When a company wants to sponsor an advertisement – sell its service or product, it approaches an advertising agency.
Depending on the kind of advertiser and their requirements, the advertising agency handles the planning, production, and execution of the advertisement. If you want to have more knowledge about Advertising Agencies then you can check out this source- Direct Response Marketing, TV Advertising, Direct Response Advertising.
Apart from these, agencies also handle market research (which includes learning about the target audience, the competitors, and feedback regarding the product), branding and sales promotions for their clients.
The usual clients of advertising agencies include corporations, partnership, and sole proprietorship businesses, nonprofit seeking organizations and the government agencies.
A complete package of such agencies takes into account the services of branding, advertising sales promotion, public relations, event planning, traffic, media planning, and buying, package designing, sports marketing, product placement and marketing and selling of the goods and services of their clients.
The agency should also have a correct idea of the marketing and communication objectives of the firm; how the particular product/brand is positioned or proposed to be positioned, and how the other elements of the marketing mix, such as distribution and pricing, are conceived and handled by the firm.
In the modern context, knowledge of just advertising related matters is not sufficient for an advertising agency to succeed. It must have a comprehensive appreciation of all the aspects of marketing.