ORGANIZATIONS OF ADVERTISING BUSINESS

1. History

1800- Whites, first British ad agency

It worked as

- A space broker selling press advertising

- Copy writer

- Designer

2017- Nepal Advertisers, First Nepalese ad agency

2. Reader survey

1950s- Hulton Readership Survey

But ABC was working since 1931 in Britain.

TV commercials were started with the advent of TV in 1955.

3. Location

Mainly capital

Industrial area

4. Public relation

Advertisers as well as media

5. Role

-To plan, create and execute ad campaigns for client. If the advertiser defaults, the agency is responsible for paying debts incurred on the client's behalf.

- Middle position, as a mediator

Ad department

                                                The advertisers

                                                Ad manager

The agency                                                   The media

Account executive                                       Ad sales manager

Ad agency and its world

The advertisers

                                                                        Media Specialists

                        AD AGENCY                        The media

Professional orgs                                                     Suppliers

                                                           

Training

Fair Trading Rules

Commission

15%- National

10%- Regional

TYPES OF AD AGENCIES

1. Service agencies

It provides a whole range of services to the client, both advertising and non advertising.

Advertising Services include Planning, creating and producing advertising campaign which broadly encompasses account planning, research, creative service, media planning and production of ad materials to different media even out door.

Non ad functions may include PR, making corporate identity plans, packaging, organizing fairs, exhibitions and training -materials.

According to Frank Jefkins, Service agencies are categorize as,

1. Full service agencies
1. Marketing research
2. Public relation
3. Recruitment advertising
4. Sales promotion
2. Medium size agencies
1. Freelance job
2. Copy writing
3. Creativity
3. Business to business
1. Trade exhibition

1.                  A La Carte Services i.e. order according to choice, can be hard from a full service agency or small specialist out fits which go by the nomenclature a la carte or boutique.

It often works on ad hoc assignments having separate identity.

Such outfits specialize in creative concepts, strategy development, media planning etc. Their services are at times called for by small and medium size agencies which may not be in a position to offer the high paid creative writers or media planers.

They are also categorized as

1. Creative agencies: These produce copy platform or themes and create campaigns for different media, perhaps inventing characters and writing jingles and music for broadcasting commercials.
2. New product development agencies: They may influence the original concept of the product, and certainly participate in naming products, packing designs, pricing and market segmentation, distribution, test marketing and selling-in to the trade operations as well as the main consumer advertising campaign.
3. Direct response agencies: These agencies have responded to demand, and direct response in all its form, including the use of media. The technique is to sell direct, by post, telephone, fax and the internet.
4. Incentive scheme agencies: Both buy and supply goods and services which are offered as gifts or premiums to customers or as incentive award to the employees.
5. Sales promotion agencies: A modern sales promotion scheme is very often an original exercise created for short term operation. Big prize competition, money off flash pack, charity promotions are some examples of it.
6. Sponsorship agencies: Sponsorship may be for marketing, advertising or public relations purposes, and quite often may embrace all three.

2.                  The House Agency

It is an agency established by a company to look after its advertising requirements.

AD AGENCY STRUCTURE

FUNCTIONS OF AD AGENCIES

1. Consumer research to determine the strengths and weaknesses of the product in household use.
2. Market research to describe the best prospects.
3. Development of marketing strategy and budget
4. Help in naming and packing.
5. Develop and pre testing of the creative concept
6. Media planning to reach target markets efficiently
7. A plan for launching the product to the trade.
8. Application of the creative concept to promotion and point-of-sale materials

9.      Publicity plan for exploiting the product's news

10.  A Plan for generating enthusiasm within the sales force.

Media planning

Function of media planning:

Media planning is a blend of marketing skills and familiarity with mass communication. The planning decisions includes: which audiences to reach, where (geographic emphasis), when (timing), for how long (campaign length) and how intense (frequent) the exposure should be.

 - Wells, Burnett and Moriarty

4 W'S in Media Planning

Who- Who requires a precise description of target prospects? Radio and TV stations also have their own type of audience.

WHERE- Local and regional advertisers confine their media choices to those that best cover their particular trading areas.

WHAT- What message is to be communicated has considerable importance in deciding which media to use?

WHEN- When to advertise can be planned in terms of seasons of the year, month, day, week, hour or minute.

The change in the role of media within Ad agencies from a clerical function to a management function was the result of several factors.

a.         The first was the demand by the advertiser for more accountability.

b.         The second was the adoption of marketing concept with its emphasis in consumer research and strategy planning.

c.         The third has been the sheer explosion of media.

Aperture concept of media planning

The goal of the media planner is to expose consumer prospects to the advertiser's message at critical point. This ideal opening is called an aperture. The most effective advertisement should expose the consumer to the product when interest and attention is very high. Only the accurate marketing research, appreciation of the message concept and a sensitive understanding of mass communication could succeed this complex and difficult assignment.

Media planning operations:

1. Information sources and analysis

Media planning

A.      Marketing Sources

·         Distribution patterns

·         Market sales

·         Rival promotions

B.      Creative sources

·         Theme

·         Message

·         Research

C.     Media sources

·         Popularity

·         Profiles

·         Cost forecasts

2. Setting objectives and strategies

A.     Finding Target audience

·         Demographics- People are described by their age, income, education, occupation, marital status, family size and several other tags.

·         Psychographics- It looks for more sensitive measures of motivation and behavior.

·         Product use segmentation- Audiences can also be classified according to their consumption habits (usage). Media planners obtain information on which products the audiences buy or how often they use or consume these products.

B.     Where to advertise: Geographic area

C.     When to advertise: Timing

·         Seasonal Timing

·         Holyday Timing

·         Day-of-the week timing

·         Hour-of-the-Day timing

D.     Duration: Find the best campaign length

·         The advertising budget

·         Consumer-use cycle (It is the time between purchase and repurchase).

·         Lack of brand loyalty

·         Competitive advertising

E.     Find acceptable media environments

·         Media content-product compatibility (Shoes on sports program)

·         Media-created mood: Food product will not allow its commercials to run during the program that ia not fully for family audiences.

3. Media selection procedure

A.      Audience Measure

B.      Media reach

C.     Frequency

4. Staging the media plan

Media plans are interwoven with all other areas of advertising: the budget, the target audience, the advertising objectives and the message demands.

A.     Situation Analysis

B.     Aperture opportunity

C.     Strategy to select the media

D.     The flowchart: Scheduling and budgeting allocation

MEDIA SELECTION

3.      Circulation (Print)

ABC

4.      Audiences (Electronic)

ABC performs three functions

1.       Audits the circulation figures of member publisher and certifies to the accuracy of publishers statements.

2.       Establish standard for reporting the quantity, quality and distribution or circulation.

3.       Serves as a clearinghouse, gathering statements from member publishers and disseminating circulation reports to the advertising agencies.

5.      Media cost efficiency

Most of the media quote their rates in terms of a standard unit of space.

-Editorial or Program content

Ad media Mix

4 Ms

·         Money

·         Market

·         Media

·         Methodology

Media strategies

• Class selectivity
• Coverage
• Flexibility- frequency 
• Cost Budget
• Editorial environment 

Favorable? People read?

• Production quality
• (Reprint)
• Permanence (The abilities of the media to keep ads before prospect eyes)
• Trade acceptability (is it accepted trade) no to kantipur
• Merchandising cooperation