Advertising is a crucial element of every business organization, whether it is small or large scale. Because advertisement brings a major part of profit and brand image to the firm. Most of the large scale organization may have an advertisement wing. They take care the advertisement activities. If the ad works needs specialization they go for outsourcing. But for a small scale business firm may always have to go for external parties for their advertisement operations. This is mainly due to low financial position and inadequate availability of specialized people in the organizations. An advertisement agency is a separate or independent organization that takes care of advertisement on the behalf of companies.
Advantages of going for an ad agency are; A firm advertise with the help of an ad agency can concentrate to its production operation and increase its efficiency. The agency will serve best output with the market update information and technology and financially poor firms get advantage of less cost and good return. Different media an advertisement agency focus are print (Print media covers newspapers, magazines and other written materials.), visual (media: Visual media mainly involves television and movie theaters. The advertiser focuses to make ad campaign in the prime time of this media.), audio based (media mainly based on radios.), internet (comes as advertisement in websites or blogs).
Functions of Ad Agency
The first function comes the preparation of advertisements. An ad agency takes care all the activities of an advertisement program once the order and allocation of funds is done by the firm. One of the important area where the ad agency concentrates on making of ad copies and films which will include A to Z matters of products and services. The ad agency buys Ad spaces for its client too. The major function of ad agency is buying the spaces of different media. For a newspaper it is difficult to get the cover page which is expensive and busy one. Ad agency may have direct contact with media where they can easily purchase ad space and bargain for the economical price for it.
Ad agency helps in selection of Media. An advertisement which is concentrated to readers or researchers cannot be placed in an entertainment media like television or movie theaters. It should be reached through magazines or newspapers. The marketer should identify who are his target viewers. The ad agency helps the marketer assigning correct media. It also takes the advertisement researches too. An advertisement once displayed does not matter if it has made any impact over the target viewers. There should be a continuous research and feedback system for measuring the efficiency of advertisement. This covers the efficiency of ad copy, time of advertisement, duration, area covered and media.