Advertising agency is a business that assists advertisers in all stages of the advertising process - from account management and planning to message creation, media planning, and research (Bergh & Katz, 1999, p.29). In another words, advertising agencies are service companies that specialise in planning and execution of advertising programmes for their clients (Belch & Belch, 1990, p.61-63). An advertising agency acts on the basis of an assignment placed by the client in which the client also delegates some decision making authority to the agency (Mills, 1990). In most cases the agency makes the creative and media decisions. Often it supplies supporting market research as well, and may even be involved in the total marketing plan. The activities undertaken and the amount of autonomy allowed to the agency vary from one relation ship to another (Aaker & Myers, 1987, p.10).
Advertising services can be defined as packages of activities that are offered to other companies and which concern the planning, production and or delivery of advertising. Advertising services are bought and designed to improve the purchasing company's performance and well-being (Wilson, 1982). .
Advertising is expected to influence the attitudes, intentions and behaviour of the client's customers and thus increase sales and contribute to the growth of the client company. .
The core of any service is linked to the benefit it offers to the buyers. Therefore in buying advertising services, companies are purchasing knowledge and creativity embodied in individual people. Creativity is the heart and soul of advertising services and consequently a vital resource in every business relationship (Halinen, p.28).
The following are the characteristics of advertising agency:.
Intangibility.
The advertising services acts, planning, production and delivery of advertising are all essentially intangible activities, despite the fact that the knowledge and creativity are often translated in tangible forms .
