Chapter 27 01 12 2014 Chapters 1 2 01 12 2014 Chapter 5 The Advertising Agency Media Services and Other Services 01 12 2014 1 Describe the character of an agency Advertising Agency an independent business composed of creative people and businesspeople who develop prepare and place advertising media for sellers seeking to find customers for their goods or services Agencies sometimes advertise themselves in all the appropriate media as their client s might but they also all try to explain themselves on their web sites 2 Discuss the development of the advertising agency Space Salesmen negotiated to sell space ad space in a newspaper for commission o Palmer first person known to work off commission basis Space Wholesalers bought large blocks of space from publishers and then sold the space in small squares a column wide at his own rate o The original media package deal o Rowell The First Rate Directory Rowell published a directory of newspapers rates and his estimates of their circulation Advertisers would buy spaces based on those published in the markets they wanted o The beginning of media estimate The Agency becomes a Creative Center Calkins and Holden one of the most successful agencies for half a century BUT ALSO the influence of their work helped to establish the advertising agency as the creative center for advertising ideas o Started creating the ideas the copy and the artwork o Most respected agencies are the ones with the ability to create effective advertisements Agency Client Relationship Established Francis Ayers billed advertisers for what he actually paid the publishers Adding a fixed charge instead of commission This innovation established the relationship of advertisers as CLIENTS of agencies rather than as CUSTOMERS who might give their business to various salespeople The Curtis No Rebating Rule Curtis Publishing Company announced that it would pay commissions to agencies only if they agreed to collect the full price from advertisers