As a result of studying section 4, students should:


• current trends in the activities of United States and foreign advertising agencies;

• the classification of advertising agencies based on the volume, types and location of services provided;

• problems and advantages in the activities of international and United States advertising agencies;

• features and advantages of advertising management methods: centralized, decentralized, mixed;

• the main decisions taken within the advertising campaign planning program;

be able to

• analyze the stages of the organization of the advertising process, taking into account the interests of advertisers and advertising agencies;

• evaluate the problems of the work of United States advertising agencies at the present stage of their development;

• use various methods of managing advertising activities in terms of their advantages and disadvantages;

• conduct media planning of outdoor advertising, electronic and print media;

• Evaluate the effectiveness of advertising by different methods;


• the skills of organizing the advertising process in terms of the interaction between the advertiser and the advertising agency;

• Practice of applying advertising management methods;

• the skills of building advertising texts, messages, videos, etc.;

• practice of preparing a different type of advertising task (brief): creative, client, media;

• the practice of assessing the communicative and commercial effectiveness of advertising;

• the ability to choose the tools for an integrated advertising campaign.


Modern trends in the activity of advertising agencies

The development of the advertising business in the world is connected with the concentration of capital, the intensification of the processes of specialization of advertising agencies with simultaneous diversification of the services they perform, the growth of professionalism, the strengthening of the research base, the optimization of managerial schemes of advertising organizations.

Promising managers of advertising agencies tend to organize their activities on a client-oriented horizontal management scheme. Corresponding changes in the organizational and management strategy require the resuscitation of the long-forgotten methodological departments (at one time rather developed in Soviet advertising organizations) with their control and analysis of technological and creative processes, working out recommendations.

The horizontal (cluster) structure was previously used in developed markets, but it was abolished and forgotten, although it is now clear that the obvious prospects of market development were not taken into account to that extent. At the same time, in the rapidly developing markets of Southeast Asia and in Latin America, this type of structure has proved very effective.

In the WPP Group system, the efficiency of the cluster structure under current market conditions has been investigated in more than 20 pilot sites in corporations such as Ogilvy & amp; Mather Worldwide , J . Walter Tompson , Hill & amp; Knowlton , etc. Each of them chose three companies representing their transnational clients in different countries. It was analyzed how these firms improve their profitability, change organizational structures in order to work faster and better.

The analysis data proved the effectiveness of the cluster system. There are concrete results of its implementation. So, in Brussels, 10 offices Ogilvy & amp; Mather are collected together in the office of the future in accordance with the latest tendencies of "group office design", when the premise is planned without cabinets and sliding partitions.

This solution has enabled employees to communicate better with each other and, if necessary, when creating teams that execute individual projects, move to other sites.

Too much growth in the number of employees of an advertising agency leads to the fact that it becomes poorly managed and reduces the creative level. The question arises: how will the advertising industry develop in the future? Will large companies with global resources and dominance of tight coordination in the market be preferred, small agencies with their high creative potential, flexibility, rapid response, the ability to maneuver and introduce the latest technologies, or compromise options in the form of medium-sized agencies?

The answers to these questions are given by the current trend associated with the intensification of polarization. The largest advertising agencies continue to increase their market share, and customers concentrate advertising budgets. Thus, IBM corporation left 40 advertising agencies with which it cooperated, to the only one - Ogilvy & amp; Mather Worldwide, which was the biggest move of advertising budgets in the history of advertising.

However, the largest advertising agencies increase their market share by absorbing the weaker. Medium-level agencies (not to mention small ones) are not able to compete in the struggle for large advertising budgets because they do not have resources on a global scale.

At the other end, concentrating small companies, agencies are striving for an individualized independent business. But there is also a serious need for linking to international resources in order to gain access to international budgets.

As a result, the share of large agencies on the market is growing, and only 16 of them, owned by nine holdings, operate in more than 40 countries. With the exception of Japan and India, where local agencies occupy a significant market share, there is an oligopoly of multinational advertising agencies capable of conducting multinational business.

It is significant that large agencies, like small ones, have to learn to work, acting more responsibly and increasing their creative potential, while small ones need to develop resources that allow them to work successfully at the international level. But in any case, aggressive and commercially promising management is effective.

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