The need for advertising companies has increased in recent periods due to the large role of these companies in the marketing process of companies. With the presence of this huge number of companies of various activities and sizes, it was necessary for the final consumer to have companies that play an advisory role to guide the consumer and service recipients to the best solutions that suit his needs and meet his desires With regard to companies, with the presence of this intense competition in all sectors, the company had to seek the assistance of one of the advertising companies that play the role of marketing mediation for the company by introducing the customer to the company’s products and showing its technical capabilities, as well as introducing the customer to the company’s previous business and previous customers, which gives reassurance to the customer By achieving his desires and obtaining the product or service he needs, but with the technological progress in all fields and the emergence of the Internet and social media, the mere fact that the customer searches for a specific service or product appears to him, thousands of companies that provide this product or service, and therefore the advertising and advertising companies themselves became It is facing fierce competition in order to achieve the goal of its customer (companies) by presenting their products to the targeted segment It is a customer and then maintaining current customers and attracting future customers, and in order for the advertising company to play this role, it was necessary to manage the advertising company accurately and correctly so that it can acquire the largest number of customers (companies) that want to market its products and then The success of advertising and advertising companies and achieving their goal, and in order to know the documentary cycle of advertising companies, we must first know the nature of the work of advertising companies.
The nature of the work of advertising companies
The methods of advertising and advertising within the company differ for more than one method. There are paper or physical marketing methods and electronic methods.
The most important paper or physical marketing methods: These marketing methods are represented in advertisements in newspapers and written newspapers, as well as distributed brochures or magazines (catalogs) displaying the company’s products, as well as written signs on the streets or in public places, and other traditional methods.
The most important electronic marketing methods: These methods are the latest and most in line with technological progress. Most consumers or target customer segments to purchase the product or commodity follow daily social media such as (Facebook - Twitter - YouTube - e-mail - WhatsApp .... and others), which makes the work of funded advertisements on these pages achieve great benefit in addition to the electronic fibers on the roads, in stadiums or in public places frequented by customers or service recipients.
By knowing the nature of the work of advertising and advertising companies, we can now identify the documentary cycle within the advertising and advertising companies, as the documentary cycle is divided by the nature of any activity into revenues and expenses.
Revenues obtained from customers (companies) wishing to market their products/services. Here, customers can be classified according to the nature of the activity or the sector in which these companies operate (there are contracting companies - oil companies - shops - restaurants - real estate investment companies, and others)
As well as the expenses are classified according to the nature of marketing, there are paper marketing means and there are electronic marketing means, and the costs of each means of marketing can be determined, and knowing the most serious in attracting customers and the least in terms of cost, which maximizes the profits of advertising and advertising companies, and until this happens, it must be carefully classified and organized for all The financial accounts of the advertising and advertising company and the classification of expenses accurately, as well as the proof of revenues and follow-up of the statements of customers’ accounts properly, which enables the advertising company to review all movements and financial balances accurately and follow-up reports on costs and balances of customers and suppliers, and below we will address the documentary cycle of advertising and advertising companies.
Documentary course for advertising companies.
The documentary cycle of advertising and advertising companies begins with the desire of one of the clients to make a marketing contract for one of his products/services and then asks for a price quote for this service. The exact cost of each of the services it provides and the feasibility of this service, in order to facilitate it to provide a realistic price offer to the client. The advertising company can make profits. After the approval of the client (the marketing service requesting company) on the quotation, a contract is signed between the advertising company and the client who wants to market In most cases, the customer pays an advance payment to the advertising company, which records this advance payment in the company's books as follows:
From h / the treasury or the bank.
To h / advance payments - clients
This advance payment is considered an obligation on the advertising company until the terms of the contract are implemented and the full services are provided. The advance payment is reduced to the customer after an invoice is issued for the full value of the service
from h/client
From h / advance payments - clients
To h / revenue - advertising services
With regard to the cost items, each process must be dealt with independently as a contractor to serve the advertising for this client. Every advertising expense is tabbed on the project (the process number / the client’s contract) to find out whether this process or this contract has achieved profits/losses for the advertising company. It is necessary to calculate all the variable costs such as (paper publications such as the cost of printing paper, inks, technician wages, working hours of machines and design, etc.), as well as charging the contract with the value of fixed costs such as water and electricity expenses, general and administrative expenses and others.
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