Advertising

UNIT 3

Topic 1: Advertising Agency: Concept, Types, Functions and various departments

Concept

An advertising agency or ad agency is a service business dedicated to creating, planning and handling
advertising (and sometimes other forms of promotion) for its clients.

• An Advertising Agency or ad agency is a service provider that works for clients to create an effective and
goal-oriented advertising campaign aimed at representing the Company positively in the eyes of its target
customers.

• According to American Association of Advertising “An advertising agency is an independent organization of

creative people and business people who specialize in developing and preparing market plans,
advertisements, and other promotional tools”.

“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally
stitch the cloth and deliver it to the customer.”

• Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered
and hands it over to the client. Advertising agencies are mostly not dependent on any organizations.

• These agencies take all the efforts for selling the product of the clients. They have a group of people expert
in their particular fields, thus helping the companies or organizations to reach their target customer in an easy
and simple way.

• The first Advertising Agency was William Taylor in 1786 followed by James “Jem” White in 1800 in London
and Reynell & Son in 1812.

• An advertising agency is a service business dedicated to creating, planning and handling and other
promotional activities for its clients.

• An ad agency is independent from the client and provides an outside point of view to the effort of selling the
client's products or services.

• An agency can also handle overall marketing, communication, sales promotions oriented and branding
strategies for its clients.

• Typical advertising agency clients include the following clientele:

1. Businesses and Corporations

2. Government Agencies

3. Non-Profit Organizations
• Agencies may be hired to produce a complete overall advertising campaign and promotional activities to
build awareness and fulfill advertising goals and objectives

Types of ad agencies:

1. Full Service

2. In-house agencies

3. Specialized agencies

 Creative boutiques

 Media buying agencies

 Digital advertising agencies

Full-service advertising agencies

Full-service advertising agencies offer a wide variety of advertising services to its clients, with both traditional
and digital options. Clients may choose this type of agency when they desire several advertising options for
their brand. Advertisers may choose to work at this agency if they're skilled in an assortment of advertisement
skills and enjoy switching between tasks for campaigns. For example, in one campaign, a professional may
work on the traditional advertisement and in another campaign, the professional may work on the digital
deliverables. Here are some options a full-service advertising agency may offer to clients:

• Television advertisements

• Advertisement campaigns

• Content creation

• Search engine optimization (SEO)

• Graphic design

• Social media management

• Radio advertisements

• Web development

Types of Full-Service Agencies

• General Consumer Agencies

General consumer agencies focus on creating and executing advertising campaigns for a broad range
of consumer products and services. These agencies handle everything from market research and
strategy development to creative design, media planning, and public relations. They cater to the
general public, promoting products like food, beverages, electronics, clothing, and more. Their goal is
 to build strong brand awareness and drive consumer demand through impactful advertising across
various media channels.

• Industrial Agencies

Industrial agencies specialize in advertising for businesses and industries, rather than direct-to-
consumer products. These agencies work with clients in sectors like manufacturing, technology,
healthcare, and other B2B (business-to-business) industries. They create targeted marketing
campaigns aimed at business buyers, stakeholders, and decision-makers. Their services include market
analysis, strategic planning, technical content creation, trade show promotions, and digital marketing.
The primary objective is to highlight the technical advantages and business benefits of their clients'
products or services, ultimately facilitating business growth and partnerships.

In-house advertising agencies

In-house advertising agencies are agencies that operate within an existing company. This means the agency
exists to operate for a single client, which is the company that owns them. For example, a multi-national
clothing company has created its own advertising agency in the office to focus on creating an advertising
campaign for the clothing company. Clients may choose this because it saves them money from outsourcing
the work. It can also make communication easier when the agency exists where the company is operating.
Specialized advertising agencies
Agencies that focus on a specific aspect of advertising or cater to a particular industry. They may be directly
appointed by a client, or used when an agency wants to outsource a particular type of work that they may not
have expertise in.

• Creative boutiques

Creative boutiques offer a variety of creative design options for its clients based on their needs. This type of
agency allows clients to monitor how their campaign is performing on their own. A creative boutique also
allows clients the ability to choose where they place their advertisements. For example, they can choose to
place them as an online banner on third-party websites or as sponsored social media posts. A client may
choose this agency when they lack creative professionals to produce the desired content.

• Media buying agencies

Media buying agencies work with their clients to plan and purchase the best location to place their advertising
material. This can include deciding where most consumers may view the material and who is more likely to act
on the advertisement when they see it. In this agency, it can include both digital and print campaigns. For
example, if a client has a television advertisement for their small pizza shop business, a professional at this
agency may suggest placing the television advertisement on a local channel during the news slot. Sometimes,
media buying agencies also buy time and spaces from media houses/publications etc, to sell them to clients
later on. If possible, they also help the client sell the space in case they don’t want to use it at some point, so
that they don’t face losses.

• Digital advertising agencies

Digital advertising agencies offer advertising services online. Clients may choose this agency when they only
desire to have digital advertisements rather than tangible advertising goods. Here are some services a digital
advertising agency can offer:

• SEO

• Email marketing

• Account-based marketing

• Social media marketing

• Website design and marketing

• Content marketing

• Lead generation

Functions of advertising agency

Advertising agency is an independent service-rendering organization. It delivers various services and performs
many functions for its clients, who are advertisers. It is mainly involved in activities like planning, preparing
and placing of ads in media. It also performs non-advertising functions for them. It offers them advisory and
creative services. It does so to make a profit.

Eleven main functions of ad agency are as follows:

1. Attracting clients,

2. Research function,

3. Advertising planning,

4. Creative function,

5. Media selection,

6. Advertising budget,

7. Coordination,

8. Sales promotion,

9. Market research,

10. Non-advertising functions, and

11. Public relations.

1. Attracting clients

Advertising agency needs clients (advertisers). Without them, it cannot survive.

Ad agency always tries to attract clients usually by giving ads in trade journals. It also seeks their attention by
offering them various services. It offers expert, cheap and quick services. It maintains good relations with
them. It tries to give them full satisfaction. It strives harder to attain their goodwill and customer-loyalty.

2. Research function

Advertising agency gathers information related to the client's product.

It collects following information about a product under its research function:

Features, quality, advantages and limitations of a product,

Present and future market possibilities,

Competition in the market,

Situation in the market,

Distribution methods,

Buyers' preferences, so on.

Ad agency analyses (studies) all this collected information properly and draws conclusions for its research. It
helps in planning an advertising campaign, selecting proper media and creation function.

3. Advertising planning

Advertising agency plans the entire ad campaign of its client.

Advertising planning is a primary function of an ad agency. It is done when its research function is completed.
That is, after analyzing the client's product, its competitors, market conditions, etc. It is done by experts who
use their professional experience to make a result-oriented advertising-plan.

After making the advertising plan, it is shown to the client. If the client likes and approves it, then the plan is
executed (put into action).

4. Creative function

Advertising agency put the advertising-plan into action under its creative function.

Creation of ads is the most important function of an ad agency. Generally, it involves activities like:

Copy writing,

Drawing photographs,

Making illustrations, layouts, an effective ad message, etc.

These jobs are done by experts like copy writers, artists, designers, etc. These people are highly skilled and
creative. They make an advertisement more appealing. Attractive ads help to increase the sales of the
product.

The ad agency must always use fresh ideas for creating ads. It must neither use old tactics nor copy the ad-
campaign of other products.

5. Media selection

Advertising agency helps an advertiser to select a proper media (ad platform) to promote his advertisement
effectively.

Media selection is a highly specialized function of an ad agency. It must select the most suitable media for its
client's ad. It must choose media, which has a potential to give best results for the lowest cost. It must select
more than one media for the ad. For example, an advertisement can be put on television, the Internet,
newspapers, magazines, etc.

After selecting the media, the ad agency must maintain goods contacts with the media.

6. Advertising budget

Advertising agency helps an advertiser to prepare his ad budget. It helps him to use his budget economically
and make the best use of it.

Without a proper advertising budget, there is a risk of client's funds getting wasted or lost. If an advertiser
suffers a loss, he may not bring new projects. As a result, there is a possibility of losing a potential client that
can bring more business to an ad agency.

7. Coordination

Advertising agency brings a good coordination between the advertiser, itself, media and distributors. This is a
very important function. If coordination is proper, it will increase the sales of the product.

8. Sales promotion

Advertising agency performs sales promotion. It helps an advertiser to introduce sales promotion measures for
the dealers and consumers. This helps to increase the sales of the product.

9. Market research

Advertising agency helps its clients to solve their marketing problems. It does so by conducting market
research for them.

10. Non-advertising functions

Advertising agency also performs many non-advertising functions:

It fixes the prices of the product,

It determines the discounts,

It designs the product,

It also designs its package, trademarks, labels, etc.

These non-advertising services help an advertiser to increase its sales.

11. Public relations

Advertising agency does the public relations (PR) work for its clients. It increases the goodwill between its
clients and other parties like consumers, employees, middlemen, shareholders, etc. It also maintains good
relations between the client and media owner.

Departments in an AD agency

Various Departments in an Advertising Agency

1. Creative Department

The Creative Department is the heart of an advertising agency, responsible for generating ideas, crafting ad
copy, designing visuals, and producing creative content. Key roles in this department include the Creative
Director, Art Director, Copywriter, Graphic Designer, and Video Producer. This team brings advertising
concepts to life, ensuring that the content is engaging, persuasive, and aligned with the brand’s message.

2. Account Management

The Account Management Department manages client relationships, understands client needs, coordinates
projects, and ensures the timely delivery of services. With roles such as Account Manager, Account Executive,
and Client Services Director, this department acts as the bridge between the client and the agency, ensuring
effective communication, project coordination, and client satisfaction.

3. Media Planning and Buying

Media Planning and Buying involves planning and purchasing media space and time, ensuring that ads are
placed in the right channels to reach the target audience effectively. Key roles here include Media Planner,
Media Buyer, and Media Director. This department is essential for optimal media placement, maximizing the
reach and impact of advertising campaigns while managing budgets efficiently.

4. Research and Strategy

The Research and Strategy Department conducts market research, analyzes data, and develops strategic
insights to guide advertising efforts. This department includes roles such as Market Research Analyst, Strategic
Planner, and Data Analyst. By providing a data-driven foundation for advertising strategies, this team ensures
that campaigns are relevant, targeted, and effective.
5. Finance and Administration

The Finance and Administration Department manages the financial aspects of the agency, including billing,
budgeting, and human resources. Key roles here include Finance Manager, Accountant, and HR Manager. This
department ensures the financial health of the agency, manages resources efficiently, and supports overall
operations to ensure smooth and effective functioning.

Topic 2- Structure and hierarchy of an advertising agency

Account Management Department

 VP/Management Supervisor: The VP/Management Supervisor oversees the entire account

management department, ensuring client satisfaction and strategic direction. They are responsible for
high-level client relationships and the overall performance of the department.

 Account Supervisor/Manager: The Account Supervisor/Manager manages key client accounts,

coordinates between clients and the agency, and oversees project execution. They ensure that the
clients' needs are met and that the projects are delivered on time and within budget.
  Account Planners: Account Planners develop strategic plans based on market research and client
objectives to guide the advertising campaigns. They analyze consumer insights and market trends to
create effective strategies that meet client goals.

 Account Executives: Account Executives handle day-to-day client interactions, project management,
and ensure timely delivery of services. They act as the primary point of contact for clients, managing
communication and ensuring client satisfaction.

 Assistant Account Executives: Assistant Account Executives support account executives in their tasks,
manage administrative duties, and help coordinate projects. They assist in the preparation of client
reports, meeting agendas, and follow-ups, ensuring smooth project operations.

2. Creative Department

 VP/Creative Director: The VP/Creative Director leads the creative team, setting the creative vision and
ensuring all creative output aligns with the brand’s message. They oversee all creative projects,
providing guidance and inspiration to the team.

o Creative Team:

 Art Director/Visualizer: Responsible for the visual aspects of the campaign, creating
compelling designs and layouts. They work closely with the creative team to ensure
that the visual elements align with the overall concept.

 Copy Supervisor: Oversees the development of ad copy, ensuring consistency and

quality in messaging. They guide copywriters and ensure that the copy aligns with the
client’s objectives and brand voice.

 Copywriter: Crafts the text for advertisements, including slogans, scripts, and other
written content. They create engaging and persuasive copy that captures the
audience's attention and communicates the brand's message effectively.

o Production Team:

 Directors and Producers: Manage the creation of advertising content, from video
shoots to digital production. They oversee the entire production process, ensuring
that the final product meets the creative vision and client expectations.

 Studio Managers: Oversee studio operations, ensuring resources are available and
projects are completed on time. They coordinate with different teams to ensure the
smooth functioning of the studio and the timely delivery of projects.

 Finishing Artists: Handle the final stages of production, ensuring all visual elements
meet quality standards. They work on refining and polishing the visual content to
ensure it is ready for publication or broadcasting.
3. Media Department

 VP/Media Manager: The VP/Media Manager heads the media department, developing overall media
strategies and managing media budgets. They ensure that media plans align with the client's goals and
are executed within budgetary constraints.

 Media Planners: Media Planners design media plans to ensure ads reach the target audience
effectively across various channels. They analyze audience data and select the best media platforms to
maximize campaign impact.

 Media Executives: Media Executives execute media plans, negotiate media buys, and monitor
campaign performance. They work with media outlets to secure the best rates and placements for
advertisements and track the success of media strategies.

 Media Assistants: Media Assistants support the media team with administrative tasks, data collection,
and analysis. They help compile reports, track media performance, and ensure that all media-related
documentation is up to date and accurate.

4. Research Department

 VP/Research Manager: The VP/Research Manager leads the research department, overseeing all
research activities and ensuring data-driven insights for campaigns. They are responsible for setting
research objectives, managing the research team, and ensuring the accuracy and relevance of data
collected.

 Research Assistant: Research Assistants conduct market research, analyze data, and support the
development of strategic insights. They gather information from various sources, compile reports, and
assist in the interpretation of research findings to guide advertising strategies.

 Field Assistants: Field Assistants collect data from the field, conduct surveys, and support research
projects. They play a crucial role in gathering primary data directly from the target audience, ensuring
that research findings are comprehensive and accurate.

5. Administration Department

 HR (Human Resources): HR manages recruitment, employee relations, and organizational

development. They ensure the agency has the right talent, foster a positive work environment, and
support the professional growth and well-being of employees.

 Finance: The Finance team handles budgeting, billing, financial reporting, and resource allocation.
They manage the agency's financial health, ensure that projects are financially viable, and keep track
of all financial transactions and records.

 Traffic Manager: The Traffic Manager focuses on the flow of work within the agency. From intake to
delivery, they plan timelines, monitor tasks and resources, and ensure the on-time completion of
every single project the agency undertakes. Their role is critical in maintaining the efficiency and
productivity of the agency's operations.
 Topic 3: Planning and pitching

Planning

Definition: Planning in advertising refers to the strategic process of developing a comprehensive roadmap for
an advertising campaign. It involves setting objectives, identifying target audiences, and determining the best
strategies and tactics to achieve the desired outcomes.

Key Components:

1. Market Research: Conducting thorough research to understand the market landscape, consumer
behavior, and competitive environment. This helps in identifying opportunities and challenges.
2. Setting Objectives: Defining clear, measurable goals for the campaign. These could include increasing
brand awareness, driving sales, or improving customer engagement.
3. Audience Segmentation: Identifying and segmenting the target audience based on demographics,
psychographics, and behavior. This ensures that the advertising efforts are directed towards the most
relevant and receptive groups.
4. Media Planning: Deciding on the media channels and platforms that will be used to reach the target
audience. This includes choosing between traditional media (TV, radio, print) and digital media (social
media, online ads, email marketing).
5. Creative Strategy: Developing the overarching creative concept and message that will be conveyed
through the advertising materials. This involves brainstorming ideas, creating storyboards, and
designing visuals.
6. Budgeting: Allocating financial resources for different aspects of the campaign, including media buys,
production costs, and agency fees.
7. Timeline: Creating a detailed schedule for the campaign, outlining key milestones and deadlines to
ensure timely execution.
8. Measurement and Evaluation: Establishing metrics and KPIs to measure the success of the campaign.
This includes setting up mechanisms for tracking performance and making adjustments as needed.

Pitching

Definition: Pitching in advertising is the process of presenting a proposed advertising campaign or strategy to
a potential client in an effort to secure their business. It involves showcasing the agency's ideas, capabilities,
and how they can address the client's needs and objectives.

An advertising pitch describes the proposals of an advertising agency to promote a product or service. The
pitch states the objectives for the campaign and describes how the campaign will deliver its intended results.
Companies request advertising pitches so that they can select the most suitable proposal from a number of
advertising agencies. A successful pitch should demonstrate that an agency can use the marketing budget
effectively to create greater value for a brand.

Key Components:

1. Understanding the Client: Researching the client's business, industry, target audience, and marketing
challenges. This helps in tailoring the pitch to their specific needs.
 2. Crafting the Proposal: Developing a detailed proposal that outlines the proposed advertising strategy,
creative concepts, media plan, and budget. The proposal should be comprehensive, clear, and
compelling.
3. Creative Presentation: Creating mock-ups, storyboards, and prototypes of the proposed advertising
materials. This gives the client a visual representation of what the campaign will look like.
4. Strategic Justification: Explaining the rationale behind the proposed strategy and creative choices.
This includes presenting market research findings, audience insights, and competitive analysis to
support the recommendations.
5. Demonstrating Value: Highlighting the agency's unique strengths, past successes, and how their
approach will deliver value to the client. This can include case studies, testimonials, and performance
metrics from previous campaigns.
6. Client Engagement: Engaging with the client during the pitch presentation, encouraging questions,
and addressing any concerns they may have. This helps in building rapport and trust.
7. Closing the Deal: Concluding the pitch with a clear call to action, whether it’s asking for feedback,
proposing next steps, or directly seeking approval to proceed with the campaign. The goal is to secure
the client's commitment and agreement.

Both planning and pitching are critical processes in advertising, requiring a blend of creativity, strategic
thinking, and effective communication to achieve successful outcomes.

STEPS OF PITCHING

Step 1
Arrange a meeting to make your pitch. Bring any other members of your team to the meeting so that the
client/ company knows who will be working on its account if your pitch is successful.
Ask the client to ensure that everyone involved in the selection decision will be present at the meeting. Bring
any essential equipment, such as a laptop, projector or flip chart, to the meeting.

Step 2

Introduce your team. Describe your credentials and state why your firm can meet the campaign requirements.
State the objectives for the advertising campaign and explain how you will measure results against the
objectives.

Step 3

Profile the target market for the advertising campaign and present any market research that you have carried
out.

Describe the target audience and detail their product preferences. Explain how your advertising messages
align with the product factors the audience rates as important.

Show how your messages differentiate the client's product from those of competitors.

Step 4
Present the creative proposals for the campaign. Show mock-ups of press advertisements for newspaper or
magazine to demonstrate impact. Make a test video of a television or cinema commercial, rather than
presenting the proposal on a two-dimensional storyboard.

Present any available results you have obtained from concept research. Advertising researchers monitor
response to different concepts, helping to validate proposals. Present the media proposals for the campaign,
explaining why the selected media represent the most cost-effective strategy for reaching the target audience.

Step 5

Provide the client with a proposed budget for the campaign, including creative, media and production costs.
Where possible, compare the campaign costs with the forecast results to demonstrate value for money and
return on investment. Go through the campaign schedule, setting out key dates for detailed creative
proposals, client approvals and publication. Restate the key measurements for the campaign.

Step 6

Summarize the key points of your pitch and state why you believe your pitch will help the client's team meet
its marketing objectives. Invite questions from the client team. Thank the client team members for their time
and ask when they will make their decision on the winning pitch.

Topic 4: DAVP

The Directorate of Advertising and Visual Publicity (DAVP), a media unit of the Ministry of Information and
Broadcasting, is the nodal multi-media advertising agency of the Government. It caters to the communication
needs of Ministries/Departments including Public Sector Undertakings and Autonomous Bodies under them
and provides single window cost effective service.

The DAVP informs and educates people, rural and urban, about the policies, programmes, messages and
achievements of the Government and helps in motivating them. It reaches people utilizing modern &
traditional means of communication such as press advertisements, audio-visual media, printed material,
outdoor formats, exhibitions and mass mailing. DAVP has the expertise to handle campaigns on all India basis
with integrated media approach utilizing various means of communication for coordinated & focused
campaign.

Origin of DAVP

The Directorate of Advertising and Visual Publicity (DAVP) was established in 1955 by the Government of
India. It was created to serve as the central agency for all government advertisements, ensuring a unified and
efficient approach to public communication. The agency originated from the need to streamline the
dissemination of information about government policies and programs across diverse media platforms.
Initially, DAVP focused on print and outdoor media, but it has since expanded to include electronic and digital
media. Over the years, DAVP has played a pivotal role in promoting government initiatives and fostering public
awareness through strategic advertising and publicity campaigns.

Aims and objectives of DAVP:

 To inform and educate people about the policies, programmes and achievements of the Government
of India though multi-media publicity.

• To secure wide and cost-effective possible dissemination of messages.

• To provide quality service to client Ministries/Departments.

• To ensure smooth, transparent and satisfactory relationship with client newspapers/agencies.

• To maintain fairness and balance in release of advertisements among newspapers/agencies, keeping

in view the message, the target, resources, client’s requirement etc.

• To keep pace with technology for better, faster and more effective dissemination.

Role of DAVP

DAVP has been working as a catalyst of social change and economic growth over the years. It has been
instrumental in creating awareness amongst masses on socio-economic themes, seeking their participation in
developmental activities and for eradication of poverty and social evils.

o To perform the functions of a multi-media advertising agency for the Central Government.

o To act as service agency for Central Government ministries/departments to meet their

publicity needs including production of media inputs as well as dissemination of
messages/information.

o To help Central Government departments in formulating communication strategies/media

plans and help implement them at the grass-root level by providing multi-media support.

The channels of communication used are:

o Advertisements - Release of press ads

o Exhibitions - Putting up exhibitions

o Outdoor Publicity - Display of hoardings, kiosks, bus panels, wall paintings, cinema slides,
banners etc.

o Printed Publicity - Booklets, folders, posters, leaflets, calendars, diaries etc.

o Audio & Visual Publicity - Spots/Quickies, jingles, sponsored programmes, short films etc.

o Mailing of publicity material - Distribution of publicity material