Unit III – Ad Agency – Structure & Functions

1. Advertising Agency: Concept, Types, Functions and

various departments
2. Structure and Hierarchy of an Advertising Agency
3. Planning and Pitching in Advertising
4. Role and Functions of DAVP
 Advertising Agency
Concept, Types, Functions and various departments
Concept
An advertising agency, often referred to simply as an ad agency, is a specialized service-oriented business tasked with
creating, strategizing, and executing advertising campaigns and promotional activities on behalf of its clients. These
agencies operate independently from their clients, offering an external perspective and expertise in crafting compelling
messages and delivering them to target audiences effectively. In addition to advertising, ad agencies may also handle
broader marketing and branding strategies, as well as sales promotions, to enhance their clients' market presence and
drive business growth. Clients of advertising agencies span various sectors, including businesses, corporations, non-profit
organizations, and government agencies, seeking to leverage the expertise and resources of these agencies to achieve their
marketing objectives.
Much like a tailor customizes clothing to fit a client's needs, advertising agencies tailor marketing communications to suit
their clients' goals and target audiences. They employ a diverse team of professionals skilled in various disciplines, such as
creative design, copywriting, media planning, and market research, to develop comprehensive advertising campaigns that
resonate with consumers and drive desired outcomes. By leveraging their expertise and resources, advertising agencies
streamline the process of reaching and engaging target customers, helping their clients achieve their marketing goals more
effectively and efficiently.
Concept
In the beginning, genuine advertising agencies didn't exist. Instead, advertisements were sent to different media outlets by
representatives who, in the early days of advertising, sold and resold the available space. This marked the modest start of
what we now know as ad agencies. The first ad agency goes back to 1786 when William Taylor set up an office in London.
However, it was Volney B. Palmer who spread the concept worldwide, opening his ad agency in Philadelphia in 1840.
Palmer's approach involved buying newspaper spaces at discounted rates and then reselling them at higher prices to
advertisers. This laid the groundwork for the activity of selling advertising space and led to the term "Agent." He also played
a crucial role in conceptualizing the actual ad, handling the design and artwork for clients, and influencing the creative side
of advertisements. Many others joined the business, creating directories with advertising rates for newspapers.
Francis Ayer, at just 20 years old, established N.W. Ayer and Sons, considered one of the world's oldest full-service
advertising agencies.

Global Advertising Agencies

Moving to the UK, a significant player in the capitalist economy for centuries, advertising space selling had a modest start.
Three forms of advertisements emerged in the early stages: Trade Cards, Posters, and Display Advertisements in
newspapers. The emergence of standardized ad agencies revolutionized the creation of ads, especially print ads.
In the UK, Thomas J. Barratt, working for Pears Soap company, transformed advertising by creating effective campaigns
with targeted slogans, images, and phrases. This laid the foundation for the modern ad agency concept, which has evolved
significantly over time.
In the early 1800s, agencies began creating and sending advertisements to the media. In the USA, Lord and Thomas took a
significant step by hiring copywriters to produce creative content for advertising. This marked a shift where agencies
became the central hub for creative planning, firmly establishing advertising as a profession.

Initially, agencies were seen as mere intermediaries for newspaper space, but with the rise of full-service agencies, they took
on the responsibility of advertising the actual content.

David Ogilvy, a British advertising mogul, founded the renowned agency Ogilvy & Mather, ranking among the top global
agencies today. He's often called the "Father of Advertising." Trained at Gallup research organization, Ogilvy credited the
success of his campaigns to thorough research into consumer habits.
Indian Advertising Agencies

B. Dattaram and Co., based in Bombay (now Mumbai), claim to be the oldest Indian ad agency, starting in 1905. Other
agencies like India Advertising Company (1907), Calcutta Advertising Agency (1909), and S.H. Bensen (1928) followed
suit. Gradually, Indian agencies began to be owned and managed by foreigners.

In the 1920s, agencies like Ogilvy and Mather, Hindustan Thompson Associates (HTA) were formed, expanding their
operations to India. They often followed the activities of foreign agencies. The first marketing campaign for the exclusive
brand "Dalda" was executed in 1939, tailored to the Indian market.

Mergers and acquisitions led to the formation of new agencies, and JWT was rebranded as HTA in India. The advertising
industry's professional growth and demand for inputs accelerated, prompting the formation of advertising associations and
groups. By 1950, these associations began safeguarding the interests of the advertising industry.

In 1967, the first radio commercial aired on Vividh Bharti, followed by television commercials – all crafted by ad agencies.
In 1986, Mudra Communications focused on airing ads on Doordarshan, the primary TV medium at that time. The growth of
satellite television post-1991 changed the landscape, expanding the scope and responsibilities of ad agencies.
B. Dattaram and Co., based in Bombay (now Mumbai), claim to be the oldest Indian ad agency, starting in 1905. Other
agencies like India Advertising Company (1907), Calcutta Advertising Agency (1909), and S.H. Bensen (1928) followed
suit. Gradually, Indian agencies began to be owned and managed by foreigners.

In the 1920s, agencies like Ogilvy and Mather, Hindustan Thompson Associates (HTA) were formed, expanding their
operations to India. They often followed the activities of foreign agencies. The first marketing campaign for the exclusive
brand "Dalda" was executed in 1939, tailored to the Indian market.

Mergers and acquisitions led to the formation of new agencies, and JWT was rebranded as HTA in India. The advertising
industry's professional growth and demand for inputs accelerated, prompting the formation of advertising associations and
groups. By 1950, these associations began safeguarding the interests of the advertising industry.

In 1967, the first radio commercial aired on Vividh Bharti, followed by television commercials – all crafted by ad agencies.
In 1986, Mudra Communications focused on airing ads on Doordarshan, the primary TV medium at that time. The growth of
satellite television post-1991 changed the landscape, expanding the scope and responsibilities of ad agencies.
Types of

agencies
 TYPES OF AGENCIES

Digital Agency
Full Service Agency

Creative Boutique Media

Buying
Agency

In-House Agency
 Full Service Agency

Full-service advertising agencies represent the pinnacle of comprehensive

marketing solutions in the corporate landscape. These agencies are
behemoths in the industry, offering an all-encompassing array of services
that cater to every facet of the advertising journey. From conceptualization
to execution, they are the one-stop destination for businesses seeking to
amplify their brand presence and drive their message home effectively.
Here's a breakdown of their modus operandi and why they stand as titans
in the realm of marketing.
A full-service advertising agency can handle all the marketing and
advertising aspects of a business. This usually includes strategic planning,
production, creativity, and innovations, as well as interactive
marketing services via the internet.
Working with a full-service agency gives a company access to a stronger
pool of talent and professional strength in the marketing area. It may be
even less expensive in the long run.

Mostly Large in Size Deals in all stages of advertising

Different expert people for different departments begin with data analysis and end by settling bills with media outlets
 Boutique Agency

Creative boutiques stand as beacons of ingenuity in the

advertising sphere, singularly devoted to the art of
creativity. These agencies specialize solely in providing
creative services, leveraging their expertise to conceive
captivating and original advertising themes. Among them,
GingerCup shines as a prime example of this specialized
model. With a relentless focus on innovation, creative
boutiques craft ads that transcend the mundane, leaving a
lasting imprint on viewers' minds. Unlike full-service
agencies, they abstain from multifaceted tasks, dedicating
their efforts entirely to the pursuit of imaginative
storytelling. Often sought after by larger agencies during
peak periods, creative boutiques offer a refreshing
alternative, delivering campaigns that breathe new life into
the advertising landscape. With an external creative team
one can expect a desirable outcome at a decent cost.

Very creative and innovative ads Flexibility & Speed

Try new things at a better rate as compared to other agency types Cost effective
 Digital Agency
In the ever-evolving landscape of advertising, digital agencies have emerged as the
vanguards of online branding and engagement. These specialized entities focus
primarily on leveraging digital channels to connect brands with their target audiences in
the virtual realm. Digital agencies offer a comprehensive suite of services tailored to
the digital domain, encompassing everything from website development and social
media management to search engine optimization (SEO) and online advertising
campaigns. With the digital sphere becoming increasingly integral to modern marketing
strategies, these agencies play a pivotal role in helping businesses navigate the
complexities of the online landscape.
Digital agencies boast a deep understanding of digital platforms and technologies,
allowing them to devise bespoke strategies that resonate with today's digitally savvy
consumers. They harness the power of data analytics to glean actionable insights into
consumer behavior, enabling brands to refine their digital presence and enhance
engagement. Moreover, digital agencies are adept at adapting to the rapidly evolving
digital ecosystem, staying abreast of emerging trends and technologies to ensure that
their clients remain ahead of the curve. As businesses continue to prioritize their online
presence, digital agencies serve as invaluable partners, guiding them towards digital
success in an increasingly competitive digital marketplace.

specialize in targeting and engaging audiences precisely

expertise in leveraging data analytics to optimize digital campaigns
comprehensive range of services, from web design to social media management, ensuring a holistic online presence
Media Buying Agency

Media buying agencies play a pivotal role in the advertising ecosystem, specializing in the strategic procurement of advertising space
and time across various media channels. At the heart of their mission lies the art of delivering the right message to the right
audience at the right time. By meticulously planning and executing media campaigns, these agencies strive to leave a lasting
impression while maximizing exposure for brands, all while minimizing expenditure.
In today's dynamic advertising landscape, brands are compelled to navigate a myriad of channels to achieve optimal results. From
traditional platforms like television and radio to digital avenues such as social media and streaming services, the modern consumer is
inundated with a plethora of media options. Media buying agencies adeptly navigate this multifaceted landscape, leveraging their
expertise to identify the most effective channels for reaching target audiences. Through strategic planning and astute negotiation,
they ensure that brands can cut through the noise and connect with consumers in meaningful ways, driving engagement and
fostering brand loyalty.
In essence, media buying agencies serve as the architects behind successful advertising campaigns, orchestrating the intricate dance
between brands and their audiences across diverse media platforms. By harnessing the power of strategic planning and precise
execution, they empower brands to achieve maximum impact and optimize their return on investment in an increasingly competitive
marketplace.
Some renowned media buying agencies are - Hotspex Media, Influasia, Lodestar
In-House
Agency
In-house agency

In-house advertising agencies represent a unique approach to brand promotion, as

they are wholly dedicated to amplifying the messaging and image of a single
company. Unlike traditional agencies that work with multiple clients, in-house ad
experts commit themselves exclusively to mastering their brand's identity and
voice.
At the heart of in-house advertising is a deep integration within the company itself.
These professionals have unparalleled access to the inner workings of the
organization, including its social media channels, marketing strategies, and
invaluable customer data. This unfettered access serves as a significant advantage,
allowing them to craft marketing campaigns that are deeply rooted in the brand's
ethos and resonate authentically with its target audience.
Moreover, in-house advertising agencies recognize the paramount importance of
content marketing in today's landscape. With a wealth of company-specific
knowledge at their disposal, they are uniquely positioned to create compelling and
relevant content that drives engagement and fosters meaningful connections with
consumers. By harnessing their intimate understanding of the brand and its
audience, in-house ad experts navigate the complexities of content creation with
finesse, delivering campaigns that leave a lasting impact and propel the brand
forward. One such example is Cheil WorldWide which is an in-house creative agency
of Samsung.
Important Functions of Advertising Agencies

1. Advertising Plan
2. Creation and Execution
3. Co-ordination
4. Research
5. Mechanical production
6. Traffic
7. Accounting
8. Public Relations
Organizational Structure Of Advertising Agencies

Over the years, Advertising Agencies worldwide have changed in how they function and organize their day-to-day activities.
These agencies work as teams, emphasizing the importance of teamwork to accomplish tasks. The organizational structure
of an ad agency can vary based on its functional purposes.

Ad agencies come in different sizes, ranging from full-fledged agencies to medium-sized ones and smaller ones with varying
numbers of employees. Despite the differences in size, the core activities of these agencies remain the same. Some agencies
operate globally, some at the national level, and others focus only on local markets.

Madison Avenue in New York City is considered the Mecca of Advertising, hosting several renowned global ad agencies. In
India, Mumbai, known as the financial capital, has a concentration of numerous ad agencies, followed by other metropolitan
cities.

Typically, ad agencies have various departments, each led by respective heads. A senior management team oversees business
and financial operations. Larger ad agencies usually have a management team comprising a Chief Executive, Finance
Director, account officers, account planners, media planners, creative teams, administrative teams, sales teams, and
production teams. The success of an ad agency depends on the teamwork and capabilities of its members.

Today, advertising agencies fall into two main categories: full-service agencies and specialized agencies. Full-service
agencies offer a complete range of activities related to media and market sectors. Specialized agencies can be independent
agencies offering limited services, agencies focusing on internet-related activities, or agencies working in specific market
sectors like business-to-business advertising.
Roles and Responsibilities of Departments:
Ad agencies consist of various departments whose main responsibility is to perform their respective roles to create the
end result. Each and every department is interrelated and they are interdependent on each other. You can’t expect them
to work in isolation. An agency can broadly be divided into Two units: The Creative side and The Production side. Now
let’s take a look at the departments and their responsibilities with the key personnel involved.
Big Agency

The primary goal of an advertising agency is to ensure that its client's advertisements translate into long-term
profitability. To achieve this objective, the agency undertakes several crucial functions. The scale of an advertising
agency directly influences the breadth of services it can provide to its clients. Typically, larger agencies offer a
wider range of services compared to medium and small-sized agencies.
Larger agencies, with their extensive resources and diverse talent pool, have the capacity to offer a
comprehensive suite of services, ranging from strategic planning and creative development to media buying and
digital marketing. Their expansive reach and established networks enable them to execute multi-faceted
campaigns that leverage various channels and platforms to maximize impact.
On the other hand, medium and small-size agencies may specialize in specific niches or focus areas, offering
tailored solutions that cater to the unique needs of their clients. While they may have limitations in terms of
resources and scale, these agencies often excel in providing personalized attention and nimble, agile strategies
that can adapt quickly to changing market dynamics.
Ultimately, the size of the agency often correlates with the breadth and depth of services it can offer, allowing
clients to choose the partner that best aligns with their objectives and requirements. Whether large or small, the
ultimate aim remains the same: to deliver results-driven campaigns that drive sustained growth and success for
their clients.

Mid
Ag ency
Departments Of An Ad Agency

Like any other organization, ad agencies too have assigned the responsibilities to their employees under different
departments. All these departments have to function according to their nature of activity, but are closely related
to one another.

The major classification of the personnel that we witness in an Ad firm is as follows:

• Media Planning Department

• Accounts Department

• Account Management Department • Production Department

• Creative Department
With the increase in competition, the demand on the advertising agencies to
maintain strong rapport with the clients has become more pivotal. It’s very
much important to have a good compatibility between the client, agency
and its brand. The service provided by the agencies helps them to retain clients
for a long run, and the agencies need to deliver their best for retaining
their accounts. The agencies have to evolve and adapt to the new changes
and demands from the industry. Many a time the clients grade the agencies
which give them an upper hand in the profession and among their rivals.

All the requirements needed by a client must be felled by the agency.

Therefore having all the services available under one roof is essential.

Account Management refers to providing all the necessary assistance for a

client in terms of planning, designing, budgeting, production and media
placements. Some clients spread their budget across more than one agency,
but some prefer appraisal system too. Clients move out for a new agency when
there is monotony, difference in ideas, difference in opinions or if the creative
team moves out to a new agency in order to maintain brand continuity.
The following are the points which need to be adopted to maintain a healthy
Client Agency relationship:
The following are the points which need to be adopted to maintain a healthy Client
Agency relationship:

a. Maintaining transparency with each other is very important.

b. The agency keeps the media commission for itself, and the client undertakes the bill.
c. In case of media discounts, it has to be passed on to clients.
d. The agency should not be blamed by the clients for lapses in scheduling and
positioning.
e. The client avoids engaging its services with its rival agencies.
The agencies also help in producing ad campaigns for their clients at the
stages of planning, execution, and branding their product for a better reach.

The qualities of a good client servicing agent include: patience, listening

skills, articulation, time management, knowledge of the product, use of
positive words and result oriented actions.
The clients select the ad agency basically on these criteria
a. Its popularity in the market.
b. Agency’s creativity in its work and delivery of the advertisements.
c. Agency which has a sound track record.
d. Agency which has good account executives who can solve their issues.
e. Personal equations with their clients.
f. Commitment towards their work.
g. Unique or exclusive contributions to the industry
Account Planner:
An account planner is a person who closely works with the creative staff
and the agency accounts. They ensure campaigning ideas and strategies
that are effective and for the right audience. The main qualities of such
account planners include: team work abilities, commercial awareness,
verbal and communication skills, presentation to clients. The activities of
the account planners also include analyzing and interpreting information,
keeping updated information about cultural and social trends in advertising,
conducting qualitative research activities, evaluating the advertising
campaigns, and analysing the sales data.
One of the major departments of an ad agency is the Accounts department. If you
go by the advertising parlance, ‘Account’ means client. Usually the accounts
department is headed by an accounts director who is also the member of the
board in case if it is a limited agency. He will be assisted by Accounts Executives or
an Account Planner who will assist him in carrying out the further activities. The
main duty of these account executives is tounderstand the needs and requirements
of a client. This will be briefed to him by the sales department which gives him a
‘Lead’ and s/he communicates the same to his/her agency people. The major
responsibility of getting the clients to the agency lies with the team of the Accounts
department. They need to keep a tab on all others departments so that ad
campaign is created in tandem. Clients approach your agency based on your past
and current assignments and popularity in the advertising market. The very
common and the colloquial term for account planning is client servicing, which
means that the account planner takes care of the needs and requirements of the
clients who approaches the agency for their advertisement. It is the primary
function of an agency to create advertising, and this account planning function
provides a base or firm ground for this activity. An account planning personnel has
to perform a number of activities as listed below.

a. Planning the main objectives of the advertising, where he makes use of his
analysis, logic, insights and use of various skills to bring in a synthesis for the end
product.
b. They are also responsible for selecting and evaluating the feedback which they have
received in the form of research, so that it becomes easy for the team to make further
decisions and judgements.

c. They see to it that the objectives and the feedback are relevant and stimulating to the rest
of the team members especially the creative team.

d. The accounts planners are also responsible to act as a bridge between the client and the
agency and solve all the queries raised by the clients and ¿nd out suitable solutions for
them.

e. They also assist in getting effective messages to their target audience by creating desired
responses, by planning a positive dialogue between the creative team and the consumers.

f. Qualities such as a good and a friendly rapport with the clients will go a long way in
maintaining long term bonds between the two entities.
The creative team plays a pivotal role in transforming concepts into tangible
projects, encompassing a wide spectrum of tasks from shaping the user experience
of a website to defining the visual aesthetic of a product, advertisement, or social
media post. Creatives are not only artistically gifted but also possess the ability to
effectively communicate their ideas, persuading stakeholders that their creative
concepts align with and can drive business objectives. As the architects of the
client's vision, creatives excel in interpreting client expectations and iterating on
ideas throughout the creative process.
Successful creatives exhibit decisiveness, social and cultural awareness, and a
profound understanding of marketing principles. Their ability to navigate various
cultural landscapes and stay abreast of current trends allows them to create
compelling content that resonates with diverse audiences. Moreover, their deep
understanding of marketing enables them to align creative executions with
overarching business goals, ensuring that each project delivers measurable impact
and drives meaningful engagement. In essence, the creative team serves as the
driving force behind bringing brands to life, infusing each project with innovation,
vision, and strategic insight to captivate audiences and elevate brand presence in
the competitive marketplace.
The media team assumes the critical responsibility of managing the visibility and
implementation of a client's campaign across a multitude of channels, spanning
from traditional mediums like radio time, TV advertisements, and billboards to
modern avenues such as magazine features, influencer collaborations, and digital
takeovers. Comprising strategic planners, creative visionaries, and adept
communicators, members of the media team possess an intricate understanding
and knowledge of not only the client's industry but also the evolving landscape of
digital trends and community dynamics.
Their role extends beyond mere execution to strategic planning, wherein they
leverage their expertise to devise innovative approaches that maximize campaign
impact and audience engagement. With a finger on the pulse of industry
developments and digital advancements, the media team navigates the
complexities of the media landscape with finesse, ensuring that the client's
message reaches its intended audience effectively. Moreover, close collaboration
between the media and creative teams is paramount, as both share similar
qualities and work in tandem to synchronize messaging, optimize placement, and
deliver cohesive campaigns that resonate with audiences across diverse platforms.
In essence, the media team serves as the architect of visibility, orchestrating the
strategic deployment of campaign assets to amplify brand presence and drive
meaningful engagement in an ever-evolving media landscape.
The following are the main activities performed by a Media planning department:
a. Identifying a proper medium for their client.
b. Suggesting ideas and helping to place their ads on the right time.
c. Helping the clients get a good deal in terms of budgeting.
d. Buying space / Time /Spots for the a client in various media.
e. Conducting periodic market research for their clients.
f. Coordinating all the activities between clients and media in terms of billing,
commission, consent and getting the final approval.

The media department completely works on a commission basis. The amount is

shared between the ad agency and the media houses in the ratio of 70-30, which is
universal in nature.
The primary principles followed in a Media and Agency relationship.
a. The agency is responsible for all the payments to media.
b. There is no cut in commission by the agency which is received from the clients to
the media.
c. Uniform policy is followed by the media for all the agencies.
d. The media does not alter any material without prior consent of the agency.
Qualities of a Media Planner:
Media planners are those who create the action plans for the ad campaign and
predefine the marketing objectives. Their typical job requires them to have a good
liaison between the clients, consumers and agencies. He or she has to strategically
help in selecting the proper mix of media platforms to place ads in order to achieve the
proper targets. The qualities such as systematic attitude, clear perspective, focus,
communication skills and prioritization will help them to be successful in the long run.
 The team which is responsible for the delivery of the approved ad copy
is the production department. The production department is headed by a
production manager, who is assisted by several assistants. The responsibilities
of these assistants is to do typography, making blocks, lettering, stereos
Production and electros. They are also responsible for supplying all the required text
and artwork for the photogravure process. It is in this department, that the
work gets organized in the form of copy, artwork proofs, corrections and
then the final output in the form of final copy as per the schedule. In bigger
agencies the work is supervised under traffic controller (who has a say for
the finished final copy) but, in smaller agencies the work can be done by
using freelancers in production.

In the evolved world of the agencies, now we have ad makers who prepare
the end product. Ad agencies might have in-house ad makers who do their
work or some have outsourced or freelance ad makers who give you the
finished product. They assist you in doing the ad production, by identifying
the artists, musicians, jingle makers, voice over artists , set designers , editors
who finish your work as per the requirement of the clients. There is a huge
demand for visual ads nowadays due to the TV medium and other social
media. This is also done under the supervision of a production manager but
exclusively for visual media communication.
Production
This department’s work areas are as follows:
a. They manage the schedules of the clients
b. They are responsible for managing the campaign budgets
c. They coordinate the work with creative and media departments
d. They coordinate with external suppliers such as videographers, photographers, artists
and printers
e. They are responsible for all the ¿nal out put requirements of clients of the agency
 Many a times, Ad agencies have to depend on out sourcing to finish their
services. Many of the renowned ones have in house teams, but smaller
Out-sourcing of the agencies have to depend on freelancers to get the work done. They hire
Production Work the creative people according to their requirements and get the activities
done for a price. There are many freelance professionals who are ready to
lend their services and finish the end product on time and submit to the
agency.

Freelancers can include:

Directors: The directors are the strategic pillars of an advertisement.

Apart from instinct and their intuitions, they plan strategically. They have
to plan tactically and execute their campaign carefully. A Director needs
to have the quality of a good team leader, as he needs to work in
consensus with all the departments for producing quality work.
Experience, resilience, diplomacy, good track record, abundant
imagination and knowledge of the market are the basic prerequisites
of a good director. He needs to plan and execute things in a proper
Leading Advertising Agencies Of The World
Ogilvy and Mather:
A New York based advertising and marketing company was started in 1948 by David Ogilvy. Among
its key people is, John Seifert, Chief Executive, Worldwide. It is a part of WPP group and by revenue
is one of the largest marketing and communication companies of the world. They handle many of
the renowned clients such as Amazon, Coco-Cola, IBM, Dove and American Express

Mullen:
Considered to be the American best ad agency, it was founded by Jim Mullen in the year 1970. It is
known for its content creation, brand planning, user experience, designing, performance analytics.
It also features in the top 10 innovative marketing and advertising companies. Their clients include
Google, Acura, Jet Blue, Zappos and soon.

McCann World group:

Formerly known as McCann Erickson, is also a global player, and has network in more than 120
countries worldwide. They are majorly into digital marketing, relationship management,
professional communication, media management, consultation and so on. Their list of clients
include: Loreal, Master Card, Nespresso and Cigna.
Dentsu:
Is a Japan based ad company which dominates 30 of the global market. Founded by Jerry Bhulman, it is one of
the leading agencies in Japan too. It has its corporate office in London to take care of the European markets.
Asia region is an unexplored region for this company, but it has acquired many global ad agencies such as Mc
Garry Bowen in the USA. The main clients include Airtel, Flipkart, Pepsi, Bacardi, Red Bull and so on.

Publicis Group:
Founded in the year 1926, in France by Leo Burnett. They are known for their acquisitions in the global market
and have a list of digital specialists working for them. It provides marketing, POS, Video editing along with
communication services. The clients are Coca-Cola, Garnier, Vicks, American Airlines.

Havas:
Founded in the year 1991, this American ad agency is now taken over by a French Media Group, considered to
be the fifth largest communication group in the world. It was formerly known as Euro RSCG till 2012. The list
of clients includes: Lactose, IBM, Air France. Grey Global: Founded in the year 1917, this century old ad
agency is based in New York. It specializes in Public Relations, Public Branding, Interactive Marketing. Known
for its subsidiary groups such as GCI Group, Media Com Worldwide, WING and so on.
BBDO:
Founded by George Batten, its arguably among the world’s most admired creative networks. Has been a recipient
of many Global ad awards. Its marketing services are sought after in most of the countries across the
globe. It has alliances with many of the acquired local subsidiaries. The most renowned clients include Subway,
PepsiCo, Hewlett and Packard, Fisher Price.

Y and R (Young & Rubicam):

One of the iconic agencies, founded by John Orr Young in the year 1978. It is an ideal company to have
specializations in digital and advertising media for both online and offline advertising Has more than 300 people as
employees. The list of clients includes Sony, Adobe, Burger King, Dell. Apart from these, other renowned names
include Lintas Worldwide, FCB, TBWA, Bozell, J.Walter Thompson, Saatchi & Saatchito name a few.
Leading Advertising Agencies Of India
McCann:
Awarded as the Global agency thrice, this Ad agency has offices in more than 120 countries and has a strong global
network. Known for its creativity, intersection of technology, solutions, and
measurable performance and unique understanding of people. The clients they deal with are Maybelline, Master
Card, Microsoft and many more.

Ogilvy :
It operates in the 6 major cities of our country, and is a leading agency here. The firm has been able to grab many
awards for its quality output and works on the principle of 360 degree branding on both local and global scale. The
major clients are IBM, Dove, NASCAR, Philips, Coke Zero.

FCB ULKA:
The agency has been retaining its slot among the top 10 agencies of the country for many years now. Founded in
the year 1961 by Bal Mundkur, it has its corporate office in Mumbai. The agency has its presence in more than 92
countries with over 150 offices in all major cities. Presently ULKA in India handles above 53 clients from all leading
brands. The notable clients include Amul, Hero, Indian Oil, Sunfeast, Wipro, Whirlpool and so on
DDB Mudra Communications:
Founded in the year 1980, by A.G. Krishnamurthi, initially in Mumbai, it had a very humble beginning with just 15
employees. Today it has emerged as one of the most well established ad agencies of our country. In 1990, they
signed an agreement with DDB Needham Worldwide, and merged with DDM. It has been a recipient of many
national and international awards like Cannes, Ad fest, Spikes Asia. The leading clients in their kitty include Aditya
Birla Group, ACC Limited, Bharat Petroleum, Puma, Reebok and so on. Their iconic campaign for RASNA, made it
the largest selling soft drink in 1986.

Grey India:
Situated in Mumbai, Grey India is a part of Grey Global group, who have shown some of the famous and effective
work to the India’s prestigious clients. They usually handle projects related to retailing, visual
designing, and fixture design. Their client list includes Sensodyne, Indian Air force, Cadbury Silk, Kinder Joy.
Rediffusion (Y&R): This Ad Agency was started in 1973, with collaboration between three friends, Arun Nanda, Ajit
Balakrishna and Mohd. Khan. It’s a part of Y&R global network which has 187 offices across the globe. It has
regional offices in Delhi, Kolkata, Chennai, Bangalore & Colombo for providing creative and strategic outputs to its
Asian clients. Their client list consists of Tata Motors, ITC, Ambuja, Emani.
Awards And Recognitions In The Ad World
In order to boost the working spirits among the ad professionals many awards and reconciliation
have been instated in the industry. They are held and given out every year. Some of the renowned
awards in the Ad world are:
• The Cannes Lions
• The ADDYs
• The CLIO Award
• The OBIE awards
• The D & Ad Awards (Design and Art Direction)
Unit III – Ad Agency – Structure & Functions

1. Advertising Agency: Concept, Types, Functions and

various departments
2. Structure and Hierarchy of an Advertising Agency
3. Planning and Pitching in Advertising
4. Role and Functions of DAVP
Structure and hierarchy of an
advertising agency
Structure and hierarchy of an advertising agency
An advertising agency operates within a complex ecosystem where creativity, strategy, and execution converge to create impactful
campaigns that resonate with target audiences. At the heart of this dynamic environment lies a carefully crafted hierarchy,
meticulously designed to navigate the intricacies of client needs, creative vision, and business objectives.
The structure of an advertising agency is akin to a finely tuned orchestra, with each department and role playing a distinct yet
interconnected part in the symphony of campaign creation. From the visionary leadership at the helm to the meticulous execution
of creative teams, every tier of the hierarchy serves a vital purpose in driving the agency towards success.
At its core, the hierarchy delineates the distribution of responsibilities, assigning distinct roles to individuals based on their
expertise, experience, and capacity for leadership. This clarity ensures that each team member understands their unique
contribution to the agency's collective mission, fostering a sense of purpose and ownership in their work.
Moreover, the hierarchy serves as a framework for decision-making, empowering leaders at every level to make informed choices
that align with the agency's strategic objectives and client needs. By delineating decision-making authority, the hierarchy stream
Structure and hierarchy in a traditional setup
In the traditional agency setup, two primary teams play pivotal roles in driving the agency's operations and client
relationships: the creative team and the account management team.

Within the creative team, there are distinct sub-teams - the copy team and the art team, collectively responsible
for generating and executing creative concepts. The copy team focuses on crafting compelling written content for
advertisements, while the art team concentrates on visual elements, design, and aesthetics. Together, they
collaborate to produce cohesive and impactful advertising materials.
On the other hand, the account management team, also known as servicing, takes charge of client interactions,
project management, and overall operations. This team liaises between the agency and the client, ensuring that
client needs are met, projects are delivered on time and within budget, and expectations are effectively
communicated throughout the agency.
In addition to these core teams, there are other essential departments such as finance, responsible for managing
the agency's financials, and the studio or operations team, which handles the technical aspects of production,
including image finishing and final output. Each of these teams plays a vital role in the agency's functioning,
contributing to the seamless execution of campaigns and the maintenance of strong client relationships. Through
collaboration and effective communication across these departments, traditional advertising agencies are able to
deliver high-quality services and achieve successful outcomes for their clients.
Board of directors Brand head

General Manager

Vice President

Client Services Director

Account Director

Account Manager

Sr. Account Executive

Account Executive
Structure and hierarchy in a matrix model
The matrix model of organizational structure maintains traditional divisions and divisional heads while also facilitating the
formation of cross-divisional teams, thereby offering a flexible approach to meeting client needs within full-service advertising
agencies. By combining elements of both mechanistic and organic hierarchical structures, the matrix model seeks to strike a
balance that optimizes communication and collaboration across various divisions.
This model allows agencies to leverage the expertise of specialized divisions while promoting seamless coordination and
integration of efforts across different functional areas. By breaking down silos and encouraging cross-functional collaboration,
agencies can offer comprehensive solutions to clients without encountering significant barriers in communication or workflow.
However, one of the challenges inherent in the matrix model is the potential for confusion regarding reporting relationships. Team
members may find themselves unsure of whether they should report to the project lead overseeing a specific initiative or to the
divisional lead responsible for their area of specialization. This ambiguity can lead to inefficiencies and delays in decision-making if
not managed effectively.
Despite these challenges, the matrix model offers significant benefits in terms of flexibility, adaptability, and resource utilization. By
fostering a dynamic and collaborative environment, agencies can enhance their capacity to innovate, respond to client needs
promptly, and deliver high-quality results across a range of projects and campaigns. Effective communication and clarity in
reporting structures are key to maximizing the potential of the matrix model and ensuring its success in meeting both client and
organizational objectives.
Structure and hierarchy in a pod model
The pod system, introduced by Leeann Leahy, CEO of The VIA Agency, represents a groundbreaking departure from conventional
organizational models like the matrix structure. This innovative approach redefines traditional account management roles by
providing clients direct access to a team of four specialized project leads: the Business/Consumer Strategy Lead, responsible for
strategic insights; the Planning Lead, tasked with translating insights into actionable plans; the Creative Lead, guiding the creative
vision; and the Project Management Lead, ensuring project execution. Within this system, project leads have the authority to
delegate tasks, promoting collaboration and resource optimization. The primary objective is to streamline approval processes,
eliminate redundant positions, and foster a culture of rapid creativity. By breaking down hierarchical barriers and empowering
cross-functional teams, the pod system facilitates agile decision-making, enabling agencies to respond swiftly to client needs and
market changes. This emphasis on efficiency, innovation, and collaboration ultimately drives superior outcomes for both clients and
the agency.
In a modern agency setup
In a modern agency setup, various departments collaborate seamlessly to deliver innovative and effective advertising solutions to
clients. These departments include:
Creative Department: At the heart of the agency lies the creative department, where talented individuals bring ideas to life
through compelling visuals, captivating copy, and innovative concepts. Graphic designers, copywriters, art directors, and creative
directors work together to develop engaging campaigns that resonate with target audiences and align with client objectives.
Planning Department: The planning department plays a crucial role in understanding market trends, consumer behavior, and client
goals. Strategists and planners conduct thorough research, analyze data, and develop strategic frameworks to guide campaign
development and execution. Their insights inform creative direction and ensure campaigns are strategically positioned to achieve
maximum impact.
Account Management Department: Account managers serve as the primary liaison between the agency and its clients, responsible
for building and maintaining strong client relationships. They oversee project timelines, budgets, and deliverables, ensuring that
client expectations are met and exceeded. Account managers collaborate closely with other departments to ensure seamless
project execution and client satisfaction.
Studio for Operations: The studio or operations department is responsible for the technical aspects of production, including image
finishing, editing, and quality control. Production managers, editors, and technicians work together to ensure that creative assets
are produced to the highest standards and delivered on time and within budget.
Finance Department: The finance department manages the agency's financial operations, including budgeting, invoicing, and
financial reporting. Accountants and financial analysts ensure the agency's financial health and compliance with regulatory
requirements, enabling smooth business operations and strategic decision-making.
In-House Production House (optional): Some modern agencies have an in-house production house to produce audiovisual content,
films, and other multimedia assets. This setup provides agencies with greater control over the production process, enhances
efficiency, and reduces costs associated with outsourcing production services.
Overall, the modern agency setup is characterized by collaboration, innovation, and a commitment to delivering exceptional results
for clients. By leveraging the expertise of diverse departments and embracing cutting-edge technologies and methodologies,
modern agencies are well-equipped to navigate the complexities of today's advertising landscape and drive success for their
clients.