How advertising agency works? 7 Facts about Ad agency

Have you ever wondered how advertising agency works? Advertising is a multi-billion dollar industry, but it’s also shrouded in mystery.

We’re going to demystify the process of creating an ad campaign from start to finish and show you exactly what happens behind the scenes when an agency takes on a new client.

We’ll cover all aspects of marketing including digital ads, brand awareness campaigns, social media strategies and more. By the end of this guide you will have a clear understanding of how your favorite brands are able to reach millions with their message every day!

How advertising agency works?
How advertising agency works?

How advertising agency works?

Sometimes, companies don’t have the time or resources to create their own advertisements. They need help from an outside agency that specializes in this area and can provide a service at scale by utilizing specialist employees who are experts with certain tasks such as advertising design or media buying; these specialists often work better than company staff members might be able too!

What is the definition of an advertising agency?

An advertising agency is a company whose business is to create and manage advertisements for its clients. An agency can work with various types of media such as print, television, radio, or the internet; for any number of different audiences; and across all branches of commerce.

Advertising agencies are responsible for creating marketing campaigns that target their clients’ needs. They work closely with the client and gather information about them before pitching ideas, which then goes into developing both print ads as well online ones so it can be distributed effectively through social media platforms like Facebook or Twitter among others.

How many advertising agencies are there in the US?

But most of the nation’s 10,000 agencies are found outside of New York. And almost every city has at least one agency that works from a distance as well with just an internet connection in place – some ad companies outsource their work entirely!

Agency giants like WPP Group have annual billings over $19 billion dollars each year. Sure, if you want face-toface interaction for your advertising needs then there’s nothing better than working near where people live or visit often; however not all marketers do this type search when seeking help finding what they need online because sometimes wide areas allow them access to valuable clients without having too far drive across town.

In 2021, advertising in the United States is expected to reach a new high with total ad spend hitting $205 billion. 15.9 percent of this comes from digital ads and this year’s increase was 4%.

The numbers show us that 5% growth rate for traditional outlets like TV or Radio alongside an 18% jump when it comes to Digital advertisements will bring our country’s per capita investment up another notch by 2020 – reaching near parity between what people are willing on average ($51) vs price tags at participating stores ($50).

The power of social media is undeniable. When it comes to revenue, the numbers are staggering- according to eMarketer’s forecasted data on mobile advertising for this year’s market size in America alone they’re expecting a total value around $21 billion dollars.

This growth isn’t only showing up digitally though; even when looking at traditional forms like TV ads there have been consistent increases over time which combined with an excellent track record for customer satisfaction make brands anxious not wait any longer before jumping head first into new technology!

Advertising agencies usually have four departments:

  • Creative department
  • Media department
  • Research department
  • Business department

Advertising firm creative, which develops and produces ads

In any advertising agency, the creative department is a vital part of what makes an ad campaign successful. These people are responsible for coming up with new ideas and generating those best-selling ads that will earn your company money hand over fist! Creative roles can vary depending on where you work but usually include:

  • Copywriters
  • Web Designers
  • Art Directors
  • Production Artists
  • Designers
  • Creative Director(s)
  • Associate Creative Directors

Media, which selects media placement ads

The Media Buying Department is the heart of any advertising campaign. They put together a plan to buy time on TV, radio and print media so that your ads can be seen by as many people possible in order for you company’s message or product selling point reach its maximum potential!

Research, which studies audience characteristics and wants

Larger advertising agencies rely on their own research department to provide data for focus groups and testing, analyzing results of this analysis in order find new client trends. The work done by the agency’s Research Division helps creative teams target specific markets as well as improve account management skills related to branding strategies that will be effective now or down the road when clients are ready again change course entirely.

Business, which handles advertising agencies’ business activities.

The finance and accounts department is in charge of managing all the flow to ensure that it doesn’t get out-of-hand.

They make sure payments are sent on time, employees receive their salaries at agreed intervals as well as benefits like health care or vacation days while vendors who supply goods/services also have costs reimbursed from this part if necessary so business can keep going smoothly.

A lot of ad agencies use a process called “invitations” to attract new business. When potential clients are looking for an agency, they will generally send out requests or invitations that have specific requirements from the client in mind and then select one based on their experience with these particular accounts so far.

Advertising agency
Advertising agency

What are the types of advertising agencies?

There are five types of advertising agencies.

1- Full-service Agencies

2- Interactive Agencies

3- Creative Boutiques

4- Media Buying Agencies

5- In-House Agencies

What Do Ad Agencies Do?


Ad agencies are always on the lookout for new clients. They don’t just cold-call random businesses, instead they’ll usually start with an inside approach and contact people within organizations that might be a good fit to target in their advertising overhaul efforts–they may also monitor news services like The Wall Street Journal “WSJ” or Forbes Magazine’s “Forbes 400 list” looking at companies experiencing rapid growth spurts so as not miss them if something interesting happens along the way!


The presentation is a chance for the agency to show off their work. First, they’ll share some of what has been successful in similar markets and how it can be adapted on an individual level based on your needs as well.

If there’s enough interest from either party after this point onwards may continue with meetings or even potential collaborations! The agency may also show logos, brochures and websites that have been designed for past clients or a mock-up of what it has in mind to design the client’s logo.


The agency will assess the client’s current position, including its industry and competition. The assessment includes determining a campaign that is expected to bring about growth in recognition levels as well as meet deadlines for deliverables.


The ad agency’s creative team is in charge of creating the actual components of a campaign, such as TV commercials and billboards. Copywriters are often employed with agencies on an ongoing basis while graphic designers can be outsourced for their work when needed; however actors might need to come up too (depending on what kind).

The entire spectrum from idea generation all-the way through execution falls under this category – including any mixed media combination like website popups or direct mailings which could include videos depending upon how much time was spent thinking outside traditional advertising means.



The ad agency’s media buyer will purchase space for the ads (in a newspaper, on radio stations or websites) from an assortment of salespeople.

The campaign rollout typically consists of releasing them by alternating which platforms they appear on throughout the day to avoid bombarding people with any one type too much at once. This also helps generate brand awareness as you reach your targeted audience from different directions!

How do agencies work with clients?

1- The agency will brainstorm ideas with the client how to further their business. These are business ideas that are profitable for the company’s future growth, primarily how to raise their online presence, how they can reach potential customers or how they can increase sales.

2- Once an idea is decided on it’ll be handed off to a creative team to turn it into an advertisement.

3- The agency will also make sure the campaign is implemented in a timely manner; this may require that extra touch of speed for how quickly they need to get things done in order to stay on top. This could mean hiring freelancers or subcontractors to do certain tasks if their in-house people aren’t able to be called upon fast enough to meet deadlines.

4- The ad agency will also need to have its media buyer connected with how much they should spend on an advertisement campaign as well – oftentimes, this comes down how many people are likely going to see it. For instance, if you’re selling a product which is exclusive to certain regions then those regions should be targeted with how to reach people who might be interested.

5- For advertising agencies, how to structure a campaign is just as important as how much they spend along with how to provide the client with enough data so that they can determine if their campaign is working or not – and how well it’s performing compared to what they planned on.

How do agencies work with clients?
How do agencies work with clients?

What is the role of an advertising agency?

The traditional role of the advertising agency has evolved. It’s gone from an organization that develops and launches print ads, radio or television commercials to one which does all those things plus more: building content; providing branding strategies like websites and logos; as well as including diverse marketing tactics such as social media campaigns for businesses looking to reach their target audience through various platforms at once!

The role of the account executive

They work directly with clients, whether they’re advertising agencies or the companies that they’re representing. They handle how much money is to be paid and how much time is available for how long the contract needs to last. The A.E. makes sure how everything will be taken care of between both parties (what materials are to be provided by how long for) are outlined.

The role of the project manager

This person helps out both client and agency by making sure how everything is moving along how it should, based on how much time has been allotted for how long they need it to last. They’re also in charge of how materials are turned into final product (i.e how scripts are turned into how commercials). It can be an additional pressure how it takes time to meet orders – especially if they’re for how prestigious companies which might have high demands on how well things turn out.

The creative team and their roles in the process

An ad agency is going to have how various teams how work together with how they’re organized in how they structure campaigns. These will usually include a copywriter, art director and production designer – depending upon how much time has been budgeted for how long in how many platforms they need to be advertised on.

General FAQ’s

How can an advertising agency help a small business?

Agencies bring an outside point of view, along with years of experience from working with different clients and situations.

Agencies are paid partly by media discounts that allow the firm to save money in some ways while still getting quality work done at a lower cost compared to hiring internally or externally on their own without any sort if assistance from professionals who know what they’re doing when it comes down providing services like marketing strategy development for example – which could be very time consuming!

Do I need a local firm to handle my advertising?

You can find the best talent for any position, no matter where they are in the world. With some good metrics and an effective communication framework you’ll be all set!

How do advertising agencies make money?

Agencies are in charge of helping their clients create successful campaigns that can be broadcast through advertising services. They take a percentage from the ROI for these advertisements, which is one way they make extra revenue to support themselves while working on behalf of their client. In addition, agencies also have access and right-to-control over ads being shown by another company – namely yours!


Our blog is full of information about advertising, marketing and branding. If you’re looking for more on this topic, check out some of our past posts!

We hope you’ve enjoyed our blog post. If you have any questions, feel free to contact us at your convenience. You can also check out these other posts for more information on advertising agencies or the services we offer.

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