Question 1

The ________ is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards.

Accepted Answer

The art department or art director is the team responsible for creating the visual portion of an ad, including the layout and commercial storyboards. The account executive is responsible for managing the client relationship, the product management department focuses on the development and marketing of the product, and the copywriter is responsible for the written content of the ad.

Question 2

The ________ department is becoming an increasingly important part of the agency business as many large advertisers consolidate their media buying with one or a few agencies to save money and improve media efficiency.

Accepted Answer

The department that is responsible for media buying is the Media Department. As mentioned in the question, many large advertisers are consolidating their media buying with one or a few agencies, which emphasizes the importance of the Media Department. Therefore, option B is the best choice. The Traffic Department is responsible for scheduling and tracking the production of advertising materials. The Production Department is responsible for producing creative materials. Product Management is responsible for the development and marketing of products. None of these departments align with the given scenario.

Question 3

The department in an advertising agency that is responsible for analyzing,selecting,and contracting for ad space or time that will be used to deliver its client's advertising message is the ________ department.

Accepted Answer

The department responsible for analyzing, selecting, and contracting for ad space or time is the media department. This department is specifically focused on media planning and buying, which is essential to ensure that the client's message reaches the right audience through the appropriate channels.

Question 4

Critics argue that the use of ________ ties agency compensation to media costs.

Accepted Answer

The commission system is based on a percentage of the media costs, which ties agency compensation directly to the amount spent on media. This can lead to a conflict of interest where the agency seeks to increase the media spending for their own financial gain, rather than genuinely benefiting the client's advertising goals. Critics argue that this can compromise the objectivity and effectiveness of the agency's work.

Question 5

The standard agency commission is:

Accepted Answer

The standard agency commission is typically 15% of media time and space costs, which is a traditional model used in advertising where agencies receive a commission from the media outlets as a percentage of the cost of the advertisement placed.

Question 6

An advertising agency that wants its employees to develop expertise in servicing a variety of accounts should use a(n)________ structure.

Accepted Answer

A departmental system will allow the agency to organize its employees based on the type of accounts they serve, ensuring that they develop expertise in serving a variety of accounts. This structure will also make it easier to train employees and ensure that they have the necessary knowledge and skills to serve different clients.

Question 7

The growth of the Internet as a media vehicle has led to the need for all of the following,EXCEPT:

Accepted Answer

The growth of the Internet as a media vehicle has not led to a renewed focus on traditional media. Instead, it has led to a shift towards digital media and the need for agencies to adapt and incorporate digital advertising components into their strategies.

Question 8

The Creative Ideas advertising agency handles each of its clients by assigning individuals from various departments to work together as a team on their accounts.The agency is using a ________ organizational structure.

Accepted Answer

The answer of The Creative Ideas advertising agency handles each...

Question 9

A major argument put forth by defenders of the commission system is that a commission:

Accepted Answer

The major argument put forth by defenders of the commission system is that it keeps emphasis on agency competition on non-price factors like advertising quality. This means that agencies will strive to produce high-quality advertisements instead of focusing solely on reducing costs. This ultimately benefits clients, as they receive better quality advertisements as a result of this competition.

Question 10

Agency compensation under the commission system is based on:

Accepted Answer

Agency compensation under the commission system is traditionally based on a specified percentage of any advertising time or space the agency purchases for its client, typically around 15%.

Question 11

Which of the following is NOT a reason why an advertising agency might use a group system organizational structure? It would:

Accepted Answer

A group system organizational structure typically does not directly impact pricing for clients, so C is the option that does not fit with the other reasons that an advertising agency might use this structure.

Question 12

The traditional method of compensating ad agencies is with:

Accepted Answer

The traditional method of compensating ad agencies is the commission system, where agencies earn a commission based on the media purchases they make on behalf of their clients.

Question 13

Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers,engravers,photographers,or other vendors to turn a layout into a finished product?

Accepted Answer

The production department is responsible for taking a layout and turning it into a finished product, which includes hiring and managing outside vendors such as printers, engravers, and photographers. The media department plans and purchases advertising space, the art department creates the actual design concepts, and the traffic department coordinates the scheduling and delivery of materials.

Question 14

The ________ department coordinates all phases of production to see that the ads are completed on time.

Accepted Answer

The traffic department is responsible for coordinating all the phases of production to ensure that the ads are completed on time. The traffic department works closely with other departments, such as media, art, and production, to ensure that everything is in place and running smoothly.

Question 15

Since most of the client's ad budget is spent on media time and/or space,it is important that the media department:

Accepted Answer

The media department's main responsibility is to ensure that the ad budget is used efficiently by selecting the most effective media channels to reach the target audience. This means developing a plan that communicates to the right audience in a cost-efficient manner. Coordinating with the creative department (option A) is important, but not the primary responsibility of the media department. Focusing on purchasing commercial time on the most popular shows (option B) may not be the most effective approach if the target audience is not watching those shows. Creating a plan that utilizes the least expensive media vehicles (option D) may not necessarily result in the most effective use of the ad budget.

Question 16

The ________ are the individuals who conceive the ideas for the ads and write the advertising message.

Accepted Answer

Copywriters are responsible for conceptualizing the ideas for ads and writing the actual advertising message. Art directors are responsible for the visual elements of an ad, traffic coordinators manage the scheduling and logistics of ad campaigns, and account executives liaise between clients and the agency.

Question 17

A ________ is an agency organizational structure in which each functional area is set up as a separate department.This structure is called on as needed to perform its specialty and serve all of the agency's clients.

Accepted Answer

The description matches the definition of a departmental system, where each functional area operates as a separate department and is brought together as needed to serve clients. The other choices are not relevant to the given description.

Question 18

Which of the following statements about changes in the way advertising agencies are being compensated is true?

Accepted Answer

Many agencies and their clients have shifted from the traditional commission system to some type of fee arrangement or cost-plus agreement for agency compensation. This change is due to a lack of transparency and accountability in the commission system, as well as the increasing complexity and diversity of advertising mediums. Clients are looking for more predictable costs and a clearer understanding of what they are paying for, while agencies are seeking more stable revenue streams and incentives to deliver quality work.

Question 19

Opponents of the agency commission system would argue that this system is not effective because a commission:

Accepted Answer

Opponents of the agency commission system argue that this method can encourage agencies to recommend high media expenditures to increase their commission level, creating a conflict of interest. This may result in recommending media channels that are not necessarily the most effective for the client's target audience or business objectives.

Question 20

The ________ in an agency interacts with personnel from all disciplines and provides insights into consumers and how to communicate with them.

Accepted Answer

The role of an account planner in an agency is to understand consumers and their behavior, which involves interactions with personnel from all disciplines. They provide insights on how to communicate with consumers effectively, which is essential for developing effective advertising campaigns. Media directors are responsible for the media planning and buying process, traffic managers ensure efficient workflow within the agency, and account executives act as a liaison between the agency and the client. However, none of these roles specifically focus on consumer insights and communication strategy like the account planner does.

Quiz 2: Organizing for IMC: Role of Agencies