ADVERTISING AGENT or AGENCY, an individual or an organization engaged primarily in the preparation of adver tising and also in giving counsel and assistance in the advertising and merchandising of commodities, securities and services. In the United States, where advertising as a business is most highly developed, and where the advertising agent first became a recog nized factor in business, the activities of the agent differ consider ably. These may be limited to one element of advertising or may embody all phases.
In Great Britain and Australia, on the Continent, and in Latin American countries, the advertising agent confines his services largely to preparing copy, both text and illustrations, and arrang ing for its publication in whatever medium may be used. In recent years, the services of the advertising agent in Great Britain have developed somewhat along American lines. In the United States there are about goo advertising agencies recognized by the leading advertising associations and approximately 2,600 others, many of which extend their activities to almost everything which has to do with advertising, including any research neces sary to its preparation and any merchandising that may be helpful to make the advertising profitable. An American advertising agent generally undertakes to perform the following work: (a) Conduct marketing researches; (b) Suggest the most saleable form of a product, including the design of the package and determination of price. (c) Assist in the organization and direction of the advertiser's sales force. (d) Prepare the advertising, suggesting the amount of money to be expended, the space required, the mediums to be used and writing and illustrating the copy; also such advertising literature as catalogues, mailing pieces, etc. (e) Make contracts with publishers or the purveyors of advertising space in which the advertisements are published. (f) Assist the advertiser to cultivate the good will of the trade and the public.
As an organization, serving any number of advertisers, the agency (or agent) usually divides itself into departments as fol lows: (I) Executive, which includes the securing of business and its development. (2) Research and plans, which conducts market ing enquiries and investigations, and plans the extent and char acter of an advertising campaign. (3) Production, which provides for the writing and illustration of advertising copy, and the prep aration of the engraving cuts and mats necessary to mechanical reproduction, and other details. Formerly, the advertising agent was remunerated by means of a commission allowed to him by the publisher. At present, in the United States this commission is credited to the advertiser and the agent is paid by a commission, more or less equivalent, on all advertising placed, and he may also receive extra fees. Certain advertising agents specialize in giving advertising advice and help either regarding the merchandising of a product or the advertising thereof or both. Certain other agents specialize in the preparation and production of advertising copy only. In Great Britain the advertising agent generally obtains his remuneration in the commission allowed by publishers, and in fees for special work. The number of British agencies is about 210.