Advertising agencies Structure & Types

The Organizational Structure of an Advertising Agency

The organizational structure of an advertising agency consists of the same basic elements, regardless of the firm’s size. An account services team manages client relationships, the creative team develops the advertisements and media specialists select the media outlets that will run the ads. A senior management team takes responsibility for the agency’s business and financial operations.

(i) Agency Management

The senior management team may consist of a chief executive and finance director in a small agency. A larger agency may have a management team, including a chief executive and finance director, together with directors responsible for each of the firm’s departments. If an agency belongs to a large group of companies, a member of the management team takes responsibility for relationships with the board of the holding company.

(ii) Account Services

The account services team deals with clients and coordinates the work of the agency’s creative and media teams. A large agency might have three levels of account management: account director, account executive and assistant account executive. Account directors, who report to the agency’s management team, supervise the work of account executives and take responsibility for a group of accounts. They may also maintain a close relationship with the agency’s most important clients. Account executives and assistant account executives report to account directors and manage the day-to-day operations on their accounts.

(iii) Account Planning

Account planners research the needs and preferences of the target market for a product or service. They use their findings to develop an advertising strategy and prepare a brief for the creative team that’s working on an advertising campaign. In smaller agencies, account planning may be part of the responsibility of an account executive. Larger agencies may appoint a specialist as a member of the account management team.

(iv) Media

The media department is responsible for planning where and when advertisements will appear and buying space or time in newspapers, magazines, radio, television, digital media and outdoor media, such as poster sites and billboards. In small agencies, one person may combine the planning and buying roles. Larger agencies have a media department headed by a media director who supervises the work of a team of planners and buyers. The media team may include specialists in print, broadcast or digital media.

(v) Creative Services

The creative services team consists of copywriters and designers, known as art directors, who work together to develop concepts for advertisements. In larger agencies, a creative director manages teams working on different accounts. Smaller agencies may only appoint a creative director who works with freelance writers.

(vi) Production

Larger agencies have a production department responsible for managing advertising campaigns. They set schedules and manage campaign budgets, coordinating the work of the creative and media departments. The production team also interacts with external suppliers working on advertising campaigns, such as printers, photographers and video production companies. In smaller agencies, account executives or creative directors take responsibility for project management.

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.