Organizational Structure of the Advertising Agencies
The structure of an advertising agency may be different depending on the type of agency. By structure, we mean as to how the jobs, tasks or functions are arranged in the organizational hierarchy. Generally the organizations follow a functional structure, wherein different departments are constituted around different functions. For example, as shown in the figure below, there may be different departments for account management, account planning, creative and media functions.
Example of Advertising Structure
The Structure of Advertising Agency
Advertising agencies come in all shapes and sizes. Some are
small boutique shops that have just a few people. Others are giants that employ
thousands of people in offices all around the world.
But however large or small the agency, there a basic structure that most advertising agencies stick to. In the smaller agencies,
some people will perform more than one role. One person may actually be the
entire department.
But the fundamentals are the same, and it's because this
model was born out of necessity and it works.
Six very different, but essential, departments that make it
possible to produce effective advertisements. These can be split into other sub-departments,
or given various creative names, but the skeleton is the same.
These departments are:
- Account Service
- Account Planning
- Creative
- Finance & Accounts
- Media Buying
- Production
Larger agencies may also separate out the following
departments:
- Human Resources & Facilities
- Research
- Web Development
- Traffic
Now, let's take a look at the breakdown of those six major
departments. Remember, although many agencies have different takes on these,
the premise is the same.
The account service department comprises account executives,
account managers, and account directors, and is responsible for liaising with
the agency's many clients.
This department is the link between the many departments
within the agency and the clients who pay the bills. In the past they were
referred to as "the suits," and there have been many battles between
the account services department and the creative department. But as most
creatives know, a good account services team is essential to a good advertising
campaign.
A solid creative brief is one of the main duties of account
services.
This department combines research with strategic thinking.
Often a mix of researchers and account managers, the account planning
department provides consumer insights, strategic direction, research, focus
groups and assists helps keep advertising campaigns on target and on brand.
Chris Cowpe described account planning as "…the discipline that brings the
consumer into the process of developing advertising. To be truly effective,
advertising must be both distinctive and relevant, and planning helps on both
counts."
3. Creative
This is the engine of any advertising agency. It's the
lifeblood of the business because the creative department is responsible for
the product. And an ad agency is only as good as the ads the creative
department puts out. The roles within the creative department are many and
varied, and usually include:
- Copywriters
- Art Directors
- Designers
- Production Artists
- Web Designers
- Associate Creative Directors
- Creative Director(s)
In many agencies, copywriters and art directors are paired
up, working as teams. They will also bring in the talents of other designers
and production artists as and when the job requires it. Sometimes, traffic is
handled by a position within the creative department, although that is usually
part of the production department. Everyone within creative services reports to
the Creative Director. It is his or her role to steer the creative product,
making sure it is on brand, on brief, and on time.
4. Finance & Accounts
Money. At the end of the day, that's what ad agencies want.
And it's what their clients want, too. At the center of all the money coming
into, and going out of, the agency is the finance and accounts department. This
department is responsible for handling payment of salaries, benefits, vendor
costs, travel, day-to-day business costs and everything else you'd expect from
doing business. It's been said that approximately 70% of an ad agency's income
pays salary and benefits to employees. However, this figure varies depending on
the size and success of the agency in question.
5. Media Buying
It is the function of the media buying department to procure
the advertising time and/or space required for a successful advertising
campaign. This includes TV and radio time, outdoor (billboards, posters,
guerrilla), magazine and newspaper insertions, internet banners and takeovers,
and, well, anywhere else an ad can be placed for a fee. This usually involves
close collaboration with the creative department who came up with the initial
ideas, as well as the client and the kind of exposure they want.This department
is usually steered by a media director.
6. Production
Ideas are just ideas until they're made real. This is the
job of the production department. During the creative process, the production
department will be consulted to talk about the feasibility of executing certain
ideas. Once the ad is sold to the client, the creative and account teams will
collaborate with production to get the campaign produced on budget. This can be
anything from getting original photography or illustration produced, working
with printers, hiring typographers and TV directors, and a myriad of other
disciplines needed to get an ad campaign published. Production also works
closely with the media department, who will supply the specs and deadlines for
the jobs.
Don't Forget Traffic
In small to mid-sized agencies, traffic is rolled up into
the production department. It is the job of traffic to get each and every job
through the various stages of account management, creative development, media
buying and production in a set timeframe. Traffic will also ensure that work
flows through the agency smoothly, preventing jams that may overwhelm creative
teams and lead to very long hours, missed deadlines and problematic client
relationships. Traffic keeps the agency's heart beating.
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