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An advertising agency, often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling
advertising Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers. It is typically used to promote a ...
and sometimes other forms of
promotion Promotion may refer to: Marketing * Promotion (marketing), one of the four marketing mix elements, comprising any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or i ...
and
marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to empha ...
for its clients. An ad agency is generally independent of the client; it may be an internal department or agency that provides an outside point of view to the effort of selling the client's products or services, or an outside firm. An agency can also handle overall marketing and
branding Branding may refer to: Physical markings * Making a mark, typically by charring: ** Wood branding, permanently marking, by way of heat, typically of wood (also applied to plastic, cork, leather, etc.) ** Livestock branding, the marking of animals ...
strategies promotions for its clients, which may include sales as well. Typical ad agency clients include businesses and corporations, non-profit organizations and private agencies. Agencies may be hired to produce television advertisements,
radio advertisement In the United States, commercial radio stations make most of their revenue by selling airtime to be used for running radio advertisements. These advertisements are the result of a business or a service providing a valuable consideration, usually ...
s,
online advertising Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...
,
out-of-home advertising Out-of-home (OOH) advertising, also called outdoor advertising, outdoor media, and out-of-home media, is advertising experienced outside of the home. This includes billboards, wallscapes, and posters seen while "on the go". It also includes pla ...
,
mobile marketing Mobile marketing is a multi-channel online marketing technique focused at reaching a specific audience on their smartphones, feature phones, tablets, or any other related devices through websites, e-mail, SMS and MMS, social media, or mobile app ...
, and AR advertising, as part of an
advertising campaign An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). An IMC is a platform in which a group of people can group their ideas, beliefs, and conce ...
.


History

The first acknowledged advertising agency was William Taylor in 1786. Another early agency, started by James 'Jem' White in 1800 at Fleet Street, London, eventually evolved into White Bull Holmes, a recruitment advertising agency, that went out of business in the late 1980s.. p.70. In 1812 George Reynell, an officer at the ''
London Gazette London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a major s ...
'', set up another of the early advertising agencies, also in London. This remained a family business until 1993, as 'Reynell & Son,' and is now part of the TMP Worldwide agency (UK and Ireland) under the brand ''TMP'' Reynell. Another early agency that traded until recently, was founded by Charles Barker, and the firm he established traded as 'Barkers' until 2009 when it went into Administration. Volney B. Palmer opened the first American advertising agency, in Philadelphia in 1850. This agency placed ads produced by its clients in various newspapers. In 1856, Mathew Brady created the first modern advertisement when he placed an ad in the New York Herald paper offering to produce "photographs, ambrotypes, and daguerreotypes." His ads were the first whose typeface and
font In metal typesetting, a font is a particular size, weight and style of a typeface. Each font is a matched set of type, with a piece (a "sort") for each glyph. A typeface consists of a range of such fonts that shared an overall design. In mod ...
s were distinct from the text of the publication and from that of other advertisements. At that time all newspaper ads were set in
agate Agate () is a common rock formation, consisting of chalcedony and quartz as its primary components, with a wide variety of colors. Agates are primarily formed within volcanic and metamorphic rocks. The ornamental use of agate was common in Ancie ...
and only agate. His use of larger distinctive fonts caused a sensation. Later that same year
Robert E. Bonner Robert Edwin Bonner (April 28, 1824 – July 6, 1899) was an American publisher, now best known for '' The New York Ledger'', a weekly story newspaper. He owned famous trotting horses and he was a prominent supporter of the Presbyterian Church a ...
ran the first full-page ad in a newspaper. In 1864, William James Carlton began selling advertising space in religious magazines. In 1869, Francis Ayer, at the age of 20, created the first full-service advertising agency in Philadelphia, called N.W. Ayer & Son. It was the oldest advertising agency in America and dissolved in 2002. James Walter Thompson joined Carlton's firm in 1868. Thompson rapidly became their best salesman, purchasing the company in 1877 and renaming it the James Walter Thompson Company. Realizing that he could sell more space if the company provided the service of developing content for advertisers, Thompson hired writers and artists to form the first known Creative Department in an advertising agency. He is credited as the "father of modern magazine advertising" in the US.
Advertising Age ''Ad Age'' (known as ''Advertising Age'' until 2017) is a global media brand that publishes news, analysis, and data on marketing and media. Its namesake magazine was started as a broadsheet newspaper in Chicago in 1930. ''Ad Age'' appears in mul ...
commemorated the first 100 years of the agency in 1964, noting that its "history and expansion overseas seems peculiarly to match the whole history of modern advertising."


Global advertising agency

Globalization of advertising originates in earlier days of the twentieth century. American advertising agencies began as the process of opening overseas offices before the two World Wars and accelerated their globalization throughout the latter part of the twentieth century.
McCann McCann may refer to: * McCann (surname) * McCann (company), advertising agency * McCann Worldgroup, network of marketing and advertising agencies * Marist College Marist College is a private university in Poughkeepsie, New York. Founded in ...
, an agency established in New York City in 1902, opened its first European offices by 1927. It was followed up with offices opening in South America in 1935 and in Australia in 1959. Companies such as J. Walter Thompson adopted a strategy to expand in order to provide advertising services wherever clients operated. In the 1960s and 1970s, English agencies began to realize the overseas opportunities associated with globalization. Expanding overseas gives potential to wider markets. In the early 21st century, management consulting firms such as PwC Digital and
Deloitte Digital Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of professio ...
began competing with ad agencies by emphasizing data analytics. , Accenture Interactive was the world's sixth-largest ad agency, behind WPP, Omnicom, Publicis, Interpublic, and Dentsu. In 2019, it purchased
David Droga David Droga (born 1968) is an Australian advertising executive and the founder and chairman of Droga5, an advertising agency headquartered in New York City with offices in London and Tokyo. Droga5 was acquired by Accenture in 2019 and David was ...
's Droga5 agency, the first major consultant acquisition of an ad agency.


Client relationships

Studies show that successful advertising agencies tend to have a shared sense of purpose with their clients through collaboration. This includes a common set of client objectives where agencies feel a shared sense of ownership of the strategic process. Successful advertisements start with clients building a good relationship with the agencies and work together to figure out what their objectives are. Clients must trust the agencies to do their jobs correctly and accordingly with the resources they have provided. Breakdowns in relationships were more likely to occur when agencies felt undermined, subjugated, or even feel they don't have equal status. Traditionally advertising agencies tend to be in a position to take the lead on projects but results are best when there is a more collaborative relationship. Stronger collaboration happens in situations where a personal chemistry has been established between both parties. Finding out similar likes and dislikes points of view, and even hobbies and passions. Personal chemistry builds with the length of the client relationship, frequency of meetings, and how far mutual respect goes between parties. This was one trait that advertising agencies were perceived to not always have. It was suggested that on occasions media planners and researchers were more closely involved in the project because of their personal relationships with their clients.Grant, I., & McLeod, C. (2007). Advertising agency planning conceptualising network relationships. ''Marketing Management'', 429. Successful strategic planning is best when both parties are involved due to the bond between sides by understanding each other's views and mindset. Involved advertising account planners are seen to contribute towards successful agency-client collaboration. Planners of advertising agencies tend to be capable of creating a very powerful, trusting relationship with their clients because they were seen as intellectual prowess, seniority, and have empathy in the creative process.


Agencies

All advertising agencies are called that because they are acting as agents for their principals which were the media. They were then, and are now, paid by the media to sell advertising space to clients. Originally, in the 18th century, and the first half of the 19th, advertising agencies made all of their income from commissions paid by the media for selling space to the client. Although it is still the case that the majority of their income comes from the media, in the middle of the 19th century, agencies began to offer additional services which they sold directly to the client. Such services can include writing the text of the advertisement.


Creativity

The use of creativity by agencies is "unexpected" because so much advertising today is expected. This will capture the attention of audiences, therefore the message is more likely to get through. There have been many advertisements that have surprised audiences because it was not normal for them to see that in an advertisement of that nature. The best use of creativity is when the agencies make consumers think about the product or brand. The type of creativity is distinctive communication which is breaking through the clutter.


List of advertising agencies


Largest agencies

The "big six" largest agencies, with their estimated worldwide revenues in Q3 2021: # WPP, London $4.45 billion # Omnicom Group, New York City $3.43 billion # Publicis, Paris $2.96 billion # IPG, New York City $2.26 billion # Dentsu, Tokyo $2.25 billion # Havas, Paris $668 million


Others

This is a list of notable advertising agencies and holding companies for advertising agencies, with their headquarters' cities indicated.


Asia

* Oyoun Media, Palestine *
Asatsu-DK d/b/a ADK, formerly known as Asatsu-DK, is a Japanese advertising agency. Headquartered in the Toranomon Hills building complex in Minato, Tokyo since June 2014 (previously in Tsukiji, Chūō, Tokyo), the firm is Japan's third largest advert ...
, Tokyo *
BlueFocus Communication Group BlueFocus Communication Group( zh, 蓝色光标) is an ad agency engaged in marketing. BlueFocus was founded by Oscar Zhao on July 1, 1996. It was launched on the Shenzhen Stock Exchange in 2010. BlueFocus acquired a minority stake in Huntswor ...
,
Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 2 ...
*
Cheil Worldwide Cheil Worldwide Inc. () is a marketing company under the Samsung Group that offers advertising, public relations, shopper marketing, sports marketing, digital marketing, etc. It was established in 1973 with headquarters in Seoul, South Korea. I ...
, Seoul * DDB Mudra Group, Mumbai * Digital Jungle, Beijing *
Hakuhodo is a Japanese advertising and public relations company. It is headquartered at Akasaka Biz Tower in Akasaka, Minato, Tokyo. History Hakuhodo is one of the oldest advertising agencies in Japan and was founded by Hironao Seki at Nihonbashi- ...
, Tokyo


Africa

* WPP-Scangroup, Kenya


Europe

*
AKQA AKQA is a digital design and communications agency owned by WPP. It was founded in London in 1994 and expanded internationally in 2001 through a merger with agencies based in the United States and Singapore. It operated as an independent agency ...
, London *
Bartle Bogle Hegarty Bartle Bogle Hegarty (BBH) is a British global advertising agency. Founded in 1982 by British ad men John Bartle, Nigel Bogle, and John Hegarty, BBH has offices in London, New York City, Singapore, Shanghai, Mumbai, Stockholm and Los Angeles ...
, London *
Chime Communications Limited Chime Communications Limited is a marketing services company headquartered in Westminster, London, United Kingdom. Chime is the holding company for companies which include sports marketing, public relations, advertising, digital, marketing, re ...
, London *
Dentsu Aegis Network Dentsu International (previously Dentsu Aegis Network) is a multinational media and digital marketing communications company headquartered in London, United Kingdom, and a wholly owned subsidiary of the Japanese advertising and public relations ...
, London * Fred & Farid Group, Paris *
M&C Saatchi M&C Saatchi Group () is an international communications network headquartered in London, formed in May 1995. With more than 2,400 staff, the network spans 23 countries with major hubs in the UK, Europe, US, Middle East & Africa, Asia and Austral ...
, London * Sells Ltd, London


North America

* 360i, New York City *
aQuantive aQuantive, Inc. was the parent company of a group of three digital marketing service and technology companies: Avenue A/Razorfish, Atlas Solutions, and DRIVE Performance Solutions. Based in Seattle, Washington, the company was founded in 1997. A ...
, Seattle * Barrett SF, San Francisco *
BBDO BBDO is a worldwide advertising agency network, with its headquarters in New York City. The agency originated in 1891 with the George Batten Company, and in 1928, through a merger with Barton, Durstine & Osborn (BDO), the agency became Batten, B ...
, New York City * Butler, Shine, Stern & Partners,
Sausalito, California Sausalito ( Spanish for "small willow grove") is a city in Marin County, California, United States, located southeast of Marin City, south-southeast of San Rafael, and about north of San Francisco from the Golden Gate Bridge. Sausalito's ...
* Cossette, Inc., Quebec City * Cramer-Krasselt, Chicago *
Crispin Porter + Bogusky Crispin Porter + Bogusky (also known as CP+B), a member of publicly traded MDC Partners, is an American advertising agency that employed around 700 people. It was founded in 1988 by Sam Crispin. Crispin then became partners with Chuck Porter ...
,
Boulder, Colorado Boulder is a home rule city that is the county seat and most populous municipality of Boulder County, Colorado, United States. The city population was 108,250 at the 2020 United States census, making it the 12th most populous city in Color ...
*
DDB Worldwide DDB Worldwide Communications Group LLC, known internationally as DDB, is a worldwide marketing communications network. It is owned by Omnicom Group, one of the world's largest advertising holding companies. The international advertising networks ...
, New York City *
Deutsch NY Deutsch NY, formerly Deutsch Inc. is an American ad agency headquartered in New York City. The agency was founded by David Deutsch in 1969 as David Deutsch Associates, Inc.O'Leary, NoreenAgency Founder David Deutsch Dies at 84. d Age, June 13, ...
, New York City *
DeVito/Verdi DeVito/Verdi is an American-based advertising and public relations company, headquartered in New York City, formed in 1993 by partners Sal DeVito and Ellis Verdi when founding partner and Creative Director, John Follis, left Follis/DeVito/Verdi to ...
, New York City *
Doner Company Doner Company (formerly W.B. Doner & Co.) is an American advertising agency headquartered in Southfield, Michigan. It was founded in 1937 by Wilfred Doner, better known as Brod Doner. The Doner Company also has a United Kingdom-based agency cal ...
,
Southfield, Michigan Southfield is a city in Oakland County in the U.S. state of Michigan. As of the 2010 census, the city had a population of 76,618. As a northern suburb of Detroit, Southfield shares part of its southern border with Detroit. The city was original ...
*
Foote, Cone & Belding Foote, Cone & Belding (FCB), is one of the largest global advertising agency networks. It is owned by Interpublic Group and was merged in 2006 with Draft Worldwide, adopting the name Draftfcb. In 2014 the company rebranded itself as FCB. Parent ...
, Chicago * Grey Global Group, New York City * GSD&M, Austin, Texas * Leo Burnett Worldwide, Chicago, Illinois * McGarryBowen, New York City *
MDC Partners MDC Partners Inc. is an advertising and marketing holding company based in New York City. MDC is structured as a partnership model, in which it initially acquires a majority stake in its partner agency, leaving a percentage of ownership with the ...
, New York City * The Miller Group, Los Angeles * Ogilvy, New York City *
Publicis Sapient Publicis Sapient is an American digital consulting company, founded as Sapient in Cambridge, Massachusetts in 1990 by Jerry Greenberg and J. Stuart Moore. On February 6, 2015, Sapient became a fully owned division of French advertising giant Pub ...
, Boston * R/GA, New York City *
The Richards Group The Richards Group is an American advertising agency. It was once the largest independently-owned agency in the country. Working with founder Stan Richards, there are now far fewer than 35 creative group heads. In October 2020, following racist c ...
, Dallas *
RPA RPA may refer to: Companies * RPA (Rubin Postaer and Associates), advertising agency, Santa Monica, California, US * Republic Airways, ICAO code: RPA Political groups * Republican Party of Arkansas, the affiliate of the Republican Party in Arkan ...
, Santa Monica, California *
Sid Lee Sid Lee is an international creative services firm founded in Montreal, Quebec, Canada. It operates offices in Toronto, New York City, Los Angeles, Seattle and Paris. The agency offers services in the fields of branding, digital and social mar ...
, Montreal *
Team One Team One is a comic book team from DC Comics/Wildstorm. It was published as two separate but intertwined two-issue mini-series, each focusing on different members of the same team and showing events from their different perspectives. Team One: ...
, Los Angeles *
Tombras Group Tombras is a full service advertising agency founded in 1946. With annual billings of $270 million, Tombras is one of the top 25 largest independent national advertising agencies. Tombras is headquartered in Knoxville, Tennessee with offices in ...
, Knoxville, Tennessee *
Wieden+Kennedy Wieden+Kennedy (W+K; earlier styled ''Wieden & Kennedy'') is an American independent global advertising agency best known for its work for Nike. Founded by Dan Wieden and David Kennedy, and headquartered in Portland, Oregon, it is one of the ...
, Portland, Oregon * Wunderman Thompson, New York City


References

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