Question

Business firms and other organisations advertise their products/services/ideas, etc., on a regular basis. They need an institution which is an expert in designing advertisements, in releasing them through appropriate media, etc. In context to this statement explain the functions of advertising agency.

Answer 1

The functions of an advertising agency are:

1. Planning: The advertising agency plans the advertising campaign. The agency must have a fair knowledge of the firm’s products, its history, the present market conditions, distribution methods, price level and other conditions. A successful advertising programme is built on the basis of these data.
2. Creation and Execution: Specific advertisements are created and executed. The advertising copy is written; the layout is prepared; illustrations are drawn; photographs are finalised; and a correct mechanical form for running it in the selected media is produced. The advertising agency prepares a suitable advertising copy for insertion in all the media.
3. Media Planning: The advertising agency selects the media or a set of suitable media for the client to reach the right type of audience, which is an important factor in media selection. The media experts know all about the media and their coverage. They prepare the schedule of advertising, publication, data on printing and the time available from television and radio.
4. Coordination: The advertising agency coordinates several activities. It often works with the client’s sales force and distribution network to ensure the long-term success of the advertising programme. The combined efforts of salespersons, distributors and retailers ensure maximum sales. Ideas, media, copy and decisions are coordinated properly to project and implement the advertising programme.
5. Accounting: The advertising agency maintains proper accounts in co-operation with the client. The account executives see to it that the agency sticks to the stated plan. The accountant is in charge of the administration of the advertising programme on the agency side. A misunderstanding arising between the agency and the client is eliminated by the accountant. The amount of fees received from the client and the payment of taxes, bills and other charges are accounted for by the accountant.