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10 Major Functions of Advertising Agency

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1- Attracting clients
  • Advertising agency needs clients (advertisers). Without them, it cannot survive. 
2- Account Management
  • Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. 
  • The account manager works closely with the client to develop an advertising strategy. 
3- Creative Team
  • The principle role of account managers is to manage the overall advertising campaign for a client, which often includes delegating selective tasks to specialists. 
  • Advertising agency put the advertising-plan into action under its creative function. Creation of ads is the most important function of an ad agency. Generally, it involves activities like: 
  • Copy writing, Drawing photographs, Making illustrations, layouts, an effective ad message, etc. 
  • These jobs are done by experts like copy writers, artists, designers, etc. These people are highly skilled and creative. They make an advertisement more appealing. Attractive ads help to increase the sales of the product. 
4- Researchers
  • Full-service advertising agencies employ market researchers who assess a client’s market situation, including understanding customers and competitors, and also are used to test creative ideas. 
  • Advertising agency gathers information related to the client's product. It collects following information about a product under its research function: 
  • Features, quality, advantages and limitations of a product, Present and future market possibilities, Competition in the market, Situation in the market, Distribution methods, Buyers' preferences, so on 
  • Ad agency analyses (studies) all this collected information properly and draws conclusions for its research. It helps in planning an advertising campaign, selecting proper media and creation function. 
5- Media Planners
  • Advertising agency helps an advertiser to select a proper media (ad platform) to promote his advertisement effectively. 
  • Media selection is a highly specialized function of an ad agency. It must select the most suitable media for its client's ad. 
  • Advertising agency plans the entire ad campaign of its client. Advertising planning is a primary function of an ad agency. It is done when its research function is completed. That is, after analyzing the client's product, its competitors, market conditions, etc. It is done by experts who use their professional experience to make a result-oriented advertising-plan. 
  • Once an advertisement is created, it must be placed through an appropriate advertising media.
  • Each advertising media, of which there are thousands, has its own unique methods for accepting advertisements, such as different advertising cost structures (i.e., what it costs marketers to place an ad), different requirements for accepting ad designs (e.g., size of ad), different ways placements can be purchased (e.g., direct contact with media or through third-party seller), and different time schedules (i.e., when ad will be run). Understanding the nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates the best deals. 
6- Advertising budget
  • Advertising agency helps an advertiser to prepare his ad budget. It helps him to use his budget economically and make the best use of it. 

  • Without a proper advertising budget, there is a risk of client's funds getting wasted or lost. 
7- Coordination
  • Advertising agency brings a good coordination between the advertiser, itself, media and distributors. 
8- Sales promotion
  • Advertising agency performs sales promotion. It helps an advertiser to introduce sales promotion measures for the dealers and consumers. This helps to increase the sales of the product. 
9- Public relations
  • Advertising agency does the public relations (PR) work for its clients. It increases the goodwill between its clients and other parties like consumers, employees, middlemen, shareholders, etc. It also maintains good relations between the client and media owner. 
10- Non-advertising functions
  • Advertising agency also performs many non-advertising functions: 
  • It fixes the prices of the product, It determines the discounts, It designs the product, It also designs its package, trademarks, labels, etc.
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