Activities involved in Campaign

1. Strategic Planning
2. Creative Design
3. Media Purchasing
4. Physical production
1. Development of marketing & advertising strategy
in collaboration with client·s mgt
2. Then strategy transferred into brief for creative
team
3. Graphics designers prepare storyboard
4. Physical production
5. Cost-effective media planning 7 buying for
chosen media mix
6. Traffic depart meets the media deadlines
7. Agency ensures actual broadcast or prints od ad
as agreed.
m Commonly ² 15% of ad·s total cost
m For big accounts may be less then 15%
m For small accounts mostly more then 15%
m Payroll (two third)
m Rent (7% - 11%)
m Office supplies, computers
m Depreciation on furnishing & fixture
Cost Structure of Campaign
m Account mgt & research (35%)
m Creative work (45%)
m Production & OH (20%)
(excluding actual cost of making the
commercial)
m Analytical research & strategic thinking
m Powerful advertising theme
m Innovative advertising copy
m Intellectually demanding copy
m Creative hotshots
m vasic force behind going global was that
client was going global
m Growth of global media, TV going global
m 1960s, US agencies as world leaders in
creativity
m 1970s, US agencies eroded from the top
m European agencies took their place in
creativity
m 1990s, 30 of top 50 agencies were not
Americans
m 1980s, US Ad industry was $95b market
with 10% nominal growth/year
m 1985, top 10 agencies had 50% of total
billing up from 405 in 1970
m So caused agencies to go for
acquisitions & mergers
m 1990s, $160b worldwide industry with 10%
growth/year.
m vy 1990, top 10 world leader agencies
constituted for 30% ad expenses.
m Advertising style (hard-sell, humorous, off-
beat etc)
m Agency culture and individual assigned
m Should not serve competing brands
m Provides complete solution (direct
marketing, sales promotion, diversify
media mix, etc)
m Choosing one agency worldwide
m Established in 1970 in London with 25,000 and 9
employees by Charles & Maurice Saatchi
m Charles headed creative work and Maurice
admin
m Acquisitions began in early 1970s
m vreakthroughs were ´pregnant manµ and
´Labour isn't workingµ
m Half of acquisition payment in advance and
remainder in one to five year period
m Second half of payment contingent on profit
m If being large is imp, being in top three is
vital
m A belief on globalization
m 1st company to be listed on three big stock
exchanges (US, UK, Japan)
m Hangs-off approach to mgt, but tight
financial controls
m villings forecasted 3 to 12 months ahead,
costs monitored monthly and cash position
daily
m Profitability measured by time spent