An advertising agency establishment provides a bridge service in two parties, advertisers and publication/media. An advertiser contacts advertising agency and gets its visual or print campaigh done, and then advertising agency forwards the campaign archives to the proposed media suggested by client/advertiser. The creatives made by advertising agency arent charged from client, but the media gives agency a 20% commision for creating the matter for client.
In this real life offline advertising agency system the things are running like this since decades, but the inception of online advertising agencies work on different pattern, The advertising agencies like google adsense, yahoo publisher network, adengage, adbrite etc run on a different model, they deal in 2 poles, one side is advertiser and other is publisher, the advertiser and publisher dont know each other in most of cases as an entities in person, But advertising agencies buy space on websites of publishers and employ various methods to place advertisers’ media, the pricing is decided in many ways, mainly cost per click or cpst per thousand impression or cost per action, Cost per click being the most famous method. The sutomates systems of advertising agencies place the advertising media automatic through flat rate payment or bidding system for certain keywords.
