The American Association of Advertising Agencies: purpose, structure, and services

American Association of Advertising Agencies was founded in 1917 as national trade association in the United States that represents advertising agency business the American Association of Advertising Agencies, 2013a ()

The association is management-oriented, and it offers expertise, broad services, and information to its members in regards to advertising agency business. Its members contribute an approximate of 80% in the total advertising agencies revenue worldwide. Not all the larger multinational advertising agencies are members of the 4A, but their members have a billing of less than $10 million per year. Since it is a national trade association, it is bound by its own by-laws and constitution, which strengthen the association. The association has been credited with been one of the associations that helped in regulating advertising in the United States. The association has its headquarters in New York City.

Membership to the association is by election after interested members fill in application forms. Any advertising agency that is deemed to be unethical in conducting business is denied membership automatically. The association is represented in three regions Central, Western, and Eastern. It functions as a force for improving agency business standards and monitoring advertising practices. The association is the representative of the advertising agency business at the public service works of the advertising council. It also sponsors an educational foundation that offers grant and fellowship programs for graduate schools. AAAA operates as a group pension and insurance plan for its members. It also has a profit sharing plan that benefits the personnel in member agencies.

Purpose

The association's purpose is to strengthen and improve advertising agency business in the U.S. This is done by counseling its members in matters of management and operation, by providing a collective experience of its members. The association also fosters professional development through encouragement of the highest business and creative standards. The association is also charged with attracting excellent people to the advertising agency business. This is done by providing grants to graduate schools. The association also issues awards to the best performing agencies, which encourages competition amongst its members while maintaining the association's standards and by-laws.

The association also regulates advertising in the United States thus, ensuring that all the advertising agencies adhere to the regulations in regards to advertising. Members are required to be ethical in all their dealings, which promotes ethics as failure to do this would result in membership termination. The association is also charged with providing advice and information regarding advertising to its members. The organization is required to work with the Federal government to assist in influencing public policy and resisting unfair regulations and legislations. The association conducts research regarding the effects of advertising on society and the economy. The results of these studies are provided to appropriate members and audiences.

Contemporary issues

In the advertising industry, it is easy for an agency to create an advertisement that would misrepresent the information intended. Many advertisers develop advertisements that have a specific intention, but once they have been broadcast viewers get a completely different message. The AAAA could assist the advertising company on the best way of creating the advertisement. Crafting the advertisement in a clear and easily understood manner, this will ensure that the message is not misrepresented by the audience. Following the guidelines set by the AAAA will ensure that an advertising agency develops ethical advertisements both verbal and visual. The advertisement should also not misrepresent any information.

Gender discrimination is advertising is another issue faced on the advertising industry. In the industry, advertising messages should be framed in a manner that does not discriminate against any race or gender. Advertising agencies have often created advertisements that have been labeled as discriminating one gender or race. The AAAA would provide advice and guidance to its member agencies regarding how to avoid such advertisements. It would also monitor the advertisements published and broadcast to ensure that they are not discriminatory.