An advertising agency is a service company, consulting, design, planning, design and realization of companies and other clients advertising – and other communication activities takes over.
Originally, advertising agencies were intermediaries between newspapers and their advertisers: they designed for advertisements that appeared in newspapers.
The advertisers did not initially pay for the work of the agencies. They paid for the appearance of their advertisements to the newspapers. For this, the advertising agency received commissions from the newspapers. Originally from the early days of advertising commission practice whereby the agencies in addition to the payment of the customer commissions of newspapers, claiming printers, etc., is controversial, but still common.
In 1855 the “Annoncenexpedition Ferdinand Haasenstein ” appeared in Altona (now Hamburg), which appeared as an impartial advisor to the advertising public. The “Institut der Anschlag-Säulen” by Ernst Litfaß was also founded in Berlin in 1855.
On 23 September 1876, William Alexander Wilkens founds the “William Wilkens Central Advertising Office” for advertising and design. Back then, ” full service ” was the maxim of the Haus Wilkens. Thus you could already book mediabuchung, design, texts and advertisements. The agency still exists today in Hamburg and since 2007 under the name Draftfcb. Draftfcb Germany is thus Germany’s oldest advertising agency.
The first advertising consultants were added in 1895, whose main activity was to make advertisements artistic and effective and to save customers from unnecessary expenses.
In 1920 “Advertising Service Agencies” were created. For example, from the advertising department of Lever the Lintas (Lever International Advertising Service). Pioneers in the German market were Lintas, McCann Erickson, and J. Walter Thompson. The “werbebau”, founded in 1924 by Max Burchartz and Johannes Canis, is influenced by the Bauhaus and the first modern advertising agency in Germany.
In 1950, parallel to the so-called economic miracle, the fourth start-up wave began with a steady growth until 2001.
In 1990 the expansion and conversion of the advertising agency into communication groups began with the Internet and with a stronger focus on dialogue marketing. All these disciplines, such as advertising, the Internet, dialogue, PR and doctorate, are trying to achieve a similar concert performance.
Types of advertising agencies
The classic form of the advertising agency offers services related to the so-called classic advertising “ATL – Above the Line”. This means advertising measures in the mass media :
- Newspaper advertising ( advertisements in newspapers , magazines )
- Advertising ( posters , blow-ups etc.)
- Broadcast advertising ( television and radio advertising )
- TV advertising
Meanwhile, in addition to the full-service agencies that cover the classic above-the-line advertising, numerous business models have been developed that exclusively or additionally offer services for special areas ” below-the-line ” from creation and consulting :
- Internet ( e-mail promotion )
- public relations
- Corporate Design
- Corporate Publishing
- Marketing ( including event marketing and live communication, ambush marketing , viral marketing , entertainment marketing )
- direct mail
- Point of Sale
- Ambient Media
- Finance Communication
- Organizational Forms
Advertising agencies appear as individual agencies or as so-called agency networks, ie companies with many “branches”.
The classic advertising agency is the owner-managed, in which the owner is also the managing director . In general, there are several owners. Therefore the frequent naming according to the pattern “Maier & Müller”. The participation in the agency is intended to counteract the usually short average length of time spent by the creative employees of less than two years. This is why company names such as “Maier, Müller & Partner” are quite common.
A number of individual agencies have developed regular advertising media. The most famous example is perhaps Ogilvy & Mather . From a certain size, as with other companies, there is a certain tendency towards growth through fusion .
Structure of the agency market
Large agencies and international networks
Gross income > € 10 million
Budget: approx. € 3 million
Number of budgets> 30
Medium sized agencies
Gross Income € 1-10 million
Gross income Budget size: approx. 3-20
The largest outdoor agency Worldwide
Omnicom Group, Inc., New York and WPP , UK, are currently the world ‘s largest advertising holding companies . For example, Omnicom directs more than 1,000 advertising agencies in more than 100 countries that produced advertising for over 22 billion dollars in 1997. Among them are, for example, BBDO , DDB Worldwide and TBWA . The largest European-wide network is Publicis from France.