A Dummies Guide to ad agencies

Once there was creative advertising. Then came many agencies, each claiming expertise and persuading brands to spend big. But who are these agencies, and what exactly do they do? Here's a handy guide to decode them all.

Creative Agency

When people hear “advertising agency,” they often think of a creative agency—or picture the show Mad Men. A creative agency makes ads for print, television, and radio. 

Remember the Vodafone ZooZoos ad that gained popularity after it was aired during the Indian Premier League many years ago? That’s the kind of work a creative agency produces: compelling art and copy across mediums, crafted by copywriters and art directors. Traditionally, these agencies pair an art director and a copywriter to collaborate. Creative agencies were, in fact, the first of their kind before the industry diversified. Some of the top examples in India include Ogilvy, JWT (now VML), Leo Burnett, and McCann Worldgroup.

Media Buying Agency

The yin to the creative agency’s yang? Perhaps. Unlike creative agencies, which focus on creating ads, media buying agencies specialise in buying media spaces to run those ads. For instance, do you recall Paytm’s “Ab ATM nahi Paytm Karo” print ad in The Times of India the day after Prime Minister Narendra Modi demonetised Rs 500 and Rs 1,000 currency notes? That’s a classic example of media buying in action.

Using consumer insights and research, media buying agencies identify the best spots across television, print, radio, and the internet to place advertisements. India’s leading media buying agencies include GroupM, Mindshare, and Madison Media.

Digital Agency

A younger sibling of the creative agency, it branched out as the social media era took over in the early 2000s when companies suddenly wanted a glorious online presence. From boosting Google search rankings to managing social media pages and creating paid content for websites and blogs, digital agencies do it all. FoxyMoron, WATConsult, and 22feet Tribal Worldwide are some of the prominent names in this space.

Full-Service Agency

Once all the rage in the so-called “good old days,” full-service agencies are now rare in India. Think of them as the D-Mart of advertising: everything under one roof. They handle everything from creative services and media buying to digital work and consultancy (if the agency can manage it). However, these agencies eventually fragmented as specialised agencies decided to focus solely on their core expertise.

Design Agency 

This kind of agency is, in a way, an intellectual rival to a creative agency. While the latter uses art and copy to persuade a consumer, a design agency makes a product or a service visually appealing. Think of your pizza delivery box. From the way it’s shaped to the art on it to even the lettering, it’s not by accident you know. Elephant Design and Landor are two leading examples of brilliant design shops.

Performance Agency

A child of the digital agency but more left-brained in its approach, the performance agency avoids indulging in creative pursuits. It focuses solely on work that produces measurable outcomes—paid search ads, pay-per-click ads, paid social media posts, and affiliate marketing. Google and Meta ads are its best friends, unlike the creative campaigns of a Piyush Pandey. iProspect, Performics, and M&C Saatchi Performance are excellent examples of performance agencies.

In-house agency

The agency all creative agencies love to hate—because they get the job done in-house. Think of this as a creative agency that is part of a company's internal structure, staffed with talent often poached from established agencies. They are created because companies believe external agencies don’t deliver the work they deserve. Godrej Consumer Products Limited and Zomato are two prominent examples.

Influencer marketing agency

The new kid on the block. As India’s creator ecosystem began to thrive, these agencies emerged, scouting creators and representing them to secure the best brand deals. Bhuvan Bam and Prajakta Koli owe part of their success to these agencies, which play a pivotal role in shaping the influencer-brand ecosystem. Monk Media, Only Much Louder (OML), and One Digital Entertainment are excellent examples of such agencies. 

Meme marketing agency

Funnily, many people are unaware of such agencies, because they’re as new a newborn. These agencies make their bank using memes—yes, you read that right—Excel sheet producing executive. Just kidding. Even we are a bit confused as to how they get stuff done, but we know all their work is at the intersection of pop culture, social media, and virality. Youngun and The Social Thing are good examples of such agencies.