Module-2 (6 Hours)

Advertising Agency: Type of agencies, Services offered by various

agencies, Criteria For selecting the agencies and evaluation. Advertising
objectives and Budgeting: Goal setting – DAGMAR approach, various
budgeting methods used. Relevant Case Study
An advertising agency, also known as a creative or ad agency, is a
business that specializes in creating, planning, and managing advertising
campaigns for clients

• Understand why advertising is important in marketing

communications
• Look at basic ideas about communication and advertising and how
they affect what customers do
• Learn how to create good advertising plans and strategies
• See why creativity matters in making ads
• Find out about different ways to produce advertisements
• Understand the difficulties in measuring how well ads work
General Agent:
Authorized to handle all matters within a specific area of business or a specific range of
transactions.
•Example: A property manager handling all aspects of a rental property.
•Characteristics: Broad authority within a defined scope, authority persists until terminated.
Special Agent:
Authorized to handle a specific transaction or a limited number of transactions.
•Example: A real estate agent hired to sell a particular house.
•Characteristics: Limited authority, specific to the task at hand.
Subagent:
Appointed by an agent to assist in carrying out the agent's duties.
•Example: A paralegal assisting an attorney.
•Characteristics: Agent is still responsible to the principal, even with a subagent.
Agency Coupled with an Interest:
The agent has a personal stake or interest in the subject matter of the agency.
•Example: A literary agent receiving a percentage of book sales.
•Characteristics: Agent has a financial or proprietary interest in the outcome.
Servant (or Employee):
An agent employed by a master to perform services.
•Example: A delivery driver working for a company.
•Characteristics: Subject to the employer's control and direction.
Various agencies offer a wide range of services tailored to different
needs. Marketing agencies, for instance, provide services like media
planning, social media management, content creation, and SEO. Digital
agencies focus on online strategies, including web design, digital
marketing, and content marketing. Creative agencies specialize in
branding, graphic design, and visual communication.
Marketing Agencies:
• Media Planning: Helping businesses choose the best platforms and channels to reach
their target audience.
• Social Media Marketing: Managing social media presence and engagement for brands.
• Content Marketing: Creating and distributing valuable, relevant, and consistent content
to attract and retain a target audience.
• Search Engine Optimization (SEO): Improving website visibility on search engine
results pages.
• Email Marketing: Building and executing email campaigns for customer communication
and promotions.
• Brand Management: Developing and maintaining a consistent brand identity.
Digital Agencies:
• Website Development: Designing and building websites and applications.
• Digital Marketing Strategy: Developing and implementing comprehensive digital
marketing plans.
• Pay-Per-Click (PPC) Advertising: Managing paid advertising campaigns on
platforms like Google Ads.
• Analytics and Reporting: Tracking and analyzing marketing performance to
optimize strategies.
• Social Media Marketing: Managing social media presence and engagement for
brands.
Creative Agencies:
• Graphic Design: Creating visual elements for marketing materials, websites, and
other platforms.
• Branding: Developing brand identities, including logos, color palettes, and brand
voice.
• Web Design: Designing the look and feel of websites.
• Video Production: Creating video content for marketing and promotional
purposes.
Full-Service Agencies:
• Integrated Marketing Strategy: Combining various marketing
disciplines to create cohesive campaigns.
• Creative Services: Offering a range of creative solutions, including
design, copywriting, and video production.
• Digital Marketing Expertise: Providing a wide range of digital
marketing services, such as SEO, PPC, and social media marketing.
• Brand Building and Management: Helping businesses establish and
maintain a strong brand identity.
 Criteria for Selection of an Advertising Agency
For a successful advertising campaign, the choice of a right
advertising agency is matter of prime importance. The choice of a wrong
agency can prove to be very costly. The selection of an agency needs a
logical approach. The suitability, agency infrastructure, imaginativeness and
image of the agency, its management and rates are the basic factors Which
are considered during the selection of an agency.
There are a number of different types of selection criteria that fall into broad
categories: qualifications, experience, technical skills, soft skills and personal
attributes. Some positions might also have selection criteria that relate to
ethical values or employee background.
Experience and Expertise
• Industry Knowledge: Look for agencies with experience in your industry
or niche. They should understand your target audience, market dynamics,
and competitive landscape.
• Track Record: Evaluate their portfolio and case studies to assess their
success with similar clients and campaigns. Check client testimonials and
references for insights into their reliability and results.
Creativity and Innovation
• Creative Capabilities: Assess the agency’s creativity and ability to
develop compelling campaigns that resonate with your audience. Look
for innovative approaches and fresh ideas that differentiate your brand.
• Digital Expertise: In today’s digital age, ensure the agency is proficient
in digital marketing strategies, including SEO, PPC, social media, and
content marketing.
Strategic Planning and Execution
• Campaign Strategy: Seek agencies that can develop comprehensive,
data-driven strategies aligned with your business objectives. They should
articulate clear goals, timelines, and expected outcomes.
• Execution Excellence: Evaluate their capabilities in executing
campaigns across various channels, ensuring seamless integration and
optimized performance.
Communication and Collaboration
• Agency Culture: Assess compatibility with the agency’s team culture and
values. Effective communication and collaboration are essential for a
productive partnership.
• Transparency: Look for agencies that are transparent about their
processes, costs, and reporting. They should provide regular updates and
insights into campaign performance.
Budget and ROI
• Cost Considerations: Discuss pricing models, fees, and budget allocations
upfront. Ensure the agency can deliver within your financial parameters
without compromising quality.
• ROI Focus: Prioritize agencies that emphasize measurable ROI and have
systems in place to track and analyze campaign effectiveness. They should
be proactive in optimizing campaigns for maximum return.
Range of Services
• Integrated Services: Consider whether the agency offers a
comprehensive range of services that align with your marketing needs.
This may include creative design, media planning, digital marketing, PR,
and more.
• Specializations: Depending on your goals, assess whether the agency
specializes in specific areas such as brand building, lead generation, event
marketing, or crisis management
Reputation and Reliability
• Industry Reputation: Research the agency’s reputation in the industry,
including awards, recognition, and client satisfaction ratings.
• Stability and Longevity: Choose agencies with a proven track record of
stability and longevity. They should demonstrate resilience and
adaptability in changing market conditions.
Location and Accessibility
• Local vs. Global Reach: Decide whether a local agency with regional
insights or a global agency with extensive reach better suits your needs.
• Accessibility: Ensure ease of communication and accessibility to the
agency’s team, especially if face-to-face meetings are important to you.
 Setting advertising campaign goals
1. Brand Awareness. It is common for marketers to appoint brand
awareness as the most important goal in their marketing strategy.
2. Website Traffic.
3. Social Engagement.
4. Displaying Video Ads.
5. Understanding your target audience.
Segmentation and positioning
Segmentation, Targeting and Positioning (STP) to develop marketing
strategies Today, Segmentation, Targeting and Positioning (STP) is a
familiar strategic approach in Modern Marketing. It is one of the most
commonly applied marketing models in practice. In the 1950s, for
example, the main marketing strategy was 'product differentiation'. The
STP model is useful when creating marketing communications plans
since it helps marketers to prioritise propositions and then develop and
deliver personalised and relevant messages to engage with different
audiences.
• https://www.youtube.com/watch?v=pWTtEn9pio4
• https://www.youtube.com/watch?v=rQ9tcxMuiOE
DAGMAR approach
The DAGMAR model stands for “Defining Advertising Goals for
Measured Advertising Results.” It is an advertising approach that focuses
on setting clear, measurable objectives, and tracking the progress of
these objectives through each stage of the campaign. Russell Colley
created the model with the aim of shifting advertising strategies from
vague, broad objectives to more precise, outcome-oriented goals that
could be quantitatively assessed. The model emphasizes that advertising
should not just aim at generating sales, but should guide the audience
through a process of awareness, understanding, conviction, and action.
What Is the DAGMAR Approach?
The DAGMAR approach is a marketing model that defines steps that
should be used for an effective marketing campaign.

What Are the 4 Stages of the DAGMAR Model?

The DAGMAR approach recommends using four phases: Create
awareness, increase consumer comprehension, convince consumers, and
persuade them into action.
The DAGMAR Approach suggests a marketing campaign that leads the
consumer through four phases:

1. AWARENESS: Creating awareness of the brand among consumers.

2. COMPREHENSION: Increasing understanding of the product and
its benefits.
3. CONVICTION: Convincing consumers that they need the offered
product. Creating positive attitude towards the product.
4. ACTION: Motivating the consumers to buy it.
Features of a good advertising objectiveset
It must be explained in specific and measurable communication
activities. It must clearly indicate a target audience .It must set a
standard and set the desired change against which results can be
measured. It must set a time period for achieving the objectives
2 core things ON WHICH THEDAGMAR MODELSTOOD
• CREATION OF COMMUNICATIONTASK TO ACHIEVE
OBJECTIVES
• DEFINE THE OBJECTIVE OFCOMMUNICATION TASK IN
AMANNER THAT RESULTS CAN BEMEASURED
 Benefits of using the DAGMAR model
The DAGMAR model offers several benefits that make it a valuable framework for
advertising campaigns. Some of the key advantages include:
• Clear objectives: By setting clear and measurable goals at each stage, advertisers
can focus their efforts on achieving specific outcomes, making their campaigns
more effective.
• Better targeting: The DAGMAR model helps advertisers identify their target
audience and design messages that resonate with them at each stage of the
decision-making process.
• Improved measurement: With a focus on measurable goals, the DAGMAR
model allows advertisers to track the performance of their campaigns and make
data-driven decisions for future campaigns.
• Enhanced communication: By guiding consumers through a series of cognitive
and emotional steps, the DAGMAR model helps advertisers create more
compelling and persuasive messages.
Challenges of the DAGMAR model
While the DAGMAR model has numerous benefits, it is not without its
challenges. Some of the common issues advertisers face when using the
model include:
• Complexity: The model requires a detailed understanding of the
audience’s behavior and decision-making process, which can be
difficult to achieve, especially for new brands or products.
• Resource-intensive: Measuring results at each stage of the process
can require significant resources, including time, money, and advanced
technology.
• Changing consumer behavior: Consumer preferences and behaviors
are constantly evolving, making it challenging to predict how they will
react to advertisements at each stage of the process.