Operating an Advertising Agency

An advertising agency is an office that provides services for businesses to advertise their products. Advertising agencies also guide businesses on when and where to place their ads at the least possible cost. What makes an ad agency and how do they work?

There are 5 main teams in an advertising agency and each team:

  1. Accounts Team: The accounts team talk to the client and relay their message to the agency’s other teams. They also do research and strategic thinking.
  2. Creative Team: The creative team comes up with brilliant ideas and solutions for the client. They are composed of copywriters, graphic artists, art directors, web designers, and creative directors.
  3. Media Buying: The media buying team is in charge of finding the perfect spot for the ads that the creative team made. They haggle the best prices and get the best deals that they can for the client.
  4. Production: The production team transforms ideas into reality by executing the ads. May it be a brochure, a TV commercial, or a magazine ad, the production team will produce ads on budget.
  5. Finance: This team makes sure that everything that the ad agency does is on budget. They handle in budgeting the business costs and give the employees their payrolls.

Together, these are the people involved in an advertising agency. However in smaller agencies, some teams are not present. For example, the advertising agency may find it cheaper to outsource a production team per project because not all clients require any production work. In bigger agencies, there may be more teams like human resource teams, online development teams, etc.

In a nutshell, this is how an agency works:

The Account Executive (AE) starts by calling potential clients. Once the AE finds a business that needs something, the AE will schedule a meeting for the brief. Sometimes, it’s the client that calls an agency to ask about their services.  The client will then give the brief which includes all the details and requirements to the advertising agency. Whatever it is a business needs—may it be an IMC campaign, a website, a TV Commercial, etc.—then they will invite advertising agencies for a pitch.

One of the most important happenings in the agency-client relationship is the pitch.  A well researched and beautifully executed pitch that the client likes can lead to a great partnership.

After the client brief, the AE relays the information to the creative team. They brainstorm for several ideas that they think will work as a solution to the client. Once the Creative Director approves the concept, the Art Directors will work on the campaign’s visuals. The creative team will also coordinate with the accounts team, media buying team, and production team to design the right campaign. After all the work, the pitch happens.

A pitch is similar to an audition wherein different advertising agencies will present their solution to the brief. The agency that has the best idea will then win the account. The agency and the client will then agree to the scope of works that the agency is required to do in a certain amount of time set for a certain amount of money. The advertising agency will then track the success of their work and send a feedback report to the client.

In summary, an ad agency works by catering to their client’s needs, by creating ideas that solve their client’s problems, and by executing the ideas to become real ads. When hiring an advertising agency for your business, it is important to do research and know how they work. Most agencies go through the same process but it is in their work ethics and corporate culture where they differ. Not all will look at your brand with the same passion, but you can always be sure that Alchemy Advertising will go for the gold!

Email us for inquiries at info.alchemyad@gmail.com or call us at (02) 796 4445