The Advertiser-Agency Partnership

CHAPTER 2
THE ADVERTISER-AGENCY
PARTNERSHIP
THE ADVERTISER;THE
VISIBLE PARTNER
 The most visible player in the advertising process is the
advertiser.
 It is the advertiser’s name or product you remember when you
see an TV commercial or magazine ad.
 Advertisers may be international, national, regional or local.
 Once the advertiser agrees to use the services of an ad agency,
it becomes the agency’s client.
CHOOSING AN INDEPENDENT
OR AN IN-HOUSE AGENCY
 An independent agency is one that is separate from the

advertiser, they operate autonomously.
 An in-house advertising agency is owned and operated by the

advertisers. It is inside the advertiser’s organization.
ORGANIZING THE
ADVERTISING DEPARTMENT
 In a centralized advertising department, one group plans,
controls and coordinate all advertising efforts.
 When large organizations such as multinationals expand or

diversify their products, markets or customer base, they may
use a decentralized advertising department for each division
or business.
CENTRALIZED ADVERTISING
DEPARTMENT
Chief executive officer
Vice president Vice president Vice president

finance marketing production
Marketing manager Sales manager
Advertising manager
DECENTRALIZED
ADVERTISING DEPARTMENT
Chief executive officer
Division manager Division manager
Brand manager Brand manager Brand manager Brand manager

WHAT THE ADVERTISING
MANAGER DOES
 Planning and budgeting advertising.
 Creating and producing ads.
 Handling administration.
 Coordinating advertising efforts.
THE ADVERTISING AGENCY;
THE INVISIBLE PARTNER
 Advertising agency play a key but invisible role in

the advertising process by translating the advertisers’
goals into creative message that are places with the
media to reach the target audience.
WHAT ADVERTISING
AGENCIES DO
 Analyze the strengths and weaknesses of the product
and its competitors.
 Analyze the product’s current and potential market.
 Examines the appropriate methods of distribution and
sales and investigates the best media for the
advertisers message.
 The agency prepares and executes the advertising
plan, creating and producing the advertisements,
buying media space and time, checking that the
advertisement runs and billing the client for the
services.
 The agency works closely with the advertiser to

be sure that the advertising is coordinated with the
sales and other marketing activities.
ADVERTISING AGENCY BY
FUNCTION
ACCOUNT MANAGEMANT
 Client services.
CREATIVE SERVICES
 Copy
 Art
 Production
 Traffic
MARKETING SERVICES
 Research
 Creative services
 Account planning
 Media
AGENCY MANAGEMENT
 Human resource
 Finance and accounting
WHAT VARIOUS AGENCIES
OFFER
 A full time advertising agency is capable of

providing all the services necessary to develop, create
and execute advertising for the client
 A limited-service advertising agency concentrates
on selected advertising services
 Creative boutique is a type of limited-service

advertising agency that restricts its services to
developing innovative advertising concepts and
messages.
 Media-buying service is another type of limited
service advertising agency that handles only media
planning, buying and placement
 Some advertiser sell to smaller, more specialized
markets, so they hire special agencies that
concentrate on the audience they want to reach
 Business-to-business, medical and ethnic agencies are
some examples.
HOW AGENCIES ARE PAID?
 MEDIA COMMISSIONS
A commission is a payment from a media firm
to an agency that purchases advertising space
or time for its clients
 MARKUPS
 FEES
 INCENTIVE-BASED COMPENSATION
Also known as performance-based compensation

is one which rewards an agency according to the
results its advertising achieves for the clients.
FORGING THE ADVERTISER-
AGENCY PARTNERSHIP
STARTING A NEW RELATIONSHIP
 Competence
 Expertise
 Reputation
 Compatibility
 Cost consciousness
THE ACCOUNT REVIEW
 Is a formal process in which an advertiser invites
selected agencies to present their credentials and

advertising ideas for a specific product.
 Then the advertiser selects an agency to handle that
product.

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CHAPTER 2

 An independent agency is one that is separate from the

 An in-house advertising agency is owned and operated by the

 When large organizations such as multinationals expand or

Vice president Vice president Vice president

Marketing manager Sales manager

Division manager Division manager

Brand manager Brand manager Brand manager Brand manager

 Advertising agency play a key but invisible role in

 The agency works closely with the advertiser to

 A full time advertising agency is capable of

 Creative boutique is a type of limited-service

Also known as performance-based compensation

selected agencies to present their credentials and

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