Industry Participants

1
Industry Participants
Advertisers
Agency
Media

• Broadcasters
• Print
• Out-of-Home
• Direct

• ICA
• Production Firms

• ACA

2
Client Side Management

• Brand and Category Management
• Regional Management
• Global Management

3
Client Role and Responsibility
1. Ad planning and budgeting 2. Advertising
coordination 3. Monitoring program
implementation 4. Evaluation (effectiveness) 5.
Liaison with agency
4
Agency Role and Responsibility
1. Experience / expertise in communications 2.
Strategic planning assistance 3. Objectivity in
preparing strategy
5
Types of Ad Agencies
Services required by client determine the type of
agency they work with.

• Full Service
• Creative Boutiques
• Media Buying Service
• Other Specialists Direct and Interactive

6
The Full Service Agency

• Account Management
• Creative
• Media
• Research
• Direct Response
• PR

Full Service Agency
7
Functional Areas of the Ad Agency
Account Management
Creative Department
Media Department
Business and Marketing Orientation
Conceptual and Creative Orientation
Analytical and Strategic Orientation
8
Account Management
Account Director
Account Supervisor
Account Executive
9
Creative Department
Creative Director
Copywriter
Art Director
Creative director oversees the team. Team
develops creative concept.
10
Media Department
The media department plans media strategy and
places messages with the media. A media director
heads up the department.

• Media Planner
• Media Buyer
• Media Supervisor

11
Managing the Clients Business
1. Agency Teams

• Account Exec / Supervisor
• Art Director / Copywriter
• Media Planner / Media Buyer

2. Competing Accounts 3. Agency of Record
12
The Creative Boutique

• Specialist
• Creative concept development (message ideas)
• Staffed by ex-FSA personnel

Creative Boutique
13
Media Buying Service
Media Buying Service

• Media Planning
• Media Buying
• Media Research

14
The Agency of Record
Media
Agency B (AOR)
Agency C
Agency A
Client
Flow of creative information Flow of media
information
15
Agency -Client Relationships

• The key to business success depends on
• A healthy and prosperous client-agency
  relationship
• A partnership that encourages open and honest
  communications
• Trust and respect for each other

16
Account Shifting

• Client-agency relationships sour for a variety of
  reasons
• Quality of ads or service provided
• New communications demands not adequately served
• Philosophical differences
• Lack of team concept
• Client consolidates advertising with fewer
  agencies
• Conflict situations

17
Agency Compensation

• Commissions
• Standard Commission Rate (15)
• Reduced Rate Commissions

18
Agency Compensation

• Fee System
• Minimum Guarantees
• Hourly Rates
• Costs Plus Profit

19
Agency Compensation

• Payment by Results
• Usually a reduced rate percentage plus
  incentives for achieving goals
• Typical goals may be brand market share,
  advertising effectiveness and advertising recall