Famous advertising agencies

BBDO — works with Anheuser-Busch, Visa, and PepsiCo.
Crispin Porter + Bogusky –famous for Subservient Chicken, works with Burger King, EarthLink, Virgin Atlantic Airways, Volkswagen
Doyle Dane Bernbach — created famous campaigns for Volkswagen (including the famous “Lemon” ad) and Avis Rental Cars (“We’re number 2. We try harder.”)
Goodby, Silverstein & Partners — famous for the “Got Milk?” campaign, among others
JWT (formerly J. Walter. Thompson) — works with Kelloggs, Unilever, Diageo.
The Martin Agency — UPS, GEICO, NASCAR, Miller (Lite, MGD), Hanes, and others
N.W. Ayer & Son — the first ad agency in the United States, coined “When it rains it pours” (Morton Salt), “A diamond is forever” (De Beers), “Reach out and touch someone” (AT&T), “Be all you can be” (United States Army), and others
Ogilvy & Mather — famous for the Rolls-Royce print ad with the headline “At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock”, among other ads
Saatchi and Saatchi — most famous for working with the Conservative Party especially during the 1979 general election (Maurice and Charles Saatchi later left and set-up M&C Saatchi)
TBWA\Chiat\Day — works with Apple Computer (including the “Think Different” campaign) and adidas. Responsible for creating the fcuk brand and (in the UK) Wonderbra advertising.
Partnership Advertising — responsible for developing the “loading cancer” ad that won the 2003 New York Festivals Finalists

Largest Advertising Groups

According to the Research Company Evaluating the Media Agency Industry, the 2004 top 6 largest advertising groups ranked by worldwide billings were the following:

WPP Group: $48.055 Billion
Publicis: $34.365 Billion
Interpublic: $27.870 Billion
Omnicom Group: $25.230 Billion
Aegis Group: $20.355 Billion
Havas: $8.775 Billion

Yahoo! results and its forecast for current-quarter sales pleased the investors; Yahoo’s shares boost almost 6% in extended trading after the market close. “It was a clean ‘beat’ quarter, you see signs of stabilization, which is very positive.” says Sandeep Aggarwal, an analyst at financial services firm Collins Stewart.

As Business Week says, Yahoo, in the midst of a sweeping reorganization and rebranding campaign under CEO Carol Bartz since she joined in January, emphasized that the online advertising market is stabilizing.

In the third quarter, Yahoo earned $186.1 million in net profit, or 13¢ a share. That’s up from 4¢ a year ago. Gross revenue of $1.58 billion was down 12% from a year ago. Net revenue after commissions to advertising partners, a more closely watched metric, was $1.13 billion.

About 5¢ of the profit came from the sale of Yahoo’s stake in China’s Alibaba, but remaining results were still ahead of forecasts. The company was expected to earn 7¢ a share on gross revenues of $1.52 billion, or $1.12 billion after payments to advertising partners.

The problem remains the search engine market, Yahoo! continuing to loose ground to Google. Yahoo said it expects gross revenues of $1.6 billion to $1.7 billion in the fourth quarter. Operating income before depreciation, amortization, and stock-option costs is expected to be between $400 million and $450 million. Both of those are somewhat higher than Wall Street forecasts.

The creative department — the people who create the actual ads — form the core of an advertising agency. Modern advertising agencies usually form their copywriters and art directors into creative teams. Creative teams may be permanent partnerships or formed on a project-by-project basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience. Although copywriters have the word “write” in their job title, and art directors have the word “art”, one does not necessarily write the words and the other draw the pictures; they both generate creative ideas to represent the proposition (the advertisement or campaign’s key message).

The other major department in ad agencies is account services or account management. Account service employees work directly with clients and potential clients, soliciting business for the ad agency and determining what clients need and want the agency to do for them. They are also charged with understanding the clients business situation and representing those needs within the agency, so that ads can be brought to bear on the correct problem.

Previously, client services employees wrote the advertising strategy that the creative director (and teams ) would use to create the advertising. However, since the late 1960′s in the UK, and the mid-1980′s in the US, specialist account planners have been tasked with doing this. The account planner was originally employed to “represent the consumer” in the advertising i.e. find the best way to pitch the clients products to people but better understanding them, what they want and how to talk to them. Planning’s role has expanded considerably since it was originally introduced. Pleanners now brand strategists and, to a certain extent, media strategists – using consumer insights to understand where and how people are most receptive to certain messages.

The creative services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they will be able to advise upon and negotiate with printers if an agency is producing flyers for a client. However, when dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can.

In small agencies, employees may do both creative and account service work. Larger agencies attract people who specialize in one or the other, and indeed include a number of people in specialized positions: production work, [Internet] advertising, or research, for example.

An often forgotten, but extremely important, department within an advertising agency is traffic. Typically headed by a traffic manager (or system administrator), this department is responsible for a number of things. First and foremost is increasing agency efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and under-cost estimation, and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of ten or more employees. Department size varies, but its importance remains the same.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for their clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client’s products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients.

Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign.

Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group or WPP Group.

Some agencies specialize in particular types of advertising, such as print ads or television commercials. Other agencies, especially larger ones, produce work for many types of media (creating integrated marketing communications, or through-the-line (TTL) advertising). The “line”, in this case, is the traditional marker between media that pay a (traditionally 15%) commission to the agency (mainly broadcast media) and the media that do not.

Lately, Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as ‘agencies’ due to the fact that they are creating media and implementing media purchases of text based (or image based in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term ‘agency’ however with the creation of ads (either text or image) and media purchases they do qualify technically as an ‘advertising agency’ as well as recent studies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years.

Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house.

Links

• American Association of Advertising Agencies
• World Federation of Advertisers
• Adforum you can view advertising print work and spots
• Research Company Evaluating the Media Agency Industry

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

The display advertising portion of online advertising is increasingly dominated by rich media, generally using Adobe Flash. Rich media advertising techniques make overt use of color, imagery, page layout, and other elements in order to attract the reader’s attention. Some users might consider these ads as intrusive or obnoxious, because they can distract from the desired content of a webpage. Some examples of common rich media formats and the terms of art used within the industry to describe them:

• Interstitial or Expanding ad: The display of a page of ads before the requested content.
• Floating ad: An ad which moves across the user’s screen or floats above the content.
• Expanding ad: An ad which changes size and which may alter the contents of the webpage.
• Polite ad or Polite download: A method by which a large ad will be downloaded in smaller pieces to minimize the disruption of the content being viewed
• Wallpaper ad: An ad which changes the background of the page being viewed.

In addition, ads containing streaming video or streaming audio are becoming very popular with advertisers.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

Because of the ability to track results of online advertising at a more granular level than what is available through traditional advertising, varying ways have developed for the advertisers and publishers to do business. The three most common ways in which online advertising is purchased are CPA, CPC, and CPM.

CPA (Cost Per Action) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser only pays for the media on the basis of the number of users who complete a transaction, such as a purchase or sign-up.

CPC (Cost Per Click) advertising is also performance based and is common in search marketing, where it is often known as Pay per click (PPC). In this scheme, an advertisement may be displayed (and assumedly viewed) many times, but the advertiser only pays based on the number of user clicks. This system provides an incentive for publishers to target ads correctly (often by keyword), as the payment depends upon the ad not only being seen, but the viewer responding and following the hyperlink.

CPM (Cost per Thousand) advertising is the most common basis in the business and is used for most display advertising and rich media. This scheme most closely resembles offline advertising, wherein the advertiser is paying for exposure of their message to a specific audience. CPM costs are priced per thousand, so that a $1 CPM, means that the advertiser pays $1 for every thousand impressions.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

A significant number of firms, from small businesses to multinational corporations, incorporate online advertising into their marketing strategy. This is even true of firms which conduct their business through more traditional brick and mortar channels. In response to this demand, a number of firms specialize in facilitating online marketing. Therefore, online advertisements typically involve at least two separate firms: the advertiser or agency which purchases or sponsors the advertisement and the publisher or network which distributes the ad for display. Additional parties may also be included, such as an ad serving technology provider, a third party sales network, or other combinations.

In capitalizing on the increasing importance of the Internet as a marketing medium, the online advertising industry has developed specialized technical systems to manage the ways ads are distributed and viewership totaled. The Internet Advertising Bureau (IAB) has established guidelines for the counting methodology, size requirements, and other aspects of the business.

Because of the close relation between technical innovation and online advertising, many firms specialize in both. For example, most search engines couple their search service with an advertising program, exploiting the benefits of keyword-based search technology by including ads in search results. Many technology firms specialize in ad serving, the systems used to select the ads to show, optimize results, and generate reports.

Email advertising

Legitimate Email advertising is often known as opt-in email to distinguish it from spam.

Affiliate marketing

Affiliate marketing is a form of advertising where the advertiser allows a potentially large number of small publishers to pick specific creative elements or offers to market in exchange for payment should such marketing create sales or other revenue. This is usually accomplished though a self-service online system, such as those offered by third parties Performics, BeFree, CommissionJunction, or Linkshare. Affiliate marketing was an early innovation of online retailer Amazon, which has used its program to generate enormous volumes of low cost brand exposure.

Contextual advertising

Many advertising networks display text-only ads that correspond to the keywords of an Internet search or to the content of the page on which the ad is shown. These ads are believed to have a greater chance of attracting a user, because they tend to share a similar context as the user’s search query. For example, a search query for “flowers” might return an advertisement for a florist’s website.

Another newer technique is embedding keyword hyperlinks in a webpage which are sponsored by an advertiser. When a user follows the link, they are sent to a sponsor’s website.

Ads and malware

There is also class of advertising methods which may be considered unethical and perhaps even illegal. These include external applications which alter system settings (such as a browser’s home page), spawn pop-ups, and insert advertisements into non-affiliated webpages. Such applications are usually labeled as spyware or adware. They may mask their questionable activities by performing a simple service, such as displaying the weather or providing a search bar. Some programs are effectively trojans. These applications are commonly designed so as to be difficult to remove or uninstall. The ever-increasing audience of online users, many of which are not computer-savvy, frequently lack the knowledge and technical ability to protect themselves from these programs.

Links

• IAB

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

With the dawn of the Internet have come many new advertising opportunities. Popup, Flash, banner, and email advertisements (the last often being a form of spam) abound. Recently, the advertising community has attempted to make the adverts themselves desirable to the public. In one example, Cadillac chose to advertise in the movie ‘The Matrix Reloaded’, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Rolex watches and BMW cars featured in recent James Bond films.

Each year, greater sums are paid to obtain a commercial spot during the Super Bowl. Companies attempt to make these commercials sufficiently entertaining that members of the public will actually want to watch them.

Particularly since the rise of “entertaining” advertising, some people may like an advert enough that they wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their adverts to anyone wishing to see or hear them.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

One of the effects of advertising is to modify the nature of the communication media where it is shown. The most clear example is television. Channels that get most of their revenues from publicity try to make their medium a good place for communicating ads. That means trying to make the public stay for long times and in a mental state that will make spectators not to switch the channel through the ads. Programs that are low in mental stimulus and require light concentration and are varied are best for long sitting times and make for much easier emotional jumps to ads, that can become more entertaining than regular shows. A simple way to understand the objectives in television programming is to compare contents from channels paid and chosen by the viewer with channels that get their income mainly from advertisements.

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.