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Table of Contents Advertising Agency Learning Outcomes:
Organizational Structure of the Advertising Agencies
Introduction
The structure of an advertising agency may be different depending on the type of agency. By structure, we mean as to how the jobs, tasks or
Meaning and Definition of Advertising Agency
constituted around different functions. For example, as shown in the figure below, there may be different departments for account management,
Evolution of Advertising Agency Advertising Agency In India Importance of Advertising Agencies
functions are arranged in the organizational hierarchy. Generally the organizations follow a functional structure, wherein different departments are account planning, creative and media functions.
Figure 1: Click on the link below to see how the client interacts with the different departments of the agency.
Organizational Structure of the Advertising Agencies
Source: http://2.bp.blogspot.com/-V96CxKxycw4/TZcLi0_YihI/AAAAAAAAABg/1_2gT9pM28Y/s1600/ad-agency+structure.jpg
Role Of Advertising Agency Types of Advertising Agencies Top 10 Advertising Agencies Summary Exercises Glossary
An ad agency performs the following four basic functions for its clients:
References
1. Creative Functions – including ad designing, copywriting, ad copy creation, message designing and graphic designing. 2. Media Selection – choosing the best media for its client in accordance with the nature of product, type of target audience and advertising budget of the client.
3. Research Functions – researching the consumer buying behaviour of the client’s target market to design an ad campaign that is accepted by the potential consumers and make them respond favourably.
4. Relationship Management – providing liaison between the client and various sections/divisions/departments of the ad agency for the convenience of the client and building long-term relationship with them.
Others – sometimes the ad agency goes a step further to provide sales promotion services, building public relations and taking up the task of direct marketing for the client. Advertising Agencies in order to reach the target audience monitor consumer feedback after the advertisement. A decision on whether to revise the message, the medium, the target audience or all of them can be made.
People with specific skills and talents in an Ad agency perform the functions mentioned above. On the basis of the functions performed, there are various agency staff positions or departments involving staff of related skills. They can be grouped as follows: Account Manager: Account Manager provides a liaison between the agency and their clients so that the client does not have to interact and coordinate with each of the agency’s specialists. They co-ordinate the services of various agency experts. They are then accountable to the agency directors. They receive the briefs from the clients and communicate the clients’ requirements to the creative department. Account Planning and Research: Some of the agency’s staff plan and research. On the basis of their findings, they design marketing and advertising strategies. They prepare budgets and estimates, justify them and seek approvals from top management. Creative Development and Production: There is generally a separate creative department in an agency that involves people like creative directors, creative managers, copywriters, art directors and producers. It is this department that infuses creativity in the ideas and come up with innovative and attractive advertisements. They create the ad campaign, present to the client and seek their approval. During the creative process, the production department is consulted about the feasibility of executing certain ideas. Once the ad is approved by the client, the creative and account teams will collaborate with production to get the campaign produced.They may also conduct a pre-test of the campaign to know its acceptability among the target audience. Media Planning and Buying: On behalf of the client, the agencies perform the function of booking and reserving media space. The Media department gives advice to the clients regarding the most appropriate and cost-effective medium for communicating with their target audience and also performs the function of securing space and time in the appropriate media. Other Services: There are other departments or units in an agency that perform functions related to print and film production, financial services like preparing bills and ensuring collections and human resources services, and other internal functions. There are also people involved with work of material dispatch, media release and its monitoring and post-tests to evaluate its success. The flow of work in an advertising agency goes through a number of stages like, the briefing stage that involves receiving the initial inputs from the client and delivering the same to the creative and media department, to creation and production stage that includes the production of graphics and the print ad or the film ad and the media planning and scheduling operations, to finally the release stage of the campaign. The members of an agency work collectively and collaboratively as a team for their clients. It is very important for the agency to work in cooperation and coordination as one single unit while designing, developing and executing the clients’ ad campaign.
Value Addition 4: Video KFC’s Cold Coffee- Krushers Kafeccino’s Ad designed by O&M Click on the link below to view the ad and read the rationale behind its development by Ogilvy and Mather. Note down the names under the head ‘Credits’ at the end of the document. Can you describe the function performed by each section to which credit has been given? Discuss with your peers.
Source: http://www.campaignindia.in/Video/264680,om-creates-a-tvc-for-kfc8217s-new-krusherskafeccino.aspx
Value Addition 5: Activity Key Functional Areas of Advertising Agency Click on the link below and enumerate the various functions usually performed by an advertising agency. Compare your list of functions with the one given below:
Media related: Media awareness, Media relations, and Grassroots events, Sponsorship/Partnerships/CSR. Stakeholder development related: Influencer outreach. Technology related: Online innovation, Technical infrastructure. Feedback related: Research analytics, Social media and community development. Customer related: Customer experience focus. Change agent related: Client internalization, Consumer behavior & insights, Business model/Product innovation. Direction related: Strategic savvy. Brand related: Brand positioning, Identity and Design. Ideas related: Creative ideas, Content development. Execution related: Program execution. Source: http://buzzcanuck.typepad.com/.a/6a00d8341c555153ef0120a73d5be1970b-800wi
Now, let us consider an example of a large- scale agency that is shown below. In the case of smaller agencies, jobs may be combined or freelancers may be hired. Figure 2: Key Functional Areas of Advertising Agency
Value Addition 6: Example Aquarius Agency Organization Chart Click on the link below to see the organization structure of Aquarius Promotions, a leading advertising agency in central India. Study the organization structure and differentiate it from the one given above. Source: http://www.unc.edu/~nielsen/soci410/nm3/m6019.gif
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