MBA Notes - Types of modern Advertising Agency

Question - Explain advertising agency, and what are the different types of advertising agencies?


According to American marketing Association, "An Advertising agency is an independent business organization composed of creative and business people who develop, prepare and place advertising in advertising media for sellers seeking to find customers for their goods and services."

Advertising Agency is an independent business organization specialized in advertising related work which undertakes the work of planning, preparing, and executing advertising campaign for its clients. Advertising Agency is a body of experts specialized in advertising.

Types of Advertising Agency - Following are the different types of advertising agencies:
  1. Full Service Agency
  2. In house Agency
  3. A Creative boutique
  4. Media Buying Service
  5. La Carte Agency
  6. Special Service Agency
  7. Sweet Shops
Full Service Agency - Such Advertising Agencies offers its clients a full range of marketing, communication,and promotion services including research, planning, creating, producing the ad, and selecting media. Full service agency also offers other services like- strategic market planning, sales promotion, direct marketing, package design, public relation, and publicity.

In House Agency - In house Agency is the advertising department of the firm which is responsible for planning and preparation of advertising materials. Big organizations like- Gap, Calvin Klein, Revlon, and etc can manage in house advertising department and can take the advantage of proper coordination and greater control in all phase of advertising and promotion process.

Creative Boutique - Creative boutiques are known for their creative concept development, and artistic services to their clients. Any advertiser wants to infuse greater creativity into the message theme or individual advertisement can approach a creative boutique. Such agency provides only creative services.

Media Buying Services - They are independent companies specialized in media buying. Media Buying service agencies particularly deals in buying radio time and television time.

La Carte Agency - Some advertisers prefer to order a la carte rather than using all the services of an agency. A la carte can be purchased from a full service agency or from an individual firm deals in creative work, media, production, and or research.

Special service agency - Some agencies focuses on some selected areas, and gains specialization or expertise in those areas, such agencies collectively are called special service groups. 

Sweet shops - Such agencies are small agencies operates only in one city. Small clients who want advertisement in local media like- local cable, banners, posters, pamphlets etc, approaches such agencies.

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