1. Describe the character of an agencyAdvertising 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 agencySpace Salesmen: negotiated to sell space ad space in a newspaper for commissionPalmer; first person known to work off commission basisSpace Wholesalers: bought large blocks of space from publishers and then sold the space in small “squares” (a column wide) at his own rate.**The original media package deal**RowellThe 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.The beginning of media estimateThe 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.Started creating the ideas, the copy, and the artwork.Most respected agencies are the ones with the ability to create effective advertisementsAgency-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 advertisersChapter 27 01/12/2014Chapters 1 & 2 01/12/2014Chapter 5The Advertising Agency, Media Services, and Other Services 01/12/20141. Describe the character of an agency-Advertising Agency: an independent business, composed of creativepeople 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 commissionoPalmer; 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**oRowell-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. oThe 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 asthe creative center for advertising ideas. oStarted creating the ideas, the copy, and the artwork. oMost 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