HISTORY OF ADVERTISING AGENCIES

[edit] History

The first acknowledged advertising agency was William Taylor in 1786, another agency was started by James 'Jem' White in Fleet Street, London in 1800, and eventually evolved into White Bull Holmes a recruitment advertising agency, that went out of business in the late 1980s.^[1][2] In 1812 George Reynell, an officer at the London Gazette, set up another of the early advertising agencies also in London.^[1] This remained a family business until 1993, as 'Reynell & Son', and is now part of the TMP Worldwide agency (UK and Ireland) under the brand TMP Reynell.^[1] Another early agency that traded until recently ,was founded by Charles Barker, and the firm he established traded as 'Barkers' until 2009 when it went into Administration.
Volney B. Palmer opened the first American advertising agency, in Philadelphia in 1850. This agency placed ads produced by its clients in various newspapers
produce "photographs, ambrotypes and daguerreotypes." His ads were the first whose typeface and fonts were distinct from the text of the publication and from that of other advertisements. At that time all newspaper ads were set in agate and only agate. His use of larger distinctive fonts caused a sensation. Later that same year Robert Bonner ran the first full-page ad in a newspaper.
In 1864, William James Carlton began selling advertising space in religious magazines. James Walter Thompson joined this firm in 1868. Thompson rapidly became their best salesman, purchasing the company in 1877 and renaming it the James Walter Thompson Company, which today is the oldest American advertising agency. Realizing that he could sell more space if the company provided the service of developing content for advertisers, Thompson hired writers and artists to form the first known Creative Department in an advertising agency. He is credited as the "father of modern magazine advertising" in the US.

[edit] Types of advertising agencies

Ad agencies come in all sizes and include everything from one or two-person shops (which rely mostly on freelance talent to perform most functions), small to medium sized agencies, large independents such as SMART and multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group, Publicis, Interpublic Group of Companies and Havas.

[edit] Limited-Service Advertising 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.

[edit] Specialist Advertising Agencies

In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in particular kinds of advertising: recruitment, help-wanted, medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment, travel, and so on.
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 "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.

[edit] In-House Advertising Agencies

Some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency.

[edit] Interactive agencies

Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space. The digital space is defined as any multimedia-enabled electronic channel that an advertiser's message can be seen or heard from. The 'digital space' translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, and mobile). Interactive agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They deliver services such as strategy, creative, design, video, development, programming (Flash and otherwise), deployment, management, and fulfillment reporting. Often, interactive agencies provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich media campaigns, interactive video brand experiences, Web 2.0 website design and development, e-learning Tools, email marketing, SEO/SEM services, PPC campaign management, content management services, web application development, and overall data mining & ROI assessment.
The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as MySpace, Facebook and YouTube have sparked market interest, as some interactive agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client ROI, but all signs point to online networking as the future of brand marketing and Interactive being the core of Brand's Communication and Marketing Strategy.
Due to the social networking explosion, new types of companies are doing reputation management. This type of agency is especially important if a company needs online damage control. For example, disgruntled customers can quickly and easily damage a company's reputation via social networking sites. Reputation management companies help stem the negative information or misinformation that might proliferate in their absence.

[edit] Search engine agencies

Lately, pay per click (PPC) and search engine optimization (SEO) firms have been classified by some as 'agencies' because they create media and implement media purchases of text based (or image based, in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases, they do technically qualify as 'advertising agencies'.

[edit] Social media agencies

Social media agencies specialize in promotion of brands in the various social media platforms like blogs, social networking sites, Q&A sites, discussion forums, microblogs etc. The two key services of social media agencies are:

• social media marketing
• online reputation management

[edit] Healthcare communications agencies

Healthcare communications agencies specialize in strategic communications and marketing services for the Healthcare and Life Science industries. These agencies distinguish themselves through an understanding of the strict labeling and marketing guidelines mandated by the U.S. Food and Drug Administration (FDA) and industry group guidelines, most notably ADVAMED and PHARMA.

[edit] Medical education agencies

Medical education agencies specialize in creating educational content for the Healthcare and Life Science industries. These agencies typically specialize in one of two areas:

• Promotional education - education and training materials tied to the promotion of a given product or therapy
• Continuing medical education - accredited education and training materials created for continuing physician and medical professional education.

[edit] Other agencies

While not advertising agencies, enterprise technology agencies often work in tandem with advertising agencies to provide a specialized subset of services offered by some interactive agencies: Web 2.0 website design and development, Content management systems, web application development, and other intuitive technology solutions for the web, mobile devices and emerging digital platforms.
The student-run advertising agency model, which mainly operates out of university classrooms or as a student groups, provides free advertising services to clients in exchange for the educational opportunity.

[edit] Agency departments

[edit] Creative department

The people who create the actual ads form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word "write" in their job title, and art directors have the word "art", one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign's key message). Once they receive the creative brief from their account team, the creative team will concept ideas to take to their creative director for feedback. This can often be a back and forth process, occurring several times before several ads are set to present to the client. Creative departments frequently work with outside design or production studios to develop and implement their ideas. Creative departments may employ production artists as entry-level positions, as well as for operations and maintenance. The creative process forms the most crucial part of the advertising process.

[edit] Account services

Agencies appoint account executive to liase with the clients. The account executives need to be sufficiently aware of the client’s needs and desires that can be instructed to the agency’s personnel and should get approval from the clients on the agency’s recommendations to the clients. Creativity and marketing acumen are the needed area of the client service people. They work closely with the specialists in each field. The account manager will develop a creative brief, usually about a page that gives direction to the creative team. The creative brief often includes information about the target audience and their attitudes and behaviors. The creative team will take the brief and, aware of their parameters, develop original copy and graphics depending on media strategy.

[edit] Media services

The media services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can. They can often be restrained by the client's budget, in which, the media strategy will inform the creative team what media platform they'll be developing the ad for.
Modern agencies might also have a media planning department integrated, which does all the spot's planning and placements

[edit] Production

Without the production department, the ads created by the copywriter and art director would be nothing more than words and pictures on paper. The production department, in essence, ensures the TV commercial or print ad, etc., gets produced. They are responsible for contracting external vendors (directors and production companies in the case of TV commercials; photographers and design studios in the case of the print advertising or direct mailers). Producers are involved in every aspect of a project, from the initial creative briefing through execution and delivery. In some agencies, senior producers are known as "executive producers" or "content architects".

[edit] Other departments and personnel

In small agencies, employees may do both creative and account service work. Larger agencies attract people who specialize in one or the other, and indeed include a number of people in specialized positions: production work, Internet advertising, planning, or research, for example.
An often forgotten, but integral, department within an advertising agency is traffic. The traffic department regulates the flow of work in the agency. It is typically headed by a traffic manager (or system administrator). Traffic increases an agency's efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost estimation and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of five or more employees.
Advertising interns are typically university juniors and seniors who are genuinely interested in and have an aptitude for advertising. Internships at advertising agencies most commonly fall into one of five areas of expertise: account services, interactive, media, public relations and traffic. University students working on the creative side can find internships as a assistant art director or assistant copywriter.
An internship program in account services usually involves fundamental work within account management as well as offering exposure to other facets of the agency. The primary responsibility of this position is to assist account managers. Functions of the account management intern may include:
• Research and analysis: Gathering information regarding industry, competition, customer product or service; as well as presenting findings in verbal/written form with recommendations
• Involvement in internal meetings and, when appropriate, client meetings
• Assisting account services in the management of creative projects
Interns often take part in the internal creative process, where they may be charged with creating and managing a website as well as developing an advertising campaign. Hands on projects such as these help interns learn how strategy and well-developed marketing are essential to a sound advertising and communications plan.
During their internship, the intern will experience the development of an ad, brochure and broadcast or communications project from beginning to end. During the internship, the intern should be exposed to as much as possible within the agency and advertising process

ADVERTISING

What are the main objectives of advertising?

Advertising is defined as a non-personal form of communication deployed through various media by industries, non profit organizations, business firms, individuals etc. Advertising persuades, informs, instructs and educates target audiences about a particular brand or service and influence the purchasing behaviour or thought pattern of the audience. Advertising is one of the most important tools of marketing and can be coupled with other marketing tools such as sales promotion, personal selling tactics, publicity etc.

Advertising as a tool of marketing is quite different from personal selling. In personal selling, the customer is guided by a sales person, but publicising the advertisement is shown to the customer and the decision is in the hands of the customer. Therefore, advertising may be called written personal selling. Advertising is effective for every single brand, service or business to gain its position in the market.

Advertising creates an impact on every walk of life irrespective of age, gender, caste, creed or religion. Advertising is carried out in various proven tools and mediums and with defined techniques. In this article let us discuss about the four main objectives of an advertising campaign.

Objectives of advertising

The objective(s) of advertising imply the communication tasks to be accomplished. These tasks are directed towards specific customers that a company or organization is trying to reach during a defined time frame. An organization which involves in advertising activities usually strives to achieve at least one of the four common objectives of advertising i.e. trial, continuity, brand switching and switchback.

The purpose of trial objective of advertising is to encourage customers to make an initial purchase of a new product which has been launched in the market. Companies typically deploy creative ad strategies during product launch so that they can stay ahead in the competition. Repeat purchase of the product follows suit so trial objective of the ad campaign should be given more emphasis so as to invite targeted customers.

The next objective of advertising is continuity. Continuity is a typical strategy to keep current customers to stick to the same product. To keep the customers engaged the company usually provides new and different information about the product which is designed to build brand loyalty.

Thirdly, brand switching is one of the widely employed objective of advertising. This technique is adopted when companies want customers to switch to their brand from their competitor’s brand. Brand switching strategy needs a convincing communication so that the mindset of the customer is changed.

Last but not the least brand switchback objective is another strategy used by advertisers or brand owners to win back their former customers. For this a particular company may highlight new features about the product, discount of price, provide useful information about the product- all these to attract back their former customers.

Advertising is a tricky art for brand communication. As an advertiser one should have exceptional advertising skill(s) to influence the right target group and to provide a lasting impression about the brand so that customers stick to the same brand in the future.

Methods of advertising and promotional activities

Advertising is an art of communication that informs potential customers about products and services. Advertising as an art of communication attempts to convince potential customer to buy or consume a particular product, brand or service. With the rise of mass production in the late 19th and early 20th centuries, modern advertising has developed to a great extent.
Ads can be displayed on various mediums such as Television, newspapers, websites, billboards, movies etc. Advertisers use these mediums of advertising to influence consumers or buyers to buy their product or service. Political candidates or leaders also take help of ads to support or publicise themselves among the masses.

Some major methods of advertising include:

• Television and radio ads
• Brochures and flyers
• Direct mail and email messages ads
• Newspaper and magazines
• Newsletters ads
• Web pages
• Telemarketing
• Posters and bulletin boards
• Yellow pages

Various advertisers also use advertising promotional activities through the media to promote a particular event, service or product. A brief idea about how promotional activities of advertising are carried on is discussed below:

• Articles or write ups: Articles or write ups can be either web-writing or printed version. What is important is the message that you convey in those write ups. Advertising agencies hire content and copy writers to handle this write-ups.
• Letters to editor or editorial columns: Letters to editors or editorial columns are generally placed in newspapers, magazines, journals etc. These letters generally talk about opinions.
• Press kits: Press kits generally includes those information about your business, products, pictures, testimonial from happy customers etc
• Press releases or news alerts: Press releases alert the press about a new accomplishment, launch, success story etc. of a company.
• Public service announcements (PSA)s: PSAs are generally conducted for non profits and are mostly free of cost.