Advertising Agency: Functions and Organization
The advertising agency is a unique type of business organization that has played a significant role in the development and growth of advertising. Advertising agency is an independent business organization. To promote the business of the advertiser through advertising is the main purpose of the advertising agency. It seeks to advance its clients business. By creating advertisements and delivering them through appropriate media, the agencies implement advertising plans and strategies. An agency represents the core of the advertising profession. It has writers, artists, media experts, researchers, television producers, accounts executives etc.
All these people work together for the success of an advertising campaign. They develop suitable advertising plans and strategies.An advertising agency provides the advertiser a full package of advertising services. It is responsible for the success and failure of a specific advertisement or even a full campaign. The agency involves studying the characteristics and attributes of a product, therefore it can assist the client with various product problems. To improve the sale is the ultimate goal of advertising. Therefore because of its specialization an advertising agency tries to create such advertisements that would be sales oriented. An advertising agency has many specialists dealing in different areas of advertising process. It can react to problems quickly in any of the various aspects of the process, The staff of an advertising agency is professional in the area of marketing and sales promotion and this gives stability and credibility to the advertising profession.
An advertising agency broadly performs the functions of marketing and advertising for which a good understanding of the market as well as knowledge of media, consumer
psychology and advertising appeals are required.
The agency prepares or helps in preparing advertisement plans for its clients. This activity requires a thorough study of the clients product or service and its advantages and disadvantages. Market studies are conducted to have data about the buyers. Effective advertisements at appropriate time are important for a successful advertising campaign.
The agency should also analyze the marketing methods and channels of distribution used in the past by its clients and their competitors. Then agency selects suitable media for advertising. Based on the above available data, an agency recommends an advertising plan to its clients for their approval. After the approval of the plan its execution is normally entrusted to the agency.
Although the advertising agencies have increased the scope of their activities, the three basic and most important functions of an agency have remained unchanged. These three functions are:
1. to help the client in planning the advertising campaign,
2. to prepare the advertisements,
3. to place the advertisements in the most suitable media.
Most large advertising agencies now offer a variety of other services in addition to the three basic functions. The most important of these additional services are:
1. advice on marketing and distribution policies,
2. marketing and advertising research services,
3. advice on public relations and publicity.
The creative function remains the core of an advertising agency. In spite of all the additional services, its prime function is to produce effective advertising.
Originally advertisements were produced by a writer and an illustrator. Now-a- days it is more usual for a writer and an art director, to work so closely together that it
would be difficult to decide precisely who has contributed what to the campaign. Nevertheless their basic skills remain exclusive to each one. A copy writer is expert in the use of words and an artist is expert in projecting an idea visually into print or on the screen.
One more salient point regarding the agency’s organizational structure is the racility of an art studio within the agency. A small agency may not have an art studio. The art work in that case is done by hiring an outside arti’st. But a well established advertising agency has a well developed art studio. In developed countries many large companies nave heir own art studios, where product literature is prepared for distribution.
Media selection is an important function of an advertising agency. The most important aspect of media selection is securing the right audience for a given product. The media people of an agency are responsible for choosing the right media mix so as to meet :he advertising objectives. They analyze the target markets and develop specific media strategies in order to reach this market in an optimal manner. They also negotiate, buy and schedule the newspaper or magazine space, TV and Radio time, outdoor media or other r. Methods to deliver the message to the market.