Launch! Advertising and Promotion in Real Time, 2009a
Launch! Advertising and Promotion in Real Time, 2009a Launch! Advertising and Promotion in Real Time, 2009a
Figure 2.10 Matrix Organization in Advertising Agency Specialized and In-House Service Agencies Some agencies focus on one aspect of the creative process, such as creative production work or media buying. They refer to themselves as specialized agencies. Some examples will include a company that specializes in media planning and buying, such as The Media Kitchen or Greater Than One. Interactive agencies like BEAM, gaming agencies such as Fuel Games, and search agencies such as 360i will partner up with other agencies to provide services for the full campaign as determined by the client or the lead agency. These agency partners all contributed to the msnbc.com campaign led by SS+K. Some companies prefer to retain control over advertising and set up in-house agencies within the corporation. An advertising director typically runs the in-house agency; she chooses which services to buy and which to perform internally. For example, the in-house agency could retain creative services in house, create advertisements itself, and then purchase media-buying services from the outside. The inside agency may buy services from a specialized service agency or buy services à la carte from a full service agency. Saylor URL: http://www.saylor.org/books Saylor.org 45
Why bother to form an in-house agency? The two main reasons are to save the company money and to give the company greater control over the entire process. In addition, internal employees may have a deeper understanding of the company and its customers than would an outside agency. Insiders can also coordinate the promotion better with the firm’s overall marketing program and other functions, such as ensuring that enough products are made and delivered in advance of a promotion. Target works with their in-house agency as well as with outside agencies. They do not have an outside agency of record. Agencies also clarify their specializations in terms of location; SS+K, for example, is a U.S. agency. Some agencies are considered global agencies, such as JWT, TBWA, BBDO, and others. These agencies have offices worldwide and specialize in clients whose audiences are worldwide, such as MasterCard (McCann Worldwide is the agency). There are a few holding companies that own a number of agencies to create a network of agencies that can work together in the network. Omnicom Group, WPP, Interpublic Group, MDC Partners are the biggest media holding companies. Agency of Record In addition to the types of agencies, there is also the role that the agency plays in the client’s business. The most common and secure relationship is the agency of record, or lead agency. As clients may work with many different agencies for their various needs, the agency of record is the lead agency partner and usually has the majority of the client’s business. SS+K is the agency of record for msnbc.com. Dig Deeper The traditional approach to farm out different functions may change if some big clients get their way. Johnson & Johnson and Dell are but two of several major advertisers that are dissatisfied with this strategy. More specifically, they join Procter & Gamble and others to call for more collaboration between the people who do the consumer research and the people who actually create the ads. In most cases, separate companies carry out communications planning and creative functions, so coordination can be difficult, and self-serving biases may color some decisions. For example, an advertising agency might be tempted to suggest a network television campaign because it would be involved in creating the ads (and billing more in the process). Instead, advertisers prefer a media-agnostic approach, where the agency picks whatever medium works best for a specific campaign. We saw earlier that SS+K strongly endorses this philosophy. Saylor URL: http://www.saylor.org/books Saylor.org 46
- Page 2 and 3: This text was adapted by The Saylor
- Page 4 and 5: 1.1 Why Launch!? LEARNING OBJECTIVE
- Page 6 and 7: 1.2 Meet Our Agency Partner: SS+K L
- Page 8 and 9: This perspective is a consumer-cent
- Page 10 and 11: Follow the e-mail trail. Dr. Duke C
- Page 12 and 13: As you can see, it takes a village
- Page 14 and 15: 1.3 The Pitch: Win the Account LEAR
- Page 16 and 17: Initial strategic thinking. Before
- Page 18 and 19: Figure 1.9 The Pitch Process How do
- Page 20 and 21: 1.4 Let’s Meet the Potential Clie
- Page 22 and 23: 1.5 Exercises TIE IT ALL TOGETHER N
- Page 24 and 25: message to them. What do you percei
- Page 26 and 27: LEARNING OBJECTIVES After studying
- Page 28 and 29: eally are trying to fake you out. F
- Page 30 and 31: MySpace. We weren’t early enough
- Page 32 and 33: Specialty print media include bookl
- Page 34 and 35: Ad-Supported Content Ad agencies ar
- Page 36 and 37: [5] “Traditional Radio’s Digita
- Page 38 and 39: the promotional activities that int
- Page 40 and 41: increasingly thin layer of audience
- Page 42 and 43: Figure 2.8 A sales promotion is a t
- Page 44 and 45: 2.3 Advertising Industry Structure
- Page 48 and 49: P&G reacted to this problem when it
- Page 50 and 51: Media buyers and media planners eva
- Page 52 and 53: Within a company, the jobs of the a
- Page 54 and 55: [1] Suzanne Vranica, “Ad Houses W
- Page 56 and 57: drumsticks and simulated drumhead p
- Page 58 and 59: Figure 3.1 Build a Foundation Chapt
- Page 60 and 61: 3.1 Economic Effects of Advertising
- Page 62 and 63: Broadcast radio and TV rely exclusi
- Page 64 and 65: 3.2 The Good: Advertising Enhances
- Page 66 and 67: washing with soap, that remain kill
- Page 68 and 69: share, so they tend to be more stri
- Page 70 and 71: now one of the primary attributes s
- Page 72 and 73: [8] Mister Snitch!, “Top Ten Reje
- Page 74 and 75: here is subjective—your image of
- Page 76 and 77: “If you let me play sports, I wil
- Page 78 and 79: Categories can be made quite specif
- Page 80 and 81: Luxury products are not a bad or wa
- Page 82 and 83: [9] Jean Grow and Joyce M. Wolburg,
- Page 84 and 85: 3.4 Advertising Regulation: Who Loo
- Page 86 and 87: Agencies), the ANA (Association of
- Page 88 and 89: [3] American Association of Adverti
- Page 90 and 91: about one-half the size of existing
- Page 92 and 93: Chapter 4 Consumers and the Communi
- Page 94 and 95: messages they see or hear, and when
Figure 2.10 Matrix Organization <strong>in</strong> <strong>Advertis<strong>in</strong>g</strong> Agency<br />
Specialized <strong>and</strong> In-House Service Agencies<br />
Some agencies focus on one aspect of the creative process, such as creative production work or media<br />
buy<strong>in</strong>g. They refer to themselves as specialized agencies. Some examples will <strong>in</strong>clude a company that<br />
specializes <strong>in</strong> media plann<strong>in</strong>g <strong>and</strong> buy<strong>in</strong>g, such as The Media Kitchen or Greater Than One. Interactive<br />
agencies like BEAM, gam<strong>in</strong>g agencies such as Fuel Games, <strong>and</strong> search agencies such as 360i will partner<br />
up with other agencies to provide services for the full campaign as determ<strong>in</strong>ed by the client or the lead<br />
agency. These agency partners all contributed to the msnbc.com campaign led by SS+K.<br />
Some companies prefer to reta<strong>in</strong> control over advertis<strong>in</strong>g <strong>and</strong> set up <strong>in</strong>-house agencies with<strong>in</strong> the<br />
corporation. An advertis<strong>in</strong>g director typically runs the <strong>in</strong>-house agency; she chooses which services to buy<br />
<strong>and</strong> which to perform <strong>in</strong>ternally. For example, the <strong>in</strong>-house agency could reta<strong>in</strong> creative services <strong>in</strong> house,<br />
create advertisements itself, <strong>and</strong> then purchase media-buy<strong>in</strong>g services from the outside. The <strong>in</strong>side agency<br />
may buy services from a specialized service agency or buy services à la carte from a full service agency.<br />
Saylor URL: http://www.saylor.org/books<br />
Saylor.org<br />
45
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