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.
Following image depicts the major functions of advertising agency.
Eleven main functions of ad agency are as follows:
- Attracting clients,
- Research function,
- Advertising planning,
- Creative function,
- Media selection,
- Advertising budget,
- Coordination,
- Sales promotion,
- Marketing research,
- Non-advertising functions, and
- Public relations.
Now let's discuss above main functions of an advertising agency.
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.