Borderfree T2A Who Are The Key Players

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Who are the Key Players?

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The KEY PLAYERS
Advertiser
(Client)

All the key players also Agency


represent job
opportunities you might Media
want to consider if you are
interested in working in
advertising or some area of
marketing communication. Suppliers

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The Advertiser the company that sponsors the
(Client) advertising about its business.

• The advertiser is the number one key player.


• Management of this function usually lies with the marketing department but in
smaller companies the advertising decisions may lie with the owner, founder, or
partners in the business.
• Most advertisers have a marketing team that initiates the advertising effort by
identifying a marketing problem advertising can solve.
• responsible for monitoring the work and paying the agency for its work on the
account. That use of the word account is the reason agency people refer to the
advertiser as the account and the agency person in charge of that advertiser’s
business as the account manager.
• Big companies may normally have an agency-of-record (AOR) that does most of
their business and may even manage or coordinate the work of other agencies.

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The second player is the advertising agency
Agency (or other types of marketing communication
agencies) that creates, produces, and distributes
the messages.

• The working arrangement between advertiser and agency is known as


the agency–client partnership.
• It is important it is to cultivate a strong sense of trust between the
agency and its clients because these were both risky ideas.
• An advertiser uses an outside agency because it believes the agency
will be more efficient in creating advertising messages than the
advertiser would be on its own.
• Successful agencies typically have strategic and creative expertise,
media knowledge, workforce talent, and the ability to negotiate good
deals for clients.
• The advertising professionals working for the agency are experts in
their areas of specialization and passionate about their work.

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Not all advertising professionals work in agencies.
Large advertisers, either companies or organizations, manage the advertising process either by
setting up an advertising department (sometimes called marketing services) that oversees the
work of agencies or by setting up their own in-house agency

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Media The third player in the advertising
world is the media.
• In traditional advertising, the term media refers to all of the channels of
communication that carry the message from the advertiser to the audience
and from consumers back to companies.
• We refer to these media as channels because they deliver messages, but they
are also companies, such as your local newspaper or radio station.
• Note that media is plural when it refers to various channels, but singular—
medium —when it refers to only one form, such as newspapers.
• Each medium (newspaper, radio or TV station, billboard company, etc.) has a
department that is responsible for selling ad space or time.
• These departments specialize in assisting advertisers in comparing
the effectiveness of various media as they try to select the best mix
of media to use.
• Many media organizations will assist advertisers in the design and production of
advertisements.
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Professional The fourth player in the world of advertising include
Suppliers artists, writers, photographers, directors,
And producers, printers, and self-employed freelancers
Consultants and consultants.
• This array of suppliers mirrors the variety of tasks required to put together an
ad.
• Other examples include freelance copywriters and graphic artists, songwriters,
printers, market researchers, direct-mail production houses, telemarketers,
and public relations consultants.

• Why would the other advertising players hire an outside


supplier?
• The advertiser or the agency may not have expertise in a specialized area,
their people may be overloaded with work, or they may want a fresh
perspective.
• They also may not want to incur the overhead of full-time employees.

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Types of Agencies
Full Service Agencies

In-house Agencies

Specialized Agencies

Agency Networks and Holding Companies

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Full Service
Agencies

• includes the four major staff functions of:


• account management
• creative services,
• media planning, and
• account planning, which includes research
• also has its own finance and accounting department, a traffic
department to handle internal tracking on completion of
projects, a department for broadcast and print
production (sometimes organized within the creative
department), and a human resources department.

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In-house
Agencies
• produces ads and places them in the media, but the agency is
a part of the advertiser’s organization, rather than an outside
company.
• performs most, and sometimes all, of the functions of an outside
advertising agency and produce materials, such as point-of-sale
displays, sales team literature, localized ads and promotions, and
coupon books, that larger agencies have a hard time producing cost
effectively.
• Retailers, for example, find that doing their own advertising and
media placement provides cost savings, as well as the ability to meet
fast-breaking deadlines.

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Specialized
Agencies

• They either specialize in certain functions (writing copy,


producing art, or media buying), audiences (minority,
youth), industries (health care, computers, agriculture,
business-to-business communication), or markets
(minority groups such as Asian, African American, or
Hispanic).
• Some agencies specialize in other marketing
communication areas, such as branding, direct marketing,
sales promotion, public relations, events and sports
marketing, packaging, and point-of-sale promotions.

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Let’s take a look at two special types of agencies:
CREATIVE BOUTIQUES

• ad agencies, usually small (two or three people to a dozen or more), that concentrate entirely on
preparing the creative execution of the idea, or the creative product.
• has one or more writers or artists on staff, but generally no staff for media, research, or strategic
planning.
• can prepare advertising to run in print and broadcast media, as well as in out-of-home (such as outdoor
and transit advertising), Internet, and alternative media. usually serve companies directly, but are
sometimes retained by full-service agencies that are overloaded with work.

MEDIA BUYING SERVICES


• specialize in the purchase of media for clients.
• They are in high demand for many reasons, but three reasons stand out.
• First, media has become more complex as the number of choices has grown—think of the
proliferation of new cable channels, magazines, and radio stations.
• Second, the cost of maintaining a competent media department has escalated.
• Third, media-buying services often buy media at a low cost because they can group several clients’
purchases together to get discounts from the media because of the volume of their media buys.
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Agency Networks and
Holding Companies

• Large conglomerations of agencies under a central


ownership.
• Agency networks are all of the offices that operate under one
agency name, such as DDB Worldwide (200 offices in 90
countries) or BBDO Worldwide (287 offices in 79 countries).
• Holding companies include one or more advertising agency
networks, as well as other types of marketing communication
agencies and marketing services consulting firms.
• Most of those firms are also networks with multiple offices.

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