The Modern Advertising
Agency
AAAA definition:
“An independent business, composed
of creative and business people, who develop, prepare, and
place advertising in advertising media for sellers seeking to
find customers for their goods or services”
Advertising
Agency Overview
There is no universal model for an advertising
agency. An advertising agency can be one person working out of
a spare bedroom, or thousands in offices around the world.
There is a great deal of transition and change
taking place among advertising agencies. What was true
yesterday may not be true tomorrow.
Some terms and job titles vary from agency to
agency.
What does an advertising agency do?
Ad agencies are problem solvers. Their job is
to identify a “pain point” and develop a message that offers
consumers and way to relieve the pain (solve the problem).
Ad agencies are really “communications
specialists”
An agency should add value, not cost.
Value vs cost/price: all about ROI
Trend: Agencies now want to become more of a
partner than a vendor.
Changes in marketing are causing changes in the
role of agencies
Traditional "5 P’s of Marketing" were
-
Product
-
Price
-
Place
-
Packaging
-
Promotion
Todays "5 P’s"
1. Paradox: A proposition that seems self,
contradictory.
Similar to"cognitive dissonance."
"Tastes Great, Less Filling"
http://www.youtube.com/watch?v=4yhE0KTtZnc
2. Perspective: concentrates on the consumer’s
point of view.
3. Paradigm: price vs. value or
"experience"
Cadillac "When you turn your car on, does
it do the same for you?"
Kate Walsh Cadillac Commercial
T. Scott Gross: "...the same people who go
to Sam’s Club to save a few pennies buying toilet paper in
bulk drive off the lot in a $100,000 Beamer.”
4. Persuasion
Customers buy "solutions."
5. Passion: advertising that is exciting,
stimulating innovative and engaging.
Social media advertising is
becoming much more prominent and important.
Advertising Agency Departments
Creative or Creative Services
Ad concept or theme, copywriting, artwork,
graphics, video production etc. Creative is responsible for
producing the ad the consumer actually sees or hears.
A creative director is responsible for
entire process from inception to finished ad
Account Services
Responsible for the relationship between
the agency and the client.
An account supervisor oversees all
accounts.
An account executive is responsible for
specific accounts.
Marketing Services
Marketing Director/Manager/VP oversees
media planning and buying, research, and sales
presentations.
Management & Finance
Accounting, administrative, human resource functions
etc.
Agency Compensation
The goal is to make a profit of 20% or
more.
The medium that gets the ad generally pays a 15
percent commission to the agency. This is an industry
standard.
Agency can charge the advertiser for other
services like creative, research, copywriting, etc.
Agency may negotiate a performance fee for
attaining certain pre-set goals.
Agencies today are trending toward cost
justification and partnering.
Also see advertising agency
types and choosing an advertising
agency.
Free Business Publicity and
Promotion Tips
Sign up for our free weekly Business
Promotion Tipsheet and receive any or all of our downloadable
Special Reports.
Each report is at least 10 pages long and is tightly focused on
one area of business promotion or publicity.
You'll get a free business promotion
tip every week, delivered by email.
Fill in the blanks below or
click here to
see a list of Special Reports.
Browse more websites related to business promotion and
advertising by using the search box below
Browse dozens of books on business promotion and
advertising at
| 
