The Essential Guide to Advertising Agency Departments
FINANCE DEPARTMENT
Main Roles
The Finance Department is responsible for the control of billing, expenses, treasury, payments, etc. within the agency. They must be informed about the management of different clients.
The Finance Department includes personnel, accounting, billing, and supplier relations. They are responsible for billing clients and claiming collections.
- Understand the agency business
- Work closely with the Account Department
- Focus on profitability
- Maintain control over finances
- Manage relationships with suppliers (payment)
- Handle payroll and relationships with banks
- Manage billing closures and fiscal year-end closings
- Maintain exhaustive control of the financial reality
- Focus on generating revenue for the agency
- Work closely with the CEO
- Collaborate with other departments
How is an Advertising Agency Remunerated?
Before
- % commission on advertiser investment in media
- 15% s/gross
- 16.65 s/net (depends on agency discount)
- % commission on production
After
Usually by fees based on allocated resources
ACCOUNT DEPARTMENT
The Account Department represents the agency to the client and the client to the agency. It plays a key role in the agency’s operations.
Client Service Department
Build Brands
The Client Service Director (CSD) needs to understand brand building and have a deep understanding of the client/brand they are handling.
Understand the Client Business
The client needs to know that the CSD can understand their business and be a strong interlocutor for meaningful conversations.
Strategic Abilities
While the CSD may not be a planner, they need to work with strategic tools. In agencies without a Planning Department, the CSD may also act as the planner.
Resources
The CSD needs to allocate resources as needed, such as distributing the team for a pitch or a specific project.
Inspire and Stimulate Creativity
The CSD needs to be strategic and inspire creatives with ideas, examples, and stimuli. They can encourage creativity by taking the creative team out of the office.
Build Relationships
Building strong relationships within the agency and with the client is crucial, and the CSD is responsible for fostering these connections.
Generate Profitability
The CSD must focus on profitability, control income and expenses, and have a deep understanding of the performance of their accounts/clients.
Understand the Agency Business
Like understanding the client’s business, the CSD must also understand the agency’s business and focus on generating new income and business.
Anticipate Issues
The CSD needs a global vision of the client-agency relationship to detect and address potential issues.
Build Trust
As the face of the agency to the client, the CSD must build trust with the client team and may even develop personal friendships with clients.
Team Leader
The CSD is the driving force of the business, moving the team forward and motivating its members.
Find Opportunities
With their finger on the pulse of the account, the CSD should identify opportunities to create business and present bold ideas.
Account Department Relationships
Account Department x Creative Department
These departments have a very close relationship. The Account Department leads the project, writes the brief (in collaboration with the Planning Department), and briefs the creatives and other departments. The brief should be inspiring.
Account Department x Strategic Department
The Account and Planning departments evaluate creative ideas, ensure the strategy is sound, and provide a rationale for why the idea fits the brief.
Account Department x Production Department
Once the client approves the idea(s) (depending on the process – testing, internal approval, etc.), it moves to the Production Department. The approved idea needs to be produced within the allocated time and budget. The Account Department works closely with both the Production and Creative departments.
Account Department x Digital Department
The agency may have a separate Digital Department or integrate it with existing account and creative teams. The Account and Digital departments must collaborate to offer clients the best solutions for the brief.
Account Department x Financial Department
These teams work together to analyze sales, income, expenses, margins, etc. Typically, the Account and Finance teams have a monthly meeting to review key figures.
Account Department x Traffic Department
Larger agencies may have a Traffic Department responsible for managing the workflow, including brief status, creation progress, and production updates. The Traffic Department helps optimize processes and resources.
STRATEGIC/PLANNING DEPARTMENT
This department is the voice of the customer within the agency and plays a key role in supporting creatives. In agencies without a dedicated Planning Department, the Account or Creative Department may handle planning responsibilities. A good strategy is as important as a good idea. When the strategy is strong, creative ideas flow effortlessly.
Structure
Strategy General Director – Planning Director – Planner
Key Responsibilities
Build Brands
Planners need to understand the strategic language, tools, and branding processes of different clients. They should be able to communicate with each client using their specific strategic idiom and utilize all available client data (tracking, sales, digital, etc.).
Understand the Client Business
Planners must thoroughly understand the client’s business, just like the Account team. They need to monitor competitor activity and identify relevant information, ideas, or actions that could benefit their client. Planners should be proactive and persuade Account teams to present new initiatives to clients.
Strategic Abilities
Planners are the heart of strategy. They possess a structured and creative mind, enabling them to conceptualize, apply criteria, and develop effective strategies.
Inspire and Stimulate Creativity
Planners work with the Account team to inspire and stimulate creatives. Ideally, Planning should be part of the Creative Department to foster a close working relationship.
Trend Hunter
: He is open, he likes to read, arts, urban culture, music, travel he knows last trends.BRAND PASSION. Customer obsessed:He is the voice of the customer in the agency. He need to identify insights powerful enough to move to action.Understand the agency business: As well as knowing the client business. Planner must understand deeply the agency business and he must focus on generating new ideas to help agency to diferenciate.