What are the Different Types of Advertising Agencies?

An advertising agency is a professional service firm hired by other businesses, corporations, non-profits, and government agencies to ideate, produce and manage the showing of advertisements in different mediums. It can be classified by the range of services that it offers.

What are the Different Types of Advertising Agencies?

What is an advertising agency?

An advertising agency is a professional service firm hired by other businesses, corporations, non-profits, and government agencies to ideate, produce and manage the showing of advertisements in different mediums.

This article will review the different types of advertising agencies that exist today as well as their benefits for businesses looking for help with marketing strategies! Advertisement Agencies can be classified by the range of services that they offer.

Also, advertising agencies range in size from one man shows to large firms that employ thousands of people. The different types of Advertisement Agencies cover the whole range of marketing efforts.

Core Values

The four strong core values of Advertising agencies are creativity, innovation, timeliness and teamwork.

The different types of Advertising agencies are a mixture of this values but has one dominant value. Exceptional core values include integrity, honesty and accountability.

The different types of advertising agencies are

1. Full Service Advertising Agencies

Full service agencies offer all the services that a business would need to advertise on its own. Therefore, full service agencies are capable of handling everything from creative and production to purchasing media time or space in a publication.

This is why they can be called "full-service." Service firms provide just one type of service, such as media buying or creative design.  It plans, creates, produces and places the advertisement for its clients.

It also provides other marketing services such as sales promotion, trade shows, exhibits and newsletters.

The service firms charge a flat fee or billing clients by the hour. It is an One-stop agencies provide everything and offer full service for one price.

It is important to note that the personal work full time and will not provide extensive services like a full service agency would.

This type of agency is useful for businesses that don't have the resources to handle all aspects of their marketing campaign on their own.

2. Limited Service Advertising Agencies

Limited service agencies limit the amount and kind of services that they offer. Some advertising agencies only do one or two things, like creative design while others will provide media planning in addition to other types of marketing assistance.

When an advertiser chooses a limited-service agency, it must assume some responsibility for its own work such as overseeing marketing campaigns.

This type of agency is useful for businesses that are looking to avoid the expense and upkeep associated with a full-service agency.

For example, if a business has its own marketing director or owner who wants to spend less money an advertising budget then it might find use in this model.

One man show: One person owns and operates the company. This type of agency is typically a small, one-person operation that has no employees besides its owner and serve as an individual's full-time job.

The use of this model can be beneficial for those in need of media time or space to advertise on their own behalf. However, it does not offer other services such as creative development or media planning.

3. Business-to-Business Advertising Agencies

Business-to-business (B2B) advertising agencies specialize in advertising products to a business, as opposed to consumer audience.

B2B agencies understand the complex decision making processes in business marketing and utilize media that enable advertisers to build relationships with prospects and customers over a period of time.

B-to-B agencies may offer further specialization in sectors such as technology or industrial products.

For example, an advertising agency that specializes in the medical industry might promote a business's new product designed for doctors and hospitals.

This type of agency is useful because it provides valuable information about what types of media would be most effective to use for the different industry sectors. B2B agencies may offer further specialization in sectors such as technology or industrial products.

4. Non-Commercial Advertising Agencies

Non-commercial advertisers spend money to advertise items other than a consumer product or service.  These would include political parties, interest groups, religious organizations, and governmental agencies.

The use of non-commercial advertising is a great way to spread their message or cause for those with big budgets who want to target specific audiences.

For example the U.S Department of Health & Human Services advertises on TV programs that air in different time zones.

These types of agencies are useful for businesses that have a product or service with many features which may be difficult to convey through one advertisement alone.

It is also good for those who want their advertisements to show creativity and originality. A lot of non-commercial ads promote charities, social awareness campaigns, political parties, and other religious organizations.

5. Creative Advertising Agencies

Creative boutiques are organizations that specialize in the actual creation of advertisements. In general, boutiques create imaginative and interesting advertising themes and produce innovative and original advertisements.

A company that uses a creative boutique would have to employ another agency to perform the planning, buying and administrative functions connected with advertising.

Full service ad agency studies the product or service and determines its marketable characteristic and how it relates to the competition. At the same time the agency studies the potential market, possible target audience and other factors.

At the same time, it researches and determines how to communicate its client's message in an interesting way.

This type of agency is useful for businesses that have a product or service with many features which may be difficult to convey through one advertisement alone. Creative agencies are also good for those who want their advertisements to show creativity and originality.

6. In-house Advertising Agencies

An in-house agency is an advertising company that a business establishes for its own use. It also offers all the services of a full service agency, making it both creative and administrative.

In house agencies are generally seen as a company's own asset.  The organizational structure and functioning of in-house agencies are similar to those of full service advertising firms, but they differ because the agency is used only for one specific business or organization.

The use of an in-house agency can be beneficial for companies that have in-house marketing directors who want to handle their advertising in-house.

In-House Agencies are organized according to the needs and requirements of individual companies and staff accordingly. Some industries will have their own in-house agency.

For example, law firms will have their own advertising department because they want to advertise for themselves and not for other companies.

7. Specialized Advertising Agencies

Specialized agencies are those that service a specialized industry. Specialized agencies are often an asset to a company because they can provide the specialized knowledge needed for certain industries.

Different fields require specialization, such as recruitment advertising or medical advertising where there is a need for special knowledge that isn't found in general-line agencies.

The use of these types of companies may be beneficial for those with deep pockets who want to hire experts in certain fields.

For example, there is an agency called Gatorade Sports Science Institute which specializes in the sports drink company's advertising needs and efforts.

Similarly, companies such as Toyota specialize in automotive marketing while Procter & Gamble specializing in household goods will utilize different types of ads for their company.

There are many agencies, which take up only specialized advertising jobs. Certain fields like recruitment, medicine, finance,, outdoor advertising, social advertising etc. require specialization for a variety of reasons.

Recruitment advertising agencies advertise job vacancies at different levels. Some specialize in senior management positions or temporary staff, others may focus on sectors such as jobs in accountancy or information technology.

8. Media Buying Advertising Agencies

Media buying agencies buy time for an advertiser on different fronts such as TV, radio and the Internet.

A media agency is a company that buys advertising space in various media outlets including newspapers, magazines, television channels or websites to promote their client's products or services. The main role of these companies is negotiating with publishers so they can agree on the best price, the size of adverts and when they should run.

These agencies do not create ads or design marketing campaigns - their role is to make sure that a company's advertising goals are achieved through finding out which media will be most efficient for reaching target audiences.

Media buying agencies may also coordinate with other types of advertisers such as sponsors or advertisers to make sure the company's message is conveyed.

The services sells time to the advertisers, orders the spots on the various stations involved and monitors the stations to see if the ads actually run.

This trend for special media buying agencies started in 1970s. Such agencies have a lot of contacts in the media and offer very low commission on media rates. Media buying agencies complement the creative boutiques.

A typical media buyer will work with a variety of different types of media outlets and will negotiate with the different stations for airtime.

It is a mainstream part of the advertising industry.

This is a common trend in the advertising industry, and these types of agencies usually supplement creative boutiques.

In this way, they are able to offer lower rates for airtime that clients might not be able to get on their own or through traditional media buying firms.

Media buying agencies are typically staffed by account executives who specialize in marketing communications as well as account supervisors and media planners who are responsible for buying airtime on behalf of the agencies.

Also large companies use their specialized negotiating talents for buying media space and time.