JOMC 170the first advertising agentsthe first advertising agency4 full-service agency functions:U.S. agency business todayagency billing by city/statemajor types of agency:mega-agency groupsPowerPoint PresentationSlide 10Slide 11Slide 12Slide 13Slide 14mega-agency pros & consnational, regional & localtop U.S. ad agenciesTop independent U.S. agenciesspecialized/niche agenciesSlide 20Slide 21Slide 22other suppliersin-house agenciesSlide 25Slide 262 primary roles of agenciesidea generationbrand-buildingSlide 30Slide 31Slide 32Slide 33Slide 34Slide 35Slide 36integrated marketing communicationSlide 38what agencies do.7 primary services:Slide 41agency organization chartaccount managementSlide 44creative departmentSlide 46media departmentSlide 48Slide 49Slide 50Slide 51Slide 52auxiliary agency functions3 ways agencies make moneyagency commissions4 types of fee systemsincentivesnew businessbeyond 2007agency trendsSlide 61as long as marketers need ideas to build their brands, they’re going to needJOMC 170JOMC 170JOMC 170JOMC 170Advertising Advertising AgenciesAgencies05AdAgencies.ppt05AdAgencies.pptAdvertising Advertising AgenciesAgencies05AdAgencies.ppt05AdAgencies.pptthe first advertising agentsthe first advertising agentsthe first advertising agentsthe first advertising agents 1843 Volney Palmer1843 Volney Palmer agent for agent for mediamedia, not advertisers, not advertisers 1864 - George P. Rowell1864 - George P. Rowell 1843 Volney Palmer1843 Volney Palmer agent for agent for mediamedia, not advertisers, not advertisers 1864 - George P. Rowell1864 - George P. Rowell “ “the johnny appleseed the johnny appleseed of advertising”of advertising” Rowell’s American Rowell’s American Newspaper DirectoryNewspaper Directory space wholesaler space wholesaler  shared his “secret”shared his “secret” 1888 - 1888 - “Printer’s Ink”“Printer’s Ink” “ “the johnny appleseed the johnny appleseed of advertising”of advertising” Rowell’s American Rowell’s American Newspaper DirectoryNewspaper Directory space wholesaler space wholesaler  shared his “secret”shared his “secret” 1888 - 1888 - “Printer’s Ink”“Printer’s Ink” founded in 1864 by founded in 1864 by Francis W. Ayer, 20Francis W. Ayer, 20 founded in 1864 by founded in 1864 by Francis W. Ayer, 20Francis W. Ayer, 20the first advertising agencythe first advertising agencythe first advertising agencythe first advertising agency “ “& son” made the business & son” made the business seem more establishedseem more established worked for worked for advertiseradvertiser slogan - slogan - “keeping “keeping everlastingly at it brings everlastingly at it brings success.”success.” “ “& son” made the business & son” made the business seem more establishedseem more established worked for worked for advertiseradvertiser slogan - slogan - “keeping “keeping everlastingly at it brings everlastingly at it brings success.”success.” N.W. Ayer N.W. Ayer & Son& Son N.W. Ayer N.W. Ayer & Son& Son4 full-service agency functions:4 full-service agency functions:4 full-service agency functions:4 full-service agency functions: today,today, “full-service” agencies “full-service” agencies provide the followingprovide the following:: today,today, “full-service” agencies “full-service” agencies provide the followingprovide the following:: account managementaccount management creativecreative media planning and media media planning and media placement (media buying)placement (media buying) research research  account managementaccount management creativecreative media planning and media media planning and media placement (media buying)placement (media buying) research research  many adding many adding “below the line”“below the line” services services - PR, sales promotion, Interactive- PR, sales promotion, Interactive many adding many adding “below the line”“below the line” services services - PR, sales promotion, Interactive- PR, sales promotion, InteractiveU.S. agency business todayU.S. agency business todayU.S. agency business todayU.S. agency business today over $285.1 billion in media over $285.1 billion in media billings billings (2006 (2006 www.mccann.comwww.mccann.com)) over 5,000 agenciesover 5,000 agencies over 243,000 people employedover 243,000 people employed New York and Chicago dominateNew York and Chicago dominate over $285.1 billion in media over $285.1 billion in media billings billings (2006 (2006 www.mccann.comwww.mccann.com)) over 5,000 agenciesover 5,000 agencies over 243,000 people employedover 243,000 people employed New York and Chicago dominateNew York and Chicago dominateagency billing by city/stateagency billing by city/stateagency billing by city/stateagency billing by city/stateCityCityBillings in MillionsBillings in MillionsNew YorkNew York$61,264.4$61,264.4ChicagoChicago 17,739.9 17,739.9Los AngelesLos Angeles 10,545.6 10,545.6DetroitDetroit 7,946.3 7,946.3MinneapolisMinneapolis 6,087.2 6,087.2San FranciscoSan Francisco 5,101.9 5,101.9BostonBoston 3,993.7 3,993.7DallasDallas 3,234.8 3,234.8AtlantaAtlanta 2,620.9 2,620.9PhiladelphiaPhiladelphia 2,379.6 2,379.6(Source(Source: Ad Age, 2001 )CityCityBillings in MillionsBillings in MillionsNew YorkNew York$61,264.4$61,264.4ChicagoChicago 17,739.9 17,739.9Los AngelesLos Angeles 10,545.6 10,545.6DetroitDetroit 7,946.3 7,946.3MinneapolisMinneapolis 6,087.2 6,087.2San FranciscoSan Francisco 5,101.9 5,101.9BostonBoston 3,993.7 3,993.7DallasDallas 3,234.8 3,234.8AtlantaAtlanta 2,620.9 2,620.9PhiladelphiaPhiladelphia 2,379.6 2,379.6(Source(Source: Ad Age, 2001 )major types of agency:major types of agency:major types of agency:major types of agency: mega-agency groupsmega-agency groups independent agenciesindependent agencies national, regional, and local national, regional, and local  specialized/niche agenciesspecialized/niche agencies agency service suppliersagency service suppliers media buying, creative servicesmedia buying, creative services mega-agency groupsmega-agency groups independent agenciesindependent agencies national, regional, and local national, regional,