Functions of Advertising Agency

[adsense1]The dominant type of agency offers a full range of services including market research, new product introduction plans, creative services and media purchases, and is known as full service agency. Alternatives to full-service agency for major advertisers have appeared recently. Basically, these involve the replacement of the large agency with smaller specialized organizations, perhaps supplemented by greater customer participation in the premises in the process. Is stimulated by the development of organizations that specialize in buying media (such as Western International Media, and Vitt Media International, which maintained on a 3%) and others that only provide creative series – the “creative boutiques.” The perceived need to make money from advertising and media work harder – by negotiating discounts from major media through the consolidation of media buying and using smaller agencies that sometimes is perceived as more creative than larger ones – have led to this development. Several client companies and advertising agencies have set up subsidiaries through which the media becomes consolidated, and therefore do it cheaper, while advertising agencies often turn to medium-sized external media buying companies to benefit the bargaining power of these companies.

[linkunit]When businesses grow worldwide, the agencies hope to have business around the world from a client (or not) must therefore create worldwide service networks, as the owner of the foreign agencies or building partnerships with them. McCann Erickson, for example, now has 144 branches in 67 countries and is used for the service of Coca Cola in almost all markets. It even has a global account director of Coca-Cola in New York, head of the agency’s work in mind that throughout the text. Perhaps the biggest change among the “recent trends” is the perception among advertisers that the main business of the traditional advertising agency has not provided the “creative spark” that some advertisers need. Some advertisers, including Coca Cola, so they began to diversify its sources of talent and creative ideas.