ADV 205 Lecture 5 Outline of Last Lecture I Government agencies II Social responsibility and self regulation III Organized groups IV Self regulation V The advertising industry VI Key players the target audience VII Advertisers VIII Advertising and large companies Outline of Current Lecture IX Advertising Agencies X Building the client agency relationship XI Suppliers XII Media Current Lecture Advertising agencies An independent organization of professionals who provide creative and business services to clients related to planning preparing and placing advertisements o Artists Researchers marketing specialists creative directors etc Advertising agencies provide o Account services o Research and account planning o Creative and production o Media planning and buying o Traffic management o Marketing services Local Global Regional International Range of services o Full service General consumer These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Business to business o Specialized Creative boutiques Media buying services Interactive Markets Use independent agency to o Objective o Experience o Talent o Contacts Use an in house agency to o Allow individuals to become technical experts on products being advertising o Receive priority for client and clients needs o Cost savings HW Commission A payment that represents a percentage of a client s total media spending Due Wednesday 1 29 Cost of media advertising 5 million 100 Amount agency bills o client 5 million 100 Amount agency pays media 4 25 million 85 Amount agency keeps 750 000 15 Agency compensation plans o Commission o Around 15 of airtime fees Markup charges o Production cost fixed percent o Agencies add 17 65 to the cost of outside services EX Photographer charges 8 500 Agency adds 1 500 17 65 Client is charged 10 000 for photography services Fee System o Hourly rates or by project Incentive System o Tightly specified objectives Getting Clients Referrals Presentations Networking Advertising Building the Client Agency relationship Cyclical o The pre relationship stage see clients and what kind of work they do and vibe they have o The development stage o The maintenance stage o The termination stage Factors affecting the relationship o Chemistry problem o Communication break down o How you conduct business o Changes company personnel similar clients Suppliers Art studio web design Printers Production houses Research companies Media Channels of communication that carry the message to the audience Are also companies or huge conglomerates Cost effective because the conts are spread over a large number of people Media of advertising o Print newspapers magazines o Electronic TV radio local national o Interactive media online services kiosks home shopping internet viral o Out of home outdoor advertising billboards bus stops airports o Direct mail brochures or catalogs o Other premiums point of purchase displays events and sponsorships