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The Advertising Agency

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What does anAdvertising Agency provide ?

Strategic planningCreationProductionEvaluation

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Multinational & Indian Ad Agencies JWT, Lowe, O&M, Bates, Contract,RKSwamy BBDO, FCB-Ulka, RediffusionDYR, Saatchi & Saatchi, Grey Worldwide,Leo Burnett, Mudra, McCann-Erickson,TBWA\Anthem, Euro-RSG, Hakuhodo

Percept, Ambience DArcy, Triton, EnterpriseNexus, Equus Red Cell, Everest

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Multinational & Indian ad agencies

Madison, IB&W, Orchard, Rubecon, InteractVision, Lemon, Metaphor, Da Cunha, MaaBozell, Quadrant, Interface, Chlorophyll,Confluence, Publicis India, RMG David, Urja,Ushak Kaal, Vyas Gianetti etc

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International (Creative) agencies

Fallon MacElligott, St Lukes, Mother, RedCell, Weiden & Kennedy, Chiat Day,Goodbye Silverstein & Partners

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A typical Ad Agency

HEAD

CREATIVE MEDIAACCOUNTPLANNING

MEDIAOPERATIONS

FILMPRODUCTION

PRINTPRODUCTION

GRAPHICSTUDIO

BILLINGADMINACCOUNTS

ART DIRECTIONCOPY

PLANNINGBUYING

RESEARCH

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The ClientCORPORATE

FINANCE HR PDTN MKG R&D

SALES MKG SERVICES

BRAND MGR ADVT DEPT MKG RS

BRAND MGR

BRAND MGR

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Types of ad agencies

Full service agencies offering full range ofadvertising (planning, creating andproducing) and other marketingcommunicationsCreative boutiquesBrand communications consultants

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The process

Solve a problem or address an opportunity with strategic communications

The problem - stagnating sales, poor imageThe opportunity launch

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The work flow1. Briefing stage from the client, internal

briefing to creative and media2. Creation stage ad campaign and media

plan, internal review and finalisation,presentation to client and approval, pretesting if needed

3. Production stage budget and estimateapprovals, production of film, press ads,collaterals etc

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The work flow

4. Media scheduling and booking, all releasesapprovals for creative and media

5. Release stage material dispatch, mediarelease monitoring, post testing, bill andcollections

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Advertising briefsClient Brief

Advertising Brief

BackgroundAdvertising Brief

Creative Brief Media Brief

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Background advertising brief

Key brand characteristicsBrand performance viz market performanceCompetitive analysisPrevious advertising of the brand andcompetitionBudgets media and non media

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Creative brief

Target audience profileKey consumer insightsAdvertising taskCampaign requirementBrand promise or proposition

Substantiation of the promiseDesired brand image or personality

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Media briefTarget audience profileAdvertising taskMedia objectiveSuggested mediaGeographic market prioritiesSeasonality of sales

Media budgetsDuration of ad campaign

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Agency Structure

AccountManagement

CLIENT

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A Vice President / Director heads anAccount ServicesDepartmentAccounts areserviced byAccount ServicingExecutives whoreport to an

Account ServicingManager / Supervisor

Account Director

Account SupervisorAccount Executive AE

Account Management

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The Creative Department

The objective of the creative department is todevelop the communication message inpictures and words.

They combine pictures and words into asingle executional idea

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The Creative Department

CopyArt

Creative Director

Pictures Words

Creative Directorheads the Creativedepartment

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The Creative Department - Art

Creative Director

Art Director

Visualiser

Artist

Ideate

Visualise

Execute

Digital studio

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The Creative Department - Copy

Creative Director

Copywriter

Jr Copywriter

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The Creative Department

Both are concept thinkersThe art department is well versed aboutdesign principles, colourThe copy department is thorough withthe grammar and languageBoth work as a team.

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The Studio

The digital studio convert layoutsinto finished artworks

Make readyPrepress

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The Print Production DepartmentConversion process from original layouts tothe finished piecePlanning and scheduling timelinesProduction of newspaper ads, brochures,outdoor, direct responseTechnical considerations digital scanning,layout, proofing, film preparation, platemaking,printingTechnical considerations printing methods,paper types, sizes,

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The Production Department

Print

Artworks Film

Tape

Electronic/digital

Radio / TV

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The Media Department

Media Director

Coordinate & research

PrintElectronic

Outdoor

The Mediadirector headsthe media dept.Media plannersreport to themedia director

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The Media functionsThe Media planner supervises all areas of theadvertising campaign in relation to the choiceof media print, broadcast, outdoor, internet

Media research primary and secondaryresearch dataMedia buying execution of the overall mediaplan, select, negotiate media placement and

monitor post placements.

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Revenue streams15% agency commission from MediaCreative charges and Production charges

17.65% markup on suppliers photographers, printers, models,production houses etcRetainer fee or fixed feeIncentive based compensation

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17.65% markup

Photographers bill - Rs 8500Agency markup - Rs 1500

Total Rs 10,000

15% on Rs 10000 = Rs 1500

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Media Billing

Release of 100 sqcm display colour ad inPune Times @Rs 200/- per sqcm

Total amount Rs 20,000Agency commission - Rs 3000

Payable to media - Rs 17,000/-

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Media Billing

Release of 100 sqcm appointment ad incolour Ascent M+P+Amd @Rs 400/- persqcm

Total: Rs 40,000Agency commission - Rs 6000Payable to media - Rs 34,000

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Indian Newspaper Society INSAll leading newspapers and magazinesare membersAll Indian advertising agencies need to beaccredited with the INS15% agency commissionscredit period of 60 daysDefault - loss of accreditationDefault by client - suspension of allrelease of advertisements nationally

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Business Development

Receives an invitation from a company tomake a pitch presentationThe agency describes its experience,personnel, capabilities and operatingproceduresThe agency can also make a pitch