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ADVERTISING: Advertising Agencies

ADVERTISING: Advertising Agencies. Industry Participants. Clients (Advertisers). Ad Agency. Media. Client services Creative services Media buying Finance Research. Print Broadcast Out-of-Home Direct. Advertising Department. Advertising Salaries . Types of Ad Agencies.

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ADVERTISING: Advertising Agencies

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  1. ADVERTISING:Advertising Agencies

  2. Industry Participants Clients (Advertisers) Ad Agency Media • Client services • Creative services • Media buying • Finance • Research • Print • Broadcast • Out-of-Home • Direct • Advertising Department

  3. Advertising Salaries

  4. Types of Ad Agencies Agencies provide 4 different services: • Account management • Creative Services • Media Buying Services • Research Services

  5. Specialty Shops • Creative Boutiques • Media Buying • Public Relations

  6. “Personalities” • But even full service agencies have their own personalities and specialties…. • [video on Fallon (McElligott)] • McCann-Erickson • TBWA/Chiat Day

  7. Fallon

  8. Fallon

  9. Fallon

  10. Fallon

  11. Fallon

  12. McCann-Erickson “OLD RELIABLE” • CLIENTS: • Exxon • 90 years • GM (Buick, Cadillac, Pontiac…) • 70 years • Coca-Cola • 60 years • Nestles • 60 years

  13. McCann-Erickson

  14. McCann-Erickson

  15. TBWA/Chiat Day A “Hip” agency • Based in Venice Beach CA and NY Clients: • Absolut vodka • Apple Computer • Nissan • Sony Playstation

  16. TBWA/Chiat Day

  17. TBWA/Chiat Day

  18. Compensation strategies 1. Commission -- 15% [or less] • 8-10% on very large accounts 2. Fees • fixed prices on some items, • percentage on others 3. Cost-plus • actual costs [!] + percentage 4. Incentive-based • often performance [sales] based!

  19. Selecting an Ad Agency Client Defines Needs Long List Questionnaire Short List Credentials Presentation Decision

  20. Selecting an Ad Agency • Activity

  21. 10 Questions to Ask • What do we need from an agency? • Who should handle the media buying? • What compensation strategy do we want? • Do we want a specific kind of advertising campaign? • How important is regular access to the president? • Does the agency have success in direct marketing? • Do we want an agency to handle existing or new-products? • Does the location of the ad agency matter to us? • Who will be in charge of advertising decisions? • Do you love the agency’s work and its results?

  22. Why Agencies Lose Clients 1. Poor performance (sales) 2. Quality of work or service 3. Philosophical differences 4. Unrealistic demands or expectations 5. Personality or personnel changes 6. Client or agency consolidation 7. Conflicts of interest 8. Just for the heck of it!

  23. FCB LAYS OFF 7% OF IRVINE, CALIF. STAFF Fate of Entire El Segundo Office in Question

  24. Quote of the Day • I have learned you can’t have good advertising without a good client, that you can’t keep a good client without good advertising, and no client will ever buy better advertising than he understands or has an appetite for. • Leo Burnett

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