The Role of Advertising Agencies
Service offered
1. What role do they play in creating and developing advertisements?
Organisations pay large fees for expertise of in-house agencies.
Competition is fierce so they have to come up with a USP
If they fail to come up with new ideas etc clients will go elsewhere!
Inhouse –where the firm has its own marketing function
Full Service agency –Outsource e.g. Saatchi & Saatchi and Ogilvy & Mather.
They are expensive so companies often only use them if they have high promotional budgets.

2. What are limited service agencies?
Provide services for clients in specialist areas such as print, TV and online. A client can use more than one agency, or focus on some elements of campaign inhouse.

3. What Services do advertising agencies offer?
Media Buying –Ad agencies will decide the best advertising options for a particular product. This involves matching the demographics of a product with demographics of a medium e.g. TV, radio, magazines. The agency may negotiate better rates than company by bulk buying advertising space or time for multiple clients at same time.
Advertising Design –Combines copywriting, graphic design and typography to design an ad. This requires agencies to interpret –build on –brand values and use the business branding appropriately.
Advertising production –The development process for TV and radio ads can me more expensive than print advertising. Agency will work with client to develop concept that client is happy with, before getting the script and story board written and approved by client. Only once approved, that recording and editing process can start, to avoid costly re-recording.
Engaging the target audience –Agencies can provide a range of services to engage with business target audience, from market research to field marketing activities such as instore demos.

Cost Options
4. What are the cost options available to firms?
Firms will have to consider a range of factors before outsourcing, which include:
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