Chapter 5 The Advertising Agency, Media Services, and Other Services. Objectives_1. Understand The agency The history of the agency business The full-service agency Global advertising agencies. Objectives_2. Understand Agency and client relationships Forms of agency compensation
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The Early Age
The No-Rebate Age
The Age of Negotiation
The Reengineering Age
Media and the Digital Age
First rate directory
Shift to creative center
Curtis No-Rebating rule
AAAA foundedThe Early Age (Colonial Times to 1917)
A full-service agency is one that handles planning, creation, production, and placement of advertising (and other aspects of IMC) for its clients.
Diagnosing the Marketing and Brand Strategy
Setting Objectives and Developing Strategy
Creating the Communication
Notify Trade of Forthcoming Campaign
Billing and Payments
“We believe the hierarchical structure [of the traditional agency], if not obsolete at present, is on its way. The traditional pyramid is about personal power and focuses on how to run a business. Most of the decisions are about the organization’s needs—fiscal and administrative issues. An agency is a service organization whose sole existence depends on satisfying client needs.”
Client-agency relationship length
Agency of record
Agency networksAgency Life
Interpublic’s network includes 33 full-service advertising agencies from 87 agencies in the communications and marketing industries.
DentsuTop 5 Mega Conglomerates