Centralization or Decentralization of Advertising

Should advertising be done on a centralized basis or should the responsibility be delegated to lower levels – say product or geographical divisions?

Centralized Advertising Activity has been defined as that which – is located at or directed by headquarters, reporting to corporate sales or marketing head or in top management.In operation it gets the necessary product, market, and budget information from the divisions and then controls the execution of the various programmes by:

1. Providing the needed information and guidance to the advertising agency and other services;
2. Then reviewing and approving the completed work before getting division approval

A Decentralized Advertising Activity is operated and controlled by individual units located in each major division, usually reporting to a division head or to a division marketing or sales head. The division advertising, sales and marketing people and control both the ‘what’ and ‘how’ of the advertising job, getting only advice and counsel plus miscellaneous services from a central advertising function.

In practice, however, it has been found that most companies follow the centralized pattern of advertising organization. There are at least two important reasons for it.

1. It is difficult to transfer the tasks of preparation and execution of creative advertising from to the many without loss of efficiency to a great extent.
2. Most companies entrust their advertising work to outside agencies and it is more convenient with them in a centralized way.