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.
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