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What is Advertising Agency | Feature | Types | Importance | Client agency relationship | Selection of Advertising Agency |

We will Discuss

A.) Meaning of Advertising Agency

B.) Feature of Advertising Agency

C.) Importance of Advertising Agency

D.) Types of Advertising Agency

E.) Selection of Advertising Agency

F.) Client Agency Relationship

A.) Meaning of Advertising Agency

Whenever an advertiser will get affected the most positive or negative it's the advertising agency that plays the greatest role in creating the impact of the advertisement. In other words, the advertising agency is responsible for the degree of the effectiveness of the advertisement, the outcome of which will make or break the brand.

Advertising Agency in India


Crayons Advertising has expertise in advertising brand management, branding, film production, events, digital, media, and out of home services.

Clients: SBI, Delhi Police, Indira IVF, J&K Tourism, Kajaria, among others.


JWT India offers services for brand building, digital transformation, social and sector expertise. They also provide trends and insights on cultural shifts to their clients.

Clients: Apollo Hospital, Hero Honda, Star news, Standard Chartered, Ministry of Finance, Ministry of Defence, Pepsi Foods, 20th Century Fox, Van Heusen, Hero Motors, and Parle etc..

B.) Feature of Advertising Agency

1.) Independent Organization

Advertising agency works independently. Advertiser contact to advertiser agency to make an advertisement for them. They work on the message, Creativity, Quality. If the agency requires any information, then they ask the company. The agency creates a message for the advertiser and in return, the agency gets paid by the advertiser.

2.) It works for Advertiser

The purpose of establishing an advertising agency is to make an advertisement for the advertiser. So, it works for the advertisers. Advertising agency helps to create and deliver the advertising message to the target customer, Create a new customer for the advertiser, improve brand image, increase the sale of the company, etc.

3.) Composed of Creative People

Creating and delivering advertising is not an easy task. Agency needs in-depth knowledge of each aspect of advertising. Advertising techniques, media, methods change rapidly. So, the agency has to be very polished in their work, that will happen with the help of professional and expert persons. It consists of writers, artists, market analysts, researchers, etc.

4.) Provide different services

Advertising agency provides different types of services to the advertiser. These services start from the preparation of the advertisement to the execution of the advertisement after analyzing the appropriate media and time, follow up the message, and measuring the effectiveness of the advertising message. It helps the advertiser to check that their objective of advertisements fulfills or not.

5.) Commercial Organization

The advertising agency is a commercial organization because it charges a fee for its services. These charges are based upon the

a. services which they are going to provide to the advertiser,

b. the brand name of the agency,  

c. the past track record of the advertising agency.

C.) Importance of Advertising Agency

1. Importance to its Clients

2. Importance to Customers

3. Importance to Media Owners

1. Importance to its Clients

a.) Eliminates the need for the advertising department

Advertising agency eliminates the need for an advertising department because it requires the services of an expert and professional persons that are costly for the advertiser. Companies with sound financial conditions and which advertise their product on a small interval can set their advertising department.

b.) Reduce in Media Cost

Media cost reduced by obtaining the space and time in the media for its advertiser cheaper rates as much as possible. Advertising agencies are in touch with the media on a constant basis. As the advertising agency is friendly with the advertiser in the same way they are friendly with the media channel provider.

c.) Effective Advertising Campaign

An advertising agency is consist of expert and professional person, so they are highly specialized in their work. They have in-depth knowledge of preparing ads, selecting media, selecting the most appropriate time and space for advertising, etc. Agency makes it possible to perform all the activities timely and effectively.

d.) Conducting Market Research

Advertising agency make research in the field of market demand, level of competition, customer taste, economic and trade conditions, trends in market or fashion, popular t.v. program, popular media channel, the right time for advertising, requirement of space in media, etc. Agency does continuous research to make advertising smooth and effective.

2. Importance to Customers

a.) Spread Awareness

If an advertiser produces a new product, then how market and customer will get aware of it. In this case, the advertising agency helps the advertiser to introduce its product in the market. This is how customers get awareness that there is a new product available in the market.

b.) Provide knowledge and information

Introducing a product is not sufficient. Customers must get some information about the feature, use, benefits, etc. of the product. In addition, they must get some knowledge that why their product is better than others or any warning related to the product. This is done with the help of an advertising agency.

c.) Create Link b/w advertiser and customer

The advertiser wants to introduce its product and customer want to purchase a product that can fulfill their needs, wants, or provide comfort. This is how customers and advertisers will get satisfaction. Advertising plays an important role to create a link between the advertiser and customers.

3. Importance to Media Owners

a.) Assure risk free business

Agency is the intermediate between the client and media channel owner. The agency is friendly with both advertisers and media owners. They provide risk-free business for both as it is helpful for the advertiser to provide the best media channel at less price, and media owners get benefited when the agency buys space and time at large for the number of clients.

b.) Slashes down the cost

Agency reduces the cost for the advertiser, media owner, and the customer. As the agency provides services at an economical price, so the advertiser does not have to set up its expensive advertising department. Most of the work gets done by the agency, so the media owner has to put less effort. At last, if these costs get reduce, then the price of the product also reduces that benefit customer. 

D.) Types of Advertising Agency

1.) Full service Agencies

These are medium or large-sized agencies capable of carrying a complete advertising campaign. The main agency may be helped by many subsidiaries involved in various other related activities like market research, sales promotion, advertising, public relation, media buying, film production, etc. Thus, these agencies are capable of handling all the various related activities of the advertisement from beginning to end.

2.) Interactive Agency

An interactive agency, also recognized as a digital agency. The increasing number of internet users and the development of social networks have significantly increased the need to adapted to current requirements. The interactive agency helps the company, by providing creative services, focused mainly on the online world.

3.) Boutique Marketing Agency

A boutique marketing agency is an expert marketing business that works with a small group of professionals who are experts in their field.

        The boutique agency has a limitation that they arent as well-known in the market. Therefore, they wont have a high reputation. The boutique agency may not have a strong reputation, but the quality and experience you receive from a boutique agency exceed expectations.

4.) Media buying agencies

Media buying agencies specialize in :

a.) They identify the best time frame,

b.) Schedules slots at different television channels and radio stations.

c.) Finally manages or checks whether the advertisement has been telecasted at schedule time and place or not

 A media agency may also have deep insights knowledge into the target audience because of the tracking it conducts for advertising campaigns.

5.) In house Agency

In-house Agency means that in which all the advertising activities of a company are handled by employees of the company. No or only a few external individuals or organizations are involved in the advertising processes.

     Your in-house agency team benefits from an internal brand understanding their inside knowledge of the company can be leveraged to react quickly to immediate needs.

E.) Selection of Advertising Agency

1.) Location

The advertiser will prefer that they get the best agency at the near location. Companies have to make meetings at some interval. If the agency is far from the company, then the company have to bear extra expense plus it will create a communication barrier. Companies can make good relations if they choose the nearly located agency.

2.) Size

Both large and small-sized agencies have their merit and demerit. Like large-sized agencies provide a wide range of services with experienced staff, but these agencies are costly and give less personal attention to all clients. In the case of small size agency, they cost less and provide personal attention because of less no. of clients but, they have failed to provide services like the large-sized agency.

3.) Agency working for Competitors

Advertisers should not choose an agency that is working for their competitors. For an advertising agency, both companies are clients to the agency. Agency will not prepare ads that can go against advertiser competitors because that company is also a client of the agency so, it can create conflict between agency and company.

4.) Image of Agency

Image of the company matter a lot. Advertising is like the face of the company, which represents the company brand image and products. Before selecting an agency, the advertiser should check its image, integrity, relation with the client, etc. It can be done, through the agency's past and present work, its clients, its employee, etc.

5.) Services offered by Agency

In recent times the agency provides a wide range of services which reduce the company's work. It includes Planning, market research, preparation of ads, execution of ads, selection of right media with reasonable price, follow up, public relation, etc. If the agency does not serve the services that the company required, then it should not be selected by the company.

6.) Rates Charged

The price of the services rendered by the agency should be reasonable. The advertiser should compare the rate charged by the agency and then compare it with the benefits excepted by the company. Rates also vary from agency to agency as per their services and brand images that also affect selection decisions.

7.) Financial Sounds

The agency with financial sound can work effectively. The agency with financial sound can go with good types of equipment, hire expert professionals, can afford better infrastructure, etc. They also have a good relationship with the media owner that benefits the client to get media at an affordable price.

8.) Agency Experience

Commonly, an experienced person can do better than a layman or inexperienced. In the same case, an experienced agency can work better than a new or less no. of experience agency. Experience agency is familiar with the political environment, competitor policy, taste of consumer, fashion, and trend, selection of best design, planning, preparation, execution, etc.

It is difficult to find all these key points in one advertising agency. So, firstly the advertiser has to plan that what are its requirements or the benefits he wants for his advertising then, he should select the advertising agency.

F.) Client Agency Relationship


The client's agency relationship means the relationship between advertiser and advertising agency. A friendly relationship between both will help to work smoothly and effectively. Now, times all the advertiser depends upon advertising agency because they provide professional services according to their needs.

        In the same way, the advertising agency has to depend upon the advertiser for collecting the data, to know their requirements, feedback, futures contract, etc. So, for working smoothly, it requires good relations between the advertiser and advertising agency.

Principles of effective Client Agency Relationship

1.) Do not advertise for the competitor

If the agency wants to maintain a long-term relationship with its client, then the agency should not accept any business from the client's competitor. In the same way, the client should not go to any other agency for the advertising services without any dispute.

2.) Prompt Payment

Agency needs short terms funds to work smoothly for that they require funds. If the agency demands any advance amount or money for partly work done, then the company should pay the agency on time. Agency should clear all the conditions that when and how much money will be required. So, it will not create any misunderstanding.

3.) Passing Payment Discount to Advertiser

In case, the agency selecting the media channel for the clients and if the media owner provides any discount offer to the agency, then the agency should pass the same discount to the client. It will create a strong and trustful relationship between the advertiser and client.

4.) Not to blame the agency for media lapses

As we discussed, sometimes the agency selects the media channel on behalf of its client. After selecting the media channel, they have to choose the time and date for placing the advertising. In case the advertisement is not placed at the selected time and date, then the company should not blame the agency.

5.) Professional Services

If clients are burning their money, then the agency has to provide the best services to its clients. It is not only the obligation of the agency, but it is the duty of the agency also. So, the agency has to provide professional services to its client, at a reasonable rate, and at a scheduled time. It will create a positive image of the agency in the mind of its client.

6.) Trust and confidence

Trust and confidence help the agency and client to maintain a good relationship for the long term. Agency trust that their client will provide timely information and make payments without getting late. In the same manner, clients support their decisions as they are expert in their services.

7.) Written Agreement

Before start working, the client and agency should sign an agreement. This agreement will include all the terms and conditions between the client and the agency. It will help them to avoid any dispute in the future. These terms can be -  services rendered by the agency, fees paid by the client, penalties on breach of agreement, time duration for the preparation of the advertising, etc.

8.) Interaction between agency and Client

Agency and client must interact with each other frequently to create agency-client relations. It will help both to understand the problems of each other and to develop an understanding of various advertising decisions. The client should check agency work frequently, instead of criticizing at the end. It will also help to take the right action at the right time. 

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