You need an advertising agency that can take your business to the next level. Hiring an advertising agency is a big decision, but it doesn’t have to be difficult. To know “What does an advertising agency do in 2023?“, here are 7 questions you should ask before hiring any advertising agencies.
We’re here to help answer those questions and make sure you find the right fit for your company’s needs. As one of the top agencies in our industry, we’ve worked with companies like yours across all industries and sizes on everything from digital marketing campaigns, graphic design projects, web development work and much more!
What is the definition of an advertising agency?
An advertising agency is a company that creates ads for others to use in their daily lives. Advertising agencies design advertisements and commercials for companies, providing them with the creative side of advertising. They attract a consumer’s attention through effective ideas and designs, which can convince or persuade consumers about a product. Advertising agencies usually have large budgets to create the most appealing advertisement possible.
Advertising agencies are often in charge of advertising for television, the internet, magazines (print), and other media platforms. The advertising agency works closely with the advertising department of a company that they represent. Furthermore, advertising agencies can also be contracted to produce ads for smaller businesses who do not have their own advertising departments.
Why use an advertising agency?
An advertising agency serves as an advertising department for companies that don’t have one. Advertising agencies can create advertising campaigns and advertisements to effectively reach out and engage with a wide audience. Furthermore, the advertising agency will develop a marketing strategy for their client’s business or product, so they can receive maximum output from their advertising campaign.
Typically, advertising agencies are more open to taking risks than companies themselves because if the advertising does not work out in the end, they do not have to deal with negative consequences since they were only contracted to produce ads and did not actually produce the product. Therefore, advertising agencies may be willing to try new creative ideas that might replace older ones that no longer hold consumer interest; advertising agencies can take these risks without having the pressure of affecting their client’s sales or business.
Most advertising agencies tend to create advertising campaigns for larger companies, but advertising agencies may accept smaller clients as well; this usually requires more work on the agency’s part, though they are most likely willing since it means they would be receiving more money. Advertising agencies tend to only take on clients that they believe will provide them with an advertising challenge and allow them to express their creativity through advertising.
The benefits of using an advertising agency?
- Advertising agencies can implement a marketing strategy for a company who doesn’t have an advertising department.
- Advertising agencies create advertising campaigns and advertisements to attract a customer’s attention.
- Advertising agencies take risks without having the pressure of affecting their client’s sales or business.
- Advertising agencies develop creative ideas that can replace older ones that no longer hold consumer interest.
How Does an Advertising Agency Work?
An advertising agency works closely with advertising departments from their clients’ businesses. The advertising agency conducts research on their client’s business and audience, so they can create a marketing strategy to achieve the best results from their advertising campaign.
Typically, advertising agencies work with multiple companies at once in some capacity; while some advertising agencies may only work with one company, others may have several companies that they serve as a marketing or advertising department for. However, advertising agencies tend to focus more attention on larger businesses rather than smaller ones.
Advertising agencies usually have large budgets to work with since they are responsible for creating advertisements for companies of all sizes- from large corporations to small businesses. Also, advertising campaigns tend to be time consuming due to how many resources advertising agencies have to invest into advertising.
An advertising agency is responsible for creating advertising campaigns that can effectively reach out and engage with the target audience(s). Advertising agencies are usually contracted by other businesses to create advertising campaigns on their behalf, so advertising agencies should take this responsibility very seriously. Therefore, advertising agencies may consider themselves almost as highly paid consultants because they are hired to work seamlessly within other companies’ advertising departments.
Advertising firm creative, which develops and produces ads
This is the engine of any advertising agency. It’s the lifeblood of the business because the creative department is responsible for the product. And an ad agency is only as good as the ads the creative department puts out. The roles within the creative department are many and varied, and usually include:
- Copywriters
- Art Directors
- Designers
- Production Artists
- Web Designers
- Associate Creative Directors
- Creative Director(s)
Media, which selects media placement ads
The media buying department procures the advertising time and/or space required for a successful advertising campaign. This includes internet banners, radio time, TV, outdoor (billboards, posters, guerrilla), magazine and newspaper insertions, and pay-per-click (PPC) advertising.
Research, which studies audience characteristics and wants
Larger advertising agencies rely on their own research department to provide data on current and future clients. This is the department responsible for focus groups and testing, analyzing and interpreting data, and helping the creative and account teams focus on new market trends.
Business, which handles advertising agencies’ business activities.
The finance and accounts department handles all the money flows. This department is responsible for handling the payment of salaries, benefits, vendor costs, travel, and day-to-day business costs.
Each account is typically supervised by an account executive, and people in each department are usually assigned to work on one or more accounts.
Ad agencies often attract new business through reputation or size. Generally, however, the client may send out an RFP or invites a few agencies to make a presentation for its business requirements and then selects one of them.
How to find the right advertising agency for you?
First of all, you need to figure out what kind of agency is best for your business. Do you have a small company, or are you more of an established big-brand firm? Once you know this, think about your needs and expectations. You need to ensure that the agency really understands your industry so they can give the right advice on how to reach out to potential customers.
Look at examples of work created by their team members – do ads get awarded frequently if so does not indicate quality ads but it shows that they are using award winning agencies even though they may be more expensive. Asking for samples is always helpful in this case because it enables them to show off their advertising campaigns.
When advertising agencies pitch, they will often bring along a team of creative and media professionals to help explain their ideas better. You should give yourself ample time between the presentation and the final decision so you have enough time to discuss it with your team if necessary before making a choice.
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What are the types of advertising agencies?
There are six major types of agencies:
- Creative Agencies/Production Studios . This type of agency is known for the talent pool that is available to them. Good creative people are what make a Creative Agency tick. Creative Agencies are also hired by larger advertisers looking for professional expertise with an understanding of the dynamics of working with clients or large corporate accounts. They specialize in key media concentrations through their own stations and contacts on top-quality work with cost effective budgets, usually organized on a time and materials basis. Their work tends to be highly individualized depending on client needs rather than adhering to any particular strategy or campaign framework which allows many small businesses the flexibility they need in advertising.
- Creative Design Agencies . This type of agency is concerned primarily with the design and execution of a campaign, or with packaging work for their clients. They produce print ads, radio commercials, television spots, brochures and direct mail pieces.
- Marketing Research/Advertising Research Agencies. This type of agency is usually staffed by account managers from an ad agency which uses the consultants from the consulting firm to supplement their own staff. The research departments are responsible for all types of research activities including analyzing data collected through surveys into customer behavior and lifestyle factors that affect buying decisions; tracking changes in brand awareness, image and public perception both nationally and at the local level; and providing recommendations for advertising strategy based on these findings.
- Account Planning Agencies . This type of agency excels in helping clients develop a marketing/advertising strategy script or plan, involving all company departments to ensure stated objectives are met. To do this they must first determine long-range objectives for each product line including specific marketing plans that outline customer requirements for that particular market category then position the brand correctly to meet those needs. Advertising agencies that specialize in account planning usually provide an array of services depending on client needs which include research, presentations, media planning and buying services as well as creative. They are employed by many mid-size to larger organizations who tend to have advertising budgets of over $10 million.
- Media Planners/Buyers . This type of agency focuses on buying space or time in the various media outlets that are appropriate to the client’s campaign. They are employed by many mid-size to larger organizations who tend to have advertising budgets of over $10 million. These companies usually follow a set strategic plan when devising their media strategy, considering placement, timing and cost factors as well as other variables including market size, penetration, coverage etc. These planners also select pre-testing techniques appropriate for evaluating ads, scheduling times for testing and interpreting results for their clients’ specific needs. Their strategies are developed extensive research into both traditional mass media advertising as well as new advertising channels that are available.
- New Media/Internet Specialists . This type of agency has specific web expertise and creative experience with interactive marketing, including multi-media production expertise, website design, online brand development and creative integration capabilities to include the creation of virtual brands. Their capabilities also usually include research into consumer behavior around the internet and related technologies to help their clients maximize returns on ad dollars spent.
How much does it cost to use an adverting agency?
Most ad agencies gain their revenue through commissions they receive on the ads and campaigns they produce for their clients. A large agency with a big client list will usually command a higher percentage of ad spending than a smaller company, so larger amounts can be expected to be paid.
A small business with relatively low-cost needs might only ask an agency to charge $40,000 for their services while a larger corporation with substantial ad budgets may pay as much as $800,000 annually for the same services.
Smaller firms with less expansive services and fewer employees typically charge by the hour and provide estimates of costs before beginning work on projects.
Larger agencies that offer more extensive services and employ a variety of advertising professionals typically use the agency rate card which is their fee scale for advertising services based on how many professional hours they will be using in producing advertising materials.
How much advertising agencies charge per hour varies greatly depending upon the geographic location, industry, client list and size of company or organization that is using their services.
The ad agency’s job is to do what the customer wants. They have a proven process for creating ads that produce results and ROI for their clients, but if you want something different they can make it happen.
