There are different types of advertising agencies; they can be anything from a one person operation to a multi-national corporation.
An advertising agency is a service business that focuses on creating, planning, promoting and implementing publicity for clients. Advertising Agencies are a separate concern from the client and are experts in promoting advertising for a business. One type of advertising agency is a full service agency that largely deals on a set fee and commission based payment, the fee being paid by the client who requested the promotion. The commission is a payment from the media to the agency and is normally around 15% of the total cost of the advertisement. It’s usually the broadcast media, radio or television that pays the commission.
What is known as an interactive agency may differentiate itself by offering a combination of web design and development, search engine marketing, Internet advertising and marketing, E-business or E-commerce consulting. This type of agency did quite well before the conventional advertising agencies became au fait with the Internet and the benefits of online marketing. A number of interactive agencies grew very quickly due the variety of services they offered, but many have since downsized just as fast due to the changing market circumstances. Interactive agencies are comparable to advertising agencies and they operate in much the same way. Though they focus solely on interactive advertising services using such media as the internet, kiosks, CD-ROMs, DVDs, and devices like IPods, PSP and mobile. Interactive agencies deliver services like Digital Lead Generation, Digital Brand Development, Interactive Marketing and Communications Strategy, Rich Media Campaigns, Interactive Video brand experiences, Web 2.0 website design and development, e-Learning Tools, email marketing, SEO/SEM services, PPC Campaign Management, Content Management Services, web application development, and overall Data Mining and ROI Assessment.
The tra-digital agency – an advertising agency that is expert in both traditional and digital advertising – offers the best of both worlds. This resonates well in today’s digital age. A great many advertising agencies are looking for a door into the digital world; it’s the only means to keep up in a technological age.
Hugely popular are search engine agencies. Search engine marketing (SEM) and search engine optimization (SEO) companies are now categorised as agencies because they create media and implement media purchases of text-based promotions. Although it took some time for this type of advertising agency to be recognised, they were referred to as a type of advertising agency because they are a good outlet for online advertising.
In order to decide how much you will benefit from the amount you spend on marketing, look at the cost-per-thousand figure. If promotion costs you $100 say, for a a newspaper ad through an advertising agency, and 2,000 people see it, then the cost per thousand is $50. On the other hand, if you fork out $1,000 for a television ad, and 40,000 people see it, then your cost per thousand is only $25.