The Advertising Industry

The advertising industry has an important part to play in developed economies. As well as generating sales of goods and services, it provides often the sole source of revenue for media companiies such as magazines and radio stations. The institution of advertising is made up of a number of different advertising agencies. These agencies employ a variety of different personnel who perform diverse roles, from coming up with creative ideas, to doing audience research, to post production on TV commercials. The agencies provide expertise in a number of different areas (eg print design, market profiling) to manufacturers and thus provide a vital link to audience. It was recognised as long ago as the late nineteenth century that an advertising agency could offer the services of skilled personnel as and when their specialism were needed on a particular project, and that this was a more cost effective approach that individual manufactuers employing their own advertising department.

Advertising is a global industry, and just as there are huge global corporations who sell and advertise their goods around the world (Nike, McDonalds, Microsoft, Adidas, Samsung) so there are huge global advertising agencies who have offices in every major territory.The main advertising agencies (and their websites) are:

A good way of learning about the advertising industry is to look at the trade papers. Go to the online version of AdAge and answer the following questions:

  1. The Latest News Section - what major news story has dominated over the last week and why is it important for advertising industry people to read about it?
  2. The People & Players Section - what is the purpose of this page?
  3. Best Ads - select a review and look at the ad. Identify TWO criticisms Garfield has of the ad and explain whether or not you agree with them (HINT: It's better to choose a critical review)

The Advertising Process & Personnel

The manufacturer provides a number of different agencies with a particular brief. The brief includes details of the product and the aims of the campaign - it might be to launch an new line or inspire new interest in an old favourite - as well as limitations of budget, timescale etc. Each agency will then research the brief, and come up with a campaign idea which they will pitch to the client. The client chooses their favourite pitch and employs that agency to mastermind the campaign. The agency is then responsible for executing the campaign, producing in full the designs for adverts, buying space in magazines, on billboards and TV, and rolling out the campaign on the given dates.

Producing a single campaign can be an expensive process involving hundreds of skilled people - read about a recent Audi (A8) campaign here which employed over 600 people and "the kind of state-of-the-art film technology otherwise reserved for Hollywood blockbusters".

The main personnel who work for an advertising agency include:

Account Managers - They deal directly with the client and oversee all operations. They have overall responsibility for individual accounts - and their success or failure. Quite a responsibility if your client is FedEx...

Creatives - art directors and copywriters who are responsible for coming up with visual and verbal ideas. They are responsible for turning the strategy devised by the strategic planner and account manager into a series of original and effective advertisements.

Strategic Planners - are responsible for researching audiences and markets -an increasingly scientific task - and coming up with a strategy which will connect audience to product. They need to know about psychographics, demographics and economics.

Media Buyers - spend their time negotiating for pages in magazines, and bashing out deals with TV companies for prime time commercial spots. Because they are often negotiating on behalf of many clients at once, buying huge blocks of advertising space, they are powerful enough to get good deals.

Further Reading

YOU (in groups of 5/6) are going to devise a campaign for a new health drink aimed at teens. It is a fruit and herb based drink, very low in sugar and high in nutrients and minerals required by adolescents. Its makers hope to tap into health conscious teens sick of sugary carbonated drinks that are bad for teeth and body, and yet still want a kick out of their liquid refreshment.>

You will reveal your initial ideas for the campaign (one print ad, one synopsis for a TVC, one slogan that goes with both) in the form of a powerpoint presented in class. Your presentation will be judged on the following criteria:

Strategy 
Quality of research Do they provide a range of data about the target market?
Creativity & Originality Will these ads stand out in the marketplace?
Proof of links to target audience Will these ads appeal to a target audience?
Execution 
Copy Is it well written and persuasive?
Images Is it eyecatching and meaningful?
Copy testing Have the ads been tested? Are alternatives presented? Is there any indication that these will work in a 'real world' situation?
Teamwork & Efficiency How effective is the presentation? Would you trust this team with your valuable advertising budget?

You don't have much time to do this (one and a bit lessons) and will need to divide the following roles among your group. You will have to double up on some tasks.

This initial meeting with your client is for the presentation of ideas, rather than a finished campaign. You can use found images for your print ad, you only have to give a short synopsis of your tvc, and you will not be marked on the polish of your presented ads. You are focusing on ideas here, and how well you communicate them to a potential client.

TIPS

  1. Base your campaign around the 4Ps of marketing - pricing, product, place, promotion
  2. Make sure you have evidence of audience research that you can present to the client. You must be able to justify your creative decisions.
  3. Be as specific as possible when suggesting distribution for your ads - which TV channels, at what time, during which show would be a good place for TVCs?