Other Types of Agencies and Services

Not every agency is a large full-service agency. Many smaller agencies expect their employees to handle a variety of jobs. For example, account executives may do their own research, work out their own media schedule, and coordinate the production of ads written and designed by the creative department. Many advertisers, including some large companies, are not interested in paying for the services of a full-service agency but are interested in some of the specific services agencies have to offer. Over the past few decades, several alternatives to full-service agencies have evolved, including creative boutiques and media buying services.

Creative Boutiques A creative boutique is an agency that provides only creative services. These specialized companies have developed in response to some clients' desires to use only the creative talent of an outside provider while maintaining the other functions internally. The client may seek outside creative talent because it believes an extra creative effort is required or because its own employees do not have sufficient skills in this regard. Some advertisers have been bypassing traditional agencies and tapping into the movie industry for creative ideas for their commer-cials.17 For example, a few years ago Coca-Cola entered into a joint venture with Disney and three former employees of Creative Artists Agency (CAA), a Hollywood talent agency, to create an in-house agency called Edge Creative. The agency created several commercials for Coca-Cola's flagship brand, including the popular polar bears spot (Exhibit 3-5). However, in 2000 the Coca-Cola Company sold off its interest in Edge Creative and shifted the Coke account back to a traditional agency.

Full-service agencies often subcontract work to creative boutiques when they are very busy or want to avoid adding full-time employees to their payrolls. Creative boutiques are usually founded by members of the creative departments of full-service agencies who leave the firm and take with them clients who want to retain their creative talents. These boutiques usually perform the creative function on a fee basis. IMC Perspective 3-2 discusses the challenges faced by creative boutiques and some of the small shops that have been successful recently.

Media Buying Services Media buying services are independent companies that specialize in the buying of media, particularly radio and television time. The task of purchasing advertising media has grown more complex as specialized media proliferate, so media buying services have found a niche by specializing in the analysis and purchase of advertising time and space. Agencies and clients usually develop their own media strategies and hire the buying service to execute them. Some media buying services do help advertisers plan their media strategies. Because media buying services purchase such large amounts of time and space, they receive large discounts and can save the small agency or client money on media purchases. Media buying services are paid a fee or commission for their work.

Media buying services have been experiencing strong growth in recent years as clients seek alternatives to full-service agency

Exhibit 3-5 This popular Coca-Cola spot was done by the company's in-house creative boutique

Exhibit 3-5 This popular Coca-Cola spot was done by the company's in-house creative boutique

Advertising With Circulars

Advertising With Circulars

Co-op Mailing means that two or more businesses share in the cost and distribution of a direct mail campaign. It's kind of like having you and another non-competing business split the cost of printing, assembling and mailing an advertising flyer to a shared same market base.

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Responses

  • Anne
    How is creative boutique related to media buying services?
    6 years ago

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