Introduction advertising unit Structure

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10 
ADVERTISING AGENCY 
Unit Structure : 
 
10.0 Objectives of the lesson 
10.1 Introduction
10.2 Meaning and Definition 
10.3 Service Rendered by an Ad Agency 
10.4 Agency Selection Criterion 
10.5 Agency Accreditation 
10.6 Agency Client Relationship 
10.7 Organisation Structure of an Advertising Agency
10.9 Changing of Advertising Agency 
10.10 Career Options in Advertising 
10.11 Summary 
10.12 Questions
10.0 OBJECTIVES OF THE LESSON
After completion of this lesson the student will be able to 
understand : 
Advertising Agency and its functions 
Criteria for Selection of an Advertising Agency 
Structure of an Advertising Agency 
Services rendered by an Advertising Agency 
Advantages of the Advertising Agency to the Firm 
Methods of remunerating Advertising Agencies 
Agency Accreditation 
Agency-Client Relationship 
Client Turnover 
Career Options 

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10.1 INTRODUCTION
An Advertising Agency is selected by a manufacture or trader 
to present the advertisement on his behalf. The advertiser who 
does not have the capacity of carrying out advertising activities take 
the help on services of advertising agencies who are specialized in 
those fields. 
10.2 MEANING AND DEFINITION
The advertising agency carry out the activity on behalf of their 
client against remuneration called fees. They conduct market 
research, consumer research, product research etc. They advice 
the manufacturer on product design or package design, pricing of 
product channels of distribution. Besides, they advice on the market 
condition from time to time. 
Advertising agency conduct the production activities of 
visualization, layout, illustration, headlines, copy etc. They also help 
in the selection of proper media and the frequency at which the 
advertisement should be presented. 
Thus, the advertising agency relieves the burden of the trader 
or manufacturer of the responsibility of advertising, production and 
distribution. 
Definition : 
The American Association of Advertising Agencies (AAAA) 
defines an advertising agency as : “An independent business 
organization, composed of creative and business people, who 
develop, repair and place advertisements in advertising media for 
sellers seeking to find customers for their goods and services”.