Definition of Agency: Types and Advantages of Running Agency Business

Definition of Agency – As part of the millennial generation or gen Z, the term agency is certainly familiar. Even now, the agency is one of the target companies for the community for various reasons.

In a business idea, quite a lot of planning is needed to run it. The most important thing, namely having strong skills and capabilities in the services it offers. If you are someone who likes the world of analysis, then this will be one of the businesses that you can work on.

The experience of working in an agency is a very pleasant thing. Because, one can learn a lot intensively and explore more experiences. Consisting of a company culture that is very suitable for young people, flexible working hours, and some who are pursuing creative careers.

So, before you really get involved in the agency world, let’s look at agencies first. Starting from the meaning of agency to the advantages of running an agency business.

A. Definition of Agency

Agency is a service provider company or certain services to complete a project which is usually around the creative industry and related to the marketing goals of its service users. For example, for marketing, branding and advertising purposes.

The development of digital technology and the internet is growing rapidly. Every company is required to be able to adapt by digitizing their business. Through strong and suitable marketing and branding, sales will also experience rapid growth as well.

However, some companies don’t have much more time to focus on marketing activities and the like. From there the role of the agency company is needed. One of the roles of an agency company is to assist clients in designing marketing strategies, branding, and other needs as requested.

This is because clients from agency companies can come from various industries. Therefore, the team formed by the agency is a collection of creative people.

B. Agency Organizational Structure

Just like big companies, agencies generally also have an organizational structure that includes a Director, Media Department, Creative Department, as well as functions or Adm.

C. Plus and Minus of Working in an Agency

For those of you who want to work in an agency, you should first know the pluses and minuses of working in an agency. Well, what are they? Let’s pay attention to the following discussion.

1. Plus Working in an Agency

Working in an agency has plus points that you need to know about, including the following:

a. Expand Network

If you work in an agency, you will meet many people from different backgrounds, positions, to different companies. Of course, this is a very good opportunity to build and expand your network. Where, you can work together while gaining new knowledge from them.

On the other hand, you can also get back into a relationship with your old client. In fact, they may even become your future clients.

b. Flexible Working Hours

Most of the agencies have much more flexible working hours than other companies. Many of the agency employees are not required to work since morning. The hours of returning from work can be adjusted to the hours of office entry.

In fact, there are also agency companies that allow their employees to work remotely. Especially for agencies engaged in the creative field.

c. Learn to Think From Different Perspectives

Even if you work in one field, it is very possible for you to have clients from different positions. They can be your boss, employee, marketer or product marketer.

Therefore, you will be trained to be able to position yourself as a different person. In the end, you will have a richer and more open perspective.

2. Minus Working in the Agency

Working in an agency has minus points that you need to know about, including the following:

a. No Fixed Working Hours

Flexible working time can be a plus and minus point of working in an agency. Even though it seems fun because you can work with hours that are not tight, you might work overtime or overtime.

You may start work at 8 am, but it is not impossible for you to work until 8 pm. Client requests can also come at any time, be it in the afternoon or at night. Therefore, you must be ready to listen to client requests even outside of your working hours.

Not to mention, if you are approaching the deadline of a project. It could be that you don’t have the definition of a 9-5 working time anymore.

b. Working With Diverse Clients

At one time, you can work with a number of clients at once. Likewise, in one period, you can find various types of clients that you never thought of before.

You can work with clients who are understanding, gentle, and flexible. However, on the other hand, you often have to deal with tight clients with high deadlines and requests.

That way, someone who works in an agency must have high communication and adaptation skills. After all, they are the clients you are working with.

c. Often Considered High Pressure

As with the previous point, many people think that working in an agency is a high pressure job. Requests from various clients often do not match what you have planned.

Not to mention you have to think creatively and innovatively to come up with ideas that are different from other companies and agencies. Of course, working in an agency requires a strong personality and being able to accept criticism from clients, including overcoming pressure when clients ask for revisions or last minute changes.

D. Types of Agencies and How They Work

After you know the meaning of an agency, it might seem that the agency only offers creative services for marketing purposes, but in fact there are various types of agencies that you need to know about. As well as ways of working that are different in each type. The following are the types and ways of working of agencies, including:



1. Digital Agencies

The first type of agency company is a digital agency. Where, a digital agency is a service provider resulting from a combination of marketing and the creative side in this digitalization era. Usually, services or services offered by digital agencies are in the form of SEO (Search Engine Optimization), SEM (Search Engine Marketing), Web Design & Development, Media Campaigns, and so on.

How digital agencies work, namely building a website or marketplace for businesses to be promoted, posting on websites and marketplaces, determining digital marketing advertising media, conducting market analysis, creating attractive advertisements by linking website and marketplace posts, advertising publications, and so on. . Therefore, the digital agency team is generally people who have marketing, copywriting, UI/UX, web design, and other related skills.

2. Advertising Agencies

As the name implies, an advertising agency is an agency that focuses on providing advertising or advertising services as well as marketing. The way advertising agencies work is by helping clients to create campaigns along with messages to be conveyed to target customers according to the wishes and requests of clients. Therefore, marketing skills are needed because in preparing a campaign requires a marketing strategy that is right on target and effective.

3. Marketing Agencies

If the two types of agencies above also cover marketing, but in this third type the agency carries out marketing activities more exclusively. The way the marketing agency works is to provide consultation and develop marketing strategies.

Therefore, the team in the marketing agency must have proper mastery of marketing skills and have related experience. This is because this will help the marketing agency’s operational processes which may involve market research, product development, types of marketing strategies, and so on.

4. Branding Agencies

The fourth type of agency company, namely branding agency. Where, a branding agency is an agency that focuses on the branding of a business from establishment to development and brand renewal when necessary.

The workings of a branding agency, namely helping clients to design a logo, brand guidelines, brand motto, to voice tone, and what kind of identity to convey to the target market and customers. The scope of work of a branding agency covers pre-production, production, post-production and other processes related to brand and business identity.

5. Public Relations Agency

The fifth type of agency company is a public relations agency or commonly known as a PR agency. Almost the same as a branding agency, the focus of this type of agency is to assist clients in representing brand images that are spread in society.

The difference with a branding agency is that a PR agency only helps clients in representation, not in managing and strengthening the company’s brand image. For example, press release procurement services, talk shows, events and other company events.

6.Creative Agencies

As the name implies, a creative agency is a company that provides services in managing creative matters. For example content creation, brand image, video brand, and many others.

The workings of a creative agency are not only related to making logo designs, but also helping with marketing using creative designs, and many others. So many people are interested in buying the product or service it offers. Therefore, the creative agency team includes creative people, for example graphic designers, videographers, art directors, illustrators, and other positions required in the production of creative content.

7. Entertainment Agency

The last type of agency company, namely entertainment agency. Where, this entertainment agency is engaged in the field or the entertainment industry by giving birth to singers, models, dancers, musicians, and others.

Therefore, the way entertainment agencies work is to act as intermediaries for these talented people and introduce them to the public. This type of agency also helps manage all the needs of artists, from branding to projects where they have to appear. For example, entertainment agency companies such as SM Entertainment, HYBE Entertainment, YG Entertainment, and many others.

E. Advantages of Running Agency Business

As discussed in the previous discussion, it was concluded that an agency is a business that is managed by a group of people with certain abilities or expertise and offers a service. Of the several types of agencies above, there are a number of advantages to the agency business, including the following:

1. Businesses that are easy to start

The agency business is a fairly easy business to start, but you also have to have good preparation. Starting an agency business can be done by preparing a team that has specific skills in a number of fields, such as marketing, media, graphic design, and so on. Agency business will feel easy to run as long as you have people with the skills needed in that field.

2. Adding Digital Value to a Company

As today’s increasingly modern technology develops, like it or not, every company must make changes and keep up with the digital age. For companies, it becomes very important if the digital value of a company is very good.

3. Has a Flexible Business Scale

Agency is a small company that generally handles clients ranging from small to medium scale. After having a lot of experience, the agency can also work with large companies.

4. Businesses that Help Other Businesses

Even though the agency is a business in the service sector, the agency’s job is to help develop many other businesses. This is related to the agency’s main task, which is to prepare various businesses, corporations to multinationals, to face the digital era.

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