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The Structure of an Advertising Agency

blogBefore you get into the advertising business, you need to know the basic mechanics of how an advertising agency works. Agencies vary greatly in size and shape, but most follow and tried and tested structure that works well, whether they employ a dozen people, or several hundred. In the smaller agencies, some people will perform more than one role; one person may actually be the entire department. In larger agencies, some of these departments are broken out again for efficacy. But the fundamentals are the same, and it’s because this model was born out of necessity; and it works. The Six Major Departments in Any Advertising Agency Six very different, but essential, departments make it possible to produce effective advertisements. These can be split into other sub-departments, or given various creative names, but the skeleton is the same across the board. These departments are: Account Services Account Planning Creative Finance and Accounts Media Buying Production Now, let’s take a look at the breakdown of those six major departments. Remember, although many agencies have different takes on these, the premise is the same. 1. Account Services The account service department comprises account executives, account managers, and account directors, and is responsible for liaising with the agency’s many clients. This department is the link between the many departments within the agency and the clients who pay the bills. In the past they were referred to as “the suits,” and there have been many battles between the account services department and the creative department. But as most creatives know, a good account services team is essential to a good advertising campaign. A solid creative brief is one of the main duties of account services. 2. Account Planning This department combines research with strategic thinking. Often a mix of researchers and account managers, the account planning department provides consumer insights, strategic direction, research, focus groups and assists helps keep advertising campaigns on target and on brand. Chris Cowpe described account planning as “…the discipline that brings the consumer into the process of developing advertising. To be truly effective, advertising must be both distinctive and relevant, and planning helps on both counts.” 3. Creative This is the engine of any advertising agency. It’s the lifeblood of the business because the creative department is responsible for the product. And an ad agency is only as good as the ads the creative department puts out. The roles within the creative department are many and varied, and usually include: Copywriters Art Directors Designers Production Artists Web Designers Associate Creative Directors Creative Director(s) In many agencies, copywriters and art directors are paired up, working as teams. They will also bring in the talents of other designers and production artists as and when the job requires it. Sometimes, traffic is handled by a position within the creative department, although that is usually part of the production department. Everyone within creative services reports to the Creative Director. It is his or her role to steer the creative product, making sure it is on brand, on brief, and on time. 4. Finance and Accounts Money. At the end of the day, that’s what ad agencies want. And it’s what their clients want, too. At the center of all the money coming into, and going out of, the agency is the finance and accounts department. This department is responsible for handling payment of salaries, benefits, vendor costs, travel, day-to-day business costs and everything else you’d expect from doing business. It’s been said that approximately 70 percent of an ad agency’s income pays salary and benefits to employees. However, this figure varies depending on the size and success of the agency in question. 5. Media Buying It is the function of the media buying department to procure the advertising time and/or space required for a successful advertising campaign. This includes TV and radio time, outdoor (billboards, posters, guerrilla), magazine and newspaper insertions, internet banners and takeovers, and, well, anywhere else an ad can be placed for a fee. This usually involves close collaboration with the creative department who came up with the initial ideas, as well as the client and the kind of exposure they want. This department is usually steered by a media director. 6. Production Ideas are just ideas until they’re made real. This is the job of the production department. During the creative process, the production department will be consulted to talk about the feasibility of executing certain ideas. Once the ad is sold to the client, the creative and account teams will collaborate with production to get the campaign produced on budget. This can be anything from getting original photography or illustration produced, working with printers, hiring typographers and TV directors, and a myriad of other disciplines needed to get an ad campaign published. Production also works closely with the media department, who will supply the specs and deadlines for the jobs. Other Departments That Vary From Agency to Agency While the six departments above are standard for most agencies, some of the larger agencies may break them down into sub-departments, or departments in their own right. These will often include: Human Resources & Facilities Research Online Development I.T. Traffic Let’s take a look at how these additional four departments work: Human Resources and Facilities Most businesses, whether they’re related to advertising or not, will have an HR department. This is the department responsible for the nuts and bolts of hiring and firing employees, dealing with state and federal employee laws, monitoring vacation and sick time, and the overall wellbeing of the staff. They are often rolled in with the facilities department, which is responsible for building maintenance, and keeping everything in the office working, safe, and up to code. Research Larger agencies will rely heavily on their own research department to provide a wealth of data on current and future clients. This is the department responsible for focus groups and testing, analyzing and interpreting data, and helping the creative and account teams focus on new market trends. Online Development Once relegated to a designer who knew a bit of coding, this is a fast growing department and deals with everything from website and mobile design, to apps and interactive experiences. This department may have its own creative director that specializes in web and online design, including UX, and will have a staff that could rival the size and strength of the creative department. I.T. (Information Technology) The I.T. department is no longer just a couple of nerds in a basement (thank you The IT Crowd). It can be a huge department, especially in agencies that have a large creative presence. Most I.T. companies in advertising agencies will specialize more in Mac than PC, as most creative departments run on Apple products. Traffic In small to mid-sized agencies, traffic is rolled up into the production department. It is the job of traffic to get each and every job through the various stages of account management, creative development, media buying and production in a set timeframe. Traffic will also ensure that work flows through the agency smoothly, preventing jams that may overwhelm creative teams and lead to very long hours, missed deadlines and problematic client relationships. Traffic keeps the agency’s heart beating. [...] Read more...

Ways to Run Your Own Advertising Campaign

blogA word of warning: taking on your own advertising campaign is no easy task. There is a reason there are thousands of advertising agencies all around the world, full of people who have spent their lives devoted to the skill and science of advertising. Having said that, when funds are very tight, and you are just starting out, it can be daunting to hire an agency – even a small shop, or one freelancer. But if you are truly invested in your product or service, and are passionate about getting the word out, there are steps you can follow to do it yourself. Just remember, you’ll have to roll up your sleeves and get to work. Establish Your Marketing Plan Nothing can help you identify your goals more than your marketing plan. You will learn a lot about your company, your competitors, and your long-term goals by creating and following your marketing plan. This is crucial to knowing what type of advertising is best for you. Create a Plan of Action Once you have your marketing plan, you must create a plan of action. This model shows you how freelancers and agencies put their own plan of action in place. Your plan of action also gives you the crucial info you can use in executing your ad strategy. Decide On Your Advertising Budget How you advertise depends on your ad budget. You need to strategically use your advertising money. If you’re only allowing a small portion of the money to advertising, you wouldn’t want to throw it all into the production of one commercial that runs at 2 a.m. Know exactly how much you will spend on your advertising first so you can make wise decisions in the creation and placement of all ad mediums. Hunt Down Affordable Advertising Options Obviously, money is tight if you are doing your advertising yourself. Running your own ad campaign means you have to be your own media director. You’ve got to find the best ad placement and the most affordable opportunities to fit into your budget. If you’re limited to a very small budget, you can find many ways to bypass high advertising costs. Know Your Target Audience You can’t advertise effectively if you don’t hit your target audience. You need to know just who they are before you start creating your ads, to take full advantage of every dollar you spend on media. For example, if your company sells scooters to seniors, you don’t want to invest heavily in social media. Seniors prefer more traditional options, like local TV, newspapers, and even ads in local stores. Advertise With Appropriate Mediums Of all the different advertising mediums you can use, you have to be able to use these mediums to your benefit. Spending all of your money on a direct mail campaign when your ad dollars would be better spent on social media and viral videos is going to limit how many customers you could’ve gained. Take a look at each medium, think about your target audience, take a look at your marketing plan and your plan of action and decide which medium(s) will be best for your ad dollars. Don’t Be Afraid to Hire Freelancers If you can’t turn your advertising over to an agency, still consider hiring a freelance copywriter and/or graphic designer. These professionals know what makes a good advertisement. Many freelancers have worked in advertising agencies so you get the benefit of their expertise. Plus, freelancers can give you professional copy and materials at an affordable cost. A Consistent Message is Key If you’re running online ads, TV and radio commercials, print ads and a direct mail campaign, keep them consistent. Use the same announcer and music for your commercials. Other materials should use the same colors and fonts. Use the same tag line. You want to keep everything consistent so your potential customers start identifying your tag line, your colors, your font, your announcer, jingle – everything – that relates to your company’s ad campaign. Repetition Works Wonders Buying space for one radio commercial that airs once at 4:30 in the morning isn’t going to get much of a response. You want commercials to have a larger frequency so you can increase your chances of hitting that target audience. If you’re running a direct mail campaign, decide the frequency of your materials up front. Once you send your initial materials out, how many times will you send out follow up materials? Know the answers before you begin to help maximize your strategy’s success. If In Doubt, Get The Books Out There is no shame in admitting that you don’t know what you’re doing at any point in the process. When all else fails and you still run into questions, there are plenty of books you can use to give you guidance. Also be on the lookout for titles that have just been released so you can keep on top of current advertising trends. [...] Read more...

Pro Bono Campaign Aims to Keep the Kings in Sacramento

blogThe deflated basketball in the ad, of course, is meant to signify how deflated many fans will feel if the team flees. BILLBOARDS that went up in Sacramento recently say “Game Over,” with a deflated basketball representing the “O,” and, below that: “If the Kings leave, we all lose.” The billboards direct Sacramentans to a Facebook page, facebook.com/SacDeflated, where an online campaign aims to retain the N.B.A.’s Sacramento Kings, whose owners reportedly are contemplating a move 400 miles to the south, to Anaheim, Calif. Typically pro bono advertising campaigns like this one arise from a groundswell of citizens that persuades an agency to volunteer its services, but in this case a Sacramento firm, the Glass Agency, is heading the effort. “Our goal is to provoke the community and make them pay attention,” said Amber Williams, president of Glass, which is owned by the employees. “We want to give them a reason to step up and take action, and a platform to do that.” A Kings spokesman, Darrin May, did not respond to a request seeking comment. The agency estimates the value of the campaign, which consists of four billboards and eight digital boards, to be as much as $200,000. The outdoor ads, which began Feb. 22 for a 30-day run, were bought at a discounted rate from billboard owners who were sympathetic, Ms. Williams said. “We’re not actually spending that much,” said Ms. Williams, who declined to reveal out-of-pocket costs. “We have a lot of great community partners and colleagues.” If the Kings, the city’s only professional franchise, were to leave, the city will lose cachet and that could hurt Glass when bidding against agencies from Madison Avenue and elsewhere, Ms. Williams said. “For us, being from a city that has that legitimacy of a professional sports team is so critical to being taken seriously when we enter a room,” Ms. Williams said. “The Kings leaving could be detrimental for how Sacramento is received, and ultimately for how we are received as an agency.” The idea for a billboard campaign was inspired, fittingly, by an earlier retention effort led by the Kings’ owners, the brothers Joe and Gavin Maloof. In 2001, when the star forward Chris Webber also was contemplating a move to Southern California, in his case to play for the Los Angeles Lakers, the Maloofs bought space on a billboard on Interstate 80 in Sacramento, where Mr. Webber could not miss it when driving home from games at Arco Arena. In the ad, Joe Maloof sat on a riding mower while Gavin stood nearby and promised, “Chris, Joe will mow your lawn if you stay.” Mr. Webber did stay, until 2005, but the Kings, featured in 2001 on a Sports Illustrated cover with the text “The greatest show on court — Sacramento Kings: basketball the way it oughta be,” have struggled in recent years. The team has not qualified for the playoffs since the 2005-6 season and has won only 26 percent of its games this season, one of the worst records in the N.B.A.; last season, the team won 31 percent of its games, and the season before, just 21 percent. As for attendance, the team sold virtually all its seats in the 2002 season, averaging 17,317 fans per home game, but so far this season has averaged sales of just 13,494, leaving 22.1 percent of the seats empty, according to data on the ESPN Web site. [...] Read more...

Sign of Arrival, for Xinhua, Is 60 Feet Tall

blogONE of the most prominent advertising spaces in Times Square is soon to be occupied by a Chinese brand. Xinhua, the news agency operated by the Chinese government, is leasing a giant sign, known as a spectacular, on 2 Times Square, the building that is the northern anchor of the district. The new LED sign, 60 feet high by 40 feet wide, is being built for Xinhua (pronounced Shin-wa) and is scheduled to make its debut next Monday. Xinhua, which has recently expanded its business presence in the United States, is taking over the space on 2 Times Square that had been occupied for the last decade by the HSBC bank. The HSBC lease expired and was not renewed. The sign for Xinhua, which means New China News Agency, will be underneath the sign for Prudential, an American company, and above signs for Samsung (South Korean), Coca-Cola (American) and Hyundai (South Korean). Chinese brands have previously occupied signs in Times Square. For instance, in the mid-1990s the 999 Pharmaceutical Company leased a painted vinyl sign atop two buildings at the southeast corner of Seventh Avenue and 48th Street. And in January, the Chinese government ran promotional commercials on six oversize screens in Times Square featuring celebrities like the retired basketball star Yao Ming and the pianist Lang Lang. The campaign, deemed the biggest such effort by Beijing, was timed to coincide with the visit to the United States by the Chinese president, Hu Jintao. “A lot of Chinese companies are coming, or getting ready to come, into this country with their own brands,” said Jeffrey Katz, the chief executive and principal owner of Sherwood Equities, a commercial real estate firm with properties that include 2 Times Square and 1 Times Square and that also owns the subsidiary Sherwood Outdoor, which oversees the spectaculars on both of those buildings. In May, Xinhua moved its North American headquarters from Woodside in Queens to a tower in Times Square, 1540 Broadway, at 45th Street. And last year, Xinhua introduced a 24-hour English-language broadcast service, China Network Corporation, or CNC World, that seeks to reach 50 million viewers around the world. Xinhua also recently began aggressively marketing its news wire service, particularly in the developing world, with a goal of competing with news agencies like The Associated Press, Bloomberg News and Reuters. (The Reuters building at 3 Times Square, on Seventh Avenue between 42nd and 43rd Streets, is decorated with huge video ad screens.) Like the Japanese and South Korean brands that came to Times Square to better familiarize the United States with their products, the arrival of Xinhua is a prominent expression of its ambitions with Americans, many of whom are either unfamiliar with the state-owned news agency or associate it with relics like Tass, the official disseminator of government news releases in the Soviet Union. Executives of Xinhua did not respond to questions sent last week by e-mail asking about their decision to lease the sign at 2 Times Square. According to Brian Turner, president of Sherwood Outdoor, Xinhua signed a long-term lease for the space, which he described as “in excess of six years.” He and Mr. Katz said they hoped the lease would be a harbinger of other Chinese brands coming to Times Square. [...] Read more...

Billboard Bookends for Times Square

blogBut Reuters and Nasdaq, whose buildings face each other across Broadway and Seventh Avenue at W. 43rd St., are in a unique position to combine their advertising assets. THE Reuters sign and the Nasdaq Tower in Times Square are two of the most valuable advertising spaces in the world. Now, with a deal to be announced today, advertisers can rent both spaces at once — and create a virtual roadblock on the south side of the square. It is a partnership that the two companies hope will leverage both ad spaces to stand out even more in a sea of advertising. Reuters and Nasdaq made the deal late last week, just as advertisers are beginning to roll out more outdoor advertising to take advantage of warmer weather and higher foot traffic. Advertisers will have the option of running the same ad on both signs, or even half of the ad on one building and the other half on the other building. Or the two signs could work in tandem. “It just made a lot of sense to put the two together,” said Bruce E. Aust, the executive vice president of the corporate client group for Nasdaq. “You’re getting two of the most dynamic towers in Times Square.” The companies dubbed the deal “Times Square, Squared. “We’re neighbors, we look at each other’s buildings all day every day, we got to talking and realized the power of the two together was probably more powerful than the power of them separately,” said Walker Jacobs, a vice president and the head of media sales for Reuters, calling the deal a “one-stop shop where buyers can pick up the phone and roadblock Times Square.” “We think it’s going to change Times Square advertising,” he said, adding that most campaigns involving the signs would be priced in the mid- to high-six figures, with some possibly rising into seven figures, depending on the length and complexity of the campaign. One thing is for sure: it is the high season for outdoor advertising, when the warm weather causes more pedestrians to flood the sidewalks, cars to fill the roadways and marketers to conjure up ever more provocative ways to grab attention through outdoor spectaculars. [...] Read more...

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