1. advertising agencies

2. structure & organization
what agencies do.
and how they’re organized
to do it.

3. 7 primary services:
s complete a marketing analysis
s develop an advertising plan
s prepare a creative strategy
s create advertising executions
s develop and implement a media plan
s handle billing and payments
s integrate other marketing communications

4. 4 functions of full-service agencies
s account management
s creative
s media planning and placement
s research

5. agency organization chart
Board of
Directors
[Chairman/CEO]
President
[COO]
Other Marketing Strategy Office Management
Communications Review Board [Personnel,
Services [Managment Accounting,
[PR, etc.] Committee] Legal, etc.]
Account Mgmt. Creative Research Media Dept.
Director Exec CD Director Director
Management Associate Project Associate
Supervisor Creative Managers Media
Director Director
Account Creative Research Media
Executive Group: Assistants Supervisor
Asst. Account Copy Spvr. & Art Supervisor Media Media
Executive Copywriters & Art Directors Planner Buyer
Broadcast Print Analysts
Production Production
Traffic

6. account management
s liaison between agency and client
s responsible for understanding...
q the client’s business
q the client’s marketing needs
q strategy development
s representing client point of view
within the agency

7. account management
Account Mgmt.
Director
s account management
director
Management.
Supervisor
s management supervisor
Account
Supervisor s account supervisors
Account s account executives
Executive
s assistant account execs
Asst. Account Account
Executive Coordinator
s account coordinators
Traffic
s traffic

8. creative department
s responsibility
q the creative department is responsible for
creating and producing the print and
broadcast advertising
s strategy is key
q good creative work is always guided by a
creative strategy that sets forth goals to be
accomplished and key message points to
be relayed

9. creative department
Strategy
Review
Board
s executive & group creative
Executive
directors
s creative director
Creative
Director (ECD)
Creative
Director (CD) s associate creative director
Associate
Creative
Director (ACD)
s copywriters
Creative
s art directors
Group:
Copy Spvr. & Art Supervisor
s broadcast producers
s print production managers
Copywriters & Art Directors
Broadcast Print
Production Production
Traffic
s traffic coordinators

10. media department
s The media department has two main
functions - planning and buying.
s The planning group handles more
strategic marketing and media issues.
s The buying group handles media
negotiations and implementation.

11. media department
Media
Director s media director
Associate
Media
s associate media directors
Director
s media supervisors
Media
Supervisor
s media planners Media
Media Media Plan
Planner Buyer s media buyers
Analysts s media analysts

12. big changes in the
media department
s mega-agency media departments
have now become profit centers
s agencies have set up their media
departments as free-standing units
s many large clients now look at media
as a separate service

13. research department
s interpret market environment
q gather and analyze research data.
q primary and secondary techniques
s determine consumer needs/perceptions
q understand problems
s advise how ads can meet Research
strategic goals Report
q help find solutions

14. research department
Research
Director s research director
Project
Managers
s research project managers
Research s research assistants
Assistants
Research
Outside s outside research Report
Research
Suppliers specialists

15. auxiliary agency functions
s account planning
s strategy/creative review board
s office management
q human resources
q legal services
q accounting
q recruitment

16. 3 ways agencies make money
s commissions
q usually 15% of gross costs
s fees
q usually based on negotiated hourly rate
s incentives
q still relatively new and problematic
q usually based on performance goals

17. agency commissions
s media commission system
q 15% media commission
s adjustable commission rates
q negotiate to match client budget
q sliding scale
s markups-production & service
q add a percentage markup to costs
q 17.65% of net = 15% of gross

18. 4 types of fee systems
s fixed fee (retainer)
s cost-plus fee
s performance fee
s hybrid fee &
commission

19. incentives
s in theory, a good way to work
s get paid based on how well you do, not
how much you bill
s in practice, difficult to implement
s if client makes final decision (instead of
agency), how can agency be responsible
for final results?
s results based on many factors, such as
competitive efforts, not just advertising

20. new business
s three primary sources
“q build existing client’s business
The critical objective and role
of q add and sell new IMC services
any ad agency is gaining new
business.”
q solicit new accounts
s two ongoing problems
q “spec” work
q teams “walking” with accounts

21. things to think about:
s why might you be interested in
going into the agency business?
s what might keep you from choosing
a career in the agency business?