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Saturday 25 May 2013

Facilitating Agencies



                         Another external factor involves the agencies that facilitate advertising and provide the means to advertise. From a situation analysis viewpoint, the advertiser basically needs to know what kind of facilitating agencies exist and the nature of the services they can provide. From a planning viewpoint, much local advertising, for example, is done without the services of an advertising agency or a research supplier. A national advertiser, on the other hand, may have under contract many different agencies and research suppliers, each serving one or more brands in a product line made up of several products.

                Many advertising decisions involve choices among facilitating agency alternatives. What advertising agency should be chosen? What media should be used? What copy-testing supplier will be best for our particular situation? Concerning the question for agency selection, for example, Cagley and Roberts found that the people factor” tends to dominate in agency selection. Characteristics such as the quality of personnel, reputation, integrity, mutual understanding, interpersonal compatibility, and synergism were very important.

Fact file
                                              The majority of large advertising agencies are headquartered in the US. Of the ten largest advertising agency groups, seven are headquartered in the US, and one each in the UK, France and Japan, although WPP, the British agency holding company, is made up of two large US-based agencies.

                      With the exception of Dentsu, the Japanese agency, most other agency networks generate the majority of their revenues outside their home country.
The largest agency group, Omnicom, places over $37 billion of advertising for its clients around the world and derives half its revenue from outside the US.
US-based advertising agencies and their subsidiaries are responsible for most of the advertising throughout the world.

                     China is the next largest advertising market and is also growing rapidly.

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