Big Ideas That s what advertising is all about David Ogilvy Jour 2000 Dr Broyles April 8 2014 Advertising Agencies Types of Agencies Independent Agencies o Not under a bigger agency National Agencies o Handle national clients Regional and Local Agencies o Handle regional clients Specialized or Niche o Ex Hispanic agencies African American Agencies o Agencies who specialize in something Digital Agencies Creative Boutiques o We are moving more and more towards these types of agencies o These are agencies that focus on the digital side o These are places that have spun off from the big agencies they focus just on the creative They either work with the client or with a bigger agency to help out with the creative side of advertising In House Agencies o Advantages Familiarity you know the client you are working for because it s the only company you are working for Specialization your work is very specialized you would only do things that have to do with the specific client you are working for Fast Service the marketing side expects you to be much quicker than if you are working on several clients Cost Savings It can save you money by working with an in house agency Confidentiality they have a lot more confidentiality than if the agency is working with a lot of clients Usually these agencies have to sign a non disclosure agreement so that they can t go tell other clients what is new for their client s product Less Objective You lose your objectivity because you are so focused on how you see it Fewer Resources Sometimes you have fewer resources to work with Regular agencies know a lot of people and an in house agency doesn t have as many people to work with o Disadvantages Ideas are not as fresh When you are working for one client it s more difficult to come up with new ideas There comes a point when you feel like you ve used up all of your ideas Extra Cost Overhead Primary Roles of Agencies Idea Generation o Ideas are what make or break the business of advertising If you don t have a strong creative thing to sell you won t be able to sell anything Brand Building Brand Stewardship o Goes back to brand equity It s important to build this so that people will buy your product o Coke vs Pepsi o Brand building is more than just advertising Advertising Public Relations Direct Response Sales Promotion Personal Pieces What Do Advertising Agencies do Complete a marketing analysis o SWOT Strength Weakness Opportunities Threats Develop an Advertising Plan o They look at the objectives strategies budgets All of these pieces come together to make an advertising plan Integrate other MarComm Prepare a creative strategy o This is about what you want your brand to accomplish the benefit and how you are going to get there through your advertisement Create the advertising executions Develop Implement a media plan o Could be TV magazine newspaper something that is out in the world o Where are you going to place the advertisement o Media is where a majority of your money goes in advertising Handle billing and payments o It s vital that the client is billed and that money is collected Walk Through of a agency Account Management o Don t think accounting o Liaison between the client and the agency o They have to understand the client s business needs They are the face of the agencies and have to know the client really well o They are in charge of developing a strategy o They represent the client s point of view within the agency o This can cause some friction between AM and the Creative team because the creative team wants to do one thing but the Account Management knows the client better o Hierarchy Account Mgmt Direct Management Supervisor Account executive Asst Account Executive Account Coordinator Traffic Media o Planning and Buying o Hierarchy Media Director Associate Media Director Media Supervisor Media Planner Media Buyer Analysts Research Account Planning Creative o Hierarchy o This is where we interpret the market and figure out what the consumer needs This is the strategy side of things They advise how ads can meet the strategic goals of the company o They are in charge of creative beliefs consumer insights This is where the strategy comes from and new business presentations o These are the people who come up with all the creative ideas They work off of the strategy and come up with great ads based on these things Strategy Review Board Executive Creative Director Creative Director American Creative Director Creative Group Traffic HR Not going to be discussed in class In charge of bringing in the new business that is out there New Business Ongoing Problems Spec Work o The idea of doing something for free This can be bad That s a lot of money to waste on someone who isn t charging the client for something Teams walking with the account o Someone who works for an agency and then leaves to create their own agency and then takes a client with them Agency Trends Overload of Media They have to make more advertising with less money