Service organizations that specialize in planning and executing advertising programs for its clients
Superagencies: Large agencies that merged with or acquired other agencies and support organizations
Have now evolved into 4 major agency holding companies?
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Chapter 3Organizing for Advertising and Promotion: The Role of Ad Agenciesand Other Marketing Communication OrganizationsParticipants in the Integrated Marketing Communications ProcessAdvertisers or clientsAdvertising agency2Media organizationsSpecialized marketing communication services organizationsCollateral services organizationsFigure 3.2 - The Advertising Department under a Centralized System3Figure 3.3 - Decentralized BrandManagement System4Figure 3.4 - Comparison of AdvertisingOrganizational Systems5Advertising AgenciesService organizations that specialize in planning and executing advertising programs for its clientsSuperagencies: Large agencies that merged with or acquired other agencies and support organizationsHave now evolved into 4 major agency holding companies?6Reasons for Using an Ad AgencyHighly skilled specialistsSpecialization in a particular industryObjective viewpoint of the marketBroad range of experience7Full-Service AgenciesPerforming researchSelecting mediaFull range of marketing communication and promotion servicesCreating advertisingPlanning advertisingProducing advertisingInteractive capabilitiesPackage designNonadvertising servicesPublic relations and publicitySales promotionsStrategic market planningDirect marketing8Figure 3.6 - Full-Service Agency Organization Chart9Agency ServicesAccount servicesThe link between agency and clientManaged by the account executiveMarketing ServicesResearch departmentMay include account plannersMedia dept. obtains media space, timeCreative ServicesCreation execution of adsCopywriter artists, other specialistsMgmt & FinanceAccountingFinanceHuman ResourcesNew business generation10Creative BoutiquesSmall ad agencies that provide only creative servicesAdvantages Turn out inventive creative work quicklyProvide more attention and better access to creative talent11Media Specialist CompaniesSpecialize in the buying of mediaAgencies and clients develop media strategyMedia buying organizations implement strategies, and buy time and space12Agency Compensation MethodsCommissions from mediaFee, cost, and incentive-based systemsPercentage charges13Evaluating AgenciesFinancial auditCosts, expensesPersonnel hours billedPayments to mediaPayments to suppliersQualitative auditPlanningProgram developmentImplementationResults achieved14Figure 3.9 - How Agencies Add Valueto Client’s BusinessSource: “Report on the Agency–Advertiser Value Survey,” American Association of Advertising Agencies and Association of National Advertisers, August 200715Direct-Marketing AgenciesProvide a variety of servicesDatabase analytics and managementDirect mailResearch and media servicesCreative and production capabilitiesHas following departmentsAccount managementCreative MediaDatabase development/management16Sales Promotion AgencyInvolved with the developing and managing of sales promotion programsProvide following servicesPromotional planning, creative research, and tie-in coordinationFulfillmentPremium design and manufacturing Catalog productionContest/sweepstakes management17Functions Performed by Public Relations FirmsStrategydevelopmentGeneratingpublicityLobbyingPublicaffairsNews releases,communicationResearchManagingcrisisSpecialeventsCoordinationw/promotionalareas18Digital/Interactive AgenciesSpecialize in the development and strategic use of various digital marketing tools Websites for the InternetBanner adsSearch engine optimizationMobile marketing Social media campaigns19Collateral ServicesMarketing researchPackage designConsultantsPhotographersPrintersVideo productionEvent marketing20
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