The Advertising Business
Have you ever wondered how advertising works and how an advertising agency makes money? Behind the glitz and glamor, advertising is still really a business and a benefit.
In general terms, advertising refers to the promotion of goods and services (as well as companies and ideas) through media, especially television, radio and print media (newspapers and magazines), but also by external means and nontraditional. It is usually done by an advertising agency on behalf of a corporation, its client. These bank customers in the advertising of their brands and products stand out in a crowded market in another way. To this end, depend heavily on the creativity and expertise of the employees of the agency.
In a word, gives the customer the advertising agency with a set of marketing goals (usually to increase sales of its product or service) and a profile of consumer groups it wishes to target.
On this basis, the agency creates an “image” through advertising campaigns in the media which, hopefully, consumers flock to stores and empty shelves of the customer. The key is to make the campaign advertising and creative, unique and interesting as possible.
Although they perform the same function, advertising agencies tend to vary in size and structure. There are small shops of a person or two as well as large multinational advertising agencies with offices worldwide. In advertising, but bigger is not necessarily better, as many companies have established a small ad reputation as hotbeds of creativity.
Some companies also choose to create their advertising in-house through their departments of advertising.
Some agencies specialize in certain types of advertising like television commercials or print ads. Agencies usually have a list of vendor’s specific needs, such as television production, design and installation of the panel, talent agencies that provide the actors, the art of design studies, and so on.
And how agencies make money? They do this by taking 15% commission for the work they produce for clients, including media placements. Therefore, if you set 10 million TV commercials, say, the Super Bowl, the agency earns $ 1.5 million, or 15%. Not a bad way to earn a living.