Advertising Agencies Advertising Agencies Mr. Amit GargMr. Amit Garg

Assistant Professor,Assistant Professor,Deptt. of Management Studies,Deptt. of Management Studies,

Malout Institute of Management & Information Technology, Malout Institute of Management & Information Technology, Malout - 152107Malout - 152107

Distt. Muktsar (Punjab)Distt. Muktsar (Punjab)84271-0500284271-05002

Email: Email: amit.mimit@gmail.comamit.mimit@gmail.com

Advertising AgencyAdvertising Agency

• An agency that designs advertisement to call An agency that designs advertisement to call public attention to its clients.public attention to its clients.

• An agency employed by advertiser to plan, An agency employed by advertiser to plan, design, place and supervise their advertisements design, place and supervise their advertisements or advertising campaigns.or advertising campaigns.

Top Indian Advertising AgenciesTop Indian Advertising Agencies

• Adbur Pvt LtdAdbur Pvt Ltd• Akshara Advertising Akshara Advertising • Chaitra Leo Burnett Pvt LtdChaitra Leo Burnett Pvt Ltd

Structure of ad agencyStructure of ad agency

Broadly there are 6 departments in any advertising agencyBroadly there are 6 departments in any advertising agency• Account Servicing Account Servicing • Account Planning Account Planning • MediaMedia• Creative Creative • Production Production • Finance and Accounting Finance and Accounting • Account service departmentAccount service department

ACCOUNT SERVICINGACCOUNT SERVICING

• The account service, or the account management department, is The account service, or the account management department, is the link between the ad agency and its clients. Depending upon the link between the ad agency and its clients. Depending upon the size of the account and its advertising budget one or two the size of the account and its advertising budget one or two account executives serve as liason to the client. The account account executives serve as liason to the client. The account executive’s job requires high degree of diplomacy and tact as executive’s job requires high degree of diplomacy and tact as misunderstanding may lead to loss of an account. The account misunderstanding may lead to loss of an account. The account executive is mainly responsible to gain knowledge about the executive is mainly responsible to gain knowledge about the client’s business, profit goals, marketing problems and client’s business, profit goals, marketing problems and advertising objectives. advertising objectives.

ACCOUNT PLANNINGACCOUNT PLANNING

• The account executive is responsible for getting approved the The account executive is responsible for getting approved the media schedules, budgets and rough ads or story boards from media schedules, budgets and rough ads or story boards from the client. The next task is to make sure that the agency the client. The next task is to make sure that the agency personnel produce the advertising to the client’s satisfaction. The personnel produce the advertising to the client’s satisfaction. The biggest role of the account executive is keeping the agency ahead biggest role of the account executive is keeping the agency ahead of the client through follow-up and communications of the client through follow-up and communications

MEDIA DEPARTMENTMEDIA DEPARTMENT

• The responsibility of the agency’s media department is to The responsibility of the agency’s media department is to develop a media plan to reach the target audience effectively in a develop a media plan to reach the target audience effectively in a cost effective manner. The staff analyses, selects and contracts cost effective manner. The staff analyses, selects and contracts for media time or space that will be used to deliver the ad for media time or space that will be used to deliver the ad message. This is one of the most important decisions since a message. This is one of the most important decisions since a significantly large part of the client’s money is spent on the significantly large part of the client’s money is spent on the media time and/or space. The media department has acquired media time and/or space. The media department has acquired increasing importance in an agency’s business as large advertisers increasing importance in an agency’s business as large advertisers seem to be more inclined to consolidate media buying with one seem to be more inclined to consolidate media buying with one or few agencies thereby saving money and improving media or few agencies thereby saving money and improving media efficiency.efficiency.

CREATIVE DEPARTMENT CREATIVE DEPARTMENT

• To a large extent, the success of an ad agency depends upon the To a large extent, the success of an ad agency depends upon the creative department responsible for the creation and execution creative department responsible for the creation and execution of the advertisements. The creative specialists are known as of the advertisements. The creative specialists are known as copywriters. They are the ones who conceive ideas for the ads copywriters. They are the ones who conceive ideas for the ads and write the headlines, subheads and the body copy. They are and write the headlines, subheads and the body copy. They are also involved in deciding the basic theme of the advertising also involved in deciding the basic theme of the advertising campaign, and often they do prepare the rough layout of the campaign, and often they do prepare the rough layout of the print ad or the commercial story board.print ad or the commercial story board.

• Creation of an ad is the responsibility of the copywriters and the Creation of an ad is the responsibility of the copywriters and the art department decides how the ad should look.art department decides how the ad should look.

PRODUCTION DEPARTMENTPRODUCTION DEPARTMENT

• After the completion and approval of the copy and the After the completion and approval of the copy and the illustrations the ad is sent to the production department. illustrations the ad is sent to the production department. Generally agencies do not actually produce the finished ads; Generally agencies do not actually produce the finished ads; instead they hire printers, photographers, engravers, instead they hire printers, photographers, engravers, typographers and others to complete the finished ad. For the typographers and others to complete the finished ad. For the production of the approved TV commercial, the production production of the approved TV commercial, the production department may supervise the casting of actors to appear in the department may supervise the casting of actors to appear in the ad, the setting for scenes and selecting an independent ad, the setting for scenes and selecting an independent production studio. The production department sometimes hires production studio. The production department sometimes hires an outside director to transform the creative concept to a an outside director to transform the creative concept to a commercial.commercial.

FINANCE AND ACCOUNTING FINANCE AND ACCOUNTING DEPARTMENTDEPARTMENT

• An advertising agency is in the business of providing services An advertising agency is in the business of providing services and must be managed that way. Thus, it has to perform various and must be managed that way. Thus, it has to perform various functions such as accounting, finance, human resources etc. it functions such as accounting, finance, human resources etc. it must also attempt to generate new business. Also this must also attempt to generate new business. Also this department is important since bulk of the agency’s income department is important since bulk of the agency’s income approx. 65% goes as salary and benefits to the employees.approx. 65% goes as salary and benefits to the employees.

DAGMAR DAGMAR

• Defining Advertising Goals for Measured Advertising ResultsDefining Advertising Goals for Measured Advertising Results

Define Target Audience

Define Target Audience

Define DesiredPercentage

Change

Define DesiredPercentage

Change

Define the Time Frame for Change Define the Time

Frame for Change

Goal ofGoal ofAdvertising Advertising ObjectivesObjectives

Goal ofGoal ofAdvertising Advertising ObjectivesObjectives

Advertising Agency FunctionsAdvertising Agency Functions

• Account ManagementAccount Management – Within an advertising agency the – Within an advertising agency the account manager or account executive is tasked with handling all account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients. Once the include locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the account manager client has agreed to work with the agency, the account manager works closely with the client to develop an advertising strategy. works closely with the client to develop an advertising strategy. For very large clients, such as large consumer products For very large clients, such as large consumer products companies, an advertising agency may assign an account manager companies, an advertising agency may assign an account manager to work full-time with only one client and, possibly, with only to work full-time with only one client and, possibly, with only one of the client’s product lines. For smaller accounts an account one of the client’s product lines. For smaller accounts an account manager may simultaneously manage several different, though manager may simultaneously manage several different, though non-competing, accounts. non-competing, accounts.

• Creative TeamCreative Team –The principle role of account managers is to –The principle role of account managers is to manage the overall advertising campaign for a client, which often manage the overall advertising campaign for a client, which often includes delegating selective tasks to specialists. For large includes delegating selective tasks to specialists. For large accounts one task account managers routinely delegate involves accounts one task account managers routinely delegate involves generating ideas, designing concepts and creating the final generating ideas, designing concepts and creating the final advertisement, which generally becomes the responsibility of the advertisement, which generally becomes the responsibility of the agency’s creative team. An agency’s creative team consists of agency’s creative team. An agency’s creative team consists of specialists in graphic design, film and audio production, specialists in graphic design, film and audio production, copywriting, computer programming, and much more. copywriting, computer programming, and much more.

• Researchers Researchers – Full-service advertising agencies employ market – Full-service advertising agencies employ market researchers who assess a client’s market situation, including researchers who assess a client’s market situation, including understanding customers and competitors, and also are used to understanding customers and competitors, and also are used to test creative ideas. For instance, in the early stages of an test creative ideas. For instance, in the early stages of an advertising campaign researchers may run focus group sessions advertising campaign researchers may run focus group sessions with selected members of the client’s target market in order to with selected members of the client’s target market in order to get their reaction to several advertising concepts. Researchers are get their reaction to several advertising concepts. Researchers are also used following the completion of an advertising campaign to also used following the completion of an advertising campaign to measure whether the campaign reached its objectives. measure whether the campaign reached its objectives.

• Media PlannersMedia Planners – Once an advertisement is created, it must be – Once an advertisement is created, it must be placed through an appropriate advertising media. Each placed through an appropriate advertising media. Each advertising media, of which there are thousands, has its own advertising media, of which there are thousands, has its own unique methods for accepting advertisements, such as different unique methods for accepting advertisements, such as different advertising cost structures (i.e., what it costs marketers to place advertising cost structures (i.e., what it costs marketers to place an ad), different requirements for accepting ad designs (e.g., size an ad), different requirements for accepting ad designs (e.g., size of ad), different ways placements can be purchased (e.g., direct of ad), different ways placements can be purchased (e.g., direct contact with media or through third-party seller), and different contact with media or through third-party seller), and different time schedules (i.e., when ad will be run). Understanding the time schedules (i.e., when ad will be run). Understanding the nuances of different media is the role of a media planner, who nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates looks for the best media match for a client and also negotiates the best deals.the best deals.

Agency-Client Relationship Agency-Client Relationship

• The agency-client relationship involves a dual responsibility. The agency-client relationship involves a dual responsibility. • It is crucial to the growth and survival of the client's products It is crucial to the growth and survival of the client's products

and its corporate image. and its corporate image.

Tips For Making The Relationship Work Tips For Making The Relationship Work Better Better

• Establish your expectations for your advertising agency. Write Establish your expectations for your advertising agency. Write down the objectives very clearly. down the objectives very clearly.

• Make an internal communication map. It should clearly say who Make an internal communication map. It should clearly say who will communicate and who will make the decisions. Limit the will communicate and who will make the decisions. Limit the number of decision makers. It is a mistake to only work with the number of decision makers. It is a mistake to only work with the heads of departments and ignore individuals who actually work heads of departments and ignore individuals who actually work on your account. You may lose out on great advertising ideas. on your account. You may lose out on great advertising ideas.

• Integrate your advertising agency fully with every aspect of the Integrate your advertising agency fully with every aspect of the company to educate its employees about the firm, its values, its company to educate its employees about the firm, its values, its brands, its services, its strengths, and its limitations. They will brands, its services, its strengths, and its limitations. They will deliver what they get. deliver what they get.

• Treat your advertising agency as a partner, not a vendor. Hiding Treat your advertising agency as a partner, not a vendor. Hiding sensitive information from it can be costly. Let the agency judge sensitive information from it can be costly. Let the agency judge what is important and what isn't. Frequent meetings and what is important and what isn't. Frequent meetings and discussions of diverse dimensions will resolve the agency's discussions of diverse dimensions will resolve the agency's doubts and equip it to do a better job of promoting your product doubts and equip it to do a better job of promoting your product or service. or service.

• Advertising is creative work, and people who work in this field Advertising is creative work, and people who work in this field tend to be sensitive and opinionated. Respect their individuality, tend to be sensitive and opinionated. Respect their individuality, and acquire the skills you need to deal with them. and acquire the skills you need to deal with them.

• Rejecting creative ideas is an inherent part of the advertising Rejecting creative ideas is an inherent part of the advertising process, and a few rejections should not make you nervous. process, and a few rejections should not make you nervous. Unless rejections become very frequent, they do not indicate any Unless rejections become very frequent, they do not indicate any failure on behalf of the agency. In any case, you should not failure on behalf of the agency. In any case, you should not compromise your promotion plan. compromise your promotion plan.

• Make endeavors to quantify the results of advertisements, and Make endeavors to quantify the results of advertisements, and don't hesitate to share them openly with your advertising agency. don't hesitate to share them openly with your advertising agency. Learning from mistakes is the solution, and mistakes should not Learning from mistakes is the solution, and mistakes should not result in abrupt termination of the contract with the advertising result in abrupt termination of the contract with the advertising agency. Both success and failure usually result from joint efforts. agency. Both success and failure usually result from joint efforts.

• Don't interfere in professionals' work. Take care of the main Don't interfere in professionals' work. Take care of the main objectives of advertisements; leave the rest to the professionals. objectives of advertisements; leave the rest to the professionals. It is not wrong to want to understand and discuss the purpose It is not wrong to want to understand and discuss the purpose behind the selection of illustrations, colors, copy, and media for behind the selection of illustrations, colors, copy, and media for your brand advertisement. However, a rigid approach on the part your brand advertisement. However, a rigid approach on the part of the client may confuse the advertising agency's professionals of the client may confuse the advertising agency's professionals and harm the project.and harm the project.

Laws and ethics of advertising in India Laws and ethics of advertising in India

• Truthfulness in AdvertisingTruthfulness in Advertising• The Dignity of the Human PersonThe Dignity of the Human Person• Advertising and Social ResponsibilityAdvertising and Social Responsibility• Dying to be noticed • Puffery refers to exaggerated claim of a product’s superiority or

the use of subjective or vague statements that may not be literally true.

• Deception is when the consumer is led to believe something which is not true

ASCIASCI

• Advertising Standards Council of India is a self regulatory Advertising Standards Council of India is a self regulatory voluntary organization of the advertising industry.voluntary organization of the advertising industry.

• The Role and Functioning of the ASCI & its CCC in dealing The Role and Functioning of the ASCI & its CCC in dealing with Complaints received from Consumers and Industry, with Complaints received from Consumers and Industry, against Advertisements which are considered as False, against Advertisements which are considered as False, Misleading, Indecent, Illegal, leading to Unsafe practices, Misleading, Indecent, Illegal, leading to Unsafe practices, or Unfair to competition, and consequently in contravention or Unfair to competition, and consequently in contravention of the ASCI Code for Self-Regulation in Advertising.of the ASCI Code for Self-Regulation in Advertising.