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PRINTABLE LESSON 5 - The advertising agency%2c media services%2c and other services

PRINTABLE LESSON 5 - The advertising agency%2c media services%2c and other services

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1/30/2012 1 CHAPTER FIVE THE ADVERTISING AGENCY, MEDIA SERVICES, AND OTHER SERVICES 1 The big picture . . . This chapter focuses on advertising from the perspective of the advertising agency. 2 The roles of advertising agencies in integrated marketing, and the relationships between agencies and clients, are changing. Traditionally, advertising agencies were trusted partners in the stewardship of brands. Today, most corporate marketing departments have the talent to manage functions previously handled by advertising agencies. Nevertheless, advertising agencies continue to create most national and international advertising messages. 3 4 Advertising agencies compete for accounts. In the process they nurture their own brands, reputations, and creative talent. They also advertise themselves to prospective clients. The traditional advertising agency is an independent business composed of both creative and business people who develop, prepare, and place advertising in advertising media for sellers seeking to find customers for their goods or services. 5 Roughly 10,000 advertising agencies operate in the U.S. (census bureau data). No single directory of all agencies exists, but New York is home to the largest number of U.S. agencies (about 2,000) in one city. The majority of agencies employ one to ten people. The most important industry group is the A merican A ssociation of A dvertising A gencies ( AAAA or 4As, established in 1917). Most national and international advertising is placed by AAAA members. 6
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1/30/2012 2 Although advertising agencies can be found in all metropolitan areas, the U.S. has six major advertising centers. New York (tied with Tokyo for world leader) Chicago Los Angeles Detroit San Francisco Minneapolis 7 Types of advertising agencies The full-service agency is equipped to handle each of the five advertising functions: Planning an advertising campaign Creating a message Producing the message Placing the message Evaluating the campaign’s effectiveness 8 The traditional agency organization Agencies are generally hired on the reputation of their
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