Download - 05 agencies
advertising agenciesadvertising agenciesadvertising agenciesadvertising agencies
what agencies do.what agencies do.what agencies do.what agencies do.
structure & organizationstructure & organizationstructure & organizationstructure & organization
and how they’re organizedand how they’re organizedand how they’re organizedand how they’re organizedto do it.to do it.to do it.to do it.
7 primary services:7 primary services:7 primary services:7 primary services:
complete acomplete a marketing analysis marketing analysis develop andevelop an advertising plan advertising plan prepare aprepare a creative strategy creative strategy create create advertising executionsadvertising executions develop and implement adevelop and implement a media plan media plan handle handle billingbilling and and paymentspayments integrate integrate other marketing communicationsother marketing communications
complete acomplete a marketing analysis marketing analysis develop andevelop an advertising plan advertising plan prepare aprepare a creative strategy creative strategy create create advertising executionsadvertising executions develop and implement adevelop and implement a media plan media plan handle handle billingbilling and and paymentspayments integrate integrate other marketing communicationsother marketing communications
4 functions of full-service agencies4 functions of full-service agencies
account managementaccount management creativecreative media planning and placementmedia planning and placement researchresearch
agency organization chartagency organization chartagency organization chartagency organization chart
Traffic
Production ProductionBroadcast Analysts
Other MarketingCommunications
Services[PR, etc.]
Asst. AccountExecutive
AccountExecutive
ManagementSupervisor
Account Mgmt.Director
Copy Spvr. &Copywriters
Art Supervisor& Art Directors
CreativeGroup:
AssociateCreativeDirector
CreativeExec CD
ResearchAssistants
ProjectManagers
ResearchDirector
MediaPlanner
MediaBuyer
MediaSupervisor
AssociateMedia
Director
Media Dept.Director
StrategyReview Board[ManagmentCommittee]
Office Management[Personnel,Accounting,Legal, etc.]
President[COO]
Board ofDirectors
[Chairman/CEO]
liaison between agency and client liaison between agency and client responsible for understanding... responsible for understanding...
the client’s businessthe client’s business the client’s marketing needsthe client’s marketing needs strategy developmentstrategy development
representing client point of view representing client point of view within the agencywithin the agency
liaison between agency and client liaison between agency and client responsible for understanding... responsible for understanding...
the client’s businessthe client’s business the client’s marketing needsthe client’s marketing needs strategy developmentstrategy development
representing client point of view representing client point of view within the agencywithin the agency
account management account management account management account management
account management directoraccount management director management supervisormanagement supervisor account supervisorsaccount supervisors account executivesaccount executives assistant account execsassistant account execs account coordinators account coordinators traffictraffic
account management directoraccount management director management supervisormanagement supervisor account supervisorsaccount supervisors account executivesaccount executives assistant account execsassistant account execs account coordinators account coordinators traffictraffic
Traffic
Asst. AccountExecutive
AccountCoordinator
AccountExecutive
AccountSupervisor
Management.Supervisor
Account Mgmt.Director
account management account management account management account management
responsibilityresponsibility responsibilityresponsibility the creative department the creative department is responsible is responsible
for creating and producing the print and for creating and producing the print and broadcast advertisingbroadcast advertising
strategy is keystrategy is key good creative work good creative work is always guided by ais always guided by a
creative strategy creative strategy that sets forththat sets forth goals to goals to be accomplishedbe accomplished and and key message key message points points to be relayedto be relayed
the creative department the creative department is responsible is responsible for creating and producing the print and for creating and producing the print and broadcast advertisingbroadcast advertising
strategy is keystrategy is key good creative work good creative work is always guided by ais always guided by a
creative strategy creative strategy that sets forththat sets forth goals to goals to be accomplishedbe accomplished and and key message key message points points to be relayedto be relayed
creative departmentcreative departmentcreative departmentcreative department
creative departmentcreative departmentcreative departmentcreative department
executive & group creative executive & group creative directors directors
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 creative executive & group creative directors directors
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 Spvr. &Copywriters
Art Supervisor& Art Directors
CreativeGroup:
AssociateCreative
Director (ACD)
CreativeDirector (CD)
ExecutiveCreative
Director (ECD)
StrategyReviewBoard
media departmentmedia departmentmedia departmentmedia department
The The media departmentmedia department has two main has two main functions - functions - planningplanning and and buying.buying.
The The media departmentmedia department has two main has two main functions - functions - planningplanning and and buying.buying.
The planning groupThe planning group handles more handles more strategic marketing and media issues. strategic marketing and media issues.
The buying groupThe buying group handles media handles media negotiations and implementation.negotiations and implementation.
The planning groupThe planning group handles more handles more strategic marketing and media issues. strategic marketing and media issues.
The buying groupThe buying group handles media handles media negotiations and implementation.negotiations and implementation.
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 analysts
Analysts
MediaPlanner
MediaBuyer
MediaSupervisor
AssociateMedia
Director
MediaDirector
MediaMediaPlanPlan
media departmentmedia departmentmedia departmentmedia department
mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers
agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units
many large clients now look at media many large clients now look at media as aas a separate serviceseparate service
mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers
agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units
many large clients now look at media many large clients now look at media as aas a separate serviceseparate service
big changes in thebig changes in thebig changes in thebig changes in themedia departmentmedia departmentmedia departmentmedia department
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 meet advise how ads can meet strategic 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 meet advise how ads can meet strategic goalsstrategic goals
help find solutionshelp find solutionsResearchResearch
ReportReport
research directorresearch director research project managersresearch project managers research assistantsresearch assistants outside research outside research specialistsspecialists
research directorresearch director research project managersresearch project managers research assistantsresearch assistants outside research outside research specialistsspecialists
research departmentresearch departmentresearch departmentresearch department
ResearchSuppliers
Outside
ResearchAssistants
ProjectManagers
ResearchDirector
ResearchResearchReportReport
auxiliary agency functionsauxiliary agency functionsauxiliary agency functionsauxiliary agency functions
account planningaccount planning strategy/creative review boardstrategy/creative review board office managementoffice management
human resourceshuman resources legal serviceslegal services accountingaccounting recruitmentrecruitment
account planningaccount planning strategy/creative review boardstrategy/creative review board office managementoffice management
human resourceshuman resources legal serviceslegal services accountingaccounting recruitmentrecruitment
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
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
markups-production & servicemarkups-production & 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
markups-production & servicemarkups-production & 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
4 types of fee systems4 types of fee systems4 types of fee systems4 types of fee systems
fixed fee (retainer)fixed fee (retainer) cost-plus feecost-plus fee performance feeperformance fee hybrid fee & hybrid fee &
commissioncommission
fixed fee (retainer)fixed fee (retainer) cost-plus feecost-plus fee performance feeperformance fee hybrid fee & hybrid fee &
commissioncommission
incentivesincentivesincentivesincentives
in theory, a good way to workin theory, a good way to work get paid based on how well you do, not get paid based on how well 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 of if client makes final decision (instead of
agency), how can agency be responsible agency), how can agency be responsible for final results?for final results?
results based on many factors, such as results 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 how well you do, not get paid based on how well 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 of if client makes final decision (instead of
agency), how can agency be responsible agency), how can agency be responsible for final results?for final results?
results based on many factors, such as results based on many factors, such as competitive efforts, not just advertisingcompetitive efforts, not just advertising
new businessnew businessnew businessnew business
three primary sourcesthree primary sources build existing client’s businessbuild existing client’s business add and sell new IMC servicesadd and sell new IMC services solicit new accountssolicit new accounts
two ongoing problemstwo ongoing problems “ “spec” workspec” work teams “walking” with accountsteams “walking” with accounts
three primary sourcesthree primary sources build existing client’s businessbuild existing client’s business add and sell new IMC servicesadd and sell new IMC services solicit new accountssolicit new accounts
two ongoing problemstwo ongoing problems “ “spec” workspec” work teams “walking” with accountsteams “walking” with accounts
““The critical objective and role The critical objective and role of any ad agency is gaining new of any ad agency is gaining new
business.”business.”
““The critical objective and role The critical objective and role of any ad agency is gaining new of any ad agency is gaining new
business.”business.”
things to think about:things to think about:things to think about:things to think about:
why might you be interested in why might you be interested in going into the agency business?going into the agency business?
what might keep you from choosing what might keep you from choosing a career in the agency business? a career in the agency business?
why might you be interested in why might you be interested in going into the agency business?going into the agency business?
what might keep you from choosing what might keep you from choosing a career in the agency business? a career in the agency business?