The Business of Advertising

QUIZ

Powerpoint for Chapter 3

Review Questions:

1. Almost half of advertising dollars are spent on local advertising. Why is local advertising so important?
2. What are the four types of local advertising and what purpose do they serve?
3. Why do wholesalers and manufacturers provide co-op advertising funds and materials to local advertisers?
4. What additional challenges are faced by companies that advertise internationally?
5. How do the media in other countries tend to differ from that which we are accustomed to in the United States?
6. Why do so many advertisers hire ad agencies?
7. In what ways does the role of an Account Planner differ from that of an Account Executive?
8. What are the most important things an advertiser should consider when selecting an agency?
9. What is the best way to compensate an agency? Explain your answer?
10. What are some things that agencies will need to do to adapt to the media options created by new technologies?

RESOURCES:

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AAAA	http://www.aaaa.org/Pages/default.aspx
Advertising Age	www.adage.com
Advertising Age Data Center	http://adage.com/datacenter/
Procter & Gamble	http://www.pg.com/en_US/index.jhtml
Honda USA	http://automobiles.honda.com/
McDonald’s	http://www.macdonalds.com/us/en/home.html
WPP	http://www.wpp.com/wpp/

Homework:

  Due Tuesday, 2/11

 Select an advertising agency that interests you. You may admire its campaigns or you might be interested in it as a possible employer. Write a review of the agency organization and philosophy including as much of the following information possible. Consider using the Standard Directory of Advertising Agencies, Web sites, annual reports, Advertising Age, and Adweek as sources.

 

Example:

Media Placement Group is a marketing and media management company, based in Boca Raton, Florida. Founded in 1986, MPG was established to meet the needs of companies seeking superior quality media planning and buying services.

• Agency size: billings and number of employees

30 employees

• Corporate affiliation (part of a holding company?)

No

• Locations of major offices

Boca Raton, Florida

• Top officers of the company

Cindy Kurtz

Brad Kurtz

• Key clients

            Compass Furniture
GCO Carpet Outlet
Floorz
St. Charles Vision
Reed's Jewelers
Jenss Décor

• Most notable campaigns

Seminole Casinos

• Agency philosophy

MPG's approach to media management is based on the commitment to increase our clients' profitability by maximizing the return on their advertising investment. MPG has developed expertise in buying all media (print, television, radio, away-from-home) across a wide range of industries. Currently, MPG places advertising in more than 400 cities across the U.S.

• What makes this agency unique?

MPG's philosophy is simple. They spend their clients' advertising dollars as if they were their own.

If you were an advertiser seeking an agency, why might this agency appeal to you? What if you were a job seeker?

- This agency is appealing to an advertiser because they are committed, honest, and dedicated to satisfying their clients needs. 

- This agency is appealing to a job seeker because it is a good size agency with dedicated members and strong ethics and values.  

Secondary Homework: 

The class has been divided into two competing ad agencies. Decide among yourselves what role you will play in the agency. Examples: Account Manager, Account Planner, Art Director, Copywriter, Research Dept.  Come up with a name for your agency 

Reading: Chapter 3