers and above all needs of the clients should be kept in mind.
3. Advertising Planning: The third as well as the major function of advertising agency is the advertising planning for its clients. For this purpose, the advertising agency requires a detailed knowledge of the firm‟s products, its advertising history, market conditions, channel of distribution, knowledge of competitors‟ products and their advertising techniques, field to be covered, nature and type of consumers etc. Next planning job is to decide about the advertising medium in which the advertisement is to appear. The advertising message must be adapted to the medium in which it is to appear.
4. Advertising Planning: The third as well as the major function of advertising agency is the advertising planning for its clients. For this purpose, the advertising agency requires a detailed knowledge of the firm‟s products, its advertising history, market conditions, channel of distribution, knowledge of competitors‟ products and their advertising techniques, field to be covered, nature and type of consumers etc. Next planning job is to decide about the advertising medium in which the advertisement is to appear. The advertising message must be adapted to the medium in which it is to appear.
5. Research Function: It is the fifth major function of an advertising agency. It supports the decisions taken in the media and creative areas. In this connection the advertising agency gathers and analyse actual information about the product, extent of market, competitors‟ strategies and buyers‟ habits etc. that may help the creative personnel to make the advertising copy more attractive and effective
6. Approval of the Client: As soon as the advertising copy etc. are prepared, the next function of the advertising agency is to show the copy to his client and obtain his approval. In case if any changes are suggested by the client, the same may be incorporated and thus the final approval should be taken from the client.
7. Marketing Function: The advertising agency also performs marketing functions such as selecting target consumers, designing products and packages, developing channels of distribution strategy, determining prices and rate of discount etc. It gives useful advice to its clients with regard to the nature and trend of the market conditions. Accordingly, the client produces goods keeping in his mind the prevailing conditions in the market.
8. Evaluation Function: Simply drafting advertising copy and handing over the same to the media is not enough. The next major function of the advertising agency is to have an exhaustive evaluation of the advertising effects for the benefit of his client. In case of any deficiency, necessary suggestions should be given and the same be made effective after approval of the client.
9. Coordination Function: The last but not the least important function of the advertising agency is to establish effective coordination with client‟s sales force and distribution network to ensure the long running success of the advertising campaign. Each time the advertising agency contacts the client regarding advertising media to be used and the number of times the advertisement is to be repeated after giving effect to changes, if any, as suggested by the advertiser

1. In house agencies –
   • In large organization, there may be a separate whole department devoted to advertisement headed by advertisement manager reporting to marketing manager, who in turn reports to top management.
   • In small firms, there may be a person looking after the advertisement tasks and reporting to the top management. The advertiser has many advantage of in –house agency.
   • They are the own personnel and their time can be efficiently utilized for better coordination and control in the advertisement process.
   • Further, they know the present marketing strategies and have control over distribution tactics. It also leads to cost saving in terms of commission saved by the advertiser to the external agency.
2. Full service agency –
   • A Full service agency offers full range of communication and promotion services to their clients. It performs research on behalf of advertiser and offer creative and media services to their clients.
   • They also offer to prepare an integrated marketing communication campaign to coordinate all the promotional tools.
   • They are therefore known for providing both advertising and non-advertising services. The range of services provided by them include planning, creating, producing, performing research, buying media, copywriting, artwork, media planning in the nature of advertising services and pricing
3. Specialized service agency –
   • With the growth in the need of advertising agencies and its specialized services, many advertising agencies have come up that do not provide full range of services but specialize in one or the other services only.
   • They provide their expert services to either the advertiser or other ad agencies.
   • The advertising agencies that restrict and specialize in niche areas like: consumer durable, domestic market, local market or only regional languages are called specialized agencies.
   • For example, Soubhagya advertising agency specializes in financial advertising only.

1. Creative boutiques - They include few people ranging from two or three to a dozen or so and include artists, designers, and copywriters.  They offer creative and artistic services and unlike full service agencies. They do not involve themselves in strategic planning, target audience etc. Their focus is only on the development of a creative idea into the message theme.
2. Media buying services - Media agencies have gained high growth in the last few decades and have become major players on the advertising stage.A media buying agency is not only responsible for booking the space and time for their clients, but are also responsible for providing market research and analysis and guiding them with respect to ideal space and time for their advertisement.
3. Interactive agencies - The interactive agencies have come up with the growth of Internet technology and the need for integrated marketing communications.
4. Direct response agencies - The direct response advertising agencies offer specialized services to the clients and help them integrate advertising through various mediums like television, print, radio, online etc. The growth of direct marketing has led to the growth of direct response agencies.
5. Sales promotion agencies - These agencies specialize in providing services of designing sales promotional programs, identifying suitable sales promotional tools, carrying pre-sales promotion evaluation, executing the sales promotion program, performing post-test for evaluating effectiveness of sales promotional tools.
6. Public relations firms - These firms specialize in providing services that enhance the goodwill and image of the clients’ companies amongst its publics, namely, employees, labor groups, suppliers, government and other stakeholders.

1. Suitability: The advertising agency which suits the requirement of manufacturer or trader is selected depending upon the type of advertisement, location of agency, credit policies, etc. Normally, an agency which is located near the advertisers place is selected. This helps in approaching the agency. Secondly, the size of agency in terms of personnel, projects, and services provided is considered. Thirdly, the connections and relations with the various media. Fourthly, the policies like conservative policy, outgoing policies etc. are taken into account. Finally, the advertising also considers whether the agency has competitors account or not.
2. Facilities and Services Provided: Some agencies have modern facilities of photography, type setting, printing, filming etc. The agencies which provide maximum services with minimum costing preferred.
3. Imagination: Imaginations and creative skills of the personnel of agency is duely considered. Creativity in photography, layout, copy writing, media etc. creates an identity and unique for the products and services of the advertiser.

1. Ad agencies involve people with specialized skills and knowledge who are well versed in marketing, advertising and consumer behavior.
2. Ad agencies are in house, full service and specialized service agency
3. Ad agency should make sure that a proper coordination between the clients, sales force and the distribution network.

• To maintain a friendly client-agency relationship meaningful two-way communication is required.
• To maintain a cordial relationship both parties should take special efforts.
• The approach of give-and-take is required to keep relations over a longer period.

• Suggestions for both parties (Client and Ad Agency).
• Guidelines for the Client (Advertiser), and
• Advice to the Advertising Agency.

• There should be a mutual understanding between client and agency. Misunderstanding between the two parties through direct talks should be resolved quickly.
• The agency should work sincerely and honestly to bring a success to the client's ad campaign.
• Both parties should properly follow the terms and conditions of the contract.
• Good communication must be there between client and agency. Hence, regular meetings between them shall be arranged.
• Both should take necessary efforts to maintain their relations friendly.

• Treat the ad agency with courtesy at all times and never hurt its ego.
• Provide all possible information about the product to be advertised and the organisation. A well-informed ad agency will make better ads.
• Don't unnecessarily bargain for the fees charged by the ad agency as this may affect the quality of work.
• Motivate the agency to do a good impactful work. Its charges such as media bills, fees and other costs must be paid well in time.
• Don't change the ad agency without a proper reason. If not satisfied, always first communicate your expectations and then wait for necessary changes to reflect.
• The client should approve the proposals submitted by the ad agency. He must avoid making small arguments and only highlight those crucial relevant matters that needs attention.
• Give sufficient time to the agency to work on and develop an ad campaign. The client should not pressurize it to work quickly. He should avoid giving deadlines.
• Reduce disputes to a minimum.
• Finalize in advance the charges for a particular ad campaign.

• The advertising agency should do a smart and hard work to bring success to the client's ad campaign.
• It should make a good advertising plan and must implement it efficiently and effectively. However, first it must get the approval from the client.
• It is the duty of the account executive of the agency to keep his customer happy and satisfied.
• It should not charge client unreasonably high rates.
• It should not make ads for client's competitor.
• It should get all the information from the market that will help to create better ads.
• Discuss the ad fees with the client in advance to avoid disputes.
• Disclose to the client the names of the team members (employees) that are working on his ad campaign.
• Inform the client about changes, if any, happening within the agency.
• Agency should always provide timely services to the client and try its best to satisfy him.

1. Poor quality of services – if the client becomes dissatisfied with the quality of advertising provided by the agency, then the client may leave the existing agency and look for another agency which provides better service.
2. Frequent personnel changes in staff – clients sometimes switches over to new agencies when the creative team of existing agency moves out to another agency.
3. Lack of coordination – sometimes key official of the company and agency personnel find it very difficult to coordinate the work. If both the parties have issue then the relationship breaks down for the worst.
4. Dearth of confidence – when the client losses the confidence of his agency in the delicate area, like fairness, etc
5. Change for the sake of change – when changes become the essence of life.  Man goes on changing simply for the sake of change. According to clients change result better result.
6. Non availability of services – if the present agency cannot render the service required by the client, then the client will join another ad agency.
7. Personal conflict – sometimes advertisement are perceived in a different manner by the client and the ad agency. Top executive of client and agency may have conflict regarding decision of advertising campaign like copy writing, selection of media, etc.

1. Commission methods - Based on the time or space it purchases for its client the agency is compensated. The commission has traditionally been 15% (16 2/3% for outdoor) but now is often negotiated downward. Many advertisers have moved to a negotiated commission system including variable commission rates and minimum and maximum compensation rates.

1. Advertising agency - All over the world, advertising continues to be one of the most sought-after careers. Graduates and even undergraduates with diploma in computers, secretarial course, art-work etc., can hope to start career in advertising.

1. Copywriters: Candidates with good communication skills stand a fair chance to be copywriters. One needs a good background of literature and business communication. Intelligence, visualising power and creative thinking are good qualities required by copywriters.
2. Artists: Agencies also employ a good number of artists on regular basis and on contract basis. Candidates with a diploma and / or natural talent in art work can qualify for the job of artists.
3. Visualizers: Today, visualizing has become a specialized function. Those who can generate creative ideas can qualify for the job of visualizing.
4. Production Work: The production department looks after the mechanical production of the ads. This includes typo-graphing, photoengraving, printing, etc. Normally actual production is undertaken on job or contract basis. However, there is lot of administrative work in the production department, to monitor final production of the ad.
5. Account Executives: A very important job is handled by account executives. They act as liaison between the client and the agency. Their job is to keep good client relations.
6. Media Planners: They look after the planning and selection of media, booking time and space in the media and preparation of ad budget. Commerce graduates with computer background and / or knowledge of statistics do stand a fair chance of getting the job of media planners.

1. Advertising media - The media employs large numbers of people to work in their advertising departments. Selling time and space and monitoring the running of advertisements could be the major jobs. Audience or readership research could be another major function. One can do liaison work with sponsors, advertisers, or ad agencies. Some media companies provide marketing service to advertisers. At present, media industry is not restricted to one field. Instead, it includes broadcasting – television, radio, online media, and print media – newspapers, magazines, books, journals, etc. All the fields have witnessed incredible growth.
2. Supplying / supporting firms –
   1. Production houses - Production houses undertake the production of ads, films, serials, documentaries, etc. Some of the production houses include SRK Productions, Balaji Tele Films, Yash Raj Film Studio, Galaxy, Sai Production, Prime Focus, Lemon Tree and several others.
   2. Market research - Market research involves collection, and analysis of data about market and customers to take marketing decisions, including advertising decisions. Market research has various elements including customer analysis, competitor analysis, risk analysis, product research, advertising research, etc.
   3. Printing - The Indian printing industry experienced a major technology upgrade in the late 1990s with the electronics and InfoTech revolutions completely changing the image and profile of the industry. Job opportunities are plenty for qualified diploma holders as the printing industry is growing all over India with Mumbai along having about 500 to 600 printing houses and more than 100 processing units. Among the major employers are advertising agencies, the media, and print companies. The largest employer is the government which has printing presses across the country.
   4. Graphic and animation - Graphic designing is a process of communication through visuals. A graphic designer uses words, images, videos, pictures and graphics to convey any idea or message to the audience. A professional graphic designer creates a layout and design for any print media organization – newspaper, magazine, journal and any other publications. Animation industry in India is growing at a fast pace. Animation is emerging as a vital component of computerized games, video technology, big budget and feature films. The animation industry has got a boost due to the convergence of the Internet and media technologies. Visualization and audio techniques are increasingly being used to interact and produce sophisticated computerized games, ad films, and motion pictures.
   5. Modeling - Models in advertising promote products or services, so as to create interest on the part of target audience. The goods promoted by models include household items, food items, health tonics, personal care items, etc. The information provided by models facilitates consumer buying decision.
   6. Voice over – dubbing - A voice-over artist is a person, who lends his / her voice to complement visuals being telecast on the screen. Voice-over can be considered as off-camera commentary. It is a technique wherein voice is modulated in order to be broadcast along with the visuals of the tele film, documentary, advertisement, television serial or news. Radio also makes use of voice-over artists to convey important messages.

1. Discover your area of interest and proficiency: Before making a start at freelancing, identify your area of interest as well as expertise. Many of you are capable of penning down your thoughts well. You can consider being freelance copy writing as an option. Freelance photography or filming is also an excellent option. Some may be god at research work.
2. Approach the right people: After having identified the area you want to get into, it is important to let people know about it. It is only through adequate networking that you get freelancing opportunities. It takes a lot of patience to do so but once you made the right contacts, you get good opportunities. To be a freelancer, it is very important to promote yourself outside. This can be done by contacting the ad agencies where your friends or relatives work.
3. Use Social Media: Social media is also a great tool for networking. Social networking sites like Twitter, Linkedin, YouTube and Facebook are very popular and can be used to find opportunities. Set up your account, make contacts and interact with them. You may be able to attract films looking for freelancers.
4. Emailing: You can get in touch with multiple companies direct through e mails. You can compose a message to them, write about what you are looking for and send it. You may also compose some headlines or taglines for certain products and mail it to them. This is a quick and easy way of contacting professionals.
5. Search Online: Using search engines on the internet are one of the most common ways to find companies hiring freelancers. The internet will give you a list of places you can consider working for. Now-a-days, organizations create websites which offer such opportunities.
6. Price Your Service: Since your services are valuable, you must take to price it appropriately. Learning to make money is a core freelance skill. One of the basics while pricing is to know your experience and level f expertise. As a beginner, you would be expected to charge slightly lower rates but as you go higher up in terms of experience and work, you can gradually increase the rates. Always think long term while pricing your services.

1. Advertising agency career option includes copywriters, artist, visualizers, account executives.
2. Supporting firms includes market research, printing, production house, graphic and animation, modeling, etc
3. Models in advertising promote products or services, so as to create interest on the part of target audience.
4. A voice-over artist is a person, who lends his / her voice to complement visuals being telecast on the screen.

• The advertising concept book by Pete Berry
• Tested advertising methods by Jon Steel
• Scientific advertising by Claude C Hopkins
• Truth, lies and advertising by Jon Steel