05agencies

8/9/2019 05Agencies

1/21

advertising agenciesadvertising agenciesadvertising agenciesadvertising agencies

8/9/2019 05Agencies

2/21

what agencies do.what agencies do.what agencies do.what agencies do.

structure & organizationstructure & organizationstructure & organizationstructure & organization

and how theyre organizedand how theyre organizedand how theyre organizedand how theyre organized

to do it.to do it.to do it.to do it.

8/9/2019 05Agencies

3/21

7 primary services:7 primary services:7 primary services:7 primary services:

complete acomplete a marketing analysismarketing analysis

develop andevelop an advertising planadvertising plan

prepare aprepare a creative strategycreative strategy createcreate advertising executionsadvertising executions

develop and implement adevelop and implement a media planmedia plan

h

and

leh

and

leb

illingb

illing and

and

paymentspayments integrateintegrate other marketing communicationsother marketing communications

complete acomplete a marketing analysismarketing analysis

develop andevelop an advertising planadvertising plan

prepare aprepare a creative strategycreative strategy createcreate advertising executionsadvertising executions

develop and implement adevelop and implement a media planmedia plan

h

and

leh

and

leb

illingb

illing and

and

paymentspayments integrateintegrate other marketing communicationsother marketing communications

8/9/2019 05Agencies

4/21

4 functions of full4 functions of full--service agenciesservice agencies

account managementaccount management

creativecreative media planning and placementmedia planning and placement

researchresearch

8/9/2019 05Agencies

5/21

agency organization chartagency organization chartagency organization chartagency organization chart

Print

Traffic

Production ProductionBroadcast Analysts

Other MarketingCommunications

Services

[PR, etc.]

Asst. Account

Executive

Account

Executive

Management

Supervisor

Account Mgmt.

Director

Copy Spvr. &

Copywriters

Art Supervisor

& Art Directors

Creative

Group:

Associate

Creative

Director

Creative

Exec CD

Research

Assistants

Project

Managers

Research

Director

Media

Planner

Media

Buyer

Media

Supervisor

Associate

Media

Director

Media Dept.

Director

StrategyReview Board

[Managment

Committee]

Office Management[Personnel,

Accounting,

Legal, etc.]

President

[COO]

Board of

Directors

[Chairman/CEO]

8/9/2019 05Agencies

6/21

liaison between agency and clientliaison between agency and client

responsible for understanding...responsible for understanding... the clients businessthe clients business

the clients marketing needsthe clients marketing needs

strategy developmentstrategy development

representing client point of viewrepresenting client point of viewwithin the agencywithin the agency

liaison between agency and clientliaison between agency and client

responsible for understanding...responsible for understanding... the clients businessthe clients business

the clients marketing needsthe clients marketing needs

strategy developmentstrategy development

representing client point of viewrepresenting client point of viewwithin the agencywithin the agency

account managementaccount managementaccount managementaccount management

8/9/2019 05Agencies

7/21


directordirector

management supervisormanagement supervisor account supervisorsaccount supervisors

account executivesaccount executives

assistant account execsassistant account execs account coordinatorsaccount coordinators

traffictraffic


directordirector

management supervisormanagement supervisor account supervisorsaccount supervisors

account executivesaccount executives

assistant account execsassistant account execs account coordinatorsaccount coordinators

traffictrafficT ff

A . A un

E u

A un

C d n

A un

E u

A un

Sup

n m n .

Sup

A un m .

D

account managementaccount managementaccount managementaccount management

8/9/2019 05Agencies

8/21

responsibilityresponsibility responsibilityresponsibility

the creative departmentthe creative department is responsibleis responsible

for creating and producing the print andfor creating and producing the print andbroadcast advertisingbroadcast advertising

strategy is keystrategy is key

good creative workgood creative work is always guided by ais always guided by a

creative strategycreative strategy that sets forththat sets forth goals togoals to

be accomplishedbe accomplished andandkey messagekey message

pointspoints to be relayedto be relayed

the creative departmentthe creative department is responsibleis responsible

for creating and producing the print andfor creating and producing the print andbroadcast advertisingbroadcast advertising

strategy is keystrategy is key

good creative workgood creative work is always guided by ais always guided by a

creative strategycreative strategy that sets forththat sets forth goals togoals to

be accomplishedbe accomplished andandkey messagekey message

pointspoints to be relayedto be relayed

creative departmentcreative departmentcreative departmentcreative department

8/9/2019 05Agencies

9/21

creative departmentcreative departmentcreative departmentcreative department

executive & group creativeexecutive & group creativedirectorsdirectors

creative directorcreative director

associate creative directorassociate creative director

copywriterscopywriters

art directorsart directors broadcast producersbroadcast producers

print production managersprint production managers

traffic coordinatorstraffic coordinators

executive & group creativeexecutive & group creativedirectorsdirectors

creative directorcreative director

associate creative directorassociate creative director

copywriterscopywriters

art directorsart directors broadcast producersbroadcast producers

print production managersprint production managers

traffic coordinatorstraffic coordinatorsPrint

Traffic

ProductionBroadcast

Production

Copy

pvr.

Copywriters

Art

upervisor

&Art

irectors

CreativeGroup:

Associate

Creative

Director (ACD)

Creative

Director (CD)

Executive

Creative

Director (ECD)

Strategy

Review

Board

8/9/2019 05Agencies

10/21

media departmentmedia departmentmedia departmentmedia department

TheThe media departmentmedia department has two mainhas two main

functionsfunctions -- planningplanning andandbuying.buying.

TheThe media departmentmedia department has two mainhas two main

functionsfunctions -- planningplanning andandbuying.buying.

The planning groupThe planning group handles morehandles more

strategic marketing and media issues.strategic marketing and media issues.

The buying groupThe buying group handles mediahandles media

negotiations and implementation.negotiations and implementation.

The planning groupThe planning group handles morehandles more

strategic marketing and media issues.strategic marketing and media issues.

The buying groupThe buying group handles mediahandles media

negotiations and implementation.negotiations and implementation.

8/9/2019 05Agencies

11/21

media directormedia director

associate media directorsassociate media directors

media supervisorsmedia supervisors

media plannersmedia planners

media buyersmedia buyers

media analystsmedia analysts

media directormedia director

associate media directorsassociate media directors

media supervisorsmedia supervisors

media plannersmedia planners

media buyersmedia buyers

media analystsmedia analystsAnalysts

Me ia

Planner

Me ia

Buyer

Me ia

pervisor

Associate

Me ia

Director

Me ia

Director

Media

MediaPlanPlan


8/9/2019 05Agencies

12/21

megamega--agency media departmentsagency media departments

have now becomehave now become profit centersprofit centers

agencies have set up their mediaagencies have set up their media

departments asdepartments as freefree--standing unitsstanding units

many large clients now look at mediamany large clients now look at mediaas aas a separate serviceseparate service

megamega--agency media departmentsagency media departments

have now becomehave now become profit centersprofit centers

agencies have set up their mediaagencies have set up their media

departments asdepartments as freefree--standing unitsstanding units

many large clients now look at mediamany large clients now look at mediaas aas a separate serviceseparate service

big changes in thebig changes in thebig changes in thebig changes in the


8/9/2019 05Agencies

13/21

research departmentresearch departmentresearch departmentresearch department

interpret market environmentinterpret market environment

gather and analyze research data.gather and analyze research data.

primary and secondary techniquesprimary and secondary techniques

determine consumer needs/perceptionsdetermine consumer needs/perceptions

understand problemsunderstand problems

advise how ads can meetadvise how ads can meetstrategic goalsstrategic goals

help find solutionshelp find solutions

interpret market environmentinterpret market environment

gather and analyze research data.gather and analyze research data.

primary and secondary techniquesprimary and secondary techniques

determine consumer needs/perceptionsdetermine consumer needs/perceptions

understand problemsunderstand problems

advise how ads can meetadvise how ads can meetstrategic goalsstrategic goals

help find solutionshelp find solutions

ResearchResearchReportReport

8/9/2019 05Agencies

14/21

research directorresearch director

research project managersresearch project managers

research assistantsresearch assistants

outside researchoutside researchspecialistsspecialists

research directorresearch director

research project managersresearch project managers

research assistantsresearch assistants

outside researchoutside researchspecialistsspecialists

research departmentresearch departmentresearch departmentresearch department

Researchliers

O tsi e

Research

ssistants

r ject

anagers

Research

irect r

ResearchResearchReportReport

8/9/2019 05Agencies

15/21

auxiliary agency functionsauxiliary agency functionsauxiliary agency functionsauxiliary agency functions

account planningaccount planning

strategy/creative reviewboardstrategy/creative reviewboard

office managementoffice management

human resourceshuman resources

legal serviceslegal services accountingaccounting

recruitmentrecruitment

account planningaccount planning

strategy/creative reviewboardstrategy/creative reviewboard

office managementoffice management

human resourceshuman resources

legal serviceslegal services accountingaccounting

recruitmentrecruitment

8/9/2019 05Agencies

16/21

3 ways agencies make money3 ways agencies make money3 ways agencies make money3 ways agencies make money

commissionscommissions

usually 15% of gross costsusually 15% of gross costs

feesfees

usually based on negotiated hourly rateusually based on negotiated hourly rate

incentivesincentives

still relatively new and problematicstill relatively new and problematic

usually based on performance goalsusually based on performance goals

commissionscommissions

usually 15% of gross costsusually 15% of gross costs

feesfees

usually based on negotiated hourly rateusually based on negotiated hourly rate

incentivesincentives

still relatively new and problematicstill relatively new and problematic

usually based on performance goalsusually based on performance goals

8/9/2019 05Agencies

17/21

agency commissionsagency commissionsagency commissionsagency commissions

media commission systemmedia commission system

15% media commission15% media commission

adjustable commission ratesadjustable commission rates

negotiate to match client budgetnegotiate to match client budget

sliding scalesliding scale

markupsmarkups--production & serviceproduction & service

add a percentage markup to costsadd a percentage markup to costs

17.65% of net = 15% of gross17.65% of net = 15% of gross

media commission systemmedia commission system

15% media commission15% media commission

adjustable commission ratesadjustable commission rates

negotiate to match client budgetnegotiate to match client budget

sliding scalesliding scale

markupsmarkups--production & serviceproduction & service

add a percentage markup to costsadd a percentage markup to costs

17.65% of net = 15% of gross17.65% of net = 15% of gross

8/9/2019 05Agencies

18/21

4 types of fee systems4 types of fee systems4 types of fee systems4 types of fee systems

fixed fee (retainer)fixed fee (retainer)

costcost--plus feeplus fee

performance feeperformance fee

hybrid fee &hybrid fee &

commissioncommission

fixed fee (retainer)fixed fee (retainer)

costcost--plus feeplus fee

performance feeperformance fee

hybrid fee &hybrid fee &

commissioncommission

8/9/2019 05Agencies

19/21

incentivesincentivesincentivesincentives

in theory, a good way to workin theory, a good way to work

get paid based on howwell you do, notget paid based on howwell you do, not

how much you billhow much you bill in practice, difficult to implementin practice, difficult to implement

if client makes final decision (instead ofif client makes final decision (instead of

agency), how can agency be responsibleagency), how can agency be responsible

for final results?for final results?

results based on many factors, such asresults based on many factors, such as

competitive efforts, not just advertisingcompetitive efforts, not just advertising

in theory, a good way to workin theory, a good way to work

get paid based on howwell you do, notget paid based on howwell you do, not

how much you billhow much you bill in practice, difficult to implementin practice, difficult to implement

if client makes final decision (instead ofif client makes final decision (instead of

agency), how can agency be responsibleagency), how can agency be responsible

for final results?for final results?

results based on many factors, such asresults based on many factors, such as

competitive efforts, not just advertisingcompetitive efforts, not just advertising

8/9/2019 05Agencies

20/21

newbusinessnewbusinessnewbusinessnewbusiness

three primary sourcesthree primary sources

build existing clients businessbuild existing clients business

add and sell new IMC servicesadd and sell new IMC services

solicit new accountssolicit new accounts

tw

o ongoing prob

lemstw

o ongoing prob

lems spec workspec work

teams walking with accountsteams walking with accounts

three primary sourcesthree primary sources

build existing clients businessbuild existing clients business

add and sell new IMC servicesadd and sell new IMC services

solicit new accountssolicit new accounts

tw

o ongoing prob

lemstw

o ongoing prob

lems spec workspec work

teams walking with accountsteams walking with accounts

The critical objective and roleThe critical objective and roleof any ad agency is gainingof any ad agency is gaining

new business.new business.

The critical objective and roleThe critical objective and roleof any ad agency is gainingof any ad agency is gaining

new business.new business.

8/9/2019 05Agencies

21/21

things to think about:things to think about:things to think about:things to think about:

why might you be interested inwhy might you be interested in

going into the agency business?going into the agency business?

what might keep you from choosingwhat might keep you from choosing

a career in the agency business?a career in the agency business?

why might you be interested inwhy might you be interested in

going into the agency business?going into the agency business?

what might keep you from choosingwhat might keep you from choosing

a career in the agency business?a career in the agency business?

05agencies

Documents