the structure of advertising agencies

Advertising Industry

Structure

Preapred by @heleenmills

World wide annual spend: $600 billion

USA annual spend: $300 billion

Source: Afrographique

Traditional structure

Advertiser (client)

Agency

External facilitator

Media

Target audience

The client side

The advertising agency

creative director

account executive

media buyer

copy writer

traffic controller

Graphic designer PR Specialist Brand Manager Social Strategist Developer UX Designer Freelancers

Agencies

Advertising Agency:

• Full service

• Creative Boutique

• Digital/Interactive

• In-House

• Media Specialist

Promotion Agency:

• Direct Marketing

• Sales Promotion

• Event Planning

• Design

• Public Relations

In South Africa

Fee System: • Hourly rates, or by project

Commissions • Around 15% of airtime fees—

in flux

• 16 2/3 % for outdoor media

• Web media all negotiated

Markup charges: • Production cost + fixed %

Pay-for-results: • Tightly-specified objectives

• But, who is responsible for “results”

how do you get paid?

Product/service?

Competition?

Proposed target market?

What consumer need/problem do we address ?

What does the consumer think of the brand?

What is the one thing we went them to believe?

What kan we do to make them believe this?

Tone of the advertisement?

the creative brief

Marketing & advertising research firms

Consultants Databases, Web, CRM, Traditional management

Production Facilities, technicians, shop displays

Software firms Web tracking (Google analytics)

external facilitators

Broadcasting

TV, radio, satalite

Print

Magazine, direct mail, newspapers

Digital/Interactive Media

Internet, mobile, mobile techonology

Support Media

Outdoor, sponsorship, point-of-sale, branded entertainment

Media Conglomerates

Time Warner, Liberty Media

media organisations

types of agencies

• above the line

• through the line

• below the line

any questions?

• @heleenmills

• hmills@sun.ac.za