C1224 - Advertising agencies, communication agencies, auctioneering platforms, e-commerce platforms and direct mail services.

Industry code: C1224
Premium rate: 0.65

Classification Facts

Class: C - Commodity - Wholesale - Retail
Rate Code: C12 - Light Commodity
Subcode: 24

Description

Operational Details
Advertising agencies and communication/public relations firms are in the business of planning, developing and executing advertising, communications and public relations projects. They are primarily engaged in creating advertising campaigns and placing such advertising in a variety of delivery media: print, radio, television, web based.

The purpose of advertising is to provide customers with product promotion, public relations and organizational communications support, media relations and consumer/market awareness. Depending on client need, the business may provide some or all of the following services: develop communications, create advertising using publication/design software, write advertising, develop a media plan and contact various media outlets to book advertising, transform graphic design concepts into production-ready materials, television/radio commercials, displays, etc.
Workers involved in advertising include: graphic designers, copywriters, creative directors, account executives, production coordinators/designers/managers, media buyers, strategic advisors, and event coordinators. Designers mostly rely on computers to complete their work.
This classification is to be considered when a firm operates an auctioneering platform but has no responsibility to warehouse, handle or move the merchandise from one location to another. Revenue is on a commission basis. Services offered by the auctioneering platform include advertising the merchandise through print, electronic and/or web-based means, conducting the online auction and collecting payment. Services not included in this classification are the handling of stock, warehousing the merchandise, onsite or off site auctions or delivery arrangements. To fall under this classification the auction must be completely web based with no handling of the merchandise (nor contractors hired to handle the merchandise on their behalf). As a result there is no risk of injury in the movement of the merchandise from the seller to the purchaser.
Direct mail services prepare promotional materials for delivery to targeted audiences and provide their clients that ability to effectively target their audience based on their specific needs. Direct mail service employers sort and compile promotional materials (i.e. letters, pamphlets, brochures and specialty promotional items), which are generally supplied by their clients, and prepare them for delivery. Other services provided by direct mail service employers are market research to develop a target market strategy, and clients' database maintenance. Work is primarily completed on computers and large mailer/sort machines.
Businesses that operate e-commerce platforms with no responsibility to warehouse, handle or ship the merchandise are to be registered under this classification. E-commerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet and the transfer of money and data to execute these transactions. Payments for goods often use electronic payment systems such as debit and credit. E-commerce can include business to business, business to consumer, consumer to business and consumer to consumer. Examples of e-commerce; retail, wholesale, crowdfunding (the collection of money in advance of a product being manufactured in order to raise the startup capital), subscription and digital products such as downloadable goods, courses or media. All aspects of operating an e-commerce platform can be done in an office setting using a computer.

SIC Codes
000001002 - Communication & Advertising
000001028 - Direct Mail Advertising
000001045 – Auctioneering platform
000001048 - E-commerce platform

Previous Codes

NAICS 2007
Code: 54181 - Advertising Agencies
54186 - Direct Mail Advertising