Advertising Agencies: What Are They and What Do They Do? (+Types).

Like an Advertising Agency, a tailor’s job is to gather the fabric, find the right threads, cut the cloth into the needed shape, stitch it together, and then give the finished product to the customer. Yes, and here’s what I mean.

An advertising agency creates ads, plans how, when, and where they should be shown, and then delivers them to the client. These agencies usually work independently and are not tied to any specific company.

Advertising agencies put in all the work needed to help their clients sell their products. They have a team of experts who make it easier for companies to reach their target customers.

In this article, we explain what an ad agency is and what it does and provide a list of 10 types of advertising agencies you might want to check out.

Key Points

An advertising agency doesn’t just run ads. It becomes an extension of your brand, aligning with your audience and goals.
They help businesses create, plan, and execute ad campaigns across various media platforms, from traditional to digital channels.
These agencies offer various services to meet clients’ advertising goals, including creative design, market research, media buying, and campaign management.
Agencies can be full-service, digital-focused, social media-oriented, or specialized in creative or public relations, allowing businesses to choose based on their specific needs.
Successful campaigns often rely on deep market research, precise budgeting, and strategic media placement to effectively reach the right audience.
Working with an advertising agency brings expertise, creativity, and efficiency, elevating a brand’s visibility and driving better business results.

What is an Advertising Agency?

In simple terms, advertising agencies are companies that create, plan, and manage ads and sometimes help with other kinds of marketing for businesses. They connect companies with their customers by creating messages that grab attention and drive results.

An advertising agency is a company that helps businesses create ads and other promotional materials to promote their brand, product, or service. The agency’s experts work with clients to understand their advertising needs. Based on this, they either follow the client’s guidelines or work together to create an advertising plan.

Some agencies offer a full range of services, while others focus on specific areas like social media.

If you’re trying to choose the right ad agency, think about your advertising goals and strengths to help guide your decision.

When I first worked with an advertising agency, I thought they would just run some ads for me. I didn’t realize they could do much more. A good agency doesn’t just place ads; they take the time to understand your brand, audience, and goals. They work alongside your business like an extra arm, ensuring everything works together.

What does an Advertising Agency do?

At first, I thought advertising was just about catchy TV commercials or fun radio ads. But after working with several agencies, I realized they do much more. Advertising agencies offer a wide range of services, both for traditional and digital platforms.

A traditional ad agency or digital marketing agency offers services like advertising, media, marketing communication, public relations (PR), and event planning to help businesses and organizations get noticed, sell products, and build strong brands.

Here’s a breakdown of what they can do:

#1. Creative services

This is the main part of an agency’s work. They come up with ideas for ads, write the content, and design the visuals. One time, I worked with an agency that created a fun character for my brand. It completely changed how people saw us and helped our campaign take off.

#2. Conducting market research

While an advertising company creates campaigns with creative ideas, its work is also based on data and market research. This helps it ensure that it is reaching the right audience for the best results.

An agency will research your market deeply. I worked with one agency that gave me insights I would never have been able to gather on my own. Their research helped us fine-tune our message and stand out from the competition.

To make it easier for you, we’ve created a simple checklist to help you get started. This checklist will guide you step-by-step in gathering the right information, analyzing your competitors, and understanding your audience so you can create effective campaigns.

Check it out below and start making informed decisions today!

Market Research Checklist Download

#3. Planning & Budgeting

Having a great ad is one thing, but it also needs to be seen by the right people at the right time. Advertising agencies plan where your ads should go and negotiate the best prices for ad space.

One time, an agency I hired got me prime spots at a much lower price than I could have gotten myself.

In addition, advertising or marketing campaigns often have many steps. These need to be carefully planned to ensure everything goes smoothly and stays within budget.

#4. Choosing media

Creative agencies have many options when it comes to choosing media, such as TV, print, online ads, social media, billboards, in-store displays, direct marketing, and more. The agency must pick the right media for the campaign, book ad space, and negotiate costs.

#5. Managing multichannel marketing campaigns

Multichannel marketing combines different platforms, like social media, blogs, email, TV, mobile apps, and streaming services, to connect with customers wherever they are, helping the client reach their goals and improve sales.

#6. Digital Marketing

Many advertising agencies also handle online ads, like social media campaigns or search engine ads. They manage SEO (to ensure the business shows up in search results) and online engagement through emails or social media posts.

One agency revamped our whole digital strategy, and within months, we saw a huge boost in online engagement.

#7. Integrating marketing efforts.

Many campaigns need advertising agencies to work together with different teams, suppliers, and partners. For example, a digital advertising company might run an online campaign to promote a new product, and this could also involve organizing events and using PR services to get media attention.

#8. Tracking and Reporting Campaign Performance

Advertising agencies also track campaign performance. Once the ads are running, agencies monitor their performance to see if they are reaching the right audience and achieving the desired results. They use data to check how many people see the ads, click on them, or take action, like making a purchase.

Finally, they report the results to the client. This helps the business understand what’s working and what needs to be improved for future campaigns. The agency may suggest changes or adjustments to make the ads more effective.

What are the types of Advertising Agencies?

Over time, I’ve learned that not all advertising agencies are the same. They vary in what they specialize in and the services they offer. Whether they are small specialized agencies or full-service ones, advertising agencies come in various types, such as:

#1. Full-Service Advertising Agencies

These agencies do it all. When I was working on an extensive campaign that involved TV ads, social media, and more, a full-service agency took care of everything. They handled everything from the creative part to buying ad space, making things much easier.

Full-service advertising agencies offer clients a wide range of advertising services, including traditional and digital solutions. Clients often choose this type of agency when they need different advertising options for their brand. Advertisers may prefer working at such agencies if they have various advertising skills and enjoy working on other tasks for different campaigns.

For example, in one campaign, a professional might focus on traditional ads, while in another, they might handle digital materials. Here are some services a full-service advertising agency might offer:

TV ads
Advertising campaigns
Content creation
Search engine optimization (SEO)
Graphic design
Social media management
Radio ads
Web development

#2. Digital Advertising Agencies

If you own an online business, you should consider working closely with digital agencies. They focus only on online marketing, like Google Ads and social media marketing. One agency I worked with improved our website’s SEO, and we saw a 50% increase in traffic within a few months.

Digital advertising agencies focus on promoting businesses online. Clients use these agencies when they only want online ads instead of physical advertising materials. People who are passionate about online ads and have skills in this area often work here.

Besides advertisers, other professionals like copywriters, videographers, and photographers can also work at these agencies. Some services a digital advertising agency may offer include:

SEO (Search Engine Optimization)
Email marketing
Account-based marketing
Social media marketing
Website design and marketing
Content marketing
Lead generation.

#3. Traditional Advertising Agencies

Traditional advertising agencies provide classic advertising methods for businesses. Clients often choose these agencies when promoting their business locally. Professionals who enjoy using traditional advertising strategies might prefer working here.

Some services offered by traditional advertising agencies include:

Billboard ads
Postcard mail ads
TV commercials
Newspaper ads
Radio ads
Magazine ads

#4. Social Media Advertising Agencies

Social media advertising agencies help clients advertise on social media platforms. If you’re a content creator or know a lot about social media, you might work at one of these agencies to help clients improve their social media accounts. Clients hire these agencies when they want to boost their social media engagement or drive more traffic to their websites.

Professionals work closely with clients to make sure the advertising matches their business goals. Here are some services these agencies offer:

Improve social media ads
Design social media profiles
Write blog posts
Produce videos
Create content
Write captions

#5. Creative Boutiques

These agencies focus more on the creative side of things. I once hired a boutique agency for a product launch, and they created one of the most unique ad campaigns I’d ever seen. However, I had to find another agency to handle the media planning and strategy.

Creative boutiques offer different creative design options to fit their clients’ needs. This type of agency lets clients track how their campaigns are doing independently. It also allows clients to choose where to place their ads, like on online banners or as sponsored posts on social media. Clients may choose this kind of agency if they don’t have a creative team to make the content they need.

Professionals may like working at a creative boutique because they can focus on making the content and leave the analysis part to the client. Some services these agencies offer include:

Building an online community
Creating content like social media posts, blogs, or videos
Planning campaign strategies.

#6. Media Buying Agencies

If you already have ads ready but don’t know where to place them, media-buying agencies help with that. I’ve worked with a few, and they helped me secure the best spots for my ads, which saved me a lot of time and stress.

Media buying agencies help clients find the best places to put their ads. They figure out where most people will see the ads and who is most likely to take action after seeing them. These agencies work on both online and print ads. For example, if a client has a TV ad for their small pizza shop, someone from the agency might suggest showing the ad on a local TV channel during the news. This way, many people in the area can see the ad and try the new pizza place.

Looking to get the best deal on your advertising space? Check out our Media Buying Negotiation Guide! Whether you’re new to media buying or just want to improve your negotiation skills, this guide will help you find the best ad placements, save money, and get more value for your budget. From asking for discounts to tracking ad performance, we’ve got all the tips you need to succeed.

Media Buying Negotiation Guide Download

#7. Public Relations Advertising Agencies

Public relations (PR) advertising agencies help companies improve and protect their image. This image includes how the public views the business, its employees, and the CEO. PR agencies work to get enterprises to be featured in the news, online communities, and industry websites. Companies hire these agencies to improve their brand or raise awareness about their business. People at these agencies often enjoy working in PR and teaming up with different brands.

#8. Brand Advertising Agencies

Brand advertising agencies focus on helping businesses create a strong identity. This identity includes the company’s name, logo, colors, and design, which make it stand out from others. The goal is to make the brand easy for people to recognize and remember. Experts at these agencies research the brand and its industry to develop a good plan. Businesses may hire them when they start or want to refresh their brand.

People often work at these agencies because they enjoy being creative and building brand identities for clients. Some services a brand advertising agency might offer include:

Logo design
Signage
Creating brand names
Choosing color schemes.

#9. In-House Advertising Agencies

Some businesses choose to build their in-house advertising teams. This wasn’t the right option for me, but I know companies that have thrived using this model. It gives them more control over their brand’s message and can sometimes save costs in the long run.

The In-house advertising agencies are part of a company and work only for that company. For example, a big clothing company might have its advertising team handle its campaigns. Some businesses choose this because it can save money compared to hiring an outside agency. It also makes communication smoother since the team is based inside the company.

#10. Interactive Advertising Agencies

Interactive advertising agencies are similar to digital advertising agencies, but they focus on getting consumers to interact with ads online. For example, a company may ask to send ads as personal messages to people’s mobile phones if they choose to receive them. These ads feel more personal because they show up directly on the consumer’s phone, often with a link they can click to visit the website. Companies might use this type of advertising to get more people engaged online and to encourage clicks that lead to their website.

Each type of agency has its strengths, so it’s important to choose the one that fits your needs best. Choosing the right type of agency depends on your business needs and the kind of help you’re looking for.

Examples of Advertising Agencies

There are many advertising agencies around the world that help companies create memorable and compelling ads. These agencies develop creative ideas to promote products, tell brand stories, and connect with customers.

Here are three famous advertising agencies that have made a big impact:

#1. Ogilvy

Ogilvy is one of the biggest advertising agencies in the world, known for creating creative and powerful ads. They help brands tell stories that connect with people. Some of their famous work includes ads for Dove, Coca-Cola, and American Express.

#2. Wieden+Kennedy

This agency is well-known for its creative and bold campaigns. It created Nike’s iconic “Just Do It” slogan. Wieden+Kennedy is also known for working with brands like Old Spice and Coca-Cola.

#3. Leo Burnett

Leo Burnett is an agency famous for creating memorable brand characters like Tony the Tiger for Kellogg’s and the Marlboro Man. They focus on making ads that feel personal and relatable to consumers.

These agencies use their creativity to help brands stand out and connect with their audience.

Why You Need an Advertising Agency

After working with different agencies over the years, I’ve learned how important they are. It’s tempting to want to do everything yourself, especially when you’re running a small business. But the reality is that agencies bring expertise, creativity, and industry know-how that’s hard to find elsewhere.

They don’t just execute plans; they help guide your brand’s direction. Whether you’re launching something new, rebranding, or just trying to expand your reach, a good advertising agency can elevate your efforts.

Wrap Up

In conclusion, advertising agencies are a big help to businesses that want to reach more customers and create effective ads. Whether you need help with coming up with ideas, placing your ads, or running online campaigns, there’s an agency out there that can assist you.

It’s important to understand what each type of agency does so you can choose the one that fits your needs best. Once you find the right agency, they can make your advertising efforts much easier and more successful.

Frequently Asked Questions

Who are the Big Five advertising agencies?

The “Big Five” are WPP plc, Omnicom Group, Publicis Groupe, Interpublic Group of Companies (IPG), and Dentsu Inc. These agencies dominate the advertising world because of their large size and global presence, each with a long history and many employees.

How do I become an ad agent?

To become an advertising agent, you usually need a high school diploma, though a degree in marketing or something similar can help. It’s also useful to learn about sales, marketing, and media. Getting hands-on experience through internships or job training is important too.

How do I name my ad agency?

To create a creative name for your agency, you can try using a play on words, combining two related words, or even making up a new word. You could also choose a name that shows what your agency values or the kind of work you do. Remember, the more unique and memorable the name, the easier it will be to stand out.”

How do ad agencies make money?

The agency usually earns a percentage, around 15%, of what the client spends on media ads. For example, if a client agrees to pay $20,000 for TV advertising, the ad agency would take 15%, which is $3,000. The rest, $17,000, goes to the TV network.

What does an advertising agency do?

An advertising agency’s main goal is to help clients connect with their target audience and reach their marketing goals. They create advertising plans that are customized to fit each client’s unique needs and objectives.

References

Upwork

Indeed

MSG