Departmental Structure Of Advertising Agencies Essay

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Two types of structures that are common between medium and large advertising agencies are departmental system and a group system. The full service agency structure as shown in the figure (3.1.2) is an example of departmental system. Departments are grouped around functions and as per the need; specific department is called upon to serve all of the agency’s clients. For example, creative services department is called upon for ad layout, writing, and production services for all the clients. This type of organizational structure is preferred by some agencies because it provides employees the opportunity to develop expertise in servicing different types of clients.

Many large full- service agencies use the group system to form organizational …show more content…

Advertising function is an intimate part of marketing department. Many marketing personnel often provide inputs in campaign planning, agency selection and evaluation of proposed programs. Many companies have an advertising department, headed by a manager. In multi- product companies, with decentralized marketing, product management or brand management system operates. Some large organizations form a separate in- house agency responsible for advertising and other promotional activities.
Usually companies that do not have many divisions, product or service lines, or brands often use a centralized system. Having a centralized advertising department makes it easier for the top management to participate in decision making. Since fewer people are involved in deciding the programs in a centralized system, operational efficiency is greater.
On the negative side, it is often difficult for the advertising department to fully comprehend the overall strategy for the brand, and the response to specific problems faced by the brand may be slow. When companies grow in size beyond a point, centralized advertising department may be unsuitable and …show more content…

The in- house agency is set and given an identity of its own. It is owned and operated by the advertiser and handle large sums of advertising money.
The substantial advertising money paid to outside agencies in the form of media commissions goes to in- house agency. Large advertisers, such as Calvin Klein, and Benetton use in- house agencies. Some companies exclusively use an in- house agency, while others are flexible and combine their in- house agency efforts with those of independent outside advertising agencies. In some companies, the status of an in- house agency is little more than an advertising department.

Other reasons for using in- house agency include advertisers’ bad experience with outside agencies, gaining increased and very useful knowledge and understanding of the market by working on advertising and other promotions for company product/ services, and time savings. According to Bruce Horovitz, some companies use an in- house advertising agency simply because of their belief that they can do a better job than an outside agency

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