Advertising Company: Definition, Function, and Types!

advertising company

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Similar to a tailor is an advertising company. It develops the advertising, arranges for their distribution in terms of when, where, and how, then gives them to the client. Most advertising firms operate independently of any organisations. To sell the clients’ products, these agencies put in all of their effort. They employ a team of specialists in their specialised industries, assisting businesses or organisations in quickly and easily reaching their target audience.

In 1786, William Taylor established the first advertising firm. James “Jem” White opened the second in London in 1800, and Reynell & Son opened the third in 1812.

advertising company
advertising company

What is an Advertising Company 

The planning, coordination, and execution of sponsored marketing communications fall within the purview of advertising firms.Some agencies have also diversified into direct marketing, interactive media, public relations, and sales promotion as additional marketing communication channels.The four departments that make up an agency are typically account management, creative, research, and media planning. Account managers serve as the agency’s point of contact with clients, making sure that the latter are aware of the agency’s recommendations and that the former are aware of the former’s demands. Account managers oversee the flow of work within the organisation and ensure that projects are completed on time. Commercials are created, developed, and produced in the creative department.

To create a message that satisfies agency and client objectives, writers, artists, and producers collaborate. The creation of catchphrases, jingles, and logos happens in this division. Data on the target market and consumers are collected and processed by the research department. The job of account management and the creative department is supported by this data. Personnel who work in media planning are experts at choosing and distributing advertisements in broadcast and print media.

Advertising agencies’ role

  • Constructing an advertisement based on data acquired regarding the product.
  • Conducting research on the business, the product, and the responses of the customers.
  • The type of media to be utilised, when and where it will be used, and how much time it will be used are all planned.
  • Taking comments from both clients and customers into consideration before deciding on the next course of action.

The work can be completed by each company independently. They can manage the accounts as well as create, print, or advertise advertisements on television or in other media. How come they need an advertising agency then? Companies employ advertising agencies for the following reasons:

The agencies are industry leaders in this area. They have a staff of several individuals for various roles, including copywriters, art directors, planners, etc. The agencies utilise these people, their expertise, and their knowledge to the fullest extent possible. They are highly competent and work with an aim. The costs are reduced to some extent by hiring them.

The 5 basic classification of advertising agencies.

Full service Agencies

  • Substantial agencies.
  • Focuses on all aspects of advertising.
  • For various departments, various subject matter experts.
  • Work begins with data collection and analysis and finishes with paying media personnel’s costs.

Interactive Agencies

  • Modernised communication channels are used.
  • Uses web marketing, mobile phone texting, and other methods.
  • The advertisements that are created are quite unique, very new in their concepts, and very interactive.
advertising company
advertising company

Creative Boutiques

  • Very original and inventive advertisements.
  • Apart from developing actual adverts, no additional task is carried out.
  • Smaller firms with in-house creative directors, copywriters, and other personnel

Media Buying Agencies

  • Buys advertising space and offers it to businesses that need it.
  • Sells the time that will be used for advertising.
  • Makes reservations for time slots on various radio and television networks.
  • Last  oversees or verifies if the advertisement was broadcast at the chosen time and location or not.

In-House Agencies

  • Better than full service agencies.
  • These types of agencies, which are developed specifically for them and operate for large organisations, are preferred.
  • According to the demands of the organisations, these agencies operate.

There are certain specialised businesses that handle specific advertisements. People with specialised knowledge in that area are required by these types of agencies. For instance, ads with social themes, ads relating to finance, ads for medicines, etc.


If an organisation needs to expand, it has to market itself and reach intent on new purchasers. For help in developing and implementing victorious selling methods, many firms, together with tiny enterprises, suppose the expertise of advertising agencies. Since they conduct business and offer services primarily online, advertising agencies are a low-cost and COVID-friendly unit in the age of digital selling.

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