Write a note on organization of an advertising agency.

Ans.

Organization of an Advertising Agency

Advertising industry has following main components-

1. Advertiser or Sponsor: A firm that decides to advertise is called advertiser or sponsor. The advertising manager of the sponsor relies on some external experts to perform many of the tasks involved in launching an advertising programme.

A sponsor refers to a person or organization with some sort of responsibility for another person or organization. Sponsoring is the act of supporting an event, activity, person, or organization financially or through the provision of products or services. The individual or group that provides the support, similar to a benefactor is known as sponsor, Principles of sponsorship are as under-

(i) All sponsorship should be based on contractual obligations between the sponsor and the sponsored party.

(ii) Sponsors should set out clear terms and conditions with all other partners involved, to define their expectations.

(iii) The principle of good faith should be followed.

2. Media: Various media of advertising are newspaper, radio, television, film, outdoor posters, banners etc. Media refers to various media channels through which advertising done. It will be used for showcasing promotional content which communicates text, speech, images, videos. Importance of media can be known with the help of following points-

(i) Pivotal role in business and marketing,

(ii) Creating buzz about the brand.

3. Advertising Agency: Outside experts’ business known as advertising agencies. Today the advertising agencies have houses are organized themselves as big business houses. Advertising agency is a creative agency. It is dedicated to creating, planning and handling advertising and sometimes other forms of promotion and marketing of its clients.

The smaller advertising agencies do not have proper organizational structures but they do same functions. Big advertising agencies provide creative services, accounts management, research and promotional services etc.

The advertising agency structure is arranged in two ways-

(i) Departmentalized basis,

(ii) Group basis.

In the departmentalized form major departments e.g. copy, art, media, production, research and development etc. are included.

In the group basis, specific individuals are assigned to a term which does the planning, creative work, media buying and similar activities.