Large companies could buy media space themselves, and could do their own advertising by establishing advertising departments in the company, but these companies prefer specialized large agency companies to be in charge of its advertising.

The advantages and characteristics of using the services of these companies is that they may have more resources to achieve a success and they may have more talented employees than an advertising department of another type of company. Another important advantage is that if the company is not pleased with the results of the advertising, it just has to give its account to another agency; the company will not have to fire any employee.

The most common is to achieve an agreement between the agency and the company about the budget. The company also gives to the agency a brief with the objectives and the message that they want to communicate to its target market. The agency makes different advertisements and a media plan. The agency media planners have to decide how many people will see these ads, that is to say, what percentage of the target market they must reach. They should also decide how many timer should a person see the ad. However, all advertising experts agree on word-of-mouth advertising method as the most effective.

One of the problems of advertising is setting the budget. Some companies just set it by comparing it with those made by other companies; other ones set it as a percentage of the expected sales. But, even though too much advertising could be counterproductive, those ways of setting the advertising budgets do not take into account that an increase on advertising spending can increase current sales.

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