05 January, 2009

ADVERTISING AGENCIES

The formulation and management of advertising campaign is distinctively the function of advertising agencies. These agencies are hired by advertisers to advise them on promotional matters and to plan and execute advertising campaigns. The size of an advertising agency depends upon the mumber and size of accounts it handles. The agency receives its income from the advertising media in which it places its client's advertising. Radio station pay an advertising agency 30 percent of the gross amount of the time purchase the agency make in behalf of its client. The Agency is also generally entitled to add 30 percent for itself to all bill submitted to its client for program and production costs.

Agency Organization

Large advertising agencies are equipped to handle all types of advertising in all the mass communication media. To handle this work, an agency employs a staff of skilled personnel, among whom are found the following : (1) Account executive, who supervise the activities of major advertising accounts and maintain liaison between the agency and the client's advertising manager. The account executive is responsible for the general supervision of all advertising placed by his agency in behalf of his client. (2) Media specialists, including time and space buyers, who are closely acquainted media services have now come into being which are able to supply spot buying service to advertisers and to agencies that do not want the overhead of a media department. (3) Radio Program buyers who deal with networks and other program suppliers and recommend program for sponsorship by the agency's clients, and program supervisors who read script prior to production and seek to protect the interest of the agency's clients who sponsor the program. With the increase in participation advertising in network radio and the decline in program sponsorship by advertiser, this departmenet has been dropped or reduced in size at many agencies. (4) Radio production specialist to preapre and produce radio commercials and who may also participate in the production of major radio show owned by agency, although the production of shows by agencies is now rate. (5) Copy writers, who write the advertisements seen in newspaper and magazines and the commercials seen on television or herad on the radio. (6) Art Directors, who conceive of layout for newpaper advertisements and radio commercials. (7) Marketing research experts, to evaluate the effectiveness of advertising campaign and to assist in the choice of advertising appeals.

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