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10.1 INTRODUCTION

An Advertising Agency is selected by a manufacture or trader

to present the advertisement on his behalf. The advertiser who
does not have the capacity of carrying out advertising activities take
the help on services of advertising agencies who are specialized in
those fields.

10.2 MEANING AND DEFINITION

The advertising agency carry out the activity on behalf of their

client against remuneration called fees. They conduct market
research, consumer research, product research etc. They advice
the manufacturer on product design or package design, pricing of
product channels of distribution. Besides, they advice on the market
condition from time to time.

Advertising agency conduct the production activities of

visualization, layout, illustration, headlines, copy etc. They also help
in the selection of proper media and the frequency at which the
advertisement should be presented.

Thus, the advertising agency relieves the burden of the trader

or manufacturer of the responsibility of advertising, production and
distribution.

Definition :
The American Association of Advertising Agencies (AAAA)
defines an advertising agency as : “An independent business
organization, composed of creative and business people, who
develop, repair and place advertisements in advertising media for
sellers seeking to find customers for their goods and services”.

10.3 SERVICE RENDERED BY AN AD AGENCY

The main function of advertising agency is to see that its

client‟s advertising leads to greater profits in the long run. The
agency thus plans, prepares and places with advertising with the
objective. The main function of a full-service advertising agency are
as follows :

1. Selection of Clients : The first and the foremost function of an

advertising agency is to contact and select clients who are desirous
of advertising their products, services or anything which they want
to sell. The preference in contacting and choosing the clients is
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given to those firms which have sound values, able management,

efficient operative products and services. The financial position,
size and nature of business, efficient management and operative
products etc. must be given due weight.

2. Media Selection : Media selection is another major function of

the advertising agency. In making a media selection several factors
such as cost, circulation, population which it serves, audiences,
nature of the product, types of customers and above all needs of
the clients should be kept in mind.

3. Advertising Planning : The third as well as the major function of

advertising agency is the advertising planning for its clients. For this
purpose, the advertising agency requires a detailed knowledge of
the firm‟s products, its advertising history, market conditions,
channel of distribution, knowledge of competitors‟ products and
their advertising techniques, field to be covered, nature and type of
consumers etc.

Next planning job is to decide about the advertising medium in

which the advertisement is to appear. The advertising message
must be adapted to the medium in which it is to appear.

4. Creative Function : The creative function starts when the

planning function ends. It includes the preparation of an advertising
copy, layout, illustration, photographs, advertising messages,
theme of advertisement etc. These functions are performed by a
varied group of creative people including writers, designers, artists,
producers, photographers and graphic art specialists employed by
the advertising agency.

5. Research Function : It is the fifth major function of an

advertising agency. It supports the decisions taken in the media
and creative areas. In this connection the advertising agency
gathers and analyse actual information about the product, extent of
market, competitors‟ strategies and buyers‟ habits etc. that may
help the creative personnel to make the advertising copy more
attractive and effective.

6. Approval of the Client : As soon as the advertising copy etc.

are prepared, the next function of the advertising agency is to show
the copy to his client and obtain his approval. In case if any
changes are suggested by the client, the same may be
incorporated and thus the final approval should be taken from the
client.

7. Marketing Function : The advertising agency also performs

marketing functions such as selecting target consumers, designing
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products and packages, developing channels of distribution

strategy, determining prices and rate of discount etc. It gives useful
advice to its clients with regard to the nature and trend of the
market conditions. Accordingly, the client produces goods keeping
in his mind the prevailing conditions in the market.

8. Evaluation Function : Simply drafting advertising copy and

handing over the same to the media is not enough. The next major
function of the advertising agency is to have an exhaustive
evaluation of the advertising effects for the benefit of his client. In
case of any deficiency, necessary suggestions should be given and
the same be made effective after approval of the client.

9. Coordination Function : The last but not the least important

function of the advertising agency is to establish effective
coordination with client‟s sales force and distribution network to
ensure the long running success of the advertising campaign. Each
time the advertising agency contacts the client regarding
advertising media to be used and the number of times the
advertisement is to be repeated after giving effect to changes, if
any, as suggested by the advertiser.

10.4 AGENCY SELECTION CRITERION

Following are some points to be taken in account while selecting

the advertising agency:

1. Suitability : The advertising agency which suits the requirement

of manufacturer or trader is selected depending upon the type of
advertisement, location of agency, credit policies, etc.
Normally, an agency which is located near the advertisers
place is selected. This helps in approaching the agency. Secondly,
the size of agency in terms of personnel, projects, and services
provided is considered. Thirdly, the connections and relations with
the various media. Fourthly, the policies like conservative policy,
outgoing policies etc. are taken into account. Finally, the advertising
also considers whether the agency has competitors account or not.

2. Facilities and Services Provided : Some agencies have

modern facilities of photography, type setting, printing, filming etc.
The agencies which provide maximum services with minimum
costing preferred.

3. Imagination : Imaginations and creative skills of the personnel

of agency is duely considered. Creativity in photography, layout,
copy writing, media etc. creates an identity and unique for the
products and services of the advertiser.