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Session5 Chapter2 Advertising

The document provides an overview of the evolution and current state of the advertising industry. It discusses how advertising developed over time through different eras from print to the modern social media era. The key players in advertising are described as the message sponsor or advertiser, advertising agencies, and media channels. Agencies can be full-service, in-house, specialized, or creative boutiques. Agency jobs are organized into account management, planning, creative, media, and operations. Agencies generate revenue from commissions, fees, and retainers paid by advertisers.

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Bec Aki
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28 views25 pages

Session5 Chapter2 Advertising

The document provides an overview of the evolution and current state of the advertising industry. It discusses how advertising developed over time through different eras from print to the modern social media era. The key players in advertising are described as the message sponsor or advertiser, advertising agencies, and media channels. Agencies can be full-service, in-house, specialized, or creative boutiques. Agency jobs are organized into account management, planning, creative, media, and operations. Agencies generate revenue from commissions, fees, and retainers paid by advertisers.

Uploaded by

Bec Aki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COMMUNICATIONS AND

ADVERTISING

CAA201
1
CHAPTER 2
ADVERTISING
PART 2

2
Questions to explore

1. How is advertising evolved, and what does it do in


modern times?

2. How have the key concepts of advertising developed over


time?

3. How is the industry organized – key players, types of


agencies, and jobs within agencies?

3
How Did
Current
Practices and
Concepts
Evolve?
4
Eras and ages
A timeline of advertising eras and ages:

The Early Age of Print: 15th-18th century


Mechanization spurred literacy, which
encouraged businesses to advertise beyond
their locations.

The Early Age of Agencies: 1840s-1890s


As advertisers became concerned with
creating ads that worked, professionalism
took shape.

5
Eras and ages
• The Scientific Era: 1900s-1950s
Modern advertising adopted scientific
research techniques. Art and science
were blended.

• The Creative Era: 1960s-1970s


The power of agencies exploded, with
a resurgence of art, inspiration, and
intuition.

• For examples of the most creative


advertising ever produced, go to:
www.leoburnett.com
6
Eras and ages
• The Era of Accountability and
Integration:
1970s to present
Clients want ads that produced sales.
The public expects social
responsibility. Managers adopted
IMC to better coordinate brand
communication.

• The Social Media Era


In this new interactive world,
consumers generate brand messages
and share experiences on social
media sites.
7
1-
7
The
Advertising
World
8
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

9
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.

10
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.

• The mass media enable advertisers to reach many people


with a single message in a cost-efficient manner.

11
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

12
Example

• A video shows how client & agency interact

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Ha 13


ll
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.

14
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

16
Types of agencies
• Agency Networks and Holding Companies

• Large conglomerations of agencies under a central ownership

• One or more agency network, usually with multiple offices

17
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……
18
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.

19
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.

20
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.

21
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.

22
Where We’re Headed Next

In the next part of Chapter 2 , we will:


• Discuss changes in the practice of advertising

23
Q&A

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