THE ADVERTISING BUSINESS: AGENCIES AND CLIENTS
CHAPTER 1: ADVERTISING
Part 1 Principle: Back to Basics
WHO ARE THE KEY PLAYERS? The Organization The message sponsor or advertiser Likely to have a marketing team that initiates the advertising effort Hires the advertising agency
WHO ARE THE KEY PLAYERS? The Agency Creates, produces, and distributes the messages. Employs experts who are passionate about their work. Can negotiate the best media deals for clients.
AD AGENCIES The best agencies create value:
By giving a product personality By communicating so as to shape a basic understanding of the product By creating an image or memorable picture of the product By setting the product apart from its competitors
Great advertising must do more than inform, it must “tailor the product story to a potential customer”
WHO ARE THE KEY PLAYERS? The Media Channels of communication that deliver messages and engage audiences. Many are large media conglomerates such as Time Warner and Viacom. Malaysia: Astro and Media Prima The mass media enable advertisers to reach many people with a single message in a cost-efficient manner.
WHO ARE THE KEY PLAYERS? Professional Suppliers and Consultants Provide specialized services to advertisers and agencies. Includes artists, writers, photographers, producers, printers, and vendors who supply user-generated content online
TWO ADVERTISING ORGANIZATION STRUCTURES
TYPES OF AGENCIES The A-List of Advertising Agencies Here are a select few:
Grey Kuala Lumpur: http://grey.com/malaysia BrandThink: http://www.brandthinkasia.com/ JWT Malaysia: https://www.jwt.com/malaysia Lion & Lion: http://lionandlion.com/
TYPES OF AGENCIES Full-Service Agencies
Encompasses account management, creative services, media planning, and account planning.
In-House Agencies Is a part of the advertiser’s organization; helps to control costs and maintain
control over brand image. http://global.ralphlauren.com/enus/About/Philanthropy/Pages/pink_pony.aspx?
TYPES OF AGENCIES….. Specialized Agencies
Specialize in certain functions, audiences, industries or markets.
Creative Boutiques
Small agencies that work only on the creative execution of an idea or product.
Media-Buying Services
Specialize in the purchase of media for clients
HOW ARE AGENCY JOBS ORGANIZED? The five main areas: 1. Account management 2. Account planning and research 3. Creative development and research 4. Media research, planning, and buying 5. Internal operations Let’s take a look at each one……
AGENCY JOBS...... Account management
This team acts as a liaison between the client and agency. The account executive interprets the client’s marketing research, strategy for
the agency. Account planning and research
This team gathers market intelligence and acts as the voice of the consumer. Strategic specialists research consumers’ wants, needs and brand relationships.
AGENCY JOBS...... Creative development and production
Includes copywriters, art directors, and producers. Media research, planning, and buying
This department provides research, planning, and buying services. Internal operations
Includes traffic, print production, finance, and human resources.
HOW ARE AGENCIES PAID? From three main sources: 1.
Commissions: based on media billings.
2.
Fees: based on an hourly rate or project. Also covers travel and various
expenses. 3.
Retainers: A regular amount billed each month, based on projected work.
HOW ARE AGENCIES PAID? Two recent trends: 1.
Based on performance: the agency is paid a percentage of the client’s
sales or marketing budget. 2.
Value billing: the agency is paid for its creative and strategic ideas
rather than for executions and media placements.
BREAK 10 MINS
HOW IS THE PRACTICE OF ADVERTISING CHANGING?
CONSUMER IN CHARGE The days of pounding people with images, shoving them down their eyeballs are over. Consumer-generated advertising creates valuable brand publicity. Consumers have taken control of media and marketing through the Web and social media.
BLURRING LINES AND CONVERGING MEDIA Television is still a major player, but the number of cable channels has exploded. Digital media has fragmented the media world with new, ever-changing forms. Agencies must take a stronger leadership role in the development of brand strategy.
ACCOUNTABILITY AND EFFECTIVENESS Accountability: This has grown in importance over the past two decades. Effectiveness: In tight economic times, it is more critical than ever to deliver
results.
A QUESTION FOR YOU…… What is an effective ad?
Answer:
Effective ads deliver the message the advertiser intended, and that consumers respond to as the advertiser hoped they would. Effectiveness is gauged according to predetermined objectives.
LOOKING AHEAD In Chapter 2, we will:
Explain the bigger picture of advertising and its role in marketing communication and marketing. Explore new ways that agencies are working to interact with customers and cement brand relationships.
IT’S A WRAP “OLD SPICE: THE SMELL OF SUCCESS”
Old Spice generated excitement with guys who were not current customers and women who typically made most body wash purchases. The “hunk” atop the horse captivated the audience – think “eye candy!”
OLD SPICE CAMPAIGN: THE MAN YOUR MAN COULD SMELL LIKE
IT’S A WRAP “OLD SPICE: THE SMELL OF SUCCESS”
Key lessons
Old Spice used research to generate insights that drove the campaign. They involved both men and women in the conversation about what a guy should smell like. The campaign generated an incredible amount of free public relations and social media buzz.
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