ad agency

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Project Owner : Bhuvaneshwari
Created Date : Thu, 08/09/2011 - 10:43
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Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

Advertising involves the process where in a massage is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communication. From the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures and objects, advertising has come a long way. The work is formidable as it spearheads a process intended to attract, modify, change and influences public opinion.

From the local business to multinational firm and all need to advertise. While politicians, social organizations, government special groups need to advertise their motto, national airlines, auto mobile manufactures, food and consumer goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most popular medium.

Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors.

. Business or organization which wishes to advertise,

. Media which provides the medium for advertising and

. Ad-agency which creates the ad to suit the need of the firm.

Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad remains the same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and the figure could be higher. USA has projected media spending on advertising on the net to approximately $7700 by the turn of the century. The scope for advertising professionals certainly shows an upward trend.

Industry Snapshot

According the Advertising Age's 2002 Agency Report, the world's six largest advertising agencies accounted for over 65 percent of $39.28 billion spent on advertising worldwide in 2001. But the advertising industry has suffered during the first years of the 2000s. The economy decline prior to and exacerbated by the terrorist attacks of September 11, 2001 has been sustained by the ongoing conflict with Iraq. As an indicator of the softened demand for advertising services, advertising agency employment fell to just over 180,000 in December 2002, down from an average employment of 194,400 in 2001 and 182,400 in 2002, representing the largest decline since 1991.

Advertising agencies are primarily responsible for two functions. The first is the production of advertising materials in the form of written copy, art, graphics, audio, and video. The second is the strategic placement of the finished creative product in various media outlets, such as periodicals, newspapers, radio, and television.

Advertising agencies can be found throughout the United States, with the greatest percentage located in large cities. Many have headquarters in New York and field offices in Chicago, Los Angeles, San Francisco, Atlanta, Detroit, and other major areas of commerce in order to be close to clients.

Although the larger agencies are more frequently mentioned in the media and in trade publications, the industry is actually predominately comprised of smaller agencies, many with only one or two principals. Industry observers credit lower overhead, diversified services, willingness to accommodate change, and an entrepreneurial attitude for the success of smaller, boutique agencies.

As many clients have begun to focus on a variety of forms of marketing communications, advertising agencies have had to look beyond conventional media-based advertising. Advertising budgets reflect this shift, with additional dollars being earmarked for point-of-sale promotions, public relations, and a major entry into the media mix the Internet. Changing demographics and a savvy American consumer were the driving forces behind these alternative forms of marketing communications.

Some industry leaders have projected that advertising agencies will need to augment their primary line of work and change their longstanding compensation system based on commissions. Realizing the need for "integrated marketing services," many agencies have responded by offering public relations, direct mail, promotional, and Internet services.

Nature of the Industry

Firms in the advertising and public relations services industry prepare advertisements for other companies and organizations and design campaigns to promote the interests and image of their clients. This industry also includes media representatives firms that sell advertising space for publications, radio, television, and the Internet; display advertisers businesses engaged in creating and designing public display ads for use in shopping malls, on billboards, or in similar media; and direct mail advertisers. A firm that purchases advertising time (or space) from media outlets, thereafter reselling it to advertising agencies or individual companies directly, is considered a media buying agency. Divisions of companies that produce and place their own advertising are not considered part of this industry.

Most advertising firms specialize in a particular market niche. Some companies produce and solicit outdoor advertising, such as billboards and electric displays. Others place ads in buses, subways, taxis, airports, and bus terminals. A small number of firms produce aerial advertising, while others distribute circulars, handbills, and free samples.

Groups within agencies have been created to serve their clients electronic advertising needs on the Internet. Online advertisements link users to a companys or products Web site, where information such as new product announcements, contests, and product catalogs appears, and from which purchases may be made.

Some firms are not involved in the creation of ads at all; instead, they sell advertising time or space on radio and television stations or in publications. Because these firms do not produce advertising, their staffs are mostly sales workers. Companies often look to advertising as a way of boosting sales by increasing the publics exposure to a product or service. Most companies do not have the staff with the necessary skills or experience to create effective advertisements; furthermore, many advertising campaigns are temporary, so employers would have difficulty maintaining their own advertising staff. Instead, companies commonly solicit bids from ad agencies to develop advertising for them. Next, ad agencies offering their services to the company often make presentations. After winning an account, various departments within an agency such as creative, production, media, and research work together to meet the clientâ„¢s goal of increasing sales.

Widespread public relations services firms can influence how businesses, governments, and institutions make decisions. Often working behind the scenes, these firms have a variety of functions. In general, firms in public relations services advise and implement public exposure strategies. Firms in public relations services offer one or more resources that clients cannot provide themselves. Usually this resource is expertise in the form of knowledge, experience, special skills, or creativity; but sometimes the resource is time or personnel that the client cannot spare. Clients of public relations firms include all types of businesses, institutions, trades, and public interest groups, and even high-profile individuals. Clients are large and small for-profit firms in the private sector; State, local, or Federal Governments; hospitals, universities, unions, and trade groups; and foreign governments or businesses.

In an effort to attract and maintain clients, advertising and public relations services agencies are diversifying their services, offering advertising as well as public relations, sales, marketing, and interactive media services. Advertising and public relations service firms have found that highly creative work is particularly suitable for their services, resulting in a better product and increasing their clients' profitability.


Commercial advertising media can include wall paintings, billboards , street furniture components, printed flyers, radio, cinema and television ads, web banners, web popups, skywriting, bus stop benches, magazines, newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, the opening section of streaming audio and video, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising.

Covert advertising embedded in other entertainment media is known as product placement. A more recent version of this is advertising in film, by having a main character use an item or other of a definite brand - an example is in the movie Minority Report, where Tom Cruise's character Tom Anderton owns a computer with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo.

The TV commercial is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events.

Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none existing in real-life. Virtual product placement is also possible. Increasingly, other mediums such as those discussed below are overtaking television due to a shift towards consumer's usage of the Internet.

Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives. E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "spam".

Profile of major advertising mediums


Newspapers Flexibility; timeliness; good local market coverage; broad acceptance; high believability. Short life; poor reproduction quality; small pass along audience.

Television Combines sight, sound and motion; appealing to the senses; high attention; high reach. High absolute cost, high clutter, fleeting exposure, less audience selectivity Direct mail Audience selectivity, flexibility, no ad competition within the same medium, personalization. Relatively high cost, junk mail image.

Radio Mass use, high geographical and demographic selectivity; low cost. Audio presentation only; lower attention than television; non standardized rate structure; fleeting exposure.

Magazines High geographical and demographic selectivity; credibility and prestige; high quality reproduction, long life; good pass-along readership. Long ad purchase lead time; some waste circulation; no guarantee of position.

Outdoor Flexibility; high repeat exposure; low cost; low competition. Limited audience selectivity; creative limitation. Brouchers Flexibility; full control; can dramatize message. Overproduction could lead to run away costs.

In-film advertising

In-film advertising used to mean a couple of product billboards placed behind the hero's car, Till Taal came along. That's the film that put Coke and product placements firmly in the plot.

In-film advertising has only gathered more fans since. It's not just the colas, brands like Hero Honda, Bru, and Fair & Lovely have got into the act. It has become a well-thought out and legitimate part of a brand's marketing plan, and as the film industry gets more corporatised, it's likely to get more popular.

This season's got a blockbuster hitting the screen, with all the attendant song, dance and scandal. Kaante stars Amitabh Bachchan, Sanjay Dutt, Sunil Shetty, Kumar Gaurav, Lucky Ali and Mahesh Manjrekar and Thums Up. Coke's paid Sanjay Gupta, the film's producer, to feature the cola in some scenes rumours put the figure at Rs 4 crore, but Coca-Cola, as well as the producer, say it isn't so and it's also airing promos for the film that incorporate the Thums Up brand.

Leo Entertainment, the film marketing division of Leo Burnett, is working with White Feather Productions in their marketing efforts.

Work Environment

Ad agencies are based within office settings. Accounts Executives, Account Planers, Media Executives, Art Directors and Copywriters spend most of their working time in agency office. Account

Executives have to travel extensively, visiting clients and suppliers. While other staff, travel occasionally to attend meetings with clients, or visit locations during film production. Ad agencies are very busy places and often work is on till late hours. In 2004, workers in the industry averaged 33.8 hours per week, a little higher than the national average of 33.7. Most employees in advertising and public relations services work in comfortable offices operating in a teamwork environment; however, long hours, including evenings and weekends, are common. There are fewer opportunities for part-time work than in many other industries; in 2004, 14 percent of advertising and public relations employees worked part time, compared with 16 percent of all workers.

Work in advertising and public relations is fast-paced and exciting, but it also can be stressful. Being creative on a tight schedule can be emotionally draining. Some workers, such as lobbyists, consultants, and public relations writers, frequently must meet deadlines and consequently may work long hours at times. Workers, whose services are billed hourly, such as advertising consultants and public relations specialists, are often under pressure to manage their time carefully. In addition, frequent meetings with clients and media representatives may involve substantial travel.

Most firms encourage employees to attend employer-paid time-management classes, which help reduce the stress sometimes associated with working under strict time constraints. Also, with today hectic lifestyle, many firms in this industry offer or provide health facilities or clubs to help employees maintain good health.

Personal characteristics

People in the accounts or client servicing i.e., the Account Executives, Director and planer need to be adept at negotiating. The ability to communicate easily is vital. They face the challenge of competing in the market with other agencies; hence need to have drive determination and tremendous physical and mental stamina. Sensitivity to consumer behavior, trends and human nature are important for success in advertising. They should be able to assimilate the clientâ„¢s requirements and in a lucid style prepare briefs for other departments. The ability to get the work executed by all departments is specially required.

The creative people need a good visual ability, language\artistic skill. Copywriter requires literary ability but an interest in commercial success which comes from understanding what motives the target audience is important. Writers must be able to work, to a strict brief, within restricted space and in limited time. Advertising must follow legal requirements and rules hence considerable creative self-discipline is needed. A feeling for words, economy of style and imagination is needed.

The copywriter works with the art director, and the creative director. The work can be very frustrating particularly when an idea is rejected by the art director and amendments made by the creative director and the client. This can often restrict the imaginative capacity of the copywriter. The openness to stand criticism is absolutely essential.

Media Executives, Planners and Executive directors with others in an integrated team. They should be able to interplant a great deal of information. Media buyers spend most of their time negotiating over the telephone to buy space or time. Attention to detail is needed for keeping to the budget allocated.

Employment avenues

The business of advertising has been growing in proportion to the national economy. Greater competition between domestic and multinational firms has spurred marketing and advertising efforts. Competition for these jobs is growing. Creative college graduates with communication skills will get the best jobs. Job opportunities are in advertising agencies, commercial radio and public, Multinational firms, advertising/PR department of organisations/business/government. Advertising agencies have the highest profile in a much larger advertising industry, composed of various media, advertisers, printers, photographers, typesetters, and others that act as suppliers to the industry. Accordingly, agencies attract most of the people who want to get into advertising.

Generally speaking, an agency is not the place to start an advertising career until the candidate has acquired two sorts of knowledge not available in most academic institutions. First, an extremely good working knowledge of how a wide variety of businesses work is necessary, for agencies serve so many kinds of clients. Second, one must develop good interpersonal business skills to be successful in the agency industry, and these skills are usually developed only in on-the-job experiences. Public service advertising

The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as AIDS, political ideology, energy conservation, religious recruitment, and deforestation. The Government of India has for a long time relied considerably on the talents of the Advertising Agency and the Advertising Agencies Association of India for social causes. Family Planning is the most successful campaign for a social cause by any advertising agency. Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences.


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