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Agency Types

There are several types of advertising agencies: Full service agencies handle all phases of advertising including planning, creation, production, and placement of ads as well as other marketing services. Limited service agencies focus on only one or two services like creative or media buying. Creative boutiques specialize in ad creation while clients handle other functions. In-house agencies are owned by the advertiser to handle their advertising needs. Specialized agencies focus on specific industries or media requiring specialized expertise. Media buying agencies specialize in purchasing and reselling radio and TV ad time.

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48 views

Agency Types

There are several types of advertising agencies: Full service agencies handle all phases of advertising including planning, creation, production, and placement of ads as well as other marketing services. Limited service agencies focus on only one or two services like creative or media buying. Creative boutiques specialize in ad creation while clients handle other functions. In-house agencies are owned by the advertiser to handle their advertising needs. Specialized agencies focus on specific industries or media requiring specialized expertise. Media buying agencies specialize in purchasing and reselling radio and TV ad time.

Uploaded by

Maarij Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Segment 3

TYPES OF ADVERTISING AGENCIES


 Advertising Agencies can be classified by the range of services that they offer. Also,
advertising agencies range in size from one man shows to large firms that employ
thousands of people. Accordingly, different types of advertising agencies are:
 Full Service Agencies: As the name implies, a full service agency is one that
handles all phases of advertising process for its clients: it plan, creates, produces and
places advertisements for its clients. In addition, it might provide other marketing
services such as sales promotion, trade shows, exhibits, newsletters and annual
reports. One major point that differentiates a full service agency from other is that
the personal work full time and the services provide are extensive. The services
usually provided by a full service agency include collecting and analyzing market
data, proposing strategy, preparing and producing the ads, placing the ads in
approved media, verifying the advertisements appearance (publication, broadcasting,
etc), invoice the client, collect the bills and pay the media and other suppliers.
 Limited Service Agencies: Some advertising agencies limit the amount and kind
of service they offer. Such agencies usually offer only one or two of the basic
services. For example, although some agencies that specialize in creative also
offer strategic advertising planning service, their basic interest is in the creation of
advertising. Similarly, some media-buying services offer media planning service
but concentrate on media buying, placement, and billing. When the advertiser
chooses to use limited-service advertising agencies, it must assume some of the
advertising planning and coordination activities that are routinely handled by the
full-service advertising agency. Thus, the advertiser who uses limited-service
agencies usually takes greater responsibility for the strategic planning function,
gives greater strategic direction to specialist creative or media agencies, and
exercises greater control over the product of these specialized agencies, ensuring
that their separate activities are well-ordered and coordinated.
 Creative Boutiques: It is an organization that specializes in the actual creation of
advertisements. In general, boutiques create imaginative and interesting advertising
themes and produce innovative and original advertisements. A company that uses a
creative boutique would have to employ another agency to perform the planning,
buying and administrative functions connected with advertising. Full service ad
agency studies the product or service and determines its marketable characteristic
and how it relates to the competition. At the same time the agency studies the
potential market, possible distribution plans and likely advertising media. Following
this, the agency makes a formal presentation to the client deadlines, it’s finding
about the product and its recommendation for an advertising strategy. Creative
boutiques are different from freelancers. Freelancers are individuals who work on
their own with out any formal attachment with any agency. Clients or agencies hire
these from time to time. The clients also hire creative boutiques.
 In-House Agencies: Such agencies are owned and supervised by advertisers or
the client organizations. The organizational structure and functioning of in-house
agencies are similar to full service agencies in most cases. The advertising director
of the company usually heads an in-house agency. In house agencies are
organized according to the needs and requirements of the company and are staffed
accordingly. Some companies solely depend on their in-house agencies for their
advertising needs. Others depend both on their in-house agency and outside
agencies. Some other companies allow their agencies to take outside jobs.
 Specialized Agencies: There are many agencies, which take up only specialized
advertising jobs. Certain fields like recruitment, medicine, finance, outdoor
advertising, social advertising, etc. require specialized knowledge. Specialization
occurs in such fields for a variety of reasons. Often, as in recruitment advertising,
for example, specialized media or media uses are involved that require knowledge
and expertise not ordinarily found in a general-line agency. In other cases, such as
medical or industrial advertising, the subject is technical and requires that writers
and artists have training in order to write meaningful advertising messages about
it. Such specialist advertising agencies are also usually provide full-service in that
they offer all the basic advertising agency services in their area of specialization
plus other, peripheral advertising services related to their area of
specialization. These agencies are usually small in size.
 Media Buying Agencies: It is an organization that specializes in buying radio and
television time and reselling it to advertisers and advertising agencies. The
services sells time to the advertisers, orders the spots on the various stations
involved and monitors the stations to see if the ads actually run.

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