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 exactly is an advertising agency?
An advertising agency is a professional service firm that is hired by other businesses, corporations, non-profits, and government agencies to conceptualize, produce, and manage the display of advertisements in various mediums.

This article will go over the various types of advertising agencies that exist today, as well as their advantages for businesses looking for marketing assistance! Advertisement agencies are classified based on the services they provide.

Furthermore, advertising agencies range in size from one-man shows to large corporations employing thousands of people. Advertisement Agencies of various types cover the entire spectrum of marketing efforts.

Values Fundamentals
Advertising agencies have four strong core values: creativity, innovation, timeliness, and teamwork.
The various types of advertising agencies are a mix of these values, but one dominates. Integrity, honesty, and accountability are examples of exceptional core values.

The various types of advertising agencies are as follows:

1. Full Service Advertising Agencies

Full-service agencies provide all of the services that a company would require to advertise on its own. As a result, full-service agencies can handle everything from creative and production to buying media time or space in a publication.

This is why they are referred to as "full-service." Service firms specialise in a single service, such as media buying or creative design. It designs, creates, manufactures, and distributes advertisements for its clients.
Other marketing services include sales promotion, trade shows, exhibits, and newsletters.

Service providers may charge a flat fee or bill clients by the hour. It is a one-stop shop that provides everything and provides full service for a single price.
It is important to note that the individual works full-time and will not provide comprehensive services like a full-service agency would.
This type of agency is beneficial to businesses that lack the resources to manage all aspects of their marketing campaign on their own.

2. Advertising Agencies with Limited Services
Limited service agencies limit the number and type of services they provide. Some advertising agencies specialize in one or two areas, such as creative design, whereas others offer media planning in addition to other types of marketing assistance.
When an advertiser hires a limited-service agency, the agency must assume some responsibility for its own work, such as managing marketing campaigns.

This type of agency is useful for businesses that want to avoid the costs and upkeep of a full-service agency.
For example, if a company has its own marketing director or owner who wants to spend less money on advertising, this model may be useful.
One-man show: The company is owned and operated by a single person.

This type of agency is typically a small, one-person operation with no employees other than the owner and serves as the owner's full-time job.
This model can be useful for those who require media time or space to advertise on their own behalf. It does not, however, provide other services such as creative development or media planning.

3.Business-to-Business Advertising Firms

Business-to-business (B2B) advertising agencies specialise in marketing products to businesses rather than consumers.
B2B agencies understand the complex decision-making processes in business marketing and use media that allows advertisers to build long-term relationships with prospects and customers.

B2B agencies may provide additional specialisation in areas such as technology or industrial products.
An advertising agency that specialises in the medical industry, for example, might promote a company's new product designed for doctors and hospitals.
This type of agency is beneficial because it provides valuable information on which types of media would be most effective to use for various industry sectors. B2B agencies may provide additional specialisation in areas such as technology or industrial products.

4. Non-Profit Advertising Firms
Non-commercial advertisers spend money to promote items that are not consumer goods or services. Political parties, interest groups, religious organisations, and government agencies are examples of these.
Non-commercial advertising is an excellent way for those with large budgets who want to target specific audiences to spread their message or cause.

The US Department of Health and Human Services, for example, advertises on TV shows that air in different time zones.
These agencies are beneficial to businesses that have a product or service with numerous features that would be difficult to convey through a single advertisement.

It is also beneficial for those who want their advertisements to be creative and unique. Non-commercial advertisements frequently promote charities, social awareness campaigns, political parties, and other religious organisations.

5. Innovative Advertising Firms

Creative boutiques are businesses that specialise in the design of advertisements. Boutiques, in general, develop imaginative and interesting advertising themes and produce innovative and unique advertisements.
A company that uses a creative boutique would need to hire another agency to handle advertising planning, buying, and administration.

A full-service advertising agency investigates the product or service to determine its marketability and how it compares to the competition. Simultaneously, the agency investigates the potential market, potential target audience, and other factors.
At the same time, it investigates and determines how to effectively communicate its client's message.

This type of agency is beneficial to businesses that have a product or service with numerous features that would be difficult to convey through a single advertisement. Creative agencies are also beneficial for those who want their advertisements to be unique and creative. 6. In-house Advertising Agencies
An in-house agency is a company that creates advertising for its own use. It also provides all of the services of a full-service agency, making it creative as well as administrative.

In-house agencies are commonly regarded as a company's own asset. In-house agencies have similar organizational structures and functions to full-service advertising firms, but they differ in that the agency is only used for one business or organization.
Companies with in-house marketing directors who want to handle their advertising in-house may benefit from using an in-house agency.

Individual companies' needs and requirements are met by in-house agencies, which are organized and staffed accordingly. Some industries will have their own internal advertising agency.
Law firms, for example, will have their own advertising department because they want to advertise for themselves rather than for other businesses.

6.Specialized Advertising Firms
Specialized agencies are those that provide services to a specific industry. Specialized agencies are frequently beneficial to a company because they can provide the specialised knowledge required for certain industries.

Different fields, such as recruitment advertising or medical advertising, necessitate specialization, which is not available in general-line agencies.
The use of these companies may be advantageous for those with deep pockets who want to hire experts in specific fields.

For example, the Gatorade Sports Science Institute specialises in the advertising needs and efforts of the sports drink company.
Similarly, companies such as Toyota specialise in automotive marketing, whereas Procter & Gamble specializes in household goods and will use a variety of advertisements.

There are many agencies that only handle specialized advertising jobs. For a variety of reasons, certain fields such as recruitment, medicine, finance, outdoor advertising, social advertising, and so on require specialization.
Recruitment advertising agencies post job openings at various levels. Some specialize in senior management positions or temporary staff, while others may specialize in industries such as accounting or information technology.

7.Advertising Agencies That Buy Media
Media buying agencies purchase time for advertisers on various platforms such as television, radio, and the Internet.
A media agency is a company that buys advertising space in various media outlets such as newspapers, magazines, television channels, or websites to promote the products or services of their clients.

These companies' main role is to negotiate with publishers in order to agree on the best price, size of advertisements, and when they should run.
These agencies do not create advertisements or marketing campaigns; their role is to ensure that a company's advertising goals are met by determining which media will be most effective in reaching target audiences.

To ensure that the company's message is conveyed, media buying agencies may also coordinate with other types of advertisers such as sponsors or advertisers.
The service sells time to advertisers, orders spots on the various stations involved, and monitors the stations to ensure that the ads run.

This trend for specialised media buying agencies began in the 1970s. Such agencies have a large number of media contacts and charge a very low commission on media rates. The creative boutiques are supplemented by media buying agencies.
A typical media buyer will work with a wide range of media outlets and will negotiate airtime with various stations.

It is a well-known aspect of the advertising industry.
This is a common trend in the advertising industry, and these types of agencies typically work in tandem with creative boutiques.
As a result, they can offer clients lower rates for airtime that they might not be able to obtain on their own or through traditional media buying firms.

Account executives who specialise in marketing communications, as well as account supervisors and media planners, are typically employed by media buying agencies to purchase airtime on their behalf.
Large corporations also use their specialized negotiating skills to purchase media space and time.

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