1.0- The Market
This is an overview of the creative industries in the form of a stakeholder map.
1.1- Key Facts
• In 2008 the creative industries contributed 5.6% of the UK’s Gross Added Value
• The same year the creative industry’s exports of services equalled £17.3 billion, this came to 4.1% of all goods and services exported
• In 2010 there were an estimated 182, 100 businesses in the creative industries on the Inter-Departmental Business Register (IDBR), this figure represents 8.7% of all companies on the IDBR
• Software and electronic publishing create the largest contribution to Gross Added Value (GVA) of the creative industries, this came to 2.5% in 2008. Software and electronic publishing also make up a large number of total creative firms, this equals 81,700
1.2- UK Advertising Industry stakeholder map
Groups
Blue- Creative
Red- Media
Green- Digital
Orange- PR
Independent Agencies
• Beattie McGuinness Bungay
• Wieden & Kennedy
• Mother
Trade bodies/ Intermediaries
• IPA
• MCAA
• AAR
• AA
• ISBA
• D&AD
2.0- Agency Types
2.1- Creative Agency
To develop creative content, creative agencies work with client marketing departments and also regularly work with other agencies. In order for work to be successful, creative agencies must first develop a communications strategy for the brand, product or service, for example.
‘Who’ is the target audience?
‘What’ is the core message?
‘How’ will this be communicated?
After establishing this, a creative agency will develop a creative idea in order to bring the strategy to life. This idea is designed to fit all the required channels of communications, which eventually evolves into the complete television advertisement, poster, press advertisement or radio spot. These are just a few basic examples of channels which creative agencies are ever expanding, for example, the internet has become increasingly important and necessary for agencies to consider.
Finally, the creative agency often with other agencies working for the same client, will be responsible to quantify how effective the campaign is (IPA, 2009)
2.2- Media Agency
In broad terms, media agencies are accountable for the planning and buying of media for clients. Media planning focuses on helping the client to determine how, when and where to spend their marketing communications budgets in order to achieve their business objectives. Instead of just using the more traditional communication channels such as TV, outdoor and press, media planners are encouraging the use of other communication channels which includes sponsorship, digital media, events, experience marketing and advertiser funded content.
Around 80% of the client’s advertising budget is spent on media, the media planner’s job is to ensure that budget is spent in the most effective way possible. In order for the media planner to make the best-informed decisions, they research the target consumer, along with their media habits, their beliefs and their time spent reading signs. This enables the media planner to understand their behaviour and suit the best media to use alongside the best time to communicate the brand message to the target consumer.
After these stages have been completed and the media strategy has been agreed, the media buyers will then negotiate the best price, quality and added value for the media space chosen (IPA, 2009).
2.3- Digital Agency
Digital agencies, sometimes called online agencies will generally be structured and function the same way offline agencies do. There are digital agencies that work primarily on media planning and buying, digital agencies that just work on the creative aspects and other digital agencies will be full service, which focus on both media planning and buying, and creative, this also includes building websites.
Digital agencies can also be specialist by providing their expertise in some mediums of digital communication, including banners, viral emails, games, interactive TV, mobile and email marketing. Certain specialist agencies also focus on Search Engine Marketing, for example, actually placing advertisements on the search engine and also by improving a client’s website in order to achieve a top listing on a search engine.
Usually, digital agencies work in conjunction with their clients’ offline agencies to design and complete integrated advertising campaigns which are targeted to specific audiences (IPA, 2009).
2.4- Public Relations Agency
A PR agency works for and with its clients to develop a public profile that is unique and created to improve the deliver of the client’s product or service. For PR to work effectively, the client’s customers, employees, investors and general public must feel consistently positive about the client. The PR agency works with their client to develop a communications plan which is suited to the client’s individual needs. The plan identifies the client’s competitive advantage, their position in the market, analysing the positions of the client’s competitors and suggesting strategic recommendations. The key to a successful plan is to build a unique message and demonstrate how the client’s products and services are different from its competitors.
There are many ways in which PR agencies create strong and lasting connections with its clients and the public. An example would be publishing press releases and articles, the content of each piece would differ depending on what is being communicated, for example goods or services the client offers or announcements informing the public about a new product.
Whilst articles in newspapers, magazines and industry journals are prevalent and necessary, the Internet is also a very important component to achieve successful PR. These recourses include online news sites, blogs, forums and social networking sites like Twitter and Facebook. Exhibitions and product launch tours are another successful way to develop successful PR with their customers on a personal level (Vitis, 2010).
2.5- Direct Marketing Agency
Direct marketing agencies usually provide strategic and creative solutions to enable the client to achieve their business objectives. ‘Direct’ marketing channels are used, and are measured upon how well people have responded to them and also by the return on marketing investment that they deliver.
Direct channels include direct response TV and radio direct mail, inserts, door-drops and online advertising (IPA, 2009)
UK Agencies
Top 20 UK Agencies 2009 by Billings £M (IPA, 2009)
1- Abbott Mead Vickers BBDO- 347.3
2- McCann Erickson- 220.6
3- Fallon- 206.1
4- Rainey Kelly Campbell Roalfe/ Y&R- 204.1
5- JWT- 202.7
6- WCRS- 197.4
7- M&C Saatchi- 193.7
8- Euro RSCG- 192.3
9- Bartle Bogle Hegarty- 185.1
10- Delaney Lund Knox Warren & Partners- 185.1
11- Leo Burnett- 183.4
12- CHI & Partners- 169.5
13- Ogilvy Advertising- 166.2
14- Mother- 157.2
15- Publicis- 139.3
16- Saatchi & Saatchi- 118.5
17- TBWA\ London- 117.0
18- The Red Brick Road- 116.0
19- DDB- 111.7
20- Grey- 107.7
Top 20 UK Agencies by Revenue (Brandrepublic, 2010)
1. M&C Saatchi- £103,435,000
2. Young & Rubicam Group- £98,614,000
3. Ogilvy & Mather Group- £63,953,000
4. Bartle Bogle Hegarty- £55,406,000
5. Abbott Mead Vickers BBDO- £46,926,000
6. DDB UK- £46,234,000
7. Saatchi & Saatchi Group- £44,219,000
8. JWT Group- £44,199,000
9. McCann Erickson Advertising- £31,420,000
10. Publicis- £28,360,000
11. Leo Burnett- £26,489,000
12. Wieden & Kennedy UK- £23,118,000
13. Grey Advertising- £22,460,000
14. McCann Manchester- £21,231,000
15. Euro RSCG London- £21,062,000
16. CHI & Partners- £20, 596,000
17. Bray Leino- £19,656,000
18. Fallon London- £18,862,000
19. TBWA\ London- £18,050,000
3.0- The People in Advertising
Employed Base
• The employed base within the IPA has fallen for the first time since 1993 by 7.4%, this brings the total to 18,635 (IPA, 2010).
• In 2008 first-year trainees equalled 3.9% of the employed base, this has declined and is now estimated at 1.3% (IPA, 2010).
• The number of temps and freelancers has also declined significantly, in 2008 there were 1,210 temps and freelancers working in IPA agencies on a regular basis. This is now estimated at 886, this represents a drop of 27% (IPA, 2010).
• 15.9% of agencies responded to the recession by introducing short-time working and 18.7% of agencies allowed staff to take sabbaticals or unpaid leave (IPA, 2010).
• The size of the employed base in creative and full service agencies decreased from 70.1 employees in 2008 to 67.7. The size of the average media agency decreased from 86.7 employees in 2008 to 80.2 (IPA, 2010).
Gender
• The percentage of male and female employed base is very equal, 52.3% being male and 47.7% being female (IPA, 2010).
• At management level, 79.0% of individuals were male and 21.0% female (IPA, 2010).
Age
• As an estimate, 45.2% of the employed base were aged 30 or under, 37.0% were aged 31-40, 12.7% were aged 41-50 and finally 5.2% were aged over 50. This averages an age of 33.7 years, in comparison with 33.3 in 2008 (IPA, 2010).
• The decline in agencies recruiting graduates has been apparent by the number of employees aged 25 and under declined by 22.7%, this is the largest reduction of any group (IPA, 2010).
Departmental Function
• As an estimate 22.0% of the employed base were employed in a media role, 20.9% were found in an account management role. Creative departments, such as, digital and design equalled 15.0% of the employed base. Creative services and studio accounted for 6.7% and individuals employed in finance, benefits and payroll came to 6.2% (IPA, 2010).
Ethnicity
• An estimated 8.9% of the employed base were from a non-white background, this is up from 8.4% in 2008 and 6.1% in 2007 (IPA, 2010).
4.0- Agency Profile of Ogilvy
David Ogilvy, a British ad-man who pioneered copywriting, founded Ogilvy in 1948 (Corporate Watch, 2002). After World War II many advertising agencies went out of business, making room for newcomer Ogilvy (Corporate Watch, 2002). The American economy was growing fast and had an increased awareness of the public resulting in advertising being part of every business plan (Corporate Watch, 2002). Even though Ogilvy saw success within the industry, however, they still had to compete with long-standing industry leaders such as J. Walter Thomson, Young & Rubicam, Leo Burnett and BBDO, this was a tall order for this new agency (Corporate Watch, 2002).
The ‘Ogilvy Style’ was becoming apparent when clients such as Schweppes and Rolls-Royce joined Ogilvy’s repertoire, the adverts produced barely paid for themselves, however, these two well-known brands attracted many more clients (Corporate Watch, 2002). In the 1960s Ogilvy had established themselves within the industry by producing work for Unilever’s Dove soap and Shell Oil and continue to grow rapidly throughout the 1970s (Corporate Watch, 2002). From the growth and popularity of the agency had a portfolio of clients consisting of IBM, Mercedes Benz and Campbell’s Soup, Ogilvy however, did suffer as they were consistently playing it safe to please their shareholders, David Ogilvy began hiring new creatives to prevent the agency becoming stagnant (Corporate Watch, 2002).
In recent years Ogilvy is known to be one of the most creative international agencies and benefits from continual success.
5.0- Agency Structure
5.1- Account Management
Account managers/handlers are responsible for the relationship between agency and client and day-to-day business, they must make sure all deliverables are met on time and that they meet with the objectives of the client. Other responsibilities they must undertake include billing, budgeting and managing the relationships with other parties.
5.2- Insight and Planning
The roles of planners is to provide insight, research and analysis of the consumers and marketplace so that the findings can be applied to the creative process. To understand the audience to develop intentions for the creative work that will be produced, planners have to work with clients and better understand the client’s business.
5.3- Creative
Creatives are given briefs from planners and account managers, creatives must deliver the elements that will eventually form the advert for example. Creatives will work on a number of elements such as copy writing and art direction, script and storyboard or some other form of creative work for an event or stunt.
This is an example of Tequila’s creative structure in 2010.
This is an example of TBWA\ London Group’s horizontal view of their structure, the order is based purely on the specialist contribution of each department.
6.0- What it means to be a Marketing professional
6.1- Job Description of Art Director
The role of an art director is fundamentally being responsible for what advertisements look like (Creative Pool, 2011).
The tasks that an art director could potentially be involved with are-
• Working on a brief alongside a copywriter to generate ideas to present to the client
• Working on designs to create an effective advertising campaign
• Commissioning specialists to work on the projects, for example artists and photographers
• Overseeing the entire project and working within a budget
• Editing and finalising ideas and results to present to the client
(Creative Pool, 2011)
Working hours of an art director must be flexible to meet deadlines accordingly, the job usually involves working within studios or travelling to meet clients (Creative Pool, 2011).
The salary of an art director varies from around £15,000 to £25,000 a year for newly appointed art directors. However for an experienced senior art director, their annual salary could be around £100,000 (Creative Pool, 2011).
An art director should-
• Be creative
• Have a thorough understanding of photography, typography and printing
• Have excellent interpersonal and communication skills
• Work well as part of a team, with a range of different people from different department
• Have an interest in social and cultural trends and fashions
(Creative Pool, 2011)
There is no particular set of qualifications necessary to become an art director, although entrants usually have a degree of some kind (Creative Pool, 2011). Art directors are expected to have a portfolio of work to show employers, work will be built up from personal and professional projects (Creative Pool, 2011).
Although a large amount of knowledge in design and photo editing software is expected from people entering the industry, training is still conducted in-house or art directors are required to take external courses in elements such as presentation skills (Creative Pool, 2011).
Art directors are expected to keep up-to-date with current software packages and industry standards and trends (Creative Pool, 2011).
6.2- The Customer
To find out more Lee Manton an Art Director who currently works at Ogilvy group Germany was asked a few questions about his professional experiences.
• How did you enter the industry? What job did you have?
How long did it take before you got the role of an art director? (If not straight away)
“I did a Graphic Design course at uni and applied to a couple of agencies to do a work placement while I was there. I did the placement for a couple of weeks and made a good impression. I kept in touch with the Creative Director and when I finished my course they took me on as a junior Art Director. This happened pretty quickly after I left uni. I was lucky”.
• What is your perception of graduates?
“I don't really have a perception of graduates per se, it depends on the individual. Some are incredibly driven and want to learn while others think they know everything before they've even stepped foot in an agency. I don't know how up-to-date university courses are in what they teach. But in reality, purchase behaviour changes all the time because of technology giving us new (and relevant) marketing tools such as 'shopper marketing' because everyone now walks around with immediate access to the internet on their iPhone or Blackberry. For example, mobile phone apps are now a standard marketing tool for brands. Is this something you're learning? I don't know”.
• Do art directors take on any graduates as assistants?
Does Ogilvy offer graduate schemes?
“Individual Art Directors don't tent to take on assistants but agencies in general do. Normally you would contact a Creative Director to organise a placement then once you're there you will work along side other Art Directors. Obviously if you know an Art Director personally you should speak to them first as it will improve your chances of getting a placement. I don't know if there is a formal graduate scheme at Ogilvy but I know the Creative Director at Ogilvy Action in London so I could find out for you when you're ready”.
• What advice would you give a graduate entering the industry? Are there any ‘do’s and ‘don’t’s’?
“The advice I would give to a graduate is to do your course but also take in what's going on around you - pay attention to your own behaviour and establish what works for you, pushes your buttons, makes you react. Be critical, be honest and LISTEN. Inspiration is everywhere so have a conscious mind. You might see something one day that becomes relevant to a brief you're working on two months later. Keep references of all the things you like - artists, photographers, music videos, films - everything. This will save you time later”.
“Another piece of really important advice I would give to a graduate is that unfortunately you have to develop a thick skin. Don't be too precious about your work because it will be ripped to shreds. It doesn't mean you're rubbish - it just means it's not right this time. Have confidence and never give up. People who think they're the best are often the worse. Everyone's got room for improvement and anyone who thinks they haven't is kidding themselves. When Rankin was asked in an interview what his favourite piece of work was, he replied "the next one". If you adopt this attitude you wont go wrong”.
“Finally, if you want to get work - remember, people won't come to you. There are hundreds of graduates harassing Creative Director's all the time. The ones that get through are the ones with balls. Don't be shy, pick up the phone, arrange a meeting, show them your book. The more you do it, the more confident you will become. You will get used to talking about your work and about yourself. If they like you - they are more likely to like your work. Personality is really important within an agency environment”.
The answers received from Lee Manton were extremely helpful in being able to find out the views of a professional who has had years of experience within the creative industries.
The one thing I have learnt from interviewing Lee and researching the role of an art director is making sure I have a portfolio of work that shows off my skills in the best possible way. It is vital to get in touch with people and just be confident that I have something to show to them, with this it is very important to not be discouraged if someone does not think my work is at a high enough level or if someone does not like my work. The best thing that I can keep doing is to continue to improve and take onboard all the feedback that I am given throughout the process.
References
Corporate Watch, 2002. Ogilvy & Mather Worldwide- A corporate profile. [online] Corporate Watch. Available at: < http://www.corporatewatch.org/?lid=387#hist > [Accessed 17 April 2011].
Creative Pool, 2011. Art Director. [online] Creative Pool. Available at:
Department for Culture, Media and Sport, 2011. Creative Industries. [online] DCMS. Available at:
IPA, 2009. IPA publishes 2009 Agency Census. [online] London: IPA. Available at:
IPA, 2009. Job Functions- who does what? [online] London: IPA. Available at:
IPA, 2009. Ranking: Top 30 Advertising Agencies, 2009. [online] London: IPA. Available at:
IPA, 2009. Agency Types. [online] London: IPA. Available at:
Local Government, 2009. What are the creative industries? [online] London: Local Government. Available at:
Ranbir, 2010. What does a PR agency do? Vitis Public Relations, [blog] 5 December. Available at:
Stakeholdermap.com, 2011. Stakeholder Identification. [online] Available at:
World Intellectual Property Organisation, 2011. Creative Industries. [online] WIPO. Available at:
http://www.brandrepublic.com/features/1046056/Agency-Performance-League/?DCMP=ILC-SEARCH
http://www.ipa.co.uk/Content/The-advertising-process
