Advertising Agencies - Meaning, its Role and Types of Agencies

“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally stitch the cloth and deliver it to the customer.”

Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered and hands it over to the client. Advertising agencies are mostly not dependent on any organizations.

These agencies take all the efforts for selling the product of the clients. They have a group of people expert in their particular fields, thus helping the companies or organizations to reach their target customer in an easy and simple way.

The first Advertising Agency was William Taylor in 1786 followed by James “Jem” White in 1800 in London and Reynell & Son in 1812.

Role of Advertising Agencies

1. Creating an advertise on the basis of information gathered about the product.

2. Doing research on the company and the product and reactions of the customers.

3. Planning for type of media to be used, when and where to be used, and for how much time to be used.

4. Taking the feedbacks from the clients as well as the customers and then deciding the further line of action

All companies can do this work by themselves. They can make ads, print or advertise them on televisions or other media places; they can manage the accounts also. Then why do they need advertising agencies? The reasons behind hiring the advertising agencies by the companies are:

• The agencies are expert in this field. They have a team of different people for different functions like copywriters, art directors, planners, etc.

• The agencies make optimum use of these people, their experience and their knowledge.

• They work with an objective and are very professionals.

• Hiring them leads in saving the costs up to some extent.

There are basically 5 types of advertising agencies.

1. Full service Agencies

   • Large size agencies.

   • Deals with all stages of advertisement.

   • Different expert people for different departments.

   • Starts work from gathering data and analyzing and ends on payment of bills to the media people.

2. Interactive Agencies

   • Modernized modes of communication are used.

   • Uses online advertisements, sending personal messages on mobile phones, etc.

   • The ads produced are very interactive, having very new concepts, and very innovative.

3. Creative Boutiques

   • Very creative and innovative ads.

   • No other function is performed other than creating actual ads.

   • Small sized agencies with their own copywriters, directors, and creative people.

4. Media Buying Agencies

   • Buys place for advertise and sells it to the advertisers.

   • Sells time in which advertisement will be placed.

   • Schedules slots at different television channels and radio stations.

   • Finally supervises or checks whether the ad has been telecasted at opted time and place or not.

5. In-House Agencies

   • As good as the full service agencies.

   • Big organization prefers these type of agencies which are in built and work only for them.

   • These agencies work as per the requirements of the organizations.

There are some specialized agencies which work for some special advertisements. These types of agencies need people of special knowledge in that field. For example, advertisements showing social messages, finance advertisements, medicine related ads, etc.

Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.