Functions of
advertising agency
Advertising agency is an
independent service-rendering organization. It delivers various
services and performs many functions for its clients, who are
advertisers. It is mainly involved in activities like planning,
preparing and placing of ads in media. It also performs
non-advertising functions for them. It offers them advisory and
creative services. It does so to make a profit.
Eleven main functions
of ad agency are as follows:
- Research function,
- Advertising planning,
- Creative function,
- Media selection,
- Advertising budget,
- Coordination,
- Sales promotion,
- Marketing research,
- Non-advertising functions, and
- Public relations.
1. Attracting clients:
Advertising agency
needs clients (advertisers). Without them, it cannot survive.
Ad
agency always tries to attract clients
usually by giving ads in trade journals. It also seeks their
attention by offering them various services. It offers expert, cheap
and quick services. It maintains good relations with them. It tries
to give them full satisfaction. It strives harder to attain their
goodwill and customer-loyalty.
2. Research function:
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.
3.
Advertising planning: 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.
After making
the advertising plan, it is shown to the client. If the client likes
and approves it, then the plan is executed (put into action).
4. Creative function:
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.
The ad agency must always
use fresh ideas for creating ads. It must neither use old tactics nor
copy the ad-campaign of other products.
5. Media selection:
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. It must choose media, which has a
potential to give best results for the lowest cost. It must select
more than one media for the ad. For example, an advertisement can be
put on television, the Internet, newspapers, magazines, etc.
After selecting the media,
the ad agency must maintain goods contacts with the media.
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. If an advertiser suffers a loss, he may not bring new
projects. As a result, there is a possibility of losing a potential
client that can bring more business to an ad agency.
7. Coordination:
Advertising agency brings a good coordination
between the advertiser, itself, media and distributors. This is a
very important function. If coordination is proper, it will increase
the sales of the product.
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. Marketing research:
Advertising agency helps its clients to solve
their marketing problems. It does so by conducting a marketing
research for them.
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, trade marks, labels, etc.
These non-advertising
services help an advertiser to increase its sales.
11. 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.
