Advertising Agency Introduction and Function

Advertising Agency Introduction and Function

An advertising agency is an independent company set up to render specialized services in advertising in particular and in market­ing in general. Today the term agency is a legal misnomer.

These firms are not agents in the legal sense but are independent companies. Advertising agencies started as space brokers for the handling of the advertisements placed in newspapers. Through the years, however, the function of the agencies has changed. Their main job today is not to aid media but to serve advertisers.

It acts as an agent or consultant of the advertiser who is a manufacturer, wholesaler, or retailer. It is not an agent in the legal sense. Originally, it acted as a space broker for advertisements given to the media owner, e.g., newspapers.

Today, they are advertising experts or specialists in planning, creating and placing of advertisement. They plan and execute entire advertising campaigns. They conduct market research also on behalf of business enterprises. They choose the necessary description or brands, design the package or labels on the package. They select the media of advertisement. They prepare entertainment as well as commercial spots for radio and TV advertisements.

Functions of Advertising Agency

1. Copy

Copy is the heart of all advertising. The copy activity in an agency is usually headed by a copy director, preferably an art-minded individual because the copy staff works more closely with the art staff than with any other group in the agency. Copy staff also works closely with the account executive; and it may make use of the research department’s copy research.

A copy writer may write copy for all media or specialize in one. He must be able to think and write effectively. Writers need to be sales-minded; experience in personal selling or in reporting is considered helpful by some. While they need imagination and contribute some ideas, writers typically are more often known for their skill with words than for their ideas.

Art directors should be copy-minded for the same reason that the copy directors should be art-minded- Copy and art make the advertisement; copy and art are the advertisement. A feeling of equality, co-operation and understanding should characterize the relationship between copy and art. The art staff mainly works with space advertising.

It visualizes printed advertisements, prepares layouts, and does or buys the finished art work or photograph) which illustrates the advertisements. Because more art work is bought than done within the agency, the art director keeps himself informed about the local artists and their talents.

3. Media

The media man studies media, and collects and analyse media information. Next, he selects the media to carry the adver­tising of each client and makes up schedules of which advertisement is to appear where and on what date. Cost estimates are arrived at for these schedules; and upon the client’s approval, the media staff contracts to buy space for his advertising.

Broadcast time may be bought by the media department or by the TV and radio department or departments. Sometimes, the media staff checks the actual running of newspaper and magazine advertisements; sometimes the accounting department does this checking.

4. Research

The research staff helps the agency to get, serve and hold clients. Research may enable the new business-getters to make stronger presentations to more desirable clients. It may help the creative personnel, particularly the copy and art personnel, to build better advertising for clients. It may help the contact man to convince his client that his last advertising programme was productive, too.

5. Mechanical Production

This department is asked to transform copy, illustrations and layout into a satisfactory printed advertisement. Obviously, this department works closely with the copy and art directors. He uses various commercial firms to be sent to publication commercial printers for printing.

6. Traffic

In an advertising agency traffic is a matter of scheduling and control. This department sets up a work schedule and a routing sequence for each advertisement, and then supervises the advertise­ment’s movement through all its stages and departments in the agency.

Once the advertisement has been prepared, it is forwarded in good time to the media which will carry it. It is only when copy, illustration, mechanical production and client approval are on sche­dule that this essential goal or target date can be achieved.

7. Accounting

The common assignments of the accounting department of an agency include to check on the appearance of advertisements in media; to check media invoices against orders; to pay media bills; to bill clients and collect from them; to look after such matters as records, book-keeping, and office routines.

8. Public Relations

The fundamental objective of this department of an ad agency is to build and maintain goodwill with various sections of the public. The tools used in communicating with these publics are institutional or corporate advertising and publicity. The main job of this depart­ment is to build stronger relations between clients and the various sections of the public customers, employees, middlemen, sharehol­ders.

A minor job is to do a public relations job for the agency itself with prospective, and present clients.

9. Merchandising and Sales Promotion

Emphasis on merchandising and sales promotion varies among advertising agencies. Even the organization varies; there may or may not be a separate department, the activities may be merged within the marketing department, a merchandising department may be converted into a marketing department, or merchandising and sales promotion may be housed in the research department.