The organization structure differs from agency to agency depending upon functions performed and size of the business. Because of the highly personalized nature of the advertising agency business, it is difficult to say which type of organizational structure would be suitable for it. Many agencies are organized according to the personal preferences of the management. Most large and medium sized agencies followed one of the two systems, the group system and the departmental system and some combine them.
1. Group System : Under this system the writers, artist, media planners, buyers and other specialists are assigned to a group of accounts. All are under the general direction of an account executive or group head.
2. Departmental System : Under the departmental system, same type of specialists are grouped in the same department. For instance, all writers in the copy department, all artists in the art department and so on.
Organisation and Working of an Advertising Agency
Since advertising agency is an independent business organisation, it may be in the form of a sole proprietorship, partnership or joint stock company form of organisation. However, an advertising agency of reasonable size may naturally adopt the Joint Stock Company form of organisation. In such a case, it may have a Board of Directors under the Managing Director. Under the Board of Directors we may have General Manager and the General Manager may have a number of Departmental Managers under his control. The number of Departmental Managers will vary from one advertising agency to another advertising agency as per the nature and size of business.
