Ad chapter 4 02

General advertising agencies derive much of their income from

• business-to-business media.

• the commissions generated by ads placed on television, radio, etc.

• service fees.

• the owners of franchises advertising in the media source.

The Judson Agency provides clients with public relations and also creates trade show exhibits in addition to advertising services. When the agency creates a trade show exhibit, it is performing a(n) ________ function.

• interactive

• advertising

• multitasking

• nonadvertising

Marta and her friend Tomas are talented illustrators who have set up their own business and act as subcontractors for several advertising agencies. What type of business do Marta and Tomas have?

• promotional facilitation center

• creative boutique

• interactive agency

• IMC agency

Businesses rely on account planning to

• reorganize an advertiser to improve its image.

• minimize customer research.

• bridge the gap between the traditional agency research, account management, and creative departments.

• determine the best product placement in the marketing mix.

Medium and large advertising agencies are usually structured according to

• designers and illustrators.

• advertisement suppliers.

• group or departmental systems.

• production and traffic units.

The main downside to an in-house ad agency is

• reluctant acknowledgement by the mass media.

• adherence to the organizational mission.

• loss of revenues.

• loss of objectivity.

If an agency were to buy an ad in a magazine for a company that sells sailing equipment, the ad would cost $6,000. How much money would the agency send the publication after deducting its media commission?_____