| account executive (AE) | The liaison between the agency and the client. The account executive is responsible both for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client.
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| account planning | A hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program.
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| advertising agency | An independent organization of creative people and businesspeople who specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers. The agency also arranges for or contracts for purchase of space and time in various media.
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| art director | Along with graphic designers and production artists, determines how the ad's verbal and visual symbols will fit together.
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| art studio | Company that designs and produces artwork and illustrations for advertisements, brochures, and other communication devices.
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| Association of National Advertisers (ANA) | An organization composed of 400 major manufacturing and service companies that are clients of member agencies of the AAAA. These companies, which are pledged to uphold the ANA code of advertising ethics, work with the ANA through a joint Committee for Improvement of Advertising Content.
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| brand manager | The individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand.
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| business-to-business agency | Represents clients that market products to other businesses; also called high-tech agency.
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| centralized advertising department | A staff of employees, usually located at corporate headquarters, responsible for all the organization's advertising. The department is often structured by product, advertising subfunction, end user, media, or geography.
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| classified ads | Newspaper, magazine, and now Internet advertisements usually arranged under subheads that describe the class of goods or the need the ads seek to satisfy. Rates are based on the number of lines the ad occupies. Most employment, housing, and automotive advertising is in the form of classified advertising.
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| clearance advertising | A type of local advertising designed to make room for new product lines or new models or to get rid of slow-moving product lines, floor samples, broken or distressed merchandise, or items that are no longer in season.
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| cooperative (co-op) advertising | The sharing of advertising costs by the manufacturer and the distributor or retailer. The manufacturer may repay 50 or 100 percent of the dealer's advertising costs or some other amount based on sales. See also horizontal cooperative advertising, vertical cooperative advertising.
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| copy | The words that make up the headline and message of an advertisement or commercial.
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| copywriters | People who create the words and concepts for ads and commercials.
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| creative boutique | An organization of creative specialists (such as art directors, designers, and copywriters) who work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. A boutique performs only the creative work.
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| creative director | Heads a creative team of agency copywriters and artists that is assigned to a client's business; is ultimately responsible for the creative product—the form the final ad takes.
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| decentralized system | The establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firm's needs, which operate with a major degree of independence.
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| departmental system | The organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration.
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| development stage | In the agency-client relationship, the honeymoon period when both agency and client are at the peak of their optimism and are most eager to quickly develop a mutually profitable mechanism for working together.
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| digital interactive media | Electronic channels of communication— including online databases, the Internet, CD-ROMs, and stand-alone kiosks—with which the audience can participate actively and immediately.
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| direct-mail advertising | All forms of advertising sent directly to prospective customers without using one of the commercial media forms.
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| electronic media | Radio and television, which may be transmitted electronically through wires or broadcast through the air.
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| fee-commission combination | A pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned.
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| foreign media | The local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country.
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| full-service advertising agency | An agency equipped to serve its clients in all areas of communication and promotion. Its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services. Nonadvertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.
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| general consumer agency | An agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers.
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| global marketers | Multinationals that use a standardized approach to marketing and advertising in all countries.
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| group system | System in which an ad agency is divided into a number of little agencies or groups, each composed of an account supervisor, account executives, copywriters, art directors, a media director, and any other specialists required to meet the needs of the particular clients being served by the group.
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| horizontal cooperative advertising | Joint advertising effort of related businesses (car dealers, realtors, etc.) to create traffic for their type of business.
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| incentive system | A form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals.
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| independent production house | Supplier company that specializes in film or video production or both.
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| independent research companies | Research firms that work outside of an agency. They may come in all sizes and specialties, and they employ staff statisticians, field interviewers, and computer programmers, as well as analysts with degrees in psychology, sociology, and marketing.
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| in-house agency | Agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.
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| institutional advertising | A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. The effects of institutional advertising are intended to be long term rather than short range.
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| integrated marketing communications (IMC) | The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media.
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| interactive agency | An advertising agency that specializes in the creation of ads for a digital interactive medium such as Web pages, CD-ROMs, or electronic kiosks.
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| international media | Media serving several countries, usually without change, available to an international audience.
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| international structure | Organization of companies with foreign marketing divisions, typically decentralized and responsible for their own product lines, marketing operations, and profits.
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| local advertising | Advertising by businesses within a city or county directed toward customers within the same geographical area.
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| local agency | Advertising agency that specializes in creating advertising for local businesses.
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| maintenance stage | In the client-agency relationship, the day-to-day interaction that, when successful, may go on for years.
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| management (account) supervisors | Managers who supervise account executives and who report to the agency's director of account services.
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| markup | A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent.
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| media | A plural form of medium, referring to communications vehicles paid to present an advertisement to its target audience. Most often used to refer to radio and television networks, stations that have news reporters, and publications that carry news and advertising.
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| media-buying service | An organization that specializes in purchasing and packaging radio and television time.
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| media commission | Compensation paid by a medium to recognized advertising agencies, usually 15 percent (162/3 percent for outdoor), for advertising placed with it.
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| multinational corporations | Corporations operating and investing throughout many countries and making decisions based on availabilities worldwide.
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| national advertisers | Companies which advertise in several geographic regions or throughout the country.
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| point | In retailing, the place of business. In typography, the measurement of the size and height of a text character. There are 72 points to an inch.
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| prerelationship stage | The initial stage in the clientagency relationship before they officially do business.
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| printer | Business that employs or contracts with highly trained specialists who prepare artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collating machines, and run binderies.
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| product advertising | Advertising intended to promote goods and services; also a functional classification of advertising.
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| regional advertiser | Companies that operate in one part of the country and market exclusively to that region.
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| regional agency | Advertising agency that focuses on the production and placement of advertising suitable for regional campaigns.
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| regular price-line advertising | A type of retail advertising designed to inform consumers about the services available or the wide selection and quality of merchandise offered at regular prices.
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| sale advertising | A type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing the emphasis on special reduced prices.
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| sales promotion department | In larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material.
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| speculative presentation | An agency's presentation of the advertisement it proposes using in the event it is hired. It is usually made at the request of a prospective client and is often not paid for by the client.
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| straight-fee (retainer) method | A method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.
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| suppliers | People and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production.
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| termination stage | The ending of a client-agency relationship.
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| transit advertising | An out-of-home medium that actually includes three separate media forms: inside cards; outside posters; and station, platform, and terminal posters.
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| vertical cooperative advertising | Co-op advertising in which the manufacturer provides the ad and pays a percentage of the cost of placement.
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| Web design houses | Art/computer studios that employ specialists who understand the intricacies of HTML and Java programming languages and can design ads and Internet Web pages that are both effective and cost efficient.
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