A branding agency is a firm that specializes in creating and launching brands, as well as rebranding.
The role of a branding agency and brand management company is to create, plan and manage branding strategies for clients, but can also involve support in terms of advertising and other forms of promotion.
In order to develop a more profound understanding of the function of these organizations, it is initially important to capture the idea of branding. In short, brand management is the process of developing a company’s brand, including a name, identity system, and messaging platform. These aspects will develop what is referred to as a brand message, which will then be applied to marketing campaigns to spread that message. A brand represents a promise to your customers, what they can expect from your products/services, and essentially what differentiates your offering from competitors. It is a vital element across all industries, as it allows organizations to gain competitive advantage, define a coherent brand communication strategy, and to increase and reach the target market.
All organizational sectors, whether it is a business, non-profit organization, or even a government agency, use branding agencies. Most often, organizations look to hire branding agencies in order to produce a brand management strategy and brand identity.
There is generally a misconception regarding the relationship between these two agencies. Often, branding agencies and advertising agencies are seen as being interchangeable entities. This, however, is not the case, and although they overlap in some respects, their scope and focus are different.
How Branding Agency differ from Advertising Agency
Essentially, the difference between these two agencies is the difference between strategy (branding) and tactics (advertising). Brands play an integral role in a firm’s business strategy. In fact, the terms “company” and “brand” are often used synonymously for one another.
On the other hand, advertising is more focused on the process which firms use to market and communicate with existing and potential customers. A branding agency goes beyond this scope, and whilst commonly performing similar services to a traditional advertising agency, is involved in a larger strategical process.