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Meaning, Importance, Types, Structure, and Functions of Advertising Agency

Meaning, Importance, Types, Structure, and Functions of Advertising Agency
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In this advertising agency topic, I will tell you the proper explanation about the meaning, importance, types, structure, and functions of advertising agency. So, let’s take a move-

Meaning of Advertising Agency-

What is an Advertising Agency??

An advertising agency is also known as a creative agency and it is a business which helps in creating, handling, advertising, and other promotional activities for its clients and its customers. For Example– FCB Ulka, Mudra, and so on.

Through these agencies, the company or business can easily promote our products in the form of digital and official banner ads to our worldwide public.

Importance of Advertising Agency-

Importance of advertising agency includes 6 various points like:-

1.Nature of Product-

This is the first importance and it means when the product is a form of mass media then advertising agency can use print media while when the producers want a demonstration that screen and television advertising can be used.

At the time of advertisement, the nature of a product plays a very effective role because it helps to define the target audience related to their product which is sold in the world.

2. Advertising Budget-

This is the second importance and it means that the choice of advertising agency rest on advertising budget since a large organization can only bear the expenses of an advertising agency. Thus, the advertising budget defines the estimation of total expenses which are related to the advertisement.

It includes various estimations regarding their budget control system like it includes expenditure relating to advertising programme, advertising material, media expenses, and so on.

3. Potential Market-

This is the third importance and it means an advertising agency has to conduct the market surveys and identify the changes in consumer preferences so that these agencies can satisfy the consumers in a proper manner.

4. Reputation of Agency-

This is the fourth importance and it means that the reputation of the agency attracts the companies to higher than for various purposes such as copywriting or media planning. Agencies like mudra are employed by large organizations.

5. Selling Message-

This is the fifth importance and it means that the selling message that is used by the companies can be employed by the advertising agencies in order to gain the attention of the consumers. It can be an emotional message or rational.

6. Media Alternatives Available-

The advertising agency has to decide which media alternatives are available in the branding of a regular product. For Example– If a company wants to advertise a product on T.V. then the timeslot should be available.

Types of Advertising Agency-


Types of Advertising Agency
Types of Advertising Agency

The types of advertising agency include four(4) major types such as:-

  1. Full-Service Agencies,
  2. In-house Agencies,
  3. Creative Boutiques,
  4. Media Buying Agencies.

1.Full-Service Agencies-

Full-service agencies are large scale agencies. These are responsible for all stages of the development of the advertisement. These may deal in consumer research, creation of ads, and media selection. In these agencies, the tasks are distributed according to their specialization and talent.

Although, these agencies are totally focused on the development of a particular advertisement.

2. In-house Agencies-

In-house agencies use modernized means of communication. It involves the use of online advertising and sending messages to customers through the telephone. It consists of innovative ads.

These agencies follow the procedure of direct marketing and social media marketing for the identification and creation of ads around the public.

3. Creative Boutiques-

Creative Boutiques are small agencies which provide creative ads. These agencies are only involved in the evaluation of ad. They have their own directors, copywriting, structure layout, and artists.

4. Media Buying Agencies-

It buys media space to advertise for the advertisers. These types of agencies decide the frequency and slot of advertisement. These are also responsible to monitor whether ads have been broadcasted or not.

Structure of Advertising Agency-


Structure of Advertising Agency
Structure of Advertising Agency

The structure of advertising agency includes various things or points to determine the management, planning, account, and IT department of the agency. So, the points are:-

1.Account Management-

This is the basic department and it is responsible for managing the relationship between the various clients. It is headed by the account manager and the account manager helps to control over the account section of a particular business.

2. Account Planning-

The ultimate objective of the account planning department is to engage in consumer research and plan the ad matching of the customer expectations.

3. Creativity Department-

This department is responsible for the creation of innovative ads. The work related to advertising script, art, and a copy is being decided by this department. There name of a provision of studios for effective execution of advertisement involving various characters.

4. Accounts Legal-

This department is related to manage the legal affairs of the advertising agency. This department also ensures that information related to managerial decision making should be stored in one place.

5. Sources of Revenue of Ad Agency-

There are three sources of revenue of ad agency such as-

  • Fee from clients,
  • Commission,
  • Commission from profits.

Functions of Advertising Agency-

In the advertising agency, the advertisers follow the basic functions like:-

1.Helps in Copywriting-

This is the first functions of advertising agency and it means that the copy writing helps to prepare the information message for our products to the purpose of targeting the potential buyers or audience. The copywriting consist of the message used by the advertisers to attract the attention of customers.

The process of prepairing the copywriting is known as advertising copy.

2. Providing information about Products-

This is the second functions of advertising agency and it means that the advertisers always want to provide information about the product to our target audience because the information helps to identify the product specifications, features, uses, pros, price, and other benefits.

3. Estimating the advertising expenses-

This is the third functions of advertising agency and it means that whenever a company promotes its products form an advertising agency, then the advertising agency creates the budget for that promotional activities and it also includes the expenses on its budget programme.

4. Media Planning-

This is the fourth functions of advertising agency and it means that the media planning is the process of selecting and identifying the outlets of media like websites, newspapers, journals, street advertising, hoardings, banner ads, TV and Radio station ads, and so on.

5. Creativity:-

This is the fifth function and it means that if an agency prepares an advertisement for a company, then it should be a creative ad because a creative advertisement always grabs the attention of its customers and forces it to take action.

6. Enhancing the brand image of the company-

This is the sixth function and it means that an advertising agency helps a lot to increase the brand image of a business because it prepares advertisements for the promotion of any company’s product and through their various media, to reach their target audience so that they know about the product and after that help to increase the brand image of that company.

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