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ADVERTISING AGENCIES

An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for its 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 an advertising campaign.

The first acknowledged advertising agency was William Taylor in 1786, another agency was started by James 'Jem' White in Fleet Street, London in 1800, and eventually evolved into White Bull Holmes a recruitment advertising agency, that went out of business in the late 1980s. In 1812 George Reynell, an officer at the London Gazette, set up another of the early advertising agencies also in London.[1] This remained a family business until 1993, as 'Reynell & Son', and is now part of the TMP Worldwide agency (UK and Ireland) under the brand TMP Reynell.[1] Another early agency that traded until recently ,was founded by Charles Barker, and the firm he established traded as 'Barkers' until 2009 when it went into Administration.

Volney B. Palmer opened the first American advertising agency, in Philadelphia in 1850. This agency placed ads produced by its clients in various newspapers

produce "photographs, ambrotypes and daguerreotypes." His ads were the first whose typeface and fonts were distinct from the text of the publication and from that of other advertisements. At that time all newspaper ads were set in agate and only agate. His use of larger distinctive fonts caused a sensation. Later that same year Robert Bonner ran the first full-page ad in a newspaper.

In 1864, William James Carlton began selling advertising space in religious magazines. James Walter Thompson joined this firm in 1868. Thompson rapidly became their best salesman, purchasing the company in 1877 and renaming it the James Walter Thompson Company, which today is the oldest American advertising agency. Realizing that he could sell more space if the company provided the service of developing content for advertisers, Thompson hired writers and artists to form the first known Creative Department in an advertising agency. He is credited as the "father of modern magazine advertising" in the US.

Generalized advertising agencies

Creative agencies specialize in "creative" or design-based business models: their basic interest is in the creation of the advertisement or branding. Other ("full-service") agencies offer design in conjunction with media buying. Media agencies concentrate on media buying. (In the 1990s, media and creative were often unbundled in the interests of economies of scale in buying media.
The client who chooses to use a design only based advertising agency must assume some of the advertising purchasing. These are activities that are routinely handled by an agency with a media buying option. Media buying agencies are oftentimes a good choice for larger businesses. These agencies can assume greater responsibility for the strategic planning and function of an advertising campaign. The advantage to a design only-based agency is there is no third-party ordering the service. In turn, cost can be lower and is oftentimes a good alternative for smaller businesses.

Specialist advertising agencies

In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in particular kinds of advertising: recruitment, help-wanted, medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment, travel, and so on.
Specialization occurs in such fields for a variety of reasons. Often, as in recruitment advertising, for example, specialized media or media uses are involved that require knowledge and expertise not ordinarily found in a general-line agency. In other cases, such as medical or industrial advertising, the subject is technical and requires that writers and artists have training in order to write meaningful advertising messages about it.
Such specialist advertising agencies are also usually "full-service," in that they offer all the basic advertising agency services in their area of specialization plus other, peripheral advertising services related to their area of specialization.

In-House advertising agencies

Some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency. Such advertisers start a department within the company to handle advertising tasks such as writing copy and interacting with media outlets.
[edit]Internet-based TV advertising agencies
An Internet-based TV advertising agency offers television commercial production and media buying services to advertisers, primarily via a web interface. Some agencies provide automated services online, but the most proficient agencies provide traditional agency services through an Internet-based hub. The pioneer in the discount category, CheapTVSpots.com, is the originator of the Internet-based discount model for providing TV advertising services to both U.S. and international markets. It has accumulated an unprecedented 193 international awards[8] for its budget-priced, custom made commercials, including 15 Telly Awards, since its start-up in 2001. Other entries into this category included Spot Runner, launched in 2006, which, unlike CheapTVSpots.com, offered only template-based ads, on a limited local license basis.

Interactive agencies

Interactive agencies may differentiate themselves by offering a mix of web design/development, search engine marketing, internet advertising/marketing, or e-business/e-commerce consulting. Interactive agencies rose to prominence before the traditional advertising agencies fully embraced the Internet. Offering a wide range of services, some of the interactive agencies grew very rapidly, although some have downsized just as rapidly due to changing market conditions. Today, the most successful interactive agencies are defined as companies that provide specialized advertising and marketing services for the digital space. The digital space is defined as any multimedia-enabled electronic channel that an advertiser's message can be seen or heard from. The 'digital space' translates to the Internet, kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, and mobile). Interactive agencies function similarly to advertising agencies, although they focus solely on interactive advertising services. They deliver services such as strategy, creative, design, video, development, programming (Flash and otherwise), deployment, management, and fulfillment reporting. Often, interactive agencies provide: digital lead generation, digital brand development, interactive marketing and communications strategy, rich media campaigns, interactive video brand experiences, Web 2.0 website design and development, e-learning Tools, email marketing, SEO/SEM services, PPC campaign management, content management services, web application development, and overall data mining & ROI assessment.

The recent boost in the interactive agencies can also be attributed to the rising popularity of web-based social networking and community sites. The creation of sites such as MySpace, Facebook and YouTube have sparked market interest, as some interactive agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client ROI, but all signs point to online networking as the future of brand marketing and Interactive being the core of Brand's Communication and Marketing Strategy.
Due to the social networking explosion, new types of companies are doing reputation management. This type of agency is especially important if a company needs online damage control. For example, disgruntled customers can quickly and easily damage a company's reputation via social networking site. Reputation management companies help stem the negative information or misinformation that might proliferate in their absence.

 
 
 
 
 
 
             
 
             
 
             
 
 
 
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