Advertising Agencies

advertising agencies
structure & organization

what agencies do. and how theyre organized to do it.
7 primary services:
complete a marketing analysis develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications
4 functions of full-service agencies

account management creative media planning and placement research
agency organization chart

Board o f Direct ors [Cha irm an/CEO] Pre sident [COO]
Other Mark e ting Com munica tions Services [PR, e tc. ]
St rate gy Review Bo ard [Mana gme nt Com mitt ee]
Off ice Manag eme nt [Perso nnel, Acco unting, Lega l, et c. ]
Acco unt Mg mt . Direct or
Crea tive Exec CD
Rese arch Direct or
Media Dept. Direct or
Manage ment Supe rvisor
Asso ciate Crea tive Direct or
Pro ject Manage rs
Asso ciate Media Direct or
Acco unt Executive
Crea tive Group:
Rese arch Assist ants
Media Supe rvisor
Asst . Acco unt Executive
Copy Spvr. & Copywrit ers
Art Supervisor & Art Directors
Media Planner
Media Buyer
Broa dcas t Pro duct ion
Print Pro duct ion
Analyst s
Tra ffic
account management
liaison between agency and client responsible for understanding...
the clients business the clients marketing needs strategy development
representing client point of view within the agency
account management
Account Mgmt. Director Management. Supervisor Account Supervisor Account Executive Asst. Account Executive Account Coordinator
Traffic
account management director management supervisor account supervisors account executives assistant account execs account coordinators traffic
creative department
responsibility
the creative department is responsible for creating and producing the print and broadcast advertising
strategy is key
good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed
creative department
Strategy Review Board Executive Creative Director (ECD) Creative Director (CD) Associate Creative Director (ACD) Creative Group: Copy Spvr. & Copywriters Broadcast Production Traffic Art Supervisor & Art Directors Print Production
executive & group creative directors creative director associate creative director copywriters art directors broadcast producers print production managers traffic coordinators
media department
The media department has two main functions - planning and buying. The planning group handles more strategic marketing and media issues. The buying group handles media negotiations and implementation.
media department
Media Director Associate Media Director Media Supervisor Media Planner Media Buyer
media director associate media directors media supervisors media planners

Media Plan
media buyers
media analysts
Analysts
big changes in the media department

mega-agency media departments have now become profit centers agencies have set up their media departments as free-standing units many large clients now look at media as a separate service
research department
interpret market environment
gather and analyze research data.
primary and secondary techniques
determine consumer needs/perceptions understand problems

advise how ads can meet
strategic goals
help find solutions
Research Report
research department
Research Director Project Managers Research Assistants Outside Research Suppliers
research director research project managers research assistants
outside research specialists
Research Report
auxiliary agency functions

account planning strategy/creative review board office management
human resources legal services accounting recruitment
3 ways agencies make money

commissions
usually 15% of gross costs
fees
usually based on negotiated hourly rate
incentives
still relatively new and problematic usually based on performance goals
agency commissions
media commission system
15% media commission
adjustable commission rates

negotiate to match client budget sliding scale
markups-production & service

add a percentage markup to costs 17.65% of net = 15% of gross
4 types of fee systems

fixed fee (retainer) cost-plus fee performance fee hybrid fee & commission
incentives
in theory, a good way to work get paid based on how well you do, not how much you bill in practice, difficult to implement if client makes final decision (instead of agency), how can agency be responsible for final results? results based on many factors, such as competitive efforts, not just advertising
new business
three primary sources The critical objectivebusiness build existing clients and role of any ad agency is gaining add and sell new IMC services solicitnew business. new accounts
two ongoing problems
spec work teams walking with accounts
things to think about:

why might you be interested in going into the agency business? what might keep you from choosing a career in the agency business?

Advertising Agencies

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Advertising Agencies

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advertising agencies

structure & organization

4 functions of full-service agencies

agency organization chart

Other Mark e ting Com munica tions Services [PR, e tc. ]

St rate gy Review Bo ard [Mana gme nt Com mitt ee]

Off ice Manag eme nt [Perso nnel, Acco unting, Lega l, et c. ]

Acco unt Mg mt . Direct or

Crea tive Exec CD

Rese arch Direct or

Media Dept. Direct or

Manage ment Supe rvisor

Asso ciate Crea tive Direct or

Pro ject Manage rs

Asso ciate Media Direct or

Acco unt Executive

Crea tive Group:

Rese arch Assist ants

Media Supe rvisor

Asst . Acco unt Executive

Copy Spvr. & Copywrit ers

Art Supervisor & Art Directors

Broa dcas t Pro duct ion

Print Pro duct ion

representing client point of view within the agency

media director associate media directors media supervisors media planners

big changes in the media department

primary and secondary techniques

determine consumer needs/perceptions understand problems

research director research project managers research assistants

outside research specialists

auxiliary agency functions

3 ways agencies make money

adjustable commission rates

markups-production & service

4 types of fee systems

things to think about:

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