ADVERTISING AGENCIES

ADVERTISING AGENCIES Introduction:

Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion. Advertising involves the process where in a message is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communication. From the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures and objects, advertising has come a long way. The work is formidable as it spearheads a process intended to attract, modify, change and influences public opinion. From the local business to multinational firm and all need to advertise. While politicians, social organizations, government special groups need to advertise their motto, national airlines, auto mobile manufactures, food and consumer goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most popular medium. Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors. Business or organization which wishes to advertise, Media which provides the medium for advertising and Ad-agency which creates the ad to suit the need of the firm.

Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad remains the same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and the figure could be higher. USA has projected media spending on advertising on the net to approximately $7700 by the turn of the century. The scope for advertising professionals certainly shows an upward trend.

ADVERTISING AGENCIES Advertising Agency:

An advertising agency is:

An independent business organisation Composed of creative and business people Who develop, prepare and place advertising on advertising media For sellers seeking to find customers for their goods and services.

History of ad agency:

1. Period of early growth 1841 - 1865. The first advertising agency on record in the US was Olney B. Palmer. In 1841, Palmer organized a newspaper advertising and subscription agency. By 1849 he had established offices in the cities of New York, Boston, Baltimore and Philadelphia. At this early fate, there were no directions of newspapers and no published rates for space to be sold to advertisers. Palmer acted as an informatory agent in these matters to prospective advertisers. In essence, he served as a salesman of space for publishers and they in turn, gave him a commission of 25% of such sales. The publishers found these methods of selling more effective than trying to sell direct and advertisers, wishing to reach more than one territory found value in such service. Completion increased, and the usual price cutting occurred. Success seemed to depend upon ones ability to bargain with the publisher and advertiser. The natural result of this policy was a general reduction in profits to the agency; this led to a search for new competitive tools which would return a profit.

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2. Wholesaling Period 1865 1880.

George P. Rowell, who opened an agency in 1865, supplied the new competitive tool. Rowell contracted with 100 newspapers to sell him a column of space each week for a year. Throughout the wholesaling period, the agent continued as a seller of space for publishers. This took on different forms, one of which was the exclusive right to sell space in certain publishers. Thus, one agency developed a controlled list of religious papers, another a List of Thirsty household magazines. Any advertiser wishing to buy space in the controlled publications was forced to buy through the exclusive wholesaler for that paper.

3. Semi Service Period 1880 1917. The wholesaling phase of agency work was checked when publishers began to establish their own sales departments for selling space. Some of these departments sold direct to the advertiser, others to the general advertising agency. Thus, the agency was forced to turn its attention somewhat away from the particular function of selling space for publisher and toward the function of buying space for the advertiser. Early in the semi service period agencies offered to write the copy for the advertiser, thus giving added weight to their claim of being servants of the advertiser. This concept of service was slow to develop; but in the early part of the 20th century, agencies began to emphasize strongly this free service. One agency in 1905 advertised that it paid $28,000 a year for a copywriter. These methods increased the agency business and forced most space sales to be made through them.

4. Service Period 1917 Present. By 1917 the idea of service had grown until not only was copywriting done for the advertiser but many other things as well. During the service period, many agencies have grown to the position of advertising and marketing counselors for advertiser. The service elements has modified the position of agencies to such a degree that radio and television, network and magazine publishers have come to depend upon them as the primary channel through which time and space are sold. Publishers claim to have had an important part in encouragements of agencies to provide extra service to the advertiser. By providing advertisers with the kind of assistance that will improve the effectiveness of advertising, more time and space naturally will be sold.

ADVERTISING AGENCIES How to creat an effective Ad? 9 steps to creating ads:

If youre like most small business owners, you cant always afford to hire an advertising agency and sometimes find it necessary to create your own print ads. These nine tips will help you to design ads that get better results and make more money. 1. Start with a headline that contains an important consumer benefit, Or news, or promises a reward for reading the ad The headline is the most important part of any advertisement. David Ogilvy, worldfamous copywriter says, "If you havent done some selling in your headline, you have wasted 80% of your money." The headline has four functions: 1. To get attention 2. To select the audience 3. To deliver a complete message 4. To draw the reader into the body copy Lets take a look at how headlines perform each of these tasks. 1. Getting attention: Headlines get attention by appealing to the readers self-interest (e.g.. "Give Your Kids a Fighting Chance" Crest). Or headlines can give the reader news. These often include words such as new, discover, introducing, announcing or now. The most powerful selling word is FREE. Other attention-getting words are how to, why, sale, quick, easy, guarantee, results, proven and save. Avoid headlines that are cute, clever and titillating but irrelevant. They may get attention but they do not sell. 2. Selecting the audience: Dont attempt to be all things to all people. Why target your advertising at anyone but your potential customers? Choose words that select the right audience and screen out others. Life insurance companies do this all the time (e.g.. "To Men and Women Over 65 Who Need Affordable Life Insurance Coverage".) 3. Delivering a complete message: Make your entire offer in the headline. Here are some examples: "Buy One Record or Cassette for $3.99 and Take 10 More Records or Cassettes of Your Choice for 1 Penny" Columbia House

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"Own a Leather-Bound Masterpiece for $4.95 -the Price of a Paperback!" The Easton Press Or heres my personal favourite: "How to form your own corporation, by phone, totally legal, in any state in the union, in as little as 8 minutes, as low as $45" The Company Corporation Thats six consumer benefits, separated by commas packed into one headline. Whew! 4. Drawing the reader into the body copy: Only a few products perfumes for example can be sold with an attractive photo, a powerful headline and a minimum of words. Most items or companies require that the reader be given a lot of information. So the headline must compel the reader to read the whole ad. To do this, arouse her curiosity. Ask a question, make a provocative statement, promise a reward or useful information. The headline for a facial lotion ad reads: "The $5 Alternative to Costly Plastic Surgery" A software ad begins: "If Youre Confused About Buying a Personal Computer, Heres Some Help" 2. Use a picture that illustrates the benefit stated in the headline: First let me point out that you dont necessarily have to use a picture. Hundreds of successful ads have used words alone to get their message across. Contrary to popular belief, it is the words not the pictures that do most of the selling in an advertisement. If you do use a picture, try to make it illustrate the benefit stated in the headline. One effective way to do that is by using before-and-after photos. Tide uses them, the before shot showing a muddy T -shirt the after shot showing the same shirt made brighter and whiter with Tide. Slim Fast uses them too, first showing a chubby Tommy Lasorda, then a slimmer, happier version. Another way to use visuals in an ad is to appeal emotionally to the reader. An ad asking for a blood donation shows a close-up face of a sad little girl looking directly at you. The picture works well with the headline, which reads:

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"How do you tell a 4-year-old she may never be 5?"

3. Expand the theme of the headline in the lead paragraph: The ad for the Easton Press begins, "The finest Moby Dick you can find is the Easton Press leather-bound edition. Now, own this luxurious book (a wonderful value at its regular price of $39.50) for the price of a paperback only $4.95 with no further obligation." (Note the interesting choice of the word luxurious to describe a book meant to convey an image of high quality.) An ad for the Wall Street Journal has the headline, "How to Succeed in BusinessAnd Investing". The first paragraph begins, "One sure way to succeed in business is to make smarter business decisions. And one of the smartest business decisions you can make right now is to subscribe to the Wall Street Journal." 4. Draw the Reader into the Ad and the Body Copy with a Clean, Uncluttered Layout: The key to getting an ad read is to make it easy on the eyes. Heres a brief list of layout dos and donts: Do: - Use one central visual - Set the headline in large, bold type - Set the body copy in clear, readable type - Use spaces between paragraphs to enhance readability - Use subheads to help draw the eye through the text - Keep paragraphs short - Use simple visuals without too many elements that confuse the reader Dont: - Set headlines and blocks of copy on a slant - Use tiny type (smaller than eight-point) - Use long, unbroken chunks of text - Overuse circles, bursts, arrows and other techniques that call attention to the fact that the ad is an ad - Use poorly executed or reproduced artwork or photography 5. Cover all important sales points in logical sequence:

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An effective ad tells an interesting, important story about the company. And, like a novel or short story, the copy should have a beginning, middle, and an end. Put your most important point in the headline and take the reader from the major benefits to minor features in the body copy. If the sales points are unrelated, you can simply list them using numbers or bullets. 6. Make sure the copy provides enough information to convince the Greatest number of qualified prospects to take the next step in the Buying process: Perfume ads typically dont contain a lot of words. Perfume is sold mostly on the mystique of what wearing perfume does to enhance your sex appeal. Mail order ads, however, often have a full page of solid type with no pictures and only subheads to break up the copy. Thats because the ad writer only has a small space to convince you to part with your money now. What you say in your ad and how much you say depends on what you want the reader to do. Should he call or write for a free brochure? Should he stop by your store for a demonstration? Or should he use the coupon at the bottom of the ad to make an immediate purchase? Think about what the next step in the buying process should be. That will determine the appropriate length of the copy. 7. Make your ad interesting: With apologies to Moses, let me suggest an eleventh commandment: "Thou shalt not bore your readers". People will only read your ad as long as it appeals to them. The style should be crisp, lively and light. The copy should have rhythm and clarity. But great style wont save an ad without substance. Here are a few ways you can add interest to your advertisements: - Speak directly to your readers needs and desires - Tell a story - Tell about people - Write in a personal style warm, helpful and sincere - Use testimonials - Offer a free gift, brochure or sample - Provide useful information or news - Address major issues beauty, health, security, education etc. - Answer important questions your readers have on their minds

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Here are some sure-fire ways to make your ads boring: - Focus the copy about your company, its philosophy, or its success - Write copy that gives features of your product rather than its benefits to the consumer - Tell readers things they already know - Write all sentences the same length (varying sentence length adds snap to writing) - Present facts without showing the reader how these facts relate to his needs 8. Make your ad believable:

Dishonest advertising can convince people to try a bad product once. But it cant convince them to buy a product theyve already tried and didnt like. Dont lie or stretch the truth in your ads. Besides being unethical, its unprofitable for you and your company. Be sincere, informative and helpful. It comes across to the reader and theyll believe what youve written. 9. Ask for action: Your ad should ask the reader to take the next step in the buying process. Keep in mind that including a coupon in your ad boosts response between 25 and 100 percent. Youll also increase response if you can offer something free whether it is a sample, a consultation or just information. Other techniques for getting people to act now are to include lines like: "Supplies are limited," "This offer expires April 4," or simply "Act now!" There you have it. Nine steps to creating more profitable print ads. Follow these steps when you write your next newspaper or magazine ad and watch your sales increase dramatically.

ADVERTISING AGENCIES Organization structure:

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The activities within an advertising agency are typically divided into 4 broad groups: account management, the creative department, media buying, and research. These divisions are usually physically separated, although all four areas work closely together to produce an advertising campaign in its entirety. Account managers usually have daily interaction with a counterpart at the client's office and coordinate the activities of the other departments according to the client's wishes. The creative department designs original themes or concepts for ads, while the media department places finished ads within the media in which they will receive the most exposure to a target audience. The research department provides data about consumers to help the agency and the client make informed advertising decisions. Recently added to advertising agencies' roster of services are public relations, direct marketing, and promotional services. Other activities that used to be completed by outside vendors, such as photography and high-tech print work, have been brought in-house in many agencies.

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Organization chart:

Type: 1
Board of Directors Managing Director

Client Services Director Servicing Group Media Research

Creative Director Creative Groups Audio Visual Language Studio Production

Finance / Accounts

Branches

Secretarial / Legal Personnel

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Type: 2

ADVERTISING AGENCIES Structure of Advertising Agency:

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Broadly there are 6 departments in any advertising agency:

Account Servicing Account Planning Media Creative Production Finance and Accounting

Account service department. The account service, or the account management department, is the link between the ad agency and its clients. Depending upon the size of the account and its advertising budget one or two account executives serve as liason to the client. The account executives job requires high degree of diplomacy and tact as misunderstanding may lead to loss of an account. The account executive is mainly responsible to gain knowledge about the clients business, profit goals, marketing problems and advertising objectives. The account executive is responsible for getting approved the media schedules, budgets and rough ads or story boards from the client. The next task is to make sure that the agency personnel produce the advertising to the clients satisfaction. The biggest role of the account executive is keeping the agency ahead of the client through follow-up and communications. Media department. The responsibility of the agencys media department is to develop a media plan to reach the target audience effectively in a cost effective manner. The staff analyses, selects and contracts for media time or space that will be used to deliver the ad message. This is one of the most important decisions since a significantly large part of the clients money is spent on the media time and/or space. The media department has acquired increasing importance in an agencys business as large advertisers seem to be more inclined to consolidate media buying with one or few agencies thereby saving money and improving media efficiency. Creative department.

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To a large extent, the success of an ad agency depends upon the creative department responsible for the creation and execution of the advertisements. The creative specialists are known as copywriters. They are the ones who conceive ideas for the ads and write the headlines, subheads and the body copy. They are also involved in deciding the basic theme of the advertising campaign, and often they do prepare the rough layout of the print ad or the commercial story board. Creation of an ad is the responsibility of the copywriters and the art department decides how the ad should look. Production department. After the completion and approval of the copy and the illustrations the ad is sent to the production department. Generally agencies do not actually produce the finished ads; instead they hire printers, photographers, engravers, typographers and others to complete the finished ad. For the production of the approved TV commercial, the production department may supervise the casting of actors to appear in the ad, the setting for scenes and selecting an independent production studio. The production department sometimes hires an outside director to transform the creative concept to a commercial. Finance and accounting department. An advertising agency is in the business of providing services and must be managed that way. Thus, it has to perform various functions such as accounting, finance, human resources etc. it must also attempt to generate new business. Also this department is important since bulk of the agencys income approx. 65% goes as salary and benefits to the employees.

Advertising Process:
When preparing your search proposal, you should take into account that the lead-in time needed to place an ad can vary anywhere from days to months depending on the publication. You should plan to have your ad approved and an estimate of the cost done at least one month prior to the date when you want the ad to be published. The advertising process for professional staff and faculty positions involves five basic steps: 1. Writing an Ad 2. Getting Approval for the Text of the Ad 3. Estimating the Cost of the Ad 4. Placing Ads & Posting Announcements 5. Paying for Ads

ADVERTISING AGENCIES Typical work flow in agency:

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STAGE Briefing Stage

WORK PERFORMED AT STAGE Briefing from the client Internal briefing to the creative and media Any research briefing if required Ad campaign and media plan development Internal review and finalization Presentation to client and approvals Any pre-testing if required Budget and estimate approvals Production of film, press ads, collaterals Media Scheduling and media booking All release approvals for creative & media Material dispatch to media Media release monitoring Any post-testing if required Billing and collection

Creation Stage

Production Stage

Post Production Stage

ADVERTISING AGENCIES Working of an advertising agency:

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Advertising is the most effective way to reach consumers and create awareness about your products and services. With thousands of companies coming up every day to offer their products and services, advertising becomes a highly integral tool to reach your products effectively to the consumer. An advertising agency has an upheaval task of informing, persuading and building a relationship of trust and faith between the company and his consumers. Thus advertising agency is an instrument where advertisements are conceived, strategized, planned to reach maximum people. Webwindows, a UK based leading media agency has been rendering advisory and creative services to online companies to assist them in their needs for planning, composing advertisements and placing them in the right newspaper for the last ten years. In fact, Webwindows has a dedicated page, the Webwindows page that appears in the seven leading papers in the UK. The Webwindows page is completely dedicated to small and mid-sized companies to promote their online offerings. Research has proved what Webwindows has believed all along that when it comes to advertising print prevails over the Internet and all other forms of media. By advertising Webwindows, you not only gain advertising space at costeffective rates but also the fruits of the ten years of experience Webwindows has in guiding its client to advertise in the right newspaper based on demographics, customer reach, target audience etc. The crux of the adverting job is to help you reach your services / products to the public in the best possible way. Advertising agencies have to build strategies that build a stand-out image of your company among your consumers. They need to build a relationship of trust and faith between your products / services and the prospective consumers. Following the same fundamental to reach your product to the consumers in a positive light, Webwindows assist online companies in 360 degree aspects of advertising. Right from ad content composition to design to placement, they formulate the best media strategies to help you reach a wide consumer base.

ADVERTISING AGENCIES Role and Functions of Advertising Agencies:

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Functions:

Client servicing:

Also called account executives. Acts as the link between the agency and the client. He suggests what the client exactly wants to his ad agency. He is the person who carries the client brief and is also responsible for the approvals. Creative department:

Under the creative director are a team of copywriters and visualisers who arrive at the big idea. Accordingly the storyboard is prepared and scriptwork is done. The final layout is sent for approval to the client. Production department:

The production department is responsible to convert the storyboard into a finished layout if its for print medium or Outdoor. However the TVC will be outsourced to a production house (eg. Prasoon Pandeys HIGHLIGHT FILMS). The final storyboard is made into a technical storyboard before it is sent for shooting. Media department:

The Media Planner along with Media manager and brand manager of the client prepares the final media budget and purchases insertions for print media (space buying) or purchases radio spots or purchases TV time if its on television. Appropriate media mix is developed. Research department:

In fact research department functions before and after a commercial is made for pre-testing and post-testing of media respectively. Consumer insights and brand usages are also tested at times, according to client in many instances. Finance department:

This department looks after the accounts (financial records) for the agency.

Talent & Creative productions:

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The basic function of an Ad Agency is providing talent. The creative efforts of the art director, the detailed analysis of the research director and the political understanding of the campaign director, are just a few examples of the many abilities of Ad Agency personal have to offer. A business organization or person will contract the services of an ad agency to help market a product. This function involves processing the information collected from the client and through research and designing communication material in the form of advertisements and other publicity material. This also includes planning creative strategies, copy or script writing, visualization, designing, layout, shooting of films, editing, giving music, etc.

Research:

The second function of an Ad agency is research. In order to distribute the message to the public successfully, the agency must first know all that it can about the product. One of the first jobs is to research the product and the company, one must learn, one possibly can about both. The research must even take one close to the heart of the firms inner operations. Ad agencies use research as a tool to test consumer reactions to products and services.

Distribution & Media planning:

The third important function of an ad agency is distribution. Here you decide what type of message you will create for the company and what media will be most helpful in sending this message to the public. On the basis of the media habits (access and exposure) of the target audience, agency people prepare a media plan. This plan includes which media to be used, which part of the media to be used, when to place the ads and for how long to place the ads, etc. media planners keep track of the viewer ship, listener ship and readership of all kinds of media.

Monitoring Feedback:

By monitoring consumer feedback, a decision on whether to revise the message, the medium, the target audience or all of them can be made. Ad agencies are developing to reach the target audience. As information is the backbone of all advertising, to prepare ads, one requires information about the product, its competitors, the market situation and trends, information about the audiences (their likes and dislikes and media habits) also need to be collected. Some of the most effective advertising includes advertisement written in their native language. All of these specialized campaigns are creating new demands on agencies and are requiring new talents for people who work in advertising. In addition, many agencies also offer a variety of allied services. These include: Merchandising Public relations

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Organizing exhibitions and fairs Preparing all kinds of publicity material Planning and organizing special events (event management) Direct marketing

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To accelerate economic growth and create public awareness To provide a total, professional, experienced service which is very personal in its nature To take the advertiser's message and convert it into an effective and memorable communication

Role:
Suppose you are a company with a product. It may be a totally new product. As a company with a product or service to sell, designing and making that item is only part of the battle. People are not going to beat a path to your door. You have to seek a channel of communication. Ad agency need to consider, for example: For whom is the product or service designed? Who would use it? Who is the "target group"? What's special about the product? In what way is it distinct? Unique? Different? What's its "position" in relation to other similar products? What do you want to convey to the public about your product? How should your company contact the public? What medium should it use? Radio? TV? Newspapers? Magazines? Billboards? Bus/subway ads? Direct mail? etc. How extensive a region should your company try to cover? How often?

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Communication and marketing decisions involve specialized expertise. Many companies that design and produce products or offer services lack these specific capabilities. This is where advertising agencies fit in. Advertising agencies exist to help companies to communicate with the public, Market the company's product.
Company with a product or service Ad Agency Media Public

The process of advertising involves considerable specialized knowledge and expertise about people - their interests, preferences, needs, wants, lifestyles, expectations about media - their reach, their effectiveness, their specific appeal about the company and its product and about competing companies and their products

The Benefits of Using an Advertising Agency:

Added Expertise Media Knowledge and Unbiased Advice Easier Administration Media Buying Quality Control Information Fending off the media And when things go wrong Cost Saving Time Saving

ADVERTISING AGENCIES Famous advertising agencies in world:

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BBH (Bartle, Bogle & Hegarty) -- famous for Audi, Levi's, Johnnie Walker, British Airways. Crispin Porter + Bogusky --famous for Subservient Chicken, works with Burger King, Virgin Atlantic Airways, Volkswagen Wieden + Kennedy -- famous for remaining an independent agency; as well as Nike "Just Do It", ESPN "This Is Sports center", Coke, EA, Starbucks, ESPN, Honda UK. JWT (formerly J. Walter. Thompson) -- works with Kelloggs, Unilever, Diageo. Leo Burnett -- works with Procter & Gamble, Kelloggs, McDonald's, Marlboro, Hallmark, Heinz. Famous for creating characters such as Tony the Tiger, Snap Crackle & Pop, the Jolly Green Giant, the Marlboro Man, and Charlie the Tuna. The Martin Agency -- UPS, GEICO, NASCAR, Miller (Lite, MGD), Hanes, and others N.W. Ayer & Son -- the first ad agency in the United States, coined "When it rains it pours" (Morton Salt), "A diamond is forever" (De Beers), "Reach out and touch someone" (AT&T), "Be all you can be" (United States Army), and others Ogilvy & Mather -- famous for the Rolls-Royce print ad with the headline "At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock", among other ads Saatchi and Saatchi -- most famous for working with the Conservative Party especially during the 1979 general election (Maurice and Charles Saatchi later left and set-up M&C Saatchi) TBWA\Chiat\Day -- works with Apple Computer (including the "Think Different" campaign), adidas, and Sony Playstation. Responsible for creating the fcuk brand and (in the UK) Wonderbra advertising.