Unit - 1 / Advertising

UNIT 1 / ADVERTISING
Advertising
Literal meaning of Advertising: Advertising was originated from a Latin term advertire which means to turn to. The dictionary meaning of the term advertising is to give public notice or to announce publicly.
Definition of Advertising: The American Marketing Association has defined Advertising as any paid form of non-personal presentation and promotion of goods, services or ideas by an identified sponsor.
Elaboration of the above definition: First advertising is paid for that means it involves commercial transaction. Secondly advertising is non-personal that means it is directed towards a mass audience not directed towards any individual as it is in the case of personal selling. Finally advertising is identifiable with its sponsoring authority or advertiser. It discloses or identifies the source of opinions and ideas, it presents.
Einstein College of Engineering
Objectives of Advertising:
There are two types of Advertising Objectives,
I. II.
General Objectives. Specific Objectives.
I. General Objective a) Stimulating Demand It can be done in two ways, first the present users of the product may be persuaded to increase the present rate for product consumption. Second way is to attract the new users into the market by telling them the qualities of the product. b) Increased profits.
II. Specific Objectives of Advertising
a) Preparing ground for new product. b) Facing competition. c) Informing the changes to the consumers. d) Barring new entrants. e) Creating or enhancing goodwill. f) To assist salesmen. g) Expanding the market to new buyers. h) Reminding customers.
Elements to Be Considered In Setting an Objective:
1. Sales as an Objective. A convenient and enticing advertising involves a construct like immediate sales or market share. Advertising is one of the many factors that influence sales. The effect of advertising on sales occurs in the long run.
2. Operational Objectives. When immediate sales are not possible alternative behavioral patterns or actions or interests of the customers have to be studied. It will be done by analyzing the communication and decision process that is affecting the desired behavior.
3. Behavioral Dynamics. An understanding of market dynamics is necessary to analyze the behavior of the customer. Increase in sales can occur basically from three sources or market condition the first one is the new customers attracted for the first time, second by increasing the loyalty of the existing customers and by inducing the existing customers to use the product more.
4. Using Intervening and Behavioral Variables. Using advertising measures that intervene between the incidence of stimulus (advertising) and the ultimate behavioral response of the customers. Such response measures are called intervening variables.
5. Specifying the Target Segment. Specification of the target audience to whom the advertising will be directed. Thus advertising should specify the target audience and how those audiences are to be influenced by advertising.
Setting Objectives
Advertising Objectives
Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
15-4
Informative Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to Another
Reminder Advertising
Keeps Consumers Thinking About a Product.
Copyright 1999 Prentice Hall
Setting Advertisement Objectives Traditional - RIP acronym = Remind - Inform Persuade
1. Informative advertising: To create awareness of the organization. To explain the characteristics of the organization. To correct false impressions about the organization. To reduce peoples apprehensions or fears about visiting the organization. To build or enhance the organizations image or position.
2. Persuasive advertising: To increase customer preference for the organizations services. To increase customer loyalty to the organization. To encourage customers to switch from using a competitive organization. To convince customers to book at the organization now or in the future. To change customers perceptions.
3. Reminder advertising: To remind customers about where they can book the organizations services.
To remind customers about facilities or services that is unique to the sponsoring organization. To remind customers about when they should book or reserve the organizations services. To remind customers of the existence of the organization
Addition to Advertising Objectives
4. Comparison Advertising: Compares one brand with another. Educating and increasing the choices among customers.
5. Reinforcement Advertising: It aims to convince current purchases that they made the right choice. Automobile ads often depict satisfied customers enjoying special features of their new car
Difference between Consumer and Trade Advertising Consumer advertising: aimed at the customers who will actually use the hospitality and travel services being promoted. Trade advertising: aimed at the travel trade intermediaries who will influence customers buying decisions.
Importance of Advertising:
1. To make an immediate sale. 2. To build primary demand. 3. To introduce a price deal. 4. To inform about a products availability. 5. To build brand recognition or brand insistence. 6. To help salesmen by building an awareness of a product among retailers. 7. To create a reputation for services, reliability or research strength. 8. To increase market share. 9. To modify existing products availability or features or price. 10. To increase the frequency of use of a product. 11. To build over-all company image. 12. To reach new areas or new segments of population within existing areas. 13. To develop overseas market.
Role of Advertising:
1. Communicating with customers. Advertising is a major way of establishing communication between manufactures and other organizations providing services or trying to put across ideas and concepts, on the one hand, and customers, buyers and potential acceptors, on the other.
2. Persuasion. Advertising attempts to persuade prospective buyers to buy a product/service. E.g. Fair & Lovely fairness cream.
3. Contribution to Economic Growth. It contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segments.
4. Catalyst for Change. Creativity inherent in advertising leads to the discovery of new relationships that can change the perception of a prospect.
Classification of Advertising:
On the basis of the purpose advertising is usually classified into:
1. Primary Demand Advertising. The main aim of such advertising is to create a primary demand for the product. This is necessary in the case of newly developed products or the products which are costly in nature. E.g. Cars, Refrigerators, Washing machines, etc. since such advertising is directed towards a class of customers, it is also described as selective demand advertising.
2. Product or Institutional Advertising. John Hobson of the Hobson Bates agency, U.K., remarked, People do not buy things; they buy the satisfaction, both objective and subjective, that those things are
going to deliver to them personally. Advertising thus a window display of satisfaction. Satisfaction in turn, is purely in psychological in nature. It is this psychological element that is tickled through advertisement. To achieve the desired results, advertising must, naturally, carry the brand of the product or of the manufacturer. E.g. Bata, Bombay Dyeing, and Dunlop for Institutional advertising. Horlicks and Dalda for Product Advertising.
3. Co-operative Advertising. When manufacturers, wholesalers and/or retailers jointly sponsor and share the expenditure on advertising it takes the form of co-operative advertising. It will carry the names of all the parties involved. E.g. Manufacturers of Cars.
4. Commercial Advertising. It is also termed as business advertising. It is solely meant for effecting increase in sales. Forms of commercial advertising are: Consumer goods advertising Exclusively used for selling consumer products. Industrial goods advertising Exclusively used for selling industrial products. Trade advertising - Advertising relating to a trade. Professional advertising is undertaken by professional people such as doctors, accountants. Farm advertising Exclusively used for selling farm products such as fertilizers, insecticides, farm implements, etc.
5. Non-Commercial Advertising. These are usually published by charitable institutions preferably to solicit general and financial help. E.g. collection of donations or sale of tickets.
6. Direct Action Advertising. Advertising that stresses and persuades immediate buying of the product is known as Direct action advertising. Direct mail advertising is capable of achieving immediate action to a larger extent.
Benefits of Advertising:
Benefits of Manufacturers: 1. It increases sales volume. On the one hand it reduces the cost of production and, on the other, increases profits. 2. It helps easy introduction of products into the products. 3. It helps to create an image and reputation not only of the product but also of the advertiser. 4. Retail price maintenance is possible. 5. It helps to establish a direct contact between manufacturers and consumers.
Benefits to Wholesalers and Retailers: 1. Easy sale of the products is possible since consumers are aware of the product and its quality. 2. It increases the rate of the turnover of stock. 3. It supplements the selling activities. 4. The reputation created is shared by the wholesalers and retailers like.
5. It enables them to have product information. 6. It ensures more economical selling.
Benefits to Consumers 1. Advertisers stresses quality and very often prices. This forms an indirect guarantee to the consumers. 2. It helps them to know where and when the products are available. This reduces the shopping time. 3. It provides an opportunity to the customers to compare the merits and demerits of various substitute products. 4. This is perhaps the only medium through which consumers could know the varied and new uses of a product. 5. Modern advertisements are highly informative.
Benefits to Salesmen:
Salesmanship is incomplete without advertising. It is a forerunner of a salesman in the distribution of goods.
1. Introducing the product is made easy. 2. It prepares the necessary ground for a salesman to begin his work. Hence sales efforts are reduced. 3. The contact established with the customer by a salesman is made permanent through advertising. 4. The salesman can weigh the effectiveness of advertising when he makes a direct contact with the customer.
Benefits to the Community
1. Advertising is educative in nature. 2. Advertising leads to large-scale production creating more employment opportunities. 3. It initiates a process of creating more wants and their satisfaction resulting in a higher standard of living. 4. Newspapers would not have become so popular and so cheap if there had been no advertisements. 5. It assures employment opportunities for the professional artists.
Drawbacks or Objection or Criticisms:
Economic Objections: 1. Advertising is not productive. 2. Advertising faces people to desire and buy things which, in fact, are not within their means. 3. Advertising simply multiply the needs. 4. Advertising increases the cost of goods. 5. The monopoly argument. It usually lays emphasis on brands. This emphasis makes the consumer to become a slave of the particular brand.
Social Objections: 1. Misrepresentation of facts. 2. The press is influenced by advertisers because they provide the major source of revenue for the existence of newspapers.
Ethical Objections:
1. Advertising appeals make people to such articles as might affect their health, for e.g. liquors and cigarettes. 2. Consumer deficit. People with less purchasing power cannot afford to buy many articles though the advertisements create a strong need in them for the product.
DAGMAR APPROACH
Meaning & Introduction of DAGMAR:
DAGMAR Defining Advertising Goals for Measured Advertising Results. It is a book written in 1961 by Russell H. Colley The book introduced what has become known as the DAGMAR approach to advertising planning and included a precise method for selecting and quantifying goals and for using those goals to measure performance. The first important concept of DAGMAR approach is to define an advertise goal i.e. communication task. The second important concept of the DAGMAR approach is that the advertising goal be specific.
A hierarchy of effects model of the communication process by DAGMAR first important concept.
Unaware Aware Comprehension and Image Attitude Action
The initial communication task of the brand is to increase consumer awareness of the brand. The second step of the communication process is brand
comprehension and involves the audience (customers) learning something about the brand. The third step is the attitude that is the interaction of the advertisement with the customer. The final step is the action phase makes the buyer to buy the product.
The second important concept of the DAGMAR approach is that the advertising goals be specific. 1. Measurement procedure Goals to be made specific and it should include measurement procedure.
2. Benchmark - A standard or point of reference against which our advertisement goals have to be compared or assessed with that of competitors. 3. Target Audience. 4. Time period e.g. Parlie G. 5. Written Goals.
Advertising Agency
Definition of Advertising Agency
The American Association of Advertising Agencies or 4As has given the following definition to advertising agencies: Advertising agency is an independent business, composed of creative and business people who develop, prepare and place advertising in advertising media for sellers seeking to find customers for their goods or services.
General Meaning of Advertising Agency It is an independent organization that provides one or more specialized advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotion programmes. Most large and medium-sized companies usually use an advertising agency.
Evolution of Advertising Agency According to James Melvin Lee William Bradford publisher of the first colonial weekly in New York, made an arrangement with Richard Nichols, post master in 1727, whereby the later accepted advertisements for the New York Gazette at regular rates. Volney B Palmer (1840) is the first known person who worked on a commission basis to sell space in newspapers. During the 1850s, in Philadelphia, George P Rowell bought large blocks of space from publishers at quite low rates and, after deducting the agents commission, paid them in cash. He published a directory of newspapers in 1869 with their rates for ad space and his own estimates of their circulation. Charles Austin (early 1870s) began writing ads for anyone who wanted them. Two of his employees, Earnest Elmo Calkins and Ralph Holden, founded their own agency in the 1890s and brought together planning, copy and art to set a trend of combining all three into effective advertising. In 1917, newspaper publishers set 15 per cent as the standard agency commission. During the 1980s, there was a wave of acquisitions and mergers of ad agencies and support organizations to form super-agencies. These large organizations were formed so that they could provide their clients integrated marketing services worldwide. The major changes in the structure, functioning and the range of services provided by advertising agencies evolved mainly in the later part of the 20th century. Over 400 advertising agencies are accredited
to the Indian and Eastern Newspapers Society (IENS), besides many unaccredited agencies.
Reasons or Need for the companies to go for Advertising Agency Probably the main reason why companies use outside ad agencies is because they provide their clients with services of highly skilled specialists in their chosen fields. An advertising agency may have personnel that include writers, artists, media specialists, market research specialists and others with specific knowledge, skills and experience to help clients, marketing their products and services.
Agency Compensation
There are three methods used to compensate the agencies for their varied services
1. Commission. The most traditional method for compensation or remuneration of advertising agencies for their services is through a Commission System. The agency is paid a fixed commission (usually it is 15 %) from the media on any advertising space or time purchased for the advertiser. The rate for outside media is slightly higher (usually it is 16.66 %). This is a simple system to determine the amount of commission.
Drawbacks or Criticism For e.g., To produce an ad, two agencies may put in the same amount of effort, however, one client spends Rs 5,00,000 on media and the other spends Rs 10,00,000. The agency serving the first client would get paid only Rs 75,000, while the other agency would get Rs 1, 50,000 in commissions. The critics that this system encourages agencies to recommend higher media expenditures to increase their earnings. The clients say that in periods of media cost inflation, the agencies earn disproportionate amounts as commissions.
2. Negotiated Fee. A number of agencies and their clients negotiate some type of fee system or cost-plus arrangement for compensation. Some use an incentive-based compensation system combining a fee and system. Agency executives sometimes feel that 15 percent commission is inadequate for the services rendered to the client. In an arrangement of fixed-fee method, the agency charges a fixed monthly fee based on the work being done. This would apply to all the services provided and the agency passes on to the client any media commissions earned. The fee system is used in TV advertising where once the commercial is created it may be used over a long period of time. Without an agreed fee system, the agency would receive 15 per cent commission on media time, every time the commercial is run. Sometimes the agency is paid through a combination of fee and commission method. The media commissions received are by the agency are adjusted against the agreed fee. If the received
commissions are less than the agreed upon figure, the client has to make up for the difference. The agency should carefully assess the costs of serving the client for the specific project, or the specified time period, and what profit margins are desired. Such a fee arrangement should specify exactly what services the agency has to perform for the client. This would help avoid the possibility of any unpleasant disagreements between the two. Under the cost-plus system, the client agrees to pay a fee based on the cost of work the agency performs, plus some mutually agreed margin of profit for the agency. The agency is required to keep detailed records of the costs incurred in perform the desired services for the client.
3. Percentage Charges. When the agency purchases various services from outside providers, they do not allow the agency a commission and to cover up administrative costs and reasonable profit for the agencys efforts, a make-up of percentage charges for such services is added to the bill. These services may include market research, artwork, photography, printing and other services. The percentage charges range between 17.65 per cent and 20 percent.
For example, if the agency pays Rs 1, 00,000 for research, 17.65 of this figure is added to reach a total of Rs 1, 17,650. The agency adds 17.65 percent of this total in the overall bill. Approximately this yields 15 percent commission (17.65 percent of Rs 1, 17,650 = 17, 647.50 and equals to 15 percent of Rs 1, 17,650).
Agency Evaluation
The process of agency evaluation involves regular assessment of two aspects of performance area-financial and qualitative. 1. Financial the financial assessment focuses on how the agency conducts its business vis--vis costs and expenses, the number of personnel hours charged to an account and what payments are made to media and other outside service suppliers. 2. Qualitative Assessment explores the agencys efforts devoted to planning, developing and implementing the client companys advertising campaign and an assessment of the achievements. Depending on the importance of advertising in a companys marketing programme, both informal and formal methods of assessment are used by different companies. Some companies develop a formal and systematic evaluation method that uses a ranking scale for creative and media services, such as poor/average/excellent on a scale of 1 to 10. Brand or promotion managers complete the
advertising agency performance evaluation, usually once a year. These reports are reviewed with the agency at each annual meeting.
Reasons for Losing Clients

Some of the more common causes that account for agencies losing clients are 1. The clients dissatisfaction with the agencys performance with regard to advertising quality or service. 2. Poor communication between the client and the agency personnel hinders a good working relationship. 3. Personality clashes between the client and agency personnel. 4. Unrealistic client demands, which reduce the accounts profitability for the agency. 5. New managers in clients organization may want to use an agency with which they already have established ties. 6. Often when agencies merge, there is a conflict of interest as two close competitors may on the merged agencys account list. 7. A change in the clients marketing strategy
Full-service Agencies
The full-service agency is composed of various departments, each responsible for providing inputs needed for performing various functions to serve the client. Functions are as follows:
1. Account Services. Account services or account management is responsible for the relationship between the agency and the client. One or more account executives are assigned to serve as liaison, depending on the clients size and the advertising budget. The account executives job requires a high degree of diplomacy and tact as misunderstanding may lead to loss of account. The account executive is responsible for acquiring knowledge about the clients business, profit goals, marketing problems and advertising objectives. The ideal account executive has a strong marketing background and a deep understanding of all aspects of the advertising process. The biggest contribution of the account executive is keeping the agency ahead of its clients needs through follow-up and effective communication. 2. Marketing Services. The research department is maintained by the full service agency to gather and interpret published information (secondary data) or primary data (first hand information through research) which is useful in developing advertising for their clients. The responsibility of the agencys media department is to develop a media plan which can reach the target audience effectively in a cost
effective manner. The staff analyses, selects and contracts for media time or space that will be used to deliver the ad message. This is one of the more important decision areas as a significantly large part of the clients budget is spent on media time and/or space. Media specialists must consider the reach and frequency of the chosen media, their rates and how well the media matchers the target audiences media preferences and habits before actually purchasing the time and space.
3. Creative Services. To a large extent, the success of an agency depends on the creative services department to which is responsible for the creation and execution of the advertisements. The creative specialists are known as copywriters. They are the one who conceive the ideas for the ads and write the headlines, subheads, and body copy. They are also involved in determining the theme or basic appeal of the advertising campaign and often prepare the rough layout of the print ad or storyboard for TV commercials. Creation of ad message is the responsibility of copywriters and the art department decides how the ad should look. The art director and the graphic designer coordinate their work and prepare the layouts for a print ad. These sketches or drawings of the ad show what it will look like when fully completed. The layout prepared for a TV commercial is a sequence of frames showing the commercial in still form and is called a storyboard.
After completion and approval of the copy, layout, illustrations and mechanical specifications, the ad is handed over to the production department. Generally agencies do not actually produce finished ads; instead they hire printers, photographers, engravers (designers), typographers (typing of written materials and others to complete the finished ad. For the production of approve TV commercial, the production department may supervise the casting of actors to appear in the ad, the settings for the scenes, and selecting an independent production studio. The production department sometimes hires an outside director to transform the creative concept into a commercial. Creation of an ad often takes several months and may involve many people. A major problem with large agencies handling many accounts is coordinating the creative and production processes. The responsibility of traffic department is to coordinate all phases of production and ensure that the ads are completed on time to meet the media deadlines.
4. Management and Finance. An advertising agency is in the business of providing services and must be managed that way. There is an administrative head who takes charge of functions such as finance, accounting, human resource and office management.
Agency Structures
Popular among medium and large sized agencies are two types of structures:
1. Departmental System The full-service agencies are an example of departmental system. Departments grouped around functions and, as per the need, a specific department is called upon to serve all of the agencys clients. For example, creative services department is called upon for ad layout, writing and production services for all the clients. This type of organizational structure is preferred by some agencies because it provides employees with the opportunity to develop expertise in servicing different types of clients.
2. Group System Many large full-service agencies use group system to form their organizational structure. Individuals are drawn from different functional areas and work as groups to serve particular clients. Each group is headed by an account executive. Agencies using the group system believe that employees become very knowledgeable about particular clients business and thus are able to ensure continuity in servicing the account.
Other Types of Agencies

A number of advertisers, including heavy spenders, look for specific high quality service agencies and do not want to contract a full-service agency.
1. Media Buying Services These are independent agencies specializing in media buying services and have been experiencing strong growth. The advertising media buying has become complex with the increase in specialized media. Clients and ad agencies generally develop their own media strategies and contract media buying services to execute them. Agencies offering this service buy large chunks of space and time, thus receiving large discounts, and save money for clients and small ad agencies on media purchases. For the service rendered, they are paid a commission or fee by the agency or the advertiser.
2. Creative Boutiques (that sells women's clothes and jewelry) Such an agency provides only creative services. These creative boutiques have grown in response to advertisers desire to use only the high quality creative talent of an outside service provider and rest of the functions are completed within the advertisers organization. Many full-service agencies too sub-contract work to creative boutiques when they want to avoid increasing full-time employees or are very busy. These boutiques usually work on an agreed fee basis.
Creative department people on leaving big agencies start such boutiques and carry with them some of the agencys clients who want to retain their creative talent.
How the Agencies Acquire (get or buy) New Clients

Competition among advertising agencies is intense. Most companies already have advertising agencies working for them and there are few new entrants in the business arena each year. Most new business for large agencies comes from clients who drop their agency and want to hire a new one or, in some cases, want to use more than one agency for different product lines.
1. Referrals (recommendations): Agencies gain new clients as a result of recommendations from existing satisfied clients, media representatives, and often by smaller agencies. This requires maintaining good relations with outside parties.
2. Solicitations: This is quite a common method of gaining new clients by smaller agencies. The top man calls on prospects and seeks accounts. Most large advertising agencies have new business development group responsible to seek out and establish contact with new clients, make cold calls, write request letters and follow up on any leads.
3. Presentations: The objective of the business development group is to create opportunities so that the agency receives invitations from companies to make presentations. Through presentation, the agency may succeed in selling its services to new clients. The agency describes its experience, its personnel and capabilities, procedures and
demonstrates its outstanding work.
Client or Advertisers Role in Organizing for Advertising

The manner in which a company organizes for advertising and other promotional elements depends on several factors such as company size, number of products, role of advertising in promotion mix, the budget and structure of its marketing organization. Advertising function is an intimate part of the marketing department. Many marketing personnel often provide inputs in campaign planning, agency selection and evaluation of proposed programmes. Many companies have an advertising department, headed by a manager. In multi-product companies, with decentralized marketing, product management or brand management system operates. Some large organizations form a separate in-house agency responsible for advertising and other promotional activities.
Different Advertising Organization Systems

1. The Centralized System Marketing activities, in some companies, are divided along functional lines such as advertising sales, marketing research, product planning, etc. the advertising manager looks after all promotional activities concerned with the companys products and services, including budgeting, creation of ads and their production, media schedules and sales promotions, but excluding sales management.
Basic functions performed by the advertising department under the centralized system: Planning and Budgeting Its foremost responsibility is to develop advertising and other promotional plans in line with the marketing objectives, strategies and budget of the company and get it approved by the higher management. Administration and Execution The advertising manager is responsible for the organization, supervision and control of the advertising department. She/he supervises the plan execution by subordinates and the advertising agency. This needs working closely with production, media, copy, art and sales promotion. In case an outside ad agency is hired, the advertising manager reviews and approves the prepared advertised plans.
Coordination within the Company Advertising manager has to coordinate with other marketing functions, particularly marketing research and sales. In spite of having an advertising department, many companies use outside advertising agencies and their services. The ads may be developed in-house and the services of media buying agencies may be used to place the ads in suitable media. The department may use the services of collateral agencies to develop brochures and point-of-purchase (POP) ad materials, etc. The advertising manager closely coordinates with the personnel of outside advertising agency and also determines which service providers to use.
2. The Decentralized System A decentralized system is followed in large corporations with many product lines and brands. Typically, the company has many strategic business units, or divisions, with separate manufacturing, research and development, marketing, sales, product or brand management departments. Each brand is assigned to a brand manager (also termed as product manager) who is totally responsible for managing the brand, including planning, budgeting, sales and its profit performance. The brand manager often has one or more assistant brand managers to help in the planning implementation and control of the marketing programme.
3. In-house Advertising Agency For companies with their own in-house advertising agencies, the major consideration is to decrease advertising and other promotional costs by exercising greater control over their activities. The in-house agency is set-up and given an identity of its own. It is owned and operated by the advertiser and handles large sums of advertising money. The substantial advertising money paid to outside agencies in the form of media commissions goes to the in-house agency.
Developing an Advertising Campaign (See Slides) Advertising Campaign - The design of a series of advertisements and their placement in various advertising media in order to communicate with a particular target audience.
General Steps in Developing and Implementing an Advertising Campaign
1. Identify and Analyze Target Audience Target audience is the group of people at whom advertisements are aimed Location and geographic distribution Distribution of demographic factors Lifestyle information Consumer attitudes
2. Define Advertising Objectives What does the firm hope to accomplish with the campaign? Objectives should be clear, precise, and measurable. Increased sales (units or dollars) and/or increased product or brand awareness
3. Create Advertising Platform Basic issues or selling points to be included in the advertising campaign Issues in the selection and use of the product that are important to customers
4. Determine Advertising Appropriation 5. Develop Media Plan 6. Create Advertising Message 7. Execute Campaign 8. Evaluate Advertising Effectiveness
UNIT 2 / ADVERTISEMENT MEDIA
Important Terminologies of Media Planning
1. Media Planning / Media Plan A series of decisions involving the delivery of messages to audiences. Or Media plan is the guide for media selection. Or The process of designing a course of action that shows how
advertising time and space will be used to contribute to the achievement of marketing objectives. Or The process of determining media objectives and strategies that show how advertising time and space can best deliver the advertising message. Or The media plan is a document that outlines media objectives and media strategies. Or Media planning can be defined as: Finding ways of reaching the right number of appropriate people; the right number of times; at the best time and place; with the right advertisement; at minimum cost and to achieve the brands/services objectives. It includes: Media Objectives Media Mix Recommendations
Media Vehicle Recommendations Scheduling Pattern Budget Breakdown 2. Media Objectives Goals to be attained by the media strategy and program. The specific goals an advertiser has for the media portion of the advertising program. 3. Media Strategy Decisions on how the media objectives can be attained. Plans of action for achieving stated media objectives. 4. Medium / Media / Media Class The various general categories of delivery systems, including broadcast and print media. The general category of media that is available for communicating with a target audience. 5. Broadcast Media Either radio or television network or local station broadcasts. 6. Print Media Publications such as newspapers and magazines. 7. Media Vehicle The specific message carrier, such as the Newspaper or News at 6:30. The specific program, station, publication or promotional piece used to carry an advertising message. 8. Coverage The potential audience that might receive the message through the vehicle. TV Homes/Households Using Television 9. Reach
The actual number of individual audience members reached at least once by the vehicle in a given period of time.
10. Frequency The number of times the receiver is exposed to a vehicle in a specific time period.
Advertising Media Planning
Introduction
The two basic tasks of marketing communications are;
i. ii.
Message Creation and Message Dissemination Media planning supports message dissemination (spreading or distribution). Media planning helps you determine which media to use--be it television programs, newspapers, bus-stop posters, in-store displays, banner ads on the Web, or a flyer on Face book. It also tells you when and where to use media in order to reach your desired audience. Simply put, media planning refers to the process of selecting media time and space to disseminate advertising messages in order to accomplish marketing objectives. When advertisers run commercials during the Super Bowl game at more than $2.5 million per thirtyEinstein College of Engineering
second spot, for example, media planners are involved in the negotiation and placement. Media planners often see their role from a brand contact perspective. Instead of focusing solely on what medium is used for message dissemination, media planners also pay attention to how to create and manage brand contact. Brand contact is any planned and unplanned form of exposure to and interaction with a product or service. For example, when you see an ad for Volkswagen on TV, hear a Mazda's "zoom zoom" slogan on the radio, are told by a friend that her iPod is the greatest invention, or sample a a new flavor of Piranha energy drink at the grocery store, you are having a brand contact. Television commercials, radio ads, and product sampling are planned forms of brand contact. Word of mouth is an unplanned brand contact -- advertisers normally do not plan for word of mouth. From the consumer's perspective, however, unplanned forms of brand contact may be more influential because they are less suspicious compared to advertising. The brand contact perspective shows how the role of media planners has expanded. First, media planners have moved from focusing only on traditional media to integrating traditional media and new media. New media -- cable and satellite television, satellite radio, businessto-business e-media, consumer Internet, movie screen advertising and videogame advertising -- is playing an increasingly significant role.
Second, media planners are making more use of product placements now, in lieu of advertising insertions. Finally, the role of media planners has expanded as media planners have moved beyond planned messages to take advantage of unplanned messages as well. Whereas planned messages are what advertisers initiate -- like an ad, press release or sales promotion -- unplanned messages are often initiated by people and organizations other than advertisers themselves. Word of mouth, both online and offline, is one form of unplanned message. Although advertisers have little direct control over the flow of unplanned messages, they can facilitate such a flow.
Difficulties / Problems of Media plan
1. Insufficient information a. Not detailed info about viewing audience b. Expensive info especially for small advertisers 2. Inconsistent Terminologies (Recall vs Recognition) 3. Time Pressures a. Especially for tactical ads 4. Difficulty Measuring Effectiveness a. Difficult to ascertain relative media/vehicles effectiveness of various
Developing / Steps / Procedures of Media Plan / Media Planning
1. Analyzing the Market 2. Establish the Media Objectives in light of Marketing and Advertising Objectives. 3. Develop Media Strategy for Implementing Media Strategy. 4. Designing Media Tactics for Realizing Media Strategy. 5. Evaluate Performance proposing procedures for evaluating the effectiveness of the media plan.
1. Media Objectives Media objectives usually consist of two key components: Target audience and communication goals. The target audience component of the media objectives defines who is the intended target of the campaign. For example, P&G's target audience objective for its Fusion shaving system was men 18-40 years old. The communications goals component of the media objectives defines how many of the audience the campaign intends to reach and how many times it will reach them. In short, media objectives are a series of statements that specify what exactly the media plan intends to accomplish. The objectives represent the most important goals of brand message dissemination, and they are the concrete steps to accomplish marketing objectives. The next two sections (2.1. and 2.2.) provide details on target audience and communication goals.
2.1. Target Audience The first objective of a media plan is to select the target audience: the people whom the media plan attempts to influence through various
forms of brand contact. Because media objectives are subordinate to marketing and advertising objectives, it is essential to understand how the target audience is defined in the marketing and advertising objectives. The definition may or may not be exactly the same, depending on the marketing and advertising objectives and strategies. A common marketing objective is to increase sales by a specific amount. But this marketing objective does not specify a target audience, which is why the media objective is needed. The point is that each campaign could increase sales via a different target audience. Marketers analyze the market situation to identify the potential avenues for boosting sales increase and consider how advertising might achieve those aims. If the advertiser chooses to attract competitors' customers the media plan will need to define the target audience to be brand switchers and will then identify reasons to give those potential switchers to switch, such as greater convenience, lower cost, or additional plan features.
2.1.1 Demographics and Psychographics The target audience is often defined in terms of demographics and psychographics.
Demographics Syndicated research services such as Simmons Market Research Bureau (SMRB or Simmons) and Media mark Research Inc. (MRI)
provide national data on a number of demographics of U.S. consumers, including gender, age, education, household income, marital status, employment status, type of residence, and number of children in the household. Using demographic variables, for example, the target audience of a media plan could be "individuals who are 26to-45 years old with yearly household income of $50,000 or more" or "all households with children age 3 years or younger." Some advertisers believe that demographic definitions of a target audience are too ambiguous, because individual consumers that fit such definitions can be quite different in terms of their brand preference and purchase behavior. For example, think about the students in a media planning class. Even though some of them are the same age and gender, they may like different brands of toothpaste, shampoo, cereal, clothing, and other products. Therefore, media planners use psychographics to refine the definition of the target audience.
Psychographics It is a generic term for consumers' personality traits (serious, funny, conservative), beliefs and attitudes about social issues (opinions about abortion, environment, globalization), personal interests (music, sports, movie going), and shopping orientations (recreational shoppers, price-sensitive shoppers, convenience shoppers). One psychographic system which media planners often use is called VALS (short for Values and Lifestyles), which was developed by SRI
in the 1980s. VALS places U.S. adult consumers into one of eight segments based on their responses to the VALS questionnaire. The eight segments are: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers and Survivors. Each segment has a unique set of psychological characteristics. For example, Innovators are "successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services." Defining a target audience by psychographic variables helps not only creative directors with the development of advertising appeals but also media planners with the selection of effective media channels. If a psychographic group of consumers likes playing golf, for example, they are likely to read golf-related magazines and visit golf-related Web sites.
2.1.2. Generational Cohorts In addition to demographics and psychographics, generational cohort is another useful concept for selecting the target audience. Because the members of a particular generational cohort are likely to have had similar experiences during their formative years, they maintain analogous social views, attitudes, and values. Generational cohorts in the U.S. are the Baby Boomers (about 70 million people born 19451964), Generation X (about 17 million people born in 1965-1978),
and Generation Y (about 60 million people born between 1979 and 1994). Each of the cohorts possesses distinct characteristics in their lifestyles and often serves as a reference group from which finer segments of the target audiences can be selected for specific advertising campaigns. An interesting example of a generational cohort is "kogals" in Japan. Originating from the world for "high school," kogals are a unique segment of young women in urban Japan who conspicuously display their disposable incomes through unique tastes in fashion, music, and social activity. They have the leisure time to invent new ways of using electronic gadgets. For example, they started changing mobile phones' ring tones from boring beeps to various popular songs and changing screen savers from dull defaults to cute pictures. Manufacturers observe kogals and listen to what they say is unsatisfactory about the products. In some cases, manufacturers simply imitate the new usages that kogals spontaneously invented and incorporate these usages part of their own new commercial services, thereby increasing sales.
2.1.3. Product and Brand Usage Target audiences can also be more precisely defined by their consumption behavior. Product usage includes both brand usage (the use of a specific brand such as Special K cereal or Dove soap) and category usage (the use of a product category such as facial tissue or chewing gum). Product use commonly has four levels: heavy users, medium users, light users and non-users.
The levels of use depend on the type of product. For example, Simmons defines heavy domestic beer users as those who consume five or more cans in the past 30 days, medium beer users as those who consumer two to four cans, and light users as those who consume one can in 30 days. For travel, Simmons' definitions are: three foreign trips per year indicate heavy travel users, 2 foreign trips per year are medium travel users, and 1 trip per year are light travel users. There is a popular saying in the industry: "the twenty percent who are heavy users account for eighty percent of the sales of a product." This highlights the importance of heavy users for a brand's performance. Examples of defining a target audience by product usage can be "individuals who dine out at least four times in a month" or "individuals who made domestic trips twice or more last year." Similarly, brand usage has several categories. Brand loyals are those who use the same brand all the time. Primary users use a brand most of the time but occasionally also use other brands in the same category; they are secondary users for these competing brands. Brand switchers are those who have no brand preference for a given product category but choose a brand on the basis of situational factors. An analysis of the brand usage pattern is helpful for the identification of the appropriate target audience.
2.1.4. Primary and Secondary Target Audience
The target audience in a media plan can be either primary or secondary. A primary target audience is one that plays a major role in purchase decisions, while a secondary target audience plays a less decisive role. In the case of video game players, for example, children's requests often initiate a purchase process; parents often respect their children's brand selection. Thus, it is reasonable to consider children as the primary target audience and their parents as the secondary target audience. If the parents are aware of the advertised brand, it will be easier for children to convince them of the purchase. Media planners need to examine and identify the role of consumers in shopping, buying and consuming a product or service to target the right groups of consumers effectively.
2.1.5. The Size of Target Audiences In the process of defining a target audience, media planners often examine and specify the actual size of a target audience -- how many people or households fit the definition. Knowing the actual size helps advertisers to estimate the potential buying power of the target audience. For example, if the target audience of a campaign is defined as working women 26-to-44 years old who are interested in receiving daily news updates on their mobile phones, media planners should estimate the number of these women in the U.S. to quantify the sales potential.
2.2. Communication Goals After media planners define the target audience for a media plan, they set communication goals: to what degree the target audience must be exposed to (and interact with) brand messages in order to achieve advertising and marketing objectives. For example, one communication goal can be that 75 percent of the target audience will see the brand in television commercials at least once during a period of three months. Another communication goal is that 25 percent of the target audience will form a preference for a new brand in the first month of the brand launch. The different communication goals can be better understood in a hierarchy of advertising objectives, such as Bill Harvey's expansion of an earlier model of Advertising Research Foundation (ARF). The first three levels of goals from the bottom -- vehicle distribution, vehicle exposure, and advertising exposure -- are particularly relevant for media planning. Vehicle distribution refers to the coverage of a media vehicle, such as the number of copies that a magazine or newspaper issue has, or the number of households that can tune in to a given television channel. Vehicle exposure refers to the number of individuals exposed to the media vehicle, such as the number of people who read a magazine or watched a television program. Advertising exposure refers to the number of individuals exposed an ad or a commercial itself.
It is important to note the difference between vehicle exposure and advertising exposure for many media with editorial content. For example, not all audience members of a television program will watch all the commercials interspersed in the program. A study shows that only 68 percent of television audiences watch the commercials in television programs. Vehicle exposure represents only an opportunity to see an ad, not necessarily that the ad has actually been seen. In reality, advertising exposure is rarely measured, and media planners use vehicle exposure as a proxy measure of advertising exposure. Another group of communication goals is advertising recall, advertising persuasion, leads and sales. Advertising Recall represents the cognitive effect of the Ad, Advertising Persuasion represents the emotional effect of the Ad, and Leads and Sales are the behavioral effects of the Ad. Each can be specified in a media plan as a communication goal. For example, a communication goal can specify that 50% of the target audience will recall the radio ad during the month of the campaign, or that a campaign will generate 3000 leads. 2.2.1. Reach, Frequency and Gross Rating Points Media planners often define the communication goals of a media plan using the three interrelated concepts of reach, gross rating points, and frequency. Reach Media planners use reach to set their objective for the total number of people exposed to the media plan. Reach is one of the most important terms in media planning and has three characteristics. First, reach is a
percentage, although the percentage sign is rarely used. When reach is stated, media planners are aware of the size of the target audience. For example, if a media plan targets the roughly 5 million of women who are 18-25 years old, then a reach of 50 means that 50% or 2.5 million of the target audience will exposed to some of the media vehicles in the media plan. Second, reach measures the accumulation of audience over time. Because reach is always defined for a certain period of time, the number of audience members exposed to the media vehicles in a media plan increases over time. For example, reach may grow from 20 (20%) in the first week to 60 (60%) in the fourth week. The pattern of audience accumulation varies depending on the media vehicles in the media plan. Third, reach doesn't double-count people exposed multiple times if the media plan involves repeated ads in one media category or ads in multiple media categories. Media planners use reach because it represents that total number of people exposed to the marketing communication. Besides reach, media planners use Gross Rating Points as a shorthand measure of the total amount of exposure they want to buy from media outlets such as TV networks. For example, the 2006 Super Bowl game received a rating of 42, which means 42 percent of U.S. television households tuned in to the program. If an advertiser planned to run a commercial once during the Super Bowl (program), that ad would appear in 42% of households. If the commercial was run only once, the reach is equal to the rating of the program, a GRP of 42. If the
advertiser's media plan called for running the ad twice during the Super Bowl, the GRP would be 2*42 = 84. Media planners often think in terms of gross rating points because ad prices often scale with this measure. As a rule of thumb, it costs about twice as much to obtain a GRP of 84 as to obtain a GRP of 42. A media plan that calls for a GRP of 84 doesn't necessarily mean that the advertiser must advertise twice on the Super Bowl. The advertiser could also buy 6 spots on popular primetime shows that each have a rating of 14 (6*14 = 84) or buy a large number of spots (say 42 spots) on a range of niche-market cable TV programs, radio stations or magazines that have a rating of 2. Some media vehicles are best-suited to specific target audiences. For example, the Nickelodeon TV channel controls 53% of kids GRPs. Notice the difference between GRP and reach: GRP counts total exposures while reach counts unique people exposed. Thus, GRP does double-count people who see ads multiple times. Frequency connects the concept of reach with that of GRP. To see this relationship between GRP and reach, let's consider what happens when an advertiser puts two spots on the Super Bowl -- one during the first half of the game and another in the second half. As mentioned earlier, this example plan has a GRP of 84. But what is the reach? That depends on how many people watch both halves of the game. Rating services such as A.C. Nielsen monitor who watches the game, when they watch, and whether they watch the first half or the second half or both halves of the game. These rating services know that, for example, 1/3 of the gamewatching households stop watching after the first half and 1/3 of
game-watching households start watching during the second half. This means that, although 42% of households are tuned in to the game during each half, it's not the same 42% for both halves. Thus, the reach of the first ad is 42, but then one-third of these households (42%*1/3 = 14% of all households) tune out before the second ad during the second half. This means that only 28% of all households watch both first and second halves of the game and see the ad twice. This 28% of households who are still watching when the second spot shows won't add to the reach when they see the second spot. During the second half, a different 14% of U.S. households tune in. These new watchers do count toward the reach during the second half because they didn't see the ad during the first half. Thus, the total reach for the game for the two-ad plan is 42+14 = 56. Frequency It is the ratio of GRP over reach. Frequency is a measure of repetition. The formula of calculating frequency is: Frequency = Gross rating points / Reach Using the Super Bowl example again, if the GRPs were 84 and the reach was 56, then the frequency would then be 1.5 (84/56=1.5). A frequency of 1.5 would mean that, on average, audience members of the Super Bowl game had one-and-a-half opportunities to watch the ad. The media objectives of a media plan often call for some combination of reach and frequency. Media planners want the highest reach possible because that means more people will be exposed to the campaign, which should lead to more brand awareness, customer loyalty, sales, and so on.
Media planners also seek high frequency if they feel that consumers will only take action (that is, buy the product) after multiple exposures to the campaign. For example, launching a new brand or teaching consumers about the features of a product (like the features of a fivebladed shaving system) may take several impressions. Thus, reach indicates the media dispersion while frequency shows the media repetition. Notice that the formula for frequency can be flipped to make a formula for GRPs; GRPs are the product of reach multiplied by frequency. If a media plan calls for a broad reach and a high frequency, then it calls for very high GRPs (lots of ad exposures to lots of people). Achieving a very high GRP is very expensive, however, and budget issues may preclude such a high GRP. Thus, media planners may start with budget, then estimate the GRPs that they can afford and then either sacrifice reach to maintain frequency or let frequency drop to one in order to maximize reach.
2.2.2. Frequency Distribution, Effective Frequency and Effective Reach Media planners also consider frequency distribution in order to fully understand exactly how many exposures different people experience; that is, how many people will see the ad once, twice, three times, etc. This lets the planner estimate the effective reach of the plan at the effective frequency needed by the campaign? The number of people who see the ads a sufficient number of times for the media plan to be effective. Effective frequency refers to the minimum number of media exposures for a communication goal to be achieved, while effective reach is the
reach (% of households) at the effective frequency level. Media planners choose an effective frequency based on the communication goals. Communication goals vary across the continuum from awareness, preference, attitude change to trial, purchase, and repurchase. To change brand attitude requires more exposures (higher effective frequency) than does creating brand awareness. If the effective frequency is set for a given communication goal, the reach at that effective frequency level will be the effective reach. Let's go back to the Super Bowl example. A total of 28% of households see the ad twice by watching the entirety of the game. During the first half, 14% of households see the ad once but then don't watch the second half. Another 14% join the game in progress and see the ad once during the second half. Thus, 14+14 = 28% see the ad just once. This leaves 44% of households (100% - 28% - 28%) who never see the ad. In summary, the frequency distribution is: reach of 28 at the frequency of 2; reach of 28 at the frequency of 1; and reach of 44 at the frequency of 0 (also called non-reach). Let's extend this example by continuing this hypothetical campaign. On the Thursday after the Super Bowl, the advertiser does one more media blitz ?showing an encore of their Super Bowl ad on all major networks during the prime time slot of 8:00 to 8:30 PM. This practice of advertising on multiple channels at the same time ensures that most people will see the ad regardless of which channel they watch. If the advertiser believes that its ads are only effective if they are seen at least twice, then the advertiser will want to know what percentage of households saw the ad two or more times. In this example, the
effective reach is 51 because that is the sum of the reaches for frequencies 2 and 3 combined. GRPs of this media plan were 144 and reach was 70, because 30% of households did not watch during any of the three times the ad was shown, resulting in an average frequency of 2.1. The frequency distribution of the plan is in Table 9B. That is, 23 percent of the households watched the time slot three times, 28 percent twice, 19 percent once, and 30 percent did not watch at all.
2.2.3. Setting Communication Goals Media planners can set communication goals based on the level of reach. That is, how many of the target audience should be reached with the media plan, say 50%, 75% or 95%? Theoretically, a reach of 100 is possible, but it is rarely a communication goal because some audience members may not use any of the media, making them unreachable. What, then, would be the optimal level of reach for a given product category or a market situation? There is no quick answer to this question; it all depends on the media planner's analysis of major factors facing the brand. Media experts suggest high reach is appropriate when something new is associated with the brand, such as new features, new sales incentives, new packaging or new service opportunities. The newness requires a high level of awareness among the target audience. A high reach is also often necessary in three other situations: a) advertising in support of sales promotion activities, b) for reminder advertising for a mass market product, and c) when the brand faces severe competition.
When setting levels of frequency, media planners have more rules of thumb to choose from when setting levels of reach. For example, media planners have often been setting a frequency of 3 during a purchase cycle, following Michael Naples' seminal study of effective frequency published in 1979. Naples' study suggests that there is a threshold level of repetition; advertising below the threshold level will be ineffective. Therefore, three exposures during a purchase cycle are necessary. Many media planners still use this rule in setting the effective frequency of a media plan. More recently, Philip Jones found that one exposure generates the highest proportion of sales and that additional exposures add very little to the effect of the first.[23] Erwin Ephron further developed the concept of "recency planning" and suggested that one exposure within a purchase cycle should be set as close to the actual purchase moment as possible.[24] Recency planning starts with the idea that when is more important than how many; That is, advertising will be most effective if it is timed to when a consumer is in the market to buy the product or service. In the short-term, therefore, additional exposures are likely to be wasteful because audience members are not in the buying mode. In some cases, advertisers know when consumers are in the market, such as Wyoming's ads during the spring when many people are planning summer vacations. Table 4 The Ostrow Model of Effective Frequency Low Required Frequency Frequency Adjustment High Required Frequency
Market Factors Established brand High brand share High brand loyalty Long purchase cycle Less frequent usage Low share of voice Target other group Message Factors Low message complexity -.2 -.1 +.1 +.2 High message uniqueness -.2 -.1 +.1 +.2 Continuing campaign -.2 -.1 +.1 +.2 High message complexity Low message uniqueness New campaign Image-focused message High message variety Low wearout Small advertising units -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 New brand Low brand share Low brand loyalty Short purchase cycle Frequency usage High share of voice Target old people or children
Product-focused message -.2 -.1 +.1 +.2 Low message variety High wearout Large advertising units Media Factors Low clutter -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2
High clutter Neutral editorial setting Low audience attentiveness
Favorable editorial setting -.2 -.1 +.1 +.2 High audience attentiveness Continuous scheduling -.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2
Pulse or flight scheduling
Few media vehicles High repeat exposure media
-.2 -.1 +.1 +.2 -.2 -.1 +.1 +.2
More media vehicles Low repeat exposure media
In addition to the reach and frequency goals, media planners may set goals for other forms of communication. For example, promotional activities may be used in a media plan, such as sweepstakes, contests and coupons. Media planners estimate and specify response rates for these activities. By establishing communication goals, media planners set the stage for assessing the effectiveness of a media plan at the end. 3. Media Strategies Media planners make three crucial decisions: where to advertise (geography), when to advertise (timing), and what media categories to use (media mix). Moreover, they make these decisions in the face of budget constraints. The actual amount of money that an advertiser spends on marketing communications can vary widely, from billions of dollars for multinational giants such as Procter & Gamble, to a few thousand dollars for local stores. In general, companies spend as little as 1% to more than 20% of revenues on advertising, depending on the nature of their business. Regardless of the budget, some media options are more cost effective than others. It is the job of media planners to formulate the best media strategies -- allocating budget across media categories, geographies, and time. Let's look at each of these three decisions in turn, and then consider cost effectiveness.
3.1. Media Mix Decisions Which media should the advertiser use? Media planners craft a media mix by considering a budget-conscious intersection between their media objectives and the properties of the various potential media vehicles. That is, they consider how each media vehicle provides a cost-effective contribution to attaining the objectives, and then they select the combination of vehicles that best attain all of the objectives. When making media mix decisions, planners look to a whole spectrum of media, not just too traditional media vehicles such as TV, radio, and print. That is, media planners consider all the opportunities that consumers have for contact with the brand. These opportunities can be non-traditional brand contact opportunities such as online advertising, sweepstakes, sponsorships, product placements, direct mail, mobile phones, blogs, and podcasts. The scale and situations of media use are especially important when evaluating suitable brand contact opportunities. For example, product placement in a video game makes sense if the target audience plays video games. Sweepstakes make sense if many of the target audience find sweepstakes attractive.
3.1.1 Mix Strategy: Media Concentration vs. Media Dispersion A media planner's first media mix decision is to choose between a media concentration approach or a media dispersion approach. The media concentration approach uses fewer media categories and
greater spending per category. This lets the media planner create higher frequency and repetition within that one media category. Media planners will choose a concentration approach if they are worried that their brand's ads will share space with competing brands, leading to confusion among consumers and failure of the media objectives. For example, when Nestle launched its 99% fat-free cereal Fitnesse, the similarity of ads actually increased the sales of the competing Kellogg's Special K Cereal. Media planners can calculate or measure share of voice to estimate the dominance of their message in each category of media they use. Share of voice is the percentage of spending by one brand in a given media category relative to the total spending by all brands that are advertising in that media category. A company can create a high share of voice with a concentrated media strategy. That is, the company can be the dominant advertiser in a product category in the chosen channel. Moreover, because only one set of creative materials will need to be prepared, a concentrated media strategy lets advertisers spend a higher percentage of their budget on frequency and reach. But a concentrated strategy is also an "all-eggs-in-one-basket" strategy. If the particular ad is not well received or the particular media category only reaches a fraction of the intended target audience, then it will perform poorly. In contrast, media planners choose a media dispersion approach when they use multiple media categories, such as a combination of television, radio, newspapers and the Internet. Media planners will use dispersion if they know that no single media outlet will reach a sufficient percentage of the target audience. For example, a
concentrated approach using only ads on the Internet might reach only 30% of the target consumers because some consumers don't use the Internet. Similarly, a concentrated approach using national news magazines might reach only 30% of the target audience, because not every target customer reads these magazines. But a dispersed approach that advertises in print magazines as well as on Web sites might reach 50% of the target audience. Media planners also like the dispersion approach for the reinforcement that it brings -- consumers who see multiple ads in multiple media for a given brand may be more likely to buy. Looking across the other media categories, we see the effects of a concentrated versus dispersed media approach. Although Zipium spends the greatest amount of money, it only achieves dominant share of voice in one of the four media categories due to dispersal. Each of the other brands also dominates one category. For example, Enerzid concentrates all of its spending on the Internet. Thus, although Enerzid has a small budget, it manages to dominate that one category through its concentrated media approach. The media concentration approach is often preferable for brands that have a small or moderate media budget but intend to make a great impact. For example, GoDaddy.com, an Internet hosting service, bought two spots in the Super Bowl in 2005. Because of the controversial nature of the ad, Fox Networks canceled the second run of the ad. The controversy over the pulled ad resulted in more than $11 million of free publicity. The single paid ad plus heavy media coverage of the incident greatly increased the awareness of GoDaddy.[28] The spot also earned GoDaddy a 51% share of voice, a
percentage which some say is the largest share of voice attributed to any Super Bowl advertiser ever.
3.1.2. Media Category Selection Whether media planners select media concentration or media dispersion, they still must pick the media category (ies) for the media plan. Different media categories suit different media objectives. Most media options can be classified into three broad categories: mass media, direct response media, and point-of-purchase media. A media planner's choice will depend on the media objectives. If the media planner wants to create broad awareness or to remind the largest possible number of consumers about a brand, then he or she will pick mass media such as television, radio, newspaper and magazine. If the media planner wants to build a relationship with a customer or encourage an immediate sales response, then direct response media such as direct mail, the Internet and mobile phone are good choices. For example, online ads for car insurance such as link directly to the application process to capture the customers right at the time they are interested in the service. Finally, if media planners want to convert shoppers into buyers, then they might use point-of-purchase media such as sampling, coupons and price-off promotions. In short, each of these three categories of media serve a different role in moving the customer from brand awareness to brand interest to purchase intent to actual purchase and then to re-purchase.
The creative requirements of a media category also affect media planners' decisions. Each media category has unique characteristics. For example, television offers visual impact that interweaves sight and sound, often within a narrative storyline. Magazines offer high reproduction quality but must grab the consumer with a single static image. Direct mail can carry free samples but can require compelling ad copy in the letter and back-end infrastructure for some form of consumer response by return mail, telephone or Internet. Rich media ads on the Internet can combine the best of TV-style ads with interactive response via a click through to the brand's own Web site. Media planners need to consider which media categories provide the most impact for their particular brand. The costs of developing creative materials specific to each media category can also limit media planners' use of the media dispersion approach.
3.2. Geographic Allocation Decisions In addition to allocating advertising by media category, media planners must allocate advertising by geography. In general, a company that sells nationally can take one of three approaches to geographic spending allocation: a national approach (advertise in all markets), a spot approach (advertise only in selected markets), or
a combined national plus spot approach (advertise in all markets with additional spending in selected markets). Media planners will choose a national approach if sales are relatively uniform across the country, such as for Tide laundry detergent or Toyota automobiles. A national approach will reach a national customer base with a national advertising program. For many other products, however, a company's customers are concentrated in a limited subset of geographic areas, which makes a spot approach more efficient. For example, the sales of leisure boats are much higher in markets such as Florida, California and Michigan due to the large water areas in these markets. A spot approach will target these states. For example, a leisure boat manufacturer such as Sea Ray might use a spot approach to target Florida, California and Michigan while not advertising in other states like Iowa or Nebraska. Media planners perform geographic analyses by assessing the geographic concentration of sales in two ways. The first method is called the Brand Development Index (BDI) of a geographic region. BDI measures the concentration of sales of a company's brand in that region. The second method is called the Category Development Index (CDI) and measures the concentration of sales of the product category (across all brands) in that region. Media planners use BDI to measure a brand's performance in a given market in comparison with its average performance in all markets where the brand is sold. Mathematically, BDI is a ratio of a brand's sales in a given geographic market divided by the average of its sales
in all markets. BDI is calculated for each geographic area (Market X) using the following formula: Market X's Share of Total Brand Sales. BDI = ----------------------------------------------- X 100 Market X's Share of U.S. Population Consider the BDI for visitors to the state of Louisiana -- the geographic concentration of people who travel to Louisiana for business or pleasure. The BDI for Houston is 658 because Houston is 1.8% of the U.S. population, but Houstonians make up 11.8% of visitors to Louisiana (100 * (11.8%/1.8%) = 658). Because Houston's BDI is higher than 100, it means that many more Houstonians come to Louisiana than the average from other cities. In contrast, the New York City area has a very low BDI of only 10 because even though New York City has 7.2% of the U.S. population, this city contributes only 0.7% of visitors to Louisiana. This disparity in BDI influences Louisiana's advertising strategy. Media planners will tend to allocate more resources to high BDI markets (greater than 100) than to low BDI markets. The point is that even though New York City has a much larger population, it has a much lower concentration of travelers to Louisiana. Given that the cost of advertising is often proportional to the population it reaches, advertising in New York City will be far more expensive than advertising in Houston. Because such a low percentage of New Yorkers travel to Louisiana, advertising to New Yorkers will be less effective than advertising to Houstonians.
BDI doesn't tell the whole story, however, because BDI only measures the concentration of current sales. BDI doesn't reflect the concentration of potential sales as measured by sales of the entire product category. So, media planners use another number, CDI, in addition to BDI when allocating resources for spot advertising. CDI is a measure of a product category's performance in a given geographic market in comparison to its average performance in all markets in the country. The sales of a product category include the sales of all the brands (the company's and competitors' brands) or at least all major brands that fall in the category. The CDI formula is: Market X's Share of Total Category Sales CDI = ---------------------------------------------------- X 100 Market X's Share of U.S. Population Notice the similarities and differences of the CDI formula compared to the BDI formula. The denominator of the CDI formula is the same as that of the BDI formula, but the numerator for CDI is the share of the product category in a given market. For example, if the sales of the product category in Market X account for 2 percent of its total sales in the U.S. and the population in that market is 3 percent of the U.S. population, then the CDI for that market will be 67, which is 33 percent below the average of 100. That means a poorer-than-average consumption of the product category, which means that Market X may be less promising for spot market advertising. On the other hand, markets with a high CDI (higher than 100) may be a better market for that product category.
Because BDI and CDI can vary independently, media planners use both numbers to guide allocation decisions. In general, BDI reflects the concentration of existing sales while CDI reflects the concentration of potential sales in a geographic region. Returning to the example of leisure boats, we find that states such as California, Florida, and Michigan have high CDIs. Yet the maker of a line of small boats that aren't suitable for the ocean may have very high BDI in Michigan but a very low BDI in California and Florida. Because a BDI or a CDI for a given market can each be either above or below the average, there will be four possible combinations, as shown in Table 6. The four combinations represent two extreme cases and two mixed cases. At the one extreme, in a market with both a high CDI and a high BDI (both above 100), media planners will seek to maintain high market share (implied by high BDI) and might even consider more advertising to gain market share because of the good category potential (implied by high CDI) of the market. At the other extreme, in a market with both a low CDI and a low BDI, media planners may eschew spending their advertising dollars there due to the low concentration of potential consumption -- the small boat maker may ignore New Mexico. Table 6 Four Scenarios of BDI and CDI
CDI High High High CDI High BDI High CDI Low BDI Low Low CDI High BDI Low CDI Low BDI
BDI
Low
The mixed cases represent situations in which the percentage of brand sales in a region differs significantly from the percentage of category sales. A market with a high CDI and a low BDI deserves serious consideration because it suggests a large opportunity for increased sales. Before devoting advertising dollars, the company will want to understand why it has such poor sales of its brand (low BDI) in an area with high category sales. For example, the maker of small boats may learn that Californians don't buy the brand's boats because the boats are unsuitable for the ocean. If the causes of the poor brand performance can be identified and solved (such as by changing the product or finding better distribution), then more advertising should be worthwhile. A low CDI and high BDI represents the enviable position of selling well in a market that does not otherwise buy products in that category. A market with low CDI and a high BDI requires continued advertising support to maintain the superior brand performance.
One approach to resource allocation uses a weighted sum of BDI and CDI -- spending money in each geography in proportion to a combined BDI plus CDI score. With this approach, media planners need to first assign a weight to the BDI and to the CDI. These two weights represent the relative importance of the BDI and CDI, and the sum of two weights should equal 1. On the one hand, media planners might choose a high weight on CDI if they feel their brand is representative of the broader category and they expect their brand to attain a geographic pattern of sales that matches that of the category. On the other hand, they might place a high weight on BDI if their brand is unique, the category is very diverse, or the company wants to grow sales among current customers. Consider a hypothetical example in which a media planner thinks the BDI is three times more important than the CDI in allocating spending. He or she would use a weight of .75 with the BDI values and .25 with the CDI values of each geography to calculate a weighted sum and a percentage for each of the markets. Then, she can use the percentage as a base for spending allocation in each market, as show in Table 7. That is, Market A will receive 16 percent of the media spending, Market B will receive 22 percent, and so on. All the percentages added together will equal 100 percent.
Table 7
Hypothetical Spending Allocation in Markets with 75% BDI and 25% CDI
Geographic BDI Market
CDI
75% Weighted BDI
25% Weighted CDI 22 25 32 27 19
Weighted Spending Sum Percentage
North East Central South West
74 111 93 139 83
89 99 129 109 74
56 83 69 104 63
78 108 102 131 81
16% 22% 20% 26% 16%
Media planners can use another index -- growth potential index (GPI) -- to assess growth opportunities in geographic markets. GPI is simply the ratio of the CDI over the BDI and is one way of quantifying the discrepancy between category sales (the potential sales for the market) and brand sales (current sales) to measure of the growth potential of a brand in a market. The formula of the GPI is as follows: Market X's CDI GPI = ---------------------- X 100 Market X's BDI
For example, if Market X has a CDI of 120 and a BDI of 80, then the GPI will be 150. This high value of GPI suggests a growth potential of 50% in this market -- that if the brand sold as well in that market as it does nationwide, sales would grow 50%. Of course, media planners should examine the specific conditions of a high GPI market before allocating resources to assess the true possibilities for growth. When a brand sells in many markets, the GPI can facilitate the selection of markets for additional spot advertising spending.
3.3. Media Schedule Decisions Having decided how to advertise (the media mix) and where to advertise (allocation across geography), media planners need to consider when to advertise. Given a fixed annual budget, should all months receive equal amounts of money or should some months receive more of the budget while other months receive less or nothing? Media planners can choose among three methods of scheduling: continuity, flight, and pulse. Continuity scheduling spreads media spending evenly across months. For example, with an annual budget of $1,200,000 a year, continuity scheduling would allocate exactly $100,000 per month. This method ensures steady brand exposure over each purchase cycle for individual consumers. It also takes advantage of volume discounts in media buying. However, because continuity scheduling usually requires a large budget, it may not be practical for small advertisers. The flight scheduling approach alternates advertising across months, with heavy advertising in certain months and no advertising at all in
other months. For example, a board game maker like Parker Brothers might concentrate its advertising in the fall when it knows that many people buy board games as gifts for the holidays. Or, with the same budget of $1,200,000, for example, a different brand could spend $200,000 per month during each of six months -- January, March, May, July, September and December -- and spend nothing during the other months, in hopes that the impact of advertising in the previous month can last into the following month. Pulse scheduling combines the first two scheduling methods, so that the brand maintains a low level of advertising across all months but spends more in selected months. For example, an airline like United Airlines might use a low level of continuous advertising to maintain brand awareness among business travelers. United Airlines might also have seasonal pulses to entice winter-weary consumers to fly to sunny climes. In budget allocation terms, a consumer goods brand may spend $5,000 in each of the twelve months to maintain the brand awareness and spend an additional $10,000 in January, March, May, July, September and December to attract brand switchers from competing brands. The pulse scheduling method takes advantage of both the continuity and flight scheduling methods and mitigates their weaknesses. However, this does not mean it is good for all products and services. Which method is the most appropriate for a given campaign depends on several important factors. How do media planners select among continuity, flight, and pulse scheduling approaches? The timing of advertising depends on three factors: seasonality, consumers' product purchase cycle, and consumers' interval between decision-making and consumption.
The first, and most important, factor is sales seasonality. Companies don't advertise fur coats in summer and suntan lotions in winter. Likewise, some products sell faster around specific holidays, such as flowers on Mother's Day, candy on Halloween, and ornaments around Christmas. Companies with seasonal products are more likely to choose flight scheduling to concentrate their advertising for the peak sales season. Other goods, however, such as everyday products like milk and toothpaste, may lack a seasonal pattern. Everyday goods may be better served by a continuity approach. Media planners can use a breakdown of sales by month to identify if their brand has seasonal fluctuations, which can serve as a guide for the allocation. They can allocate more money to high-sales months and less to lowsales months. The second factor that affects when advertising is scheduled is the product purchase cycle: the interval between two purchases. Fastmoving consumer goods such as bread, soft drinks and toilet paper probably require continuous weekly advertising in a competitive market to constantly reinforce brand awareness and influence frequently-made purchase decisions. In contrast, less-frequently purchased products such as carpet cleaner or floor polisher may only need advertising a few times a year. A third factor that affects media scheduling is the time interval between when the purchase decision is made and when a product or service is actually bought and consumed. For example, many families who take summer vacations may plan their trips months before the actual trips. That is, they make purchase decision in advance. Thus, travel industry advertisers will schedule their ads months before the
summer, as we saw in the Wyoming example. Destination advertising has to be in sync with the time of decision making, instead of the actual consumption time. New product launches usually require initial heavy advertising to create brand awareness and interest. The launch period may last from a few months to a year. As mentioned earlier, P&G launched its Gillette six-bladed Fusion shaving system with advertising on Super Bowl XL, the most expensive form of advertising in the world. If consumers like the product, then personal influence in the form of word-of-mouth or market force (brand visibility in life and media coverage) will play a role in accelerating the adoption of a new brand. Personal influence and market force are "unplanned" messages, which often play an important role in new product launches. Media planners should take advance of these "unplanned" messages in a new product launch campaign.
4. Designing Media Tactics
Establishing media objectives and developing media strategies are the primary tasks of media planners. Designing media tactics is largely carried out by media buyers. Media buyers select media vehicles to implement established media strategies. Among the major factors that affect media vehicle selection are reach and frequency considerations.
4.1. Reach Considerations
As a major component of media objectives, the planned level of reach affects not only media mix decisions but also what media vehicles are used in each media category. High levels of reach will require a different set of media vehicles than low levels of reach. That is, high levels of reach can be better served with a mix that includes multiple media vehicles with different audiences so that cross-media duplication of audience is minimal. For example, if there are three magazines that each reach a portion of the target audience but that have few readers who read more than one magazine, advertising in these three magazines would reach the widest target audience possible because of the low overlap of the readers of the these magazines. What are some ways to maximize the levels of reach? One way is to analyze the audience composition of media vehicles by using syndicated media research. For example, cross-tabulations of Simmons data can be conducted to identify several magazines that reach the target audience of women aged 35 to 55, with little crosstitle duplication -- few readers of one magazine also read other the magazines. These magazines can be used to implement high levels of reach in the media plan. When audience data are not available for cross-vehicle comparisons, you can select competing media vehicles in the same media category, because there is usually less duplication among the competing media vehicles. For example, most people who are interested in news may read one of the three major news weeklies: Newsweek, Time, and U.S. News and World Report; few people read all three of them. Therefore, running a print ad in all the three news magazines can reach a wide audience.
In television, media buyers sometimes use road blocking, which means the placement of commercials in all major television networks in the same period of time. No matter which television channel an audience member tunes in at that time, they have the opportunity to watch the commercial. The road blocking approach has become more expensive and less effective recently because of increasing fragmentation of television audience. The term has been extended to the online world, however, where it has been very effective. To roadblock in the online world, a media planner can buy all the advertising on a Web site for a 24-hour period, such as Coke did for its launch of C2 and Ford did for its launch the F-150. Each company bought all the ad space on the front page of Yahoo for a 24-hour period. The Yahoo front page draws 25 million visitors a day. Alternatively, media planners can roadblock Yahoo, MSN, and AOL all on the same day, as Coke and Pepsi have both done. The results can produce "an astonishing, astronomical amount of reach," said Mohan Renganathan of MediaVest Worldwide, one of the biggest services for buying ad space.
4.2. Frequency Considerations In contrast to high levels of reach, high levels of frequency can be effectively achieved through advertising in a smaller number of media vehicles to elevate audience duplications within these media vehicles. A commercial that runs three times during a 30-minute television program will result in higher message repetition than the same commercial that runs once in three different programs.
Broadcast media are often used when high levels of frequency are desired in a relatively short period of time. Broadcast media usually enjoy a "vertical" audience, who tune in to a channel for more than one program over hours. Another phenomenon in broadcast media is audience turnover, which refers to the percentage of audience members who tune out during a program. Programs with low audience turnover are more effective for high levels of frequency.
4.3. Media Vehicle Characteristics With reach and frequency considerations in mind, media buyers will compare media vehicles in terms of both quantitative and qualitative characteristics. Quantitative characteristics are those that can be measured and estimated numerically, such as vehicle ratings, audience duplication with other vehicles, geographic coverage, and costs. Media buyers will choose vehicles with high ratings and less crossvehicle audience duplication when they need high levels of reach. Media buyers also evaluate the geographic coverage of media vehicles when implementing spot advertising such as heavy advertising in certain geographic regions. Finally, media buyers pay attention to the costs of each media vehicle. When two media vehicles are similar in major aspects, media buyers choose the less expensive media vehicle. There are two basic calculations of media vehicle cost. The first one, cost per rating point (CPP), is used primarily for broadcast media vehicles. To derive the CPP, divide the cost of a 30-second commercial by the ratings of the vehicle in which the advertisement is placed.[SIDEBAR DEFINITION: CPP: The cost of a broadcast ad
per rating point (1% of the population) provided by the media vehicle that shows the ad.] The formula for calculating CPP is as follows: Cost Per Rating Point = Cost of the Ad / Rating of the Vehicle For example, if the cost for a 30-second commercial ABC's "Grey's Anatomy" television program is $440,000[32] and the rating of the program is 9.7, then CPP for this buy will be $25,360. Another media cost term is cost per thousand impressions (CPM), which is the cost to have 1000 members of the target audience exposed to an ad.[[SIDEBAR DEFINITION for CPM: Cost Per Thousand (M is the Latin abbreviation for 1000): the cost per 1000 impressions for an ad]] As you recall, the impressions are simply opportunities to see the ad. one difference between CPP and CPM is that CPM also contains the size of a vehicle audience. CPM is calculated in two steps. First, the gross impressions that an ad may get is calculated using the rating of the program and the size of the market population. Second, CPM is calculated using the cost and gross impressions. The two formulas are as follows: Gross Impressions = Audience size * Rating / 100 CPM = Cost / Gross Impressions * 1000 Using the previous example, the rating of a television program is 10 and the cost for a 30-second commercial is $25,000. If there are 5,000,000 adults in the market, then CPM for the buy will be as follows: Gross Impressions = 5,000,000 * 10 / 100 = 500,000 CPM = $25,000 / 500,000 * 1000 = $50 Thus, CPM for this media buy is $50.
In
contrast
to
these
quantitative
characteristics,
qualitative
characteristics of media vehicles are those that are primarily judgmental, such as vehicle reputation, editorial environment, reproduction quality, and added values. For example, media vehicles vary in reputation; newspapers such as The New York Times and The Wall Street Journal generally enjoy high reputation. Furthermore, the editorial environment can be more or less favorable for advertisers. The impact of food ads, for instance, can be enhanced when they appear around articles about health or nutrition. Likewise, some magazines are better in reproduction quality than others, which enhance the impact of the ads. Finally, some media vehicles offer added values. Added values take various forms, and they benefit advertisers without additional cost. For example, a newspaper may publish a special page whose editorial context fits an advertiser's products, or a television channel may host a local event in association with a car dealership. Media buyers can work with the media to invent creative forms of added values for advertisers. 4.4. Selection of Media Vehicles Media buyers can use tools, like the one shown below, to make the process of selecting a media vehicle easier. To use the selection tool shown in Figure 9I, develop a list of the potential vehicle candidates you are considering. Then, select several quantitative and qualitative characteristics that are relevant to reach and frequency considerations, such as quantitative characteristics like CPM or GRP, and qualitative characteristics like reputation and added value. Next, make a table that lists the vehicle candidates in rows and the characteristics in columns.
Now you can rate each of the characteristics of each vehicle on a scale of 1 to 3. Then add all the numbers in each row, dividing by the total number of characteristics (columns) to arrive at the rating for each vehicle. The best media vehicles to choose are those with the highest index numbers. In Figure 8, Vehicle 2 and Vehicle 3 are the best ways to reach the target audience.
5. Evaluating Media Plan Effectiveness Accountability is increasingly important in media planning, as more advertisers expect to see returns on their investments in advertising. Because media spending usually accounts for 80 percent or more of the budget for typical advertising campaigns, the effectiveness of media plans is of particular importance. As a result, media planners often make measures of the effectiveness of a media plan an integral part of the media plan. Although sales results are the ultimate measure of the effectiveness of an advertising campaign, the sales result is affected by many factors, such as price, distribution and competition, which are often out of the scope of the advertising campaign. It is important, therefore, to identify what measures are most relevant to the effectiveness of media planning and buying. We will examine the topic of measurement in more detail in chapters 21 and 22, but here is an introduction to measurement that is specific to media plans.
5.1. What to Measure
Because of the hierarchical nature of the media effects, the effectiveness of media planning should be measured with multiple indictors. The first measure is the actual execution of scheduled media placements. Did the ads appear in the media vehicles in agreed-upon terms? Media buyers look at "tear-sheets" -- copies of the ads as they have appeared in print media -- for verification purposes. For electronic media, media buyers examine the ratings of the programs in which commercials were inserted to make sure the programs delivered the promised ratings. If the actual program ratings are significantly lower than what the advertiser paid for, the media usually "make good" for the difference in ratings by running additional commercials without charge. The most direct measure of the effectiveness of media planning is the media vehicle exposure. Media planners ask: How many of the target audience were exposed to the media vehicles and to ads in those vehicles during a given period of time? This question is related to the communication goals in the media objectives. If the measured level of exposure is near to or exceeds the planned reach and frequency, then the media plan is considered to be effective. Several additional measures can be made of the target audience, such as: Brand awareness -- how many of the target audience are aware of the advertisedbrand? Comprehension -- does the target audience understand the advertised brand? Is there any miscomprehension? Conviction -- is the target audience convinced by ads? How do they like the advertised brands?
Action -- how many of the target audience have purchased the advertised brand as a result of the media campaign? The measured results of brand awareness, comprehension, conviction and action are often a function of both advertising creative and media planning. Even effective media planning may not generate anticipated cognitive, affective and co native responses if the ads are poorly created and not appealing to the target audience. On the other hand, ineffective media planning may be disguised when the ads are highly creative and brilliant. Thus, these measures should be reviewed by both creative directors and media planners to make accurate assessments of the effectiveness of the media plan.
5.2. How to Measure The measurement of the effectiveness of a media plan can be conducted by the advertising agency or by independent research services, using methods such as surveys, feedback, tracking, and observation. Each method has its strengths and weaknesses. For example, surveys can be conducted among a sampling of the target audience in the different periods of a media campaign, such as in the beginning, the middle and the end of the campaign. Surveys can ask questions about the target audience's media behavior, advertising recall, brand attitudes and actual purchase. Besides surveys, feedback can be collected to measure the media and ad exposure of the target audience. Feedback devices such as reply cards, toll-free numbers, coupons and Web addresses can be provided
in ads so that tallies of the responses or redemptions can be made to estimate the impact of advertising media. Advertisers often use a different code in direct response ads to identify different media vehicles. For example, in the April 3 2006 issue of BusinessWeek, the reply card for subscribing to the magazine had a code of JS6D1, whereas the reply card bound into the May 29, 2006 issue of the magazine had a code of JS6E2. In short, by reviewing the different codes recorded, media buyers can assess the response rate of each media vehicle. As you can see from the Radiowatch and Garden of Eatin' examples, one advantage of surveys over feedback devices is that surveys reach people who have taken no action on the product, whereas feedback devices require the consumer to mail back, click or call a toll-free number. In this way, surveys can help media buyers evaluate the effectiveness of an ad in relation to other ads, whereas feedback devices help them evaluate the effectiveness of one media vehicle over another. Tracking is measurement method that media buyers use to track the effectiveness of online ads. When a user visits a Web site or clicks on a banner ad, Web servers automatically log that action in real time. The logs of these visits and actions are very useful for media buyers, because the buyers can use them to estimate the actual interaction of audience members with the interactive media. For example, a banner ad may have a code for each Web site where the ad is placed. Media buyers can compare the click-through rates of the banner ad across all Web sites daily, to estimate the effectiveness of each Web site. Media
buyers are making more use of the tracking method given the increasing use of interactive media. Finally, in the physical world, media buyers can use observation to collect audience reaction information at the points of purchase or during marketing events. For example, researchers can be stationed in grocery stores to observe how consumers react to in-store advertising or how they select an advertised brand in comparison of other brands. The advantage of observation is that it provides rich, detailed data on how consumers behave in real situations in response to the marketing communication. The downside is that direct observation is more costly to conduct and tabulate. UNIT 3 / DESIGN AND EXECUTION OF ADVERTISEMENTS Developing Print Advertisements Print advertisements have four key elements: Headline Copy Illustrations Signature Some ads also include a company slogan. Headline The headline X is the phrase or sentence that attracts the readers attention to a product or service. A headline should also lead readers into the ads illustration and make them want to read the copy. Headline Before writing a headline, a copywriter must know the needs of the target market, including matters concerning: Price
Delivery Performance Reliability Service Quality
Headline Effective headlines are brief. They identify a benefit of the product or service and stress those benefits by making promises, asking questions, posing challenges, or using testimonials. Copy The copy X is the selling message of a written advertisement. It details how the product or service meets the customer needs identified in the headline. Good copy should: Be personal and friendly Be simple and direct Appeal to the senses Copy Answer questions about the product using facts Add desire and urgency to the ad Provide a personal call to action now or in the near future An ad should use simple and direct copy to motivate the reader to try the product or service. Illustration The illustration X is the photograph, drawing, or other graphic elements used in an advertisement. It should attract and hold attention
and encourage action. The illustration should transmit a message that would be hard to communicate with words alone. Clip art X takes the form of images, stock drawings, and photographs. Clip art is often used for print advertisements because it is inexpensive, quick, and easy to use. Illustration What elements in this ad entice the viewer or the reader to take a look pay attention? An ads illustration should attract and hold the readers attention and be integrated with the headline. Signature The signature X, or logotype (logo), is the distinctive identification symbol for a business. A well-designed signature gets instant recognition for a business. Signature A slogan X is a catchy phrase or words that identify a product or company. Here are some techniques copywriters use when developing slogans: Alliteration uses repeating initial consonant sounds. A paradox is a seeming contradiction that could be true. Rhyme uses rhyming words or phrases. A pun is a humorous use of a word that suggests two or more of its meanings or the meaning of a similarly-sounding word. A play on words cleverly uses words to mean something else. Advertising Layout Objectives Explain the principles of preparing an ad layout List advantages and disadvantages of using color in advertising Describe how typefaces and sizes add variety and emphasis to print advertisements
Developing Print Advertising Layouts An ad layout X is a sketch that shows the general arrangement and appearance of a finished ad. It clearly indicates the position of the: Headline Illustration Copy Signature Components of Effective Ad Layouts Ad layouts should be prepared in exactly the same size as the final advertisement. The illustrations should grab attention through size, humor, or dramatic content. Ads that feature large visuals (60 to 70 percent of the total ad) are the best attention-getters. The best ads contain a focal point and lines of force that guide the viewer through the copy. One technique is to create a Z layout. The readers eye will follow the path of the Z. Using Color in Print Advertisements A color ad is usually more realistic and visually appealing and commands the readers attention more than a black-and-white ad does. Although color ads are more expensive than two-color (usually black and another color) ads, studies have also shown that color ads are usually more cost-effective than two-color ads because of their increased response rates. Be sure to choose colors appropriate to the mood of your ad. Also, consider the fact that colors have different meanings in different cultures.
Selecting Typefaces and Type Sizes for Print Advertisements

The look and appearance of the type is called the typeface. A complete set of letters in a specific size and typeface is called a font. Selecting Typefaces and Type Sizes for Print Advertisements A serif font has short cross lines at the upper and lower ends of the letters. Times Roman and Palatino are two commonly used serif fonts. Sans serif fonts do not have cross lines. Arial, Helvetica, and Futura are common sans serif fonts. The appearance of the typeface affects the entire character of an advertisement. It is important that the font is large enough to read. Checking Advertising Proofs When advertisements are first created, an advertising proof X is developed. It shows exactly how an ad will appear in print. To evaluate a proof, an advertiser will consider these criteria: The ad should be bold enough to stand out next to other ads. The layout should look clean and uncluttered and should guide the reader through the copy. Checking Advertising Proofs The font needs to be easy to read and help to emphasize the companys message. The signature should be apparent and distinctive. The intended message and image projected must be appropriate for the target audience.
The Advertising Media (1) Tonight well look at where organisations advertise. In recent years, the media selection aspect of advertising has taken on a much greater role in the process of developing an ad campaign. The abundance of media, especially satellite and cable and new national radio stations, requires better trained
media planners and more refined research tools to reach prime prospects successfully. The number of media has increased but how the public use them is also changing. Audiences are now fragmented in a way that presents both problems and opportunities for media planners. However readership figures for the press and viewers for TV are declining, giving tough choices for media planners. Agency staff must know the characteristics of the various media and more importantly, have an understanding of how different media interact with each other - and the audience - to create an effect where the whole is greater than the parts. So they need to know which media to select and then, within those chosen, where and in what proportions to deploy their advertising spend. It is important to be familiar with the advertising media as every day we view, ignore and react to countless ads. Tonight well concentrate on the main advertising outlets - press, television, radio, cinema and outdoors known collectively as the above-the line media, by taking a look at the characteristics, advantages and disadvantages of each: Advertising Productions The IPA definition states that 'advertising presents the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost'. This blend of creativity and economic media buying (along with marketing research), and the creative elements of persuasion and the many price economies, results in two of the key questions in advertising - where and how to advertise to reach a specific target audience. Tonight we look at where. Keep in mind, however, that no single medium is right for every advertiser or every occasion. Each advertiser has individual requirements that can be accomplished by some media and not by others. The starting point for media planning is, therefore, an analysis of each media's strengths and weaknesses and an understanding of how these characteristics fit into a particular advertiser's strategy.
Above/Below-the-line Above-the line - the five main traditional and commission-paying media - press, TV, radio, cinema and outdoor. Below-the-line - the non-commission paying point-of-sale, sales promotion schemes, direct mail etc. The terms are used to distinguish the two classes of media, the origin of which had to do with how agencies laid out their invoices and is now out-of-date. The division is now quite artificial and is one that the advertising personnel will probably never make. Above-the-line is also often referred to as 'media advertising'. The bulk of agency income is derived from above-the-line media and though the terms are irrelevant they are a convenient means of distinguishing the two media groupings. Press The national press marketplace is currently highly volatile. While around half of the national ad spend is on press (your web notes suggest its a little higher), it was affected by the business slump of a few years ago; however it still offers great stability and continues to be a cost-effective medium for many advertisers. The total press ad spend (including national and regional papers and mags) was about 1,630m for the third quarter of 2005, a 5% decrease on the same period in 2004, when the figure is adjusted for inflation. The downturn in press advertising in recent years continues and is more than a little worrying. While circulation and readership are on the decline, it is unclear if this indicates a terminal loss of appeal for the press, though it appears to be struggling against other media especially the internet, which increased by 50% in the same period. While struggling, the press is still dominant. One of the main advantages of the press as an advertising medium is its ability to target accurately a specific audience, while at the same time achieving volume coverage. Those publications with regular features also present more specific targeting
opportunities for advertisers. If the profile of the readership of a particular publication fits with the advertisers product, then, subject to the right creative, the advertising stands a good chance of succeeding. The trick, however, is in finding the right match. The press has been subject to stiff competition from other media in recent years and the industry has only just started to fight back. The press needs to be able to compete more effectively with other media that have become, for many, their regular news source. The national press reaches more than 80% of all adults each week, with the quality press alone targeting more than 60% of AB adults, according to the latest figures from the NRS. (Well return both to the ABC figures and the NRS in a few weeks). Around 43% of advertising money is spent on press which includes newspapers and magazines making it the single largest advertising medium. In all there are over 8,000 newspapers and magazines, broken down into national (daily and Sunday), regional (daily, weekly and Sunday), and consumer, special interest, professional and trade magazines. This figure excludes free-sheets of which there are also several thousand. By further breaking the media down into individual segments, regional press is the second largest overall advertising medium after TV, taking almost 720m in the third quarter of 2005 or around 19% of total UK ad spend. Magazines account for 13% (494m), while the national press is responsible for 11% (420m). The Advertising Association lists press breakdown is as follows: Slide 3: Press Breakdown The UK press is usually split into quality and mass market with The Sun (selling 3.2m daily UK, Ireland & other countries) one of the largest daily circulation newspapers in the world. Nowadays the split is a three-way one with broadsheets (though the print format has changed), mid-markets and red tops. The Audit Bureau of Circulations (ABC), of which more in a fortnight, sorts the press into 4 groups popular (Mirror, Record, Star & Sun), middle (Express & Mail), quality (Times, Telegraph, Guardian & Independent) and sporting (Racing Post). The press includes a diversity of publications all of different character, thrust, political loyalty, content and philosophy aimed at dissimilar yet often overlapping audiences.
Historically, a combination of several factors has resulted in the domination of press as an advertising medium, central to which is the notion of the 'national press'. The main characteristics of the press are as follows: Press Characteristics 1. There is total coverage of the adult population many times over. Almost everyone reads a morning newspaper and most people read one or more Sunday or evening paper. 2. Added to which are the weekly titles with which we are all familiar. That said, papers daily and weekly tend to be read more by older groups, rather than by the young. 3. Magazines benefit from a wide coverage as well. Most women read a weekly magazine, several of which have sales in excess of million, although overall annual circulation is also dropping. 4. There has been phenomenal growth in the popularity of celebrity titles in recent years, with names like Heat (598k), Hello! (412k), Chat (537k) and OK (624k) all hitting good readership figures. Chat (537,000 circulation per week; 1.4m readers) What % of its readership do you think is female? 91% What is the average age of a Chat reader? 43 What % is married? 57% What is the average time spent reading Chat? 67 minutes Loaded (160,000 circulation per week; 1.1m readers) What % of its readership do you think is male? 86% What is the average age of a Loaded reader? 27 What % work full time? 71% Hello! (412,000 circulation per week; 2.1m readers) What % of its readership do you think is female? 85% What % of its readership is under 34? 40% How many HELLO! women have bought a new car in the past year? 500,000
How many HELLO! readers are heavy wine drinkers? 725,000 5. And there are a growing number of special interest publications covering everything from Arab Health (a medical publication) to central heating Heating & Plumbing Monthly incorporating Ventilation 30,000) to The Caravan Club Magazine (353,000) through to slimmers Weightwatchers (244,000 for 8 issues per annum) per month 6. This diversity of titles is matched by the number of reader profiles - in terms of class, political and religious diversity, age etc. So it is possible to target specific, often small audiences, cost-effectively more so than it is say for television. 7. This aspect of selectivity - the wide number of publications to choose from - is one of the key characteristics of the press, in that it allows for more accurate segment targeting. 8. Papers and magazines can, obviously, be carried around and read almost anywhere, so the press is a very mobile medium. Compare this with other media even with modern technology. 9. By using coupons and coding it is possible to identify from which source publication original business enquiries were taken. 10. So the strength and reach of the press and the cost-effectiveness of advertising in different press can be determined. 11. In the UK, net sales are audited regularly and readerships are carefully researched. There is an abundance of statistics, which helps in the media-planning process. 12. As well see next time ABC gives press circulation figures and the NRS and TGI form the basis of reader profiles. Together they provide another feature of the press as an advertising medium. 13. The quality of newsprint and the techniques for producing quality looking magazines has improved significantly in recent years.
14. The introduction, about 10 years ago, of colour printing in papers is an added attraction, although advertisers still dont use colour as much as they could. Colour advertising on a Sunday is very much the domain of the supplements rather than the mother paper. 15. Classified ads in most papers can be placed by phone, at short notice within hours rather than days; colour mag ads take longer. 16. Flexibility is important to campaign planners, and allows for speedy boardroom decisions to appear as advertising, relatively quickly and often in response to changing market conditions. Some of the advantages and disadvantages of the press are obvious from the aspects we have just looked at: Advantages of the Press Due to its coverage, variety and mobility press advertising is the cheapest way of reaching large numbers of would-be buyers. In addition, production costs of press advertising and the cost per thousand make it much cheaper than, say, television or cinema. The press is a cost-effective method of targeting specific groups. As we will see in a few weeks, a range of research indices show who reads what paper or magazine, all of which facilitates targeting, through an equally vast range of press titles. The ease of booking and inserting ads (almost overnight) allows an immediate response to changing economic conditions. A short lead-in time can be critical in strategic marketing terms. Papers and magazines accept numerous ads in each issue, unlike TV and radio, which are restricted per programme hour. They tend to lie around forever - especially Sunday, weekly and consumer titles, while broadcast ads are transitory.
As mentioned by using coupons, response phone numbers and national research, press efficacy is measured directly and simply. A few other general points about the press are worthy of note: The fact that papers are tangible allows customers to be exposed to brand messages when and where they prefer and to read and reread ads at their own pace Because most newspaper circulation is daily, frequency can be quickly built among those who regularly read the paper. Newspapers have a designated place in subscribers daily routines and most readers have an emotional involvement with their daily read which is a benefit to advertisers. And two short pieces of research the average newspaper reader spends 29 minutes a day reading a weekday edition and slightly longer at the weekend; and some research has shown that newspaper readers often consider advertising to be news too.
Disadvantages Having just highlighted the longer life of Sunday and weekly titles, daily papers have a short shelf life, often measured in hours. Newsprint quality is often poor and this might affect advertising. The capacity to take large numbers of ads may be a disadvantage, as the exposure afforded to each is limited. The high ratio of ads to editorial (40:60), and an average reading time of less than 30 minutes, means that few ads are read fully. The obvious creative and one dimension restrictions of the press means it is a passive medium; you need to make an effort to read an ad and even then they compete with editorial for attention.
TV, radio and cinema appeal to more than one of our senses. The static nature of the press is restrictive compared with other media, which can use the realities of sound, movement and colour. Press circulation has fallen well behind population growth. Teens and young adults do not read papers; getting their news instead from other sources, or indeed not caring about not knowing. Circulation (for which read sales) figures for the main popular titles over the last 10 years confirm this decline. In 1990 the Daily Express boasted 2 million sales, now (Jan 06) its around 850,000; the Daily Mirror sold over 3 million six or seven years ago but today its just around 1.6 million. Even the top-seller - The Sun - which in 1990 boasted 4 million, today sells just over 3.2 million issues per week, on average. Because of their daily/weekly publication papers are well suited to announcing new products or changes to existing ones. The press is also used for news advertising messages, be they retailers or financial companies telling you about their latest offers or brands adapting their campaigns to fit some contemporary theme. In volume and monetary terms the press is the most dominant abovethe-line medium and will certainly be part of any campaign. Two pieces of research before we leave the press: one relating to ad sizes, positioning and days of the week and the other to readership gender. The first relates to research in the late 1990s which suggests (predictably) that readers paid more attention to ads when they were bigger and in colour. A 25cm x 4 column ad would appear to be the
optimum size. In some cases colour can be 50% more noted than mono. In tabloids, left and right-hand pages are equally as effective; in broadsheets the right-hand is best; in both there are strong arguments for being in the front 1/3 of the paper. Saturday is the dominant day for spending on advertising in daily papers, with a 23% of the weekly share; Monday takes 7% though Sunday, overall, takes 33% of all national newspaper advertising. With this in mind, different advertisers feature at different times of the week, with retailers and cars concentrating at the weekend and government at the beginning of the week, because its cheaper. The other research relates to readership of papers, which was believed was largely a male activity. Figures now show that the 12m women who read papers (for an average of 37 minutes a day) every day do so more assiduously than men (for 52% of whom the back page is the front page its all about sport and scandal). The research indicated that women thought press ads were boring and not aimed at them, suggesting that press owners and advertisers need to think about the opportunities they are missing. Television TV as a viewer and advertising medium is undergoing a major technological change. The digital era, allowing viewers greater choice and flexibility in what they watch (and advertisers more opportunities to reach an audience) will soon replace analogue broadcasting. New technology however brings other devices - such as TiVo, which allow
viewers to zap commercial messages and then return instantly to the action of their favourite TV show. The average viewer watches 3.8 hours of television per day. Their exposure to advertising is huge. Average total weekly viewing hours per person are an astonishing 28 hours (an increase from 25 hours in 2002) with terrestrial making up about 66% and satellite creeping up to 34%. Audiences for the channels that take ads - ITV, Channels 4 & 5 and satellite - command 67% of share, though figures for last year show the BBC slightly more popular than ITV. More than any other medium (perhaps other than cinema) TV viewing relies on the quality and range of the shows broadcast. Popular TV is linked directly to the money available through advertising to pay for it so one follows the other. Though it suffered a 4% drop in advertising last year, TV still accounts for around 4,700 million of the annual ad spend (including production costs) - making it the second biggest. ITV1 accounts for 90% of the ITV group's advertising revenues, which totaled 1.63bn last year. TV advertising was expected to account for 3.48bn of all spending on ads in 2006 (28.6%), regional newspapers to take up 2.38bn (19.6%) and the Internet 1.6bn (13.3%), the report says. National newspapers are expected to take just 1.610bn (13.2%).
Few homes are without a TV - in fact most now have several. As an advertising medium, it is still a youngster, as independent television (ITV) only arrived in the UK in the mid 1950s. However, when we think of advertising we normally mean TV ads, so dominant is the medium in terms of creativity, movement and sound. It is definitely the most powerful medium known. Advertising on TV is controlled and restricted (in terms of volume and content) by the ASA, to which we'll return later in the year. TV ads tend to be for popular consumer goods such as drink, cars, confectionery, cosmetics, newspapers and consumer durables, not to mention financial products, holidays and so on. TV is good too for items that require visual demonstration or explanation (without lengthy detail). It also aids image building. Youll recall the session on branding; TV falls into the category of good for corporate branding. During high profile audience viewing the Olympics or World Cup certain products dominate. In 2006 there was a real increase in these traditional sectors food, retail, cars and finance.
The main characteristics of TV as an ad medium are as follows: Characteristics of Television

Commercial TV is basically a regional medium, made up of 15 regional broadcasters though ownership of these stations is the hands of a much smaller number of media groups. Advertising on UTV can be both regional and national although a campaign, which includes UTV as part of the network, is quite costly. Channel 4 can be local or national; GMTV, Five and many satellite stations have national advertising. 4s strength is in delivering niche audience profiles, particularly in the 16-34 year old sector. That said, I read recently that five now sees itself as the new C4. There are around 25 million TV homes in the UK not to mention other locations (offices, bars, hotels) where TVs are found. Adverts are broadcast directly to the home environment where viewers overall are amenable to the sales messages therein. Often ads reach a family audience so that purchasing decisions arise where viewers and those who control the household budget, together receive the advertising message. A few years back, ITC figures showed that advertising enjoyed a 76% approval rating by the public; 52% of viewers were content with TV advertising levels and that humour was the ad quality that is most liked (37%).
No real effort, apart from switching on a TV, has to be made by the viewer to see an ad. As ads are mini-programmes they can set out to stimulate viewers into action, often very subtly. TV can give the product advertised a sense of realism, creating a desire to purchase. Creativity is such that viewers automatically associate a song or individual with a particular product or service. BARB audience figures are available by programme, date and time segment for all channels more of which in a few weeks time. Another feature of TV, though it is not advertising, is shopping channels. They give retailers direct-to-the-customer access and allow viewers to see products being demonstrated close up, with detailed facts and instant purchase options. While this is more a form of sponsorship, and therefore not opens to those companies with smaller budgets, it is a use of TV as a selling medium. So the following advantages and disadvantages of TV as an advertising medium do not, in the main, apply to shopping channels. Advantages of Television TV is a very visual, realistic, attention-getting medium. Colour, sound and movement, and the potential for impact and creativity, give it qualities no other medium (apart from cinema) can offer. Products can be shown and demonstrated with relative ease.
We see products advertised on TV as they are used in a normal setting, by ordinary people. Ads are now also interactive allowing would-be customers to press red for brochures and so on. Because of its penetration and as it is a national and regional medium, TV reaches a wide audience. It is more part of our lives than press or radio; its switched on, even if we are not! Research assists local and audience targeting but its saturation coverage is its greatest advantage. TV ad campaigns factor in repeats both in the short-term, (day/week) and over longer periods (months). Rarely will an ad be broadcast only once, though a balance is needed between repetition and saturation. TV is a quality medium, with ads usually costing more per second than the shows they interrupt! Customers see it as a quality too. UK TV is seen as the best in the world. Creativity, the use of household names to front campaigns and on-going competition in the industry produces memorable ads ensuring a high standard of quality. Even the notion of the BBC as a national public service broadcaster makes sure that the quality of independent TV is high. Though often the primary medium (leading a campaign) TV advertising is more often supportive or secondary. It can be used to reinforce another medium capable of carrying greater detail. Rarely will a campaign for a new car, for instance, be run on TV alone. Concurrent ads will be run in magazines (where more details can be given) or in the cinema (where they can be longer). Companies select which region to advertise in and as there are national options, they can use one or more station to reach individual audiences
TV is both a quality and a prestigious medium. It says something if a company can afford TV advertising, particularly if the audience targeted is not just a local one. Disadvantages of Television The main disadvantage is that TV advertising is cost prohibitive, not only in terms of buying airtime but also in terms of production. Costs range from anything to 50,000 to 100,000 per second for a good, so many smaller would-be advertisers cant justify the cost. It is also hard for TV to target specific demographic groups, so it is expensive in waste terms as well. Many companies use TV advertising (despite what I am saying), so it is a cluttered medium. Linked to cost (often giving rise to it), is lead-in time required. Ads take months to produce and airtime has to be booked in advance. A TV ad is perishable, over in seconds, unlike a press ad, which has a longer shelf life. To give TV audiences a chance to see them, ads have to be repeated, with high cost implications. Few viewers would record ads in order to study the message. Like it or not, viewers avoid ads by leaving the room or flicking to another channel during commercial breaks. And when playing back recorded programmes viewers can zap through the ads. TV is normally watched at home so there is a gap between when an ad is seen and the chance to buy the product. TV is not good for anything where the goal is to get people to act immediately. And the effect of the ad message obviously decreases with time.
Detail in a TV ad is limited, so it is often impossible to give out all the product information necessary to secure a purchase hence the need for a back-up medium. Though there has been a growth in personal TVs, viewers have to be present where ads are broadcast, and that means usually at home. Radio and press are less restrictive in where they can be heard or read, than TV. Press and TV advertising dominate the market and as a result radio, cinema and outdoor will always be single percentage figure advertising media. None the less these three media are important to advertisers, as we will now find out. Radio Commercial radio is one of the youngest media in the UK, having its origins in 1973 with Capital and LBC being the first to go on-air. Radios Luxembourg and Manx did exist earlier but it was not until the late 70s that a network of ILR stations existed. With de-regulation in the 90s commercial radio became the fastest growing advertising medium. There are now more than 370 stations, nationally and locally, funded by advertising. There are around 20 commercial stations in London all chasing advertising. Consequently, radios share of advertising has increased, and the industry now generates over 500m in ad revenue, around 3.4% of the total. It rarely, however, takes above 5% of advertising spend.
The figures for the third quarter of last year (129 million) saw a 4% decrease in real terms (after inflation). Radio was out-performed by all advertising media in the UK in 2004 (the last full year of figures) except for direct mail and consumer magazines. Recent RAJAR figures (which well come back to later) report that people are spending more time listening to commercial radio, with listening hours increasing by 4% year-on-year. More than 32 million now listen to commercial radio every week, a growth of 12% since 1999. The fastest growing sector within the listenership is the 4-14 age group of whom a staggering 74% tune in each week. Now that digital radio is with us it remains to be seen if improved reception will have any impact on radio advertising. A more immediate phenomenon is the linking of SMS texting and radio. Not only do listeners hear the ads but they are reminded of them on their mobile phones as well. With SMS a more interactive dialogue can be developed with loyal and regular listeners. Texting will become an even more time and location specific, targeted and highly personal means of communicating with core audiences, particularly in the 20-29 age group. Messages will, literally, be hand delivered and who doesnt read their texts? A few years ago Radio Galaxy in Birmingham set up a Text Maniacs Club, members of which have been targeted with interactive campaigns from Bacardi and Blockbuster. The endorsement by a
trusted source the radio station makes the commercial messages more effective. Stations build databases of listeners phone numbers by getting requests and competition entries by SMS. The consequences for broadcasters and advertisers alike will be far-reaching. Recently, a radio multiplier study was undertaken which has shown that by moving 10% of a TV budget into radio advertising, awareness can be increased by 15%. Radio was measured to be 3/5 as effective as TV at raising advertising awareness, at just 1/7 the cost. So is the switch from TV to radio on? Radio is one of the best ways to exploit inattention. Radio is arguably better than other media at insinuating powerful messages into the minds of the consumer, because we are unable to switch our ears off. We hear even when we are not listening. (See handout in QOL) Characteristics of Radio In excess of 370 ILR and community services exist in the UK and there are plans to continue the growth. So radio is an excellent medium for local advertisers (in competition with regional press). Radio is regarded as a friendly medium much more so than press or magazine or TV. Until a few years ago nationwide advertising packages had to be negotiated with all local stations, but now a number of national services exist including Classic FM (which has over 6m weekly listeners), Virgin and Talk Sport. (owned by UTV).
Distribution of ads to radio stations is handled by a relatively small number of companies, among them Satellite media Services and Independent Media Distribution. Radio is the most mobile of all media; it can be heard in the home, in cars, on personal headsets, in shops etc. It is unique among all ad media in that most listening is done while the audience is doing something else, and thus it does not demand the same attention as say newspapers or television. Its mobile nature means that it lends itself to impulse purchases, as the point of hearing of the ad isnt always that far from where the product is available for purchase, so it is especially good for fast foods and alcohol. Its pattern of usage is different say to TV in that the majority is done in the pre-breakfast/breakfast time slot or during the journey to (and from) work - drive time). This means that radio ads can be can easily be close to a shopping trip unlike TV commercials. Radio is an almost totally live medium making good (and obvious) use of sound, both voice and music. It has been described as theatre of the mind and it is often argued that radio has the best pictures, as it relies totally on sound effects to conjure up images in the mind of the listener.
Comprehensive research is undertaken by RAJAR (Radio Joint Audience Research Ltd), which replaced the old JICRAR and BBC methodology. Figures are available by the hour for most of the main radio services. RAJAR figures are used by the Radio Advertising Bureau (RAB) to promote radio as an outlet for advertising. Check their website (www.rab.co.uk) for some useful information. Advantages of Radio Targeting can be both local and national and depending on the station, programmes and timing, radio can be audience selective. There are 200+ UK stations, giving advertisers opportunities to target older and younger audiences. A typical radio campaign, over a month, is estimated to reach a housewife 16 times better than TV with 7 hits in the same period. The heaviest users of radio are retailers, followed by car dealers, newspaper/magazine publishers and entertainment. Radio advertising does not involve the high costs of production or expensive airtime charges of television, making it possible for smaller clients to advertise cost effectively.
Its cheap, quick and simple to produce radio ads, so the medium can be used when an advertiser needs to bombard listeners with the message to buy a product, so that they dont forget. And radio can offer advertisers competitive costs, flexibility and shorter lead times than other media. With many advertisers no longer able to afford expensive TV campaigns, many are switching to radio to maintain brand awareness. Similarly, radio is an accessible medium for local companies many of which are specifically targeted to advertise and are helped to do so with in-house production facilities. It is so accessible and quick, that an ad can be produced and updated with ease. Radio has a young audience and is a good medium for products like fast-food, banks, beer, clothing etc. That said, the fastest growing station is Radio 2, suggesting that my age-group has been poorly served by Radio 1 and others. Disadvantages of Radio
There is still relatively little credible national radio advertising, a disadvantage when compared to the national capabilities of press and TV and means it is often a difficult medium to plan and buy.
Ads, restricted to audio, often lack impact and have to be carefully written and produced so that listeners get the right message. So while I mentioned that radio might have the best pictures, it obviously isnt a great medium for product demonstrations.
Radio rarely commands 100% attention and messages are difficult to retain and are soon forgotten. As radio listening is often accompanied by other distractions the listeners attention is not always guaranteed - radio can become wallpaper for the ears.
Because of its rather low usage by advertisers, new ones are not convinced of its efficacy and thus insufficient businesses use it.
Historic problems with research have dogged the medium. Until a few years ago advertisers could not rely on the accurate statistics.
Cinema In an ever-fragmenting media marketplace, it is no longer sufficient for brands just to reach their audience they need to ensure they have an impact when they have got them. Cinema doesnt just capture audiences, it captivates them. Few mediums can provide a similar level of involvement with their audiences as the cinema. Cinema provides brand advertisers with a potent medium to deliver messages and thus it is now used by major brands such as Orange, Hewlett Packard, Guinness and HSBC. Car
makers are the biggest group spenders, earmarking 28m and overtaking the established cinema advertising categories of food and drink. While AOL are top of the cinema ad spend charts at present (1.3m this year) who do you think was the outright spend winner last year (for the fourth year in a row) with almost 14m? Orange. Cinema admissions Cinema admissions for 2006 were 157m - the fifth highest in 35-years though a drop of 8m on the previous year. There are now over 770 cinemas with around 3,500 screens in the UK (the highest since 1960), a figure that is also expected to continue to rise (note the correction in figures from your notes). However, the increased popularity of the medium has so far failed to have a similar bearing on advertising spend. Cinema still only accounts for less than 2% of national advertising spend, though the amount has risen from 18m in 1985 to over 180m in 2005. The possible reasons for this failure to keep pace are several: Misconceptions within the agencies about the opportunities presented by cinema it is still seen as a low-reach medium The average person visits the cinema seven times a year, so it is hard to compete with the frequency delivered by press or TV
The 15-24 year-old audience is one of the most elusive audiences due to their media habits The way cinema advertising is sold the audience delivery package (ADP) or individual film system means that a rise in admissions does not translate into higher rate cards Also, cinemas key audience families and children is the same as is historically targeted by TV Cinema audience profile That aside, cinemas core strength is that it captivates large numbers of the lucrative ABC1 15-24-year old young and upmarket group. They account for 30% of the audience, though the entire 15-24 segment (including C2DE) covers almost 45% of admissions. About 36% of the audience is now <40, 51% are female (49% male) and 64% are ABC1. Advantages of the Cinema Cinema is a planned and shared experience with the average group being of 3 or more. As a trip to the cinema is indicative of strong personal choice, and as the mood is one of conviviality and anticipation, this suggests cinemagoers are more open to commercials and therefore receptive to what they see while there. Cinemagoers are early adopters; they tend to be trend-setters and opinion formers - key characteristics for advertisers. Because the ads are shown directly before the film, there is a captive audience, facing front and in anticipation.
Research shows that, as a result, advertising recall is up to 5 times greater than it is for TV. The nature and layout of cinemas - dimmed lights and the (almost) full attention of cinemagoers on the large and vibrant presence of the screen - reinforces its captive nature. Ads for similar products will not usually be shown in the same sequence, which gives advertisers a certain edge. There are several ways of buying cinema ad packages. Pearl & Dean, one of the largest UK screen advertising contractors with 36% of the market, offer nine packages including an Audience Delivery Package (ADP), a Premium Package (15-24 adults, men and women), an Alcohol Package (for the 18+ audience), and a Bollywood Package (Indian films, targeting UK Asians). In 2002 packages were developed targeting young upmarket women looking to escape coverage of the World Cup, a move which is anticipated again this year and which allows for diverse and effective campaign planning. The normal minimum ad run is one week and ads are shown 4 or 5 times per day, per screen, 7-days a week, with an average cost per thousand of 54.47. The size of the screen, the creative and realistic use of sound, movement etc and the fact the ads can be comfortably longer, makes for a high impact medium. Disadvantages of Cinema
Cinema revenues and admissions are wholly dependent on one thing the movies. Good films are the lifeblood of the industry and much relies on blockbusters. Correspondingly, bad movies result in lower advertising and admissions. Like television, cinema relies on the memory of the viewer. Viewers have to wait until they leave the cinema and often until the next day before they can react to the ad by way of purchase. The pattern of cinema attendance means that repetition (key to building an advertising-aware audience) is at best spread out over weeks and at worst almost impossible. Less than 20% of 25-34 year olds go to the cinema once a month or more. Around 3.3 million people go to the cinema each week, though individual audiences are in hundreds and thousands rather than millions. More people will see a film on TV than in the cinema over a period of weeks. The opportunities to see are therefore fewer. Though suitable for products aimed at the young, cinema advertising is less useful for reaching the older audience with more money to spend. Outdoor This medium brings together outdoor and transport, which account for 6% (or around 800m) of the total spend. Outdoor & transport
enjoyed a 4% gain in the third quarter of last year, with a spend total of 222m bettered only in % terms by on-line advertising. Outdoor
includes poster sites (of which there are around 115,000
in the UK), signs, bus-shelters, electronic Metro Vision, mobile advertising vans. Transport includes on and in vehicles - taxis, buses and at bus and railway stations, airports etc The main use for these types of advertising is as a reminder medium in support of campaigns on TV or in the press. Poster Characteristics and Advantages Outdoor poster sites, normally referred to as 48-sheets, offer a mass audience profile. Though not a selective medium, the attraction is in the low cost of delivering a large audience. 48-sheets dominate the landscape and are easy to see and read. Most people view poster sites from vehicles as they pass by, so the message has to be brief, in large letters and in full colour. Campaigns can be in selected towns or nationally through a relatively small number of 48-sheet owners. Sites can also be rented close, or en route, to supermarkets or 'point of sale'.
The relatively low cost of production and site rental allows for repetition and extensive coverage. And as the medium is 24hrs per day it offers very competitively priced opportunities to see. Bus shelters (Adshells in NI), electronic posters (City TV, Sbury Square) and mobile ad vans offer similar advantages, though on a smaller scale in terms of size and audience. The principle is the same; outdoor is where people shop, work & travel. Disadvantages of Poster Advertising Messages have to short, simple and fairly bland and cannot therefore contain much detail. Though zoning is possible, outdoor advertising cannot deliver socioeconomic selectivity. All social grades use the same areas, roads, supermarkets and railway stations where poster sites are located. Poster advertising cannot command the full attention of the reader as it competes with traffic and other outdoor factors. Neither does it lend itself to creativity, apart from the occasional 3 dimension 'one-offs'. (Pancake, birdseed, half car etc) Bill boards are criticised as being blots on the landscape or traffic distractions. The late advertising guru David Ogilvy predicted they would be banned within a decade but that was 20 years ago!
Production needs and the method of site booking (often on a seasonal basis) require a lengthy lead in time. Careful campaign planning is thus necessary but immediacy is almost impossible. The characteristics and advantages of transport advertising both internal and external are similar to those for outdoor advertising: Transport Characteristics and Advantages Delivery of a large audience at relatively low cost. It is possible to advertise on and inside buses and taxis in selected areas thus enabling local targeting. Though non-selective as to audience type, transport advertising can deliver a broad audience profile. Disadvantages of Transport As to socio-economic profile. Transport rarely has a high impact on those reading the ads. There is no real guarantee as to who sees what or how often and therefore it is difficult to build a cumulative audience. Web Advertisements Advertising and the Web With the majority of people in the world connected and the amount of time spent online constantly growing, the internet has already become
an important media channel. Indeed some research suggests it is the second most-used channel after TV for news, entertainment and communication. Web advertising, characteristics/options The web began as a niche vehicle, delivering tight target groups drawn in by the specific content of particular sites. But with an estimated 5,000 new users going online every day, added to the webs ability to combine exceptional lifestyle targeting with a huge reach, it is clearly now a mass market tool. Online is probably the most versatile advertising channel and increasingly the online and offline elements of a campaign are being woven into the planning cycle from the start. The web also allows advertisers to test aspects of particular ads and to modify them with relative ease and little cost. Web advertising now plays a critical role, used as it is to support TV campaigns by extending reach and building frequency. It can also be the trigger that encourages customers to connect more deeply with individual brands. At a basic level, one approach is the 'matching luggage' concept of simply taking the more traditional offline work and ensuring its look and feel is mirrored on the web.
The web is just as powerful in raising purchase intent as any element of the media mix, and the way smart marketers use niche sites to talk to highly targeted prospects allows for a precise marketing message and, very importantly, low media wastage. However, web advertising excels even further in the way it can change perceptions of a brand, using these new technologies to increase the power of the message.
As a method of revenue generation for companies like Tesco and eBay, the web has leapt to the forefront in recent years and so too has the advertising opportunities it brings.
Online advertising is at an all time high with billions being spent worldwide. When the figures are added up, the global spend on online advertising last year is expected to top $8 billion.
In the UK, the latest Internet Ad Revenue Report shows that online advertising revenue topped 490 million in the first half of 2005 - a leap of 62% on the year before and at a time when total ad spend across all media is slowing down. Online advertising now accounts for 5.8% share of the UK market (up from 3.2% in 2004), and as previously mentioned, an increase of almost 40% is forecast for the year ahead.
The report carried out by PWC and sponsored by the Interactive Advertising Bureau - reveals that the medium is stealing revenue from the traditional media such as TV and press. Its potential for growth as an advertising outlet remains immense and its possible impact on other media continues apace. Where it differs from other media is that it is capable of reaching both a mass market and specific individuals within it, simultaneously. However, it is its quality as an interactive medium that gives the internet the edge over other media. While the overall creative message is less important on the web, typically it is detailed information that the internet user is seeking and will want to access. As the user in effect engages in a dialogue with the advertiser, some have contended that the web is really a mix between advertising and direct selling. The huge predicted hike in internet advertising suggests that advertising and PR staff are still to exploit its full potential. The net lends itself to impersonal communications such as advertising, PR and sales promotions since this sort of communication can be achieved simply by publishing existing documents such as brochures online. The internet is of great value in advertising, since web sites provide the opportunity to give greater information on product features and benefits than do other media such as television and newspapers. And
it gives the customer opportunities to request more information if required. If you check the website of almost any white good supplier, copious details will be available on line more than will be offered in any other advertising format. Remember that detail is impossible in TV ads, billboards and so on, so the internet has an instant added advantage.
Users have two broad choices for advertising on the web. The first, which most companies, charities and even night class lecturers chose, is to set up a dedicated website; the second is to use one of a number of ad types, including banner (which well look at), which can increase brand recognition, communicate or reinforce brand values, as well as providing a link to a home site.
It could be said that each home page web site is an ad in itself since it can inform, persuade and remind customers about a company or its products. However, it is not advertising as we know it as space has not been bought in the advertising sense; money has not changed hands with a third party site owner.
Online advertising is generally understood to occur when a company pays to place an ad on a third party site.
The simplest and most common model is to place an ad on a number of sites to drive traffic to the advertisers homepage, where greater information can be found. So web advertising is the gateway for the
customers of high involvement products to take the next step in making important purchasing decisions.
Web advertising differences from other media The main differences between internet and other advertising are: Costs reduce as space (which is unlimited) becomes available It is the customer who initiates the dialogue (by clicking on the specific ad) with the advertiser and who will expect his or her specific needs to be addressed, so web marketers need to promote their sites effectively in order that customers can more easily find the information they are looking for The user's time is valuable and limited and must be maximized; as we all get more used to preventing pop-ups and the like, we become more discerning as to how we use the net. And the faster downloading becomes the less tolerant we are of spending time on specific ad pages. Information is the main currency. Supplying information is arguably more important than creatively appealing to emotions. Remember too, that as visitors to web sites are trackable, the web (as an advertising mechanism) is totally accountable and the advertiser can therefore have an unlimited, and continuous, supply of data. This means advertisers can target and minimise wastage in ways they've never been able to in the past.
Banner Advertising Ads on sites are called banner since they usually appear across the top
of the web page. They are now construed as above-the-line advertising. They remind consumers of a brands existence, can stimulate latent or dormant brand associations, and may even cause people to change their attitude towards a brand, increasing the likelihood of them buying one of its products. That said internet advertising has come a long way since the banner. The webs main strength - its creative flexibility - has spawned innumerable ad formats, including superbanners, skyscrapers, (the use of sound and movement), large and regular rectangle and rich media formats. And while we are going to look at banner ads now in more detail, arguably buttons and banners, though they were the pioneer formats, are the least cost-effective form of online advertising. Ads can be placed against reserved words on search engines or on sites with more tightly defined audiences. Banners then provide stepping stones for interaction and provision of further information.
The power of banner ads is that they can be targeted at particular audiences. Companies pay for these ads for two main reasons:
In the hope that the customer will click on the ad and then will be exposed to more detailed product or corporate information on the company's own web site All visitors to a page will see the ad, noting it consciously or viewing it subconsciously. This helps reinforce a brand image
When an ad is viewed this is called a page or ad impression or exposure. Impressions is used rather than 'hits' as referring to hits tends to inflate the number of people actually viewing a page. Views differ on how many ad impressions an individual has to see for it to be effective. Research suggests that for traditional media fewer than three exposures will not ensure adequate recall. For online, because of the greater intensity of viewing a computer screen, recall is better with a small number of ads.
effective frequency.
The technical term for adequate recall is
When a user clicks on the ad, he or she will usually be directed through to part of the corporate web site that will have been set up especially to deal with the response from the advertisement. When a potential customer clicks on a banner ad, (leading to a corporate site) this is known as a click through.
The purpose of banner advertising Banner advertising is often regarded in terms of its ability to generate traffic to a web site. There are, however, several outcomes or objectives that a marketing manager may be looking to achieve through an advertising campaign: Web advertising what it can do
The challenge in using the web as a marketing tool is in limiting the role you want it to play. It can be used from initial awareness-raising, through consideration and preference to the sale and then as part of the after sales service. There are a number of important things that a banner ad can fulfill: Deliver content - Typically a click through on an ad leads to a corporate site giving more detailed information on an offer Enable transaction - If a click through leads to a vendor such as a travel site or an online bookstore, the ad clearly is intended to lead directly to a sale. A direct response is therefore sought here. Shape attitudes - An ad that is consistent with a company brand can help build brand awareness. Solicit response - An online ad may be used to identify new leads or as a start for two-way communication. In these cases an interactive ad may encourage a user to type in an e-mail address thereby providing his/her details to the advertiser. Encourages retention - The ad may be placed as a reminder about the company and its service. Web advertising benefits Among the benefits of banner advertising are: Using banners makes it possible to target ads to groups of people, sometimes in a more sophisticated way than is possible with other media Web-based ads can be tracked in more detail than ads in other media A web-based ad campaign can be more responsive than a campaign in other media as it is possible to place an advertisement more quickly
and make changes as required. Finally, since the ad can lead straight to a web site where more information and interactivity are available it should be possible to convey a more powerful message about a product. How well does web advertising work? Studies suggest online ads are more noticeable than TV. The internet, with a rating of 27%, beats ad recall for magazines, newspapers and TV. As it requires active reader involvement, this engaged state results in a higher recall of advertising. So in spite of the relatively small size of ads on a computer screen, they can prove to be very memorable. Online can deliver richer information than off line campaigns can. BMW used online to support its TV campaign to encourage testdrives of their latest model. The result was a 90% conversion rate of requests and more successful up-selling within the range. BMW learned how changing messages within the ad increased conversions further, as did quick responses from the dealerships when notified about customers interested in a test drive. It was suggested that banners performed well because of the lower advert-to-editorial ratio on web pages (typically 90% text to 10% advertising for a single banner) and because web users use the medium actively rather than passively receiving information.
Further evidence on the effectiveness of the web for advertising, in comparison with TV suggests that banner and TV ads are equally memorable. One survey of 7000 US consumers tested ad recall after one viewing. It found that 41% recalled a 30'' TV commercial after one viewing, while 40% recalled a static online banner ad. Whatever the arguments about effectiveness, it is clear that the use of the internet is decreasing the time we spend on other activities such as reading or watching the television and this may, over time, have an impact on other forms of advertising.
Making banner advertising work As with any form of advertising, certain techniques will result in a more effective ad. Discussions with those who have advertised online indicate the following are important to effective advertising.
Web advertising considerations Incentives are needed to achieve click through so banner ads offering prizes or price reductions can achieve higher click through by perhaps by as much as 10%. Creativity needs to be tested extensively. Anecdotal evidence suggests that the click through rate can vary greatly according to design of the ad. Different creative designs may be needed for different sites. Research suggests the use of the words click or click now can dramatically increase click through rates as new users do not know
how banners work! Animated banners, or those that change during campaign, may also provide a better response as do those that allow for customer input. Keywords are needed. Testing is also needed to ensure that the keywords typed into a search engine fit the required profile of audience for the advertisement. So a banner ad for one companys products (say a software package) can appear when a competitors details (say Microsoft) are entered into a search engine. Placement of the ad and timing need to be considered carefully. It should be remembered that audience volume and composition vary throughout the day and the week. Consider the click through quality not just the quantity. One UK bank stated that a clickthrough of 10% is of limited value if the profile of the person does not fit their products. It is better to have a 0.1% clickthrough rate with a good match, resulting in qualified customers signing up for the new product. Build the infrastructure to deal with the response. The future of online advertising
Online gives brands an opportunity to get close to consumers in a way that is unique and measurable, strategic and unrivalled by other channels. Rich media enables advertisers to use sound and moving images to reach the target audience with greater effect, creating interactivity and a richer brand experience. While expenditure on online advertising in the UK is still relatively low compared with that on the other traditional media, it is clear that this figure is now increasing rapidly. Projections for the year ahead, as I have already indicated, may well see an increase in online advertising by as much as 40%+. Other media take note; as more of us use computers as a tool for communicating, listening to the radio, as a source of news and information and as a mechanism for doing business. The more we use computers the more advertisers will target us. Ahead of the great upsurge in online advertising it is worth considering the factors that determine the amount of advertising on the web. The main factors are the size and composition of the audience which we know is still growing and the effectiveness of the medium for advertising. The size of the audience is increasing rapidly as new, lower-cost but highly effective equipment becomes available. In addition, with the
growth in publicly accessible computers to be found in libraries, shopping centres, airports and other public spaces methods of accessing the internet are becoming more available. The characteristics of the audience are well known, in particular their relatively high income, although the audience is becoming more like those of the general population as time goes by so the correlation between internet users and income will dissipate. The number of users the size of the audience is only constrained by the cost of buying devices to access the internet. While PC ownership is nearing saturation, there will still be a sizeable number who do not have access to or who are reluctant to use the internet. This situation is already changing with the internet becoming available via home TV sets, through companies like NTL signing up customers of their TV and telephony packages to internet usage. So the internet is getting ever closer to mass-market advertising capability and its full potential is likely to be only a few years away. A greater obstacle to the growth of internet-based advertising is the nature of the medium itself. Although there is the advantage that the user pays closer attention to the message on their computer, there is the disadvantage that the message is delivered to a limited space on the screen, and through a medium with limited use of sound and motion.
So the creative advantages enjoyed by cinema and TV advertising are less evident in online adverts. The use of sound and movement in online ads might be deemed as a plus, but other formats especially pop-ups seem to be to the annoyance of the user, causing irritation rather than raising curiosity. Who really pays any attention to advertising pop ups particularly when we appear to be spammed with so many of them? When considering the future effectiveness of online advertising, it should be remembered that users will become familiar with such ads and the novelty element enticing users to click on an ad may decrease. If this is the case, it would be expected that over time, clickthrough rates will decline. So those involved in the creative side of online advertising have to face these challenges and try to keep pace with the sophistication and expectations of computer and internet users. Another effect concerns advertising inventory, which increases as new sites go online and the size of existing sites increases. This may dilute the effectiveness of advertising and increase competition for those selling space and lowering advertising costs. That said, because of the way websites can track user interactions, marketers can gain a deep insight into how customers behave when they see initial ad messages, and how that behaviour translates
through to actions inside their own websites. This immense level of customer intelligence is paramount in the selling process.
Conclusion In conclusion I would remind you that above and below-the-line advertising go hand in hand, even though we didnt touch on the latter, details are available online. Successful sales promotion, direct mail, traditional and online advertising require the same approach. Each begins with clearly defined objectives, translated into a creative theme appropriate to the intended market. Advertising elements include an understanding of the target market combined with correct media selection, timing, message components and the overall image that each ad is creating for the product or service. The more these factors are matched up and synchronised, the greater the likelihood that each will cause a more positive effect on the other.
Slide 9: Media Guidelines Talk from the publics interest, not the organisations Make the news easy to read; avoid jargon; personalise the story Dont say anything off the record State the most important fact at the beginning e.g. mention the decision taken before going into the background Dont argue with journalists youll loose, even if you are right!
Be careful what you say; it may be used as a quote against you Give direct answers to direct questions; avoid rash comment Tell the truth, even if it hurts bad news will not go away! Checklist for effective media relations Be aware of, and utilise, pending news possibilities and think about seasonal opportunities (graduation). This allows PRO to be prepared and to handle the news effectively Government legislation can be an opportunity to comment or react Keep media contact lists up to date and target editors (city, sport) as well in case contacts are absent Angle stories for different audiences, whether by location, interests, age or gender Keep deadlines in mind morning for press, lunchtime for TV Maintain an up-to-date photographic library; offer the media photos to illustrate stories Have an effective web site and publish important background information, news releases and feature material on it Provide journalists with product brochures and background information as these can be useful Allow journalists to sample product or service Advance warning improves coverage especially to in those publications deemed most important to organisation Provide quotes from attributable and senior sources Target stories at specific publications and individual journalists Deliver news releases by courier, fax or email (not Royal Mail)
Consider further opportunities for background articles, features, interviews or photo opportunities Avoid stereotypes in photos (suits, men-only, race imbalance)
The Advertising Media Media Research Several important research bodies, which give advertisers crucial information on media efficacy when planning campaigns.
Research is a vital part of marketing.
And advertising is no
different; advertisers need to know how audiences view, recall and react to their ads, media owners need to know how many people use their medium as readers, viewers and listeners, and in general businesses want to know the profile of the typical user of their products who they are, what they do, how they spend their leisure time and so on. The following organizations are integral aspects of advertising industry research.
I. Media research (for TV, radio etc) 1. Broadcasters Audience Research Board (BARB) (www.barb.co.uk) At present there are around 24m TV homes in the UK, almost 17m of which have services in addition to regular terrestrial satellite, cable or DTT (digital terrestrial TV). This represents a huge medium for
advertisers to reach potential audiences but how do we know just exactly how many people are watching television?
BARB BARB used to provide viewing stats for BBC programmes only, but since 1981 has provided a single system, industry standard audience measurement service for all UK TV broadcasters and for the advertising industry. It is a limited company owned by BBC, ITV, Channel 4, Channel 5, BSkyB and the Institute of Practitioners in Advertising. BARB does not undertake audience measurement directly; instead contractors produce audience (estimates) ratings on its behalf. There are four Audience Measurement contracts held by three contractors - RSMB (methodology), IPSOS-RSL (surveys), ATR (metering, data collection and processing), though you need not worry about the detail of these contracts.
BARB provides BBC and ITV with minute-by-minute audience figures based on a common database of adequate reliability, at an acceptable price. Audiences are measured in numbers and for their appreciation of, or reaction to, the programmes they view, as well as the type of people (along usual demographic lines) watching.
BARB uses a national panel of 5,100 (not 3,000) households. Panel members note the programmes they watch using an electronic meter attached to a TV set that records the on/off and channel selector status at one-minute intervals. Once someone agrees to join the panel, their home will have all their TV sets and VCRs electronically monitored by a meter (a black box the size of a hardback book), on top of and connected to the TV, which automatically identifies and collects information about the channel that the panel member is viewing.
Throughout each day the meter stores all the viewing undertaken by the household. A processing centre
electronically contacts the household by phone to collect what is known as overnight viewing data, relating to the live viewing undertaken the previous day. Any playback viewing undertaken within the seven days after the live viewing event later augments these data. Channels reported by BARB provide detailed timings of the programmes and commercials they broadcast. The records that this produces are then matched to the minute-by-minute viewing data to produce the BARB official audience estimates for programmes and commercials.
BARB figures make it possible for advertisers to identify & deliver a mass audience. Thanks to BARB, ITV companies know the strength of their medium and can determine their ad rate cards appropriately. BARB recently introduced a Lifestyle Insights survey which includes details of attitudes, activities, spending habits and interests across the UK. In December 2006, for the first time, the survey included responses to attitudinal statements, while providing hundreds of additional classifications. Average Personal Viewing In 2005, BBC had 32.7% of the UK TV audience (down 2% points on the previous year); ITV took 21.5% (also down 2% points) - a decreasing and worrying statistic for mainstream advertisers; Channel 4 maintained its 9.7% share of the previous year, (among them a high % of young and affluent viewers) and Five, with 6.4%, had slightly decreased figures.
Network Viewing Share Satellite is currently accounting for around 35% (up from 26% in 2004). This is a significant increase and an indication of the continued penetration of Sky and other providers and (in advertising terms) a worry for ITV. Average personal viewing was just over 27 hours per week, which will give you some idea as to the amount of TV advertising we are all exposed to. In measuring TV audiences youll often come across the abbreviation TVR. The TVR (television rating) measures the popularity of a
programme, daypart, commercial break or advert, by comparing its audience to the population as a whole. One TVR is numerically equivalent to one per cent of a target audience. For example, if Coronation Street achieved a Housewives TVR of 20 in the UTV area, this means that 20% of all housewives in Northern Ireland watched an average minute of Coronation Street. 2. Audit Bureau of Circulations ( ABC) (www.abc.org.uk) ABC ABC was launched in 1931 in response to advertiser demand for independent verification of the claims made by the advertising sales teams of newspapers and magazines especially the national press. ABC is independent of media owners, advertising agencies and advertisers but has members representing all three.
It provides circulation (sales) figures for papers, magazines, B2B publications, directories, leaflets, exhibitions and websites. Divided into two - Business to Business and Newspapers & Consumer Magazines it reflects the breadth of the industry. ABCs certifies a net per-issue sales figure for papers and magazines, averaged over six-month periods from the end of June to the end of December. A sale is defined as an individual copy bought by a person (rather than a hotel or business) and not received in any other way; bulk sales to companies or organizations and free copies are specifically excluded.
This net per-issue figure - or certificate provides valuable information for media buyers, ad agencies and media owners. It offers accurate and comparable data (circulation figures) for use in press advertising buying decisions and provides an effective sales tool for the media to attract advertising.
An ABC certificate also demonstrates a media owner's integrity, in their willingness to be audited and to conform to industry standards. It is through the application and monitoring of these standards that ABC acts as an industry watchdog. The 6monthly figures are published by ABC in BRAD, which we will come to in a minute; the information for these figures is gathered from audit forms returned by publishers' accountants.
Over 3,000 newspaper and magazine owners quote ABC figures - the actual average number of copies sold per day, week or month. It is not a figure based on opinion polls, panels or interviews.
Consumer magazine titles are audited 6 monthly or annually June and December and figures are released publicly from February and August. National newspapers are audited every month.
An important part of ABC's role is making sure current circulation distribution and attendance figures are available to advertising space buyers and media owners. To this end, ABC also produces a twice-yearly Review for members and subscribers. Theres a handout in QOL indicating how quoting ABC figures can impact positively on a magazines ability to attract advertising.
3. Radio Joint Audience Research Ltd (RAJAR) (www.rajar.co.uk) RAJAR was formerly another known by a different acronym JICRAR - the Joint Industry Committee for Radio Audience Research, which covered only the independent sector.
RAJAR RAJAR, set up in 1992, provides a single audience measurement system for the BBC and Independent Local Radio (ILR). Members of the Commercial Radio Companies Association (CRCA) and the BBC fund RAJAR and it is representative of the advertising media (radio), ad agencies and advertisers. The research company holding the contract selects an annual sample of over 20,000 adults (15+), who maintain diaries of their listening choice by 15-minute segments of their total listening day.
The diary is divided into two distinct sections. The first is a selfcompletion questionnaire covering media consumption
including TV viewing, newspaper readership, Internet usership and radio listening via TV. The second is used to record radio listening.
When respondents listen to the radio for 5 minutes or more, they record their listening and specify where they did it, i.e. home, work, in a car, van or elsewhere. If no listening took place on any half-day period, a separate box must be marked to indicate this. A page of the diary is used by respondents to add their comments on the stations and programmes listened to.
The current RAJAR contract, which has been running since 1998 includes three different key features:
A 'personalized' diary, customized to include the stations required by each individual respondent One adult per household to be interviewed, instead of all household members Audience measurement on a rolling basis, with data built up over 3, 6 or 12 months, according to the size of the station RAJAR issues 2 main publications - the quarterly summary and the published report, as well as a number of other reports available only
on subscription. The summary provides a general overview of the industry and the latter a station-by-station report. RAJAR reports average audience figures per station at daily hour intervals, cross-indexed by demographic composition. Once again, the information included in the various RAJAR reports provides detailed information to ad agencies, advertisers and others on the numbers of people listening to radio, the type of programmes they listen to and their demographic profiles. In QOL youll find a handout on some of the winners and losers in the most recent RAJAR survey findings.
4. Cinema and Video Industry Audience Research (CAVIAR) CAVIAR was established in 1983 to provide reliable audience figures for media planners and cinema owners. It is commissioned and produced annually by the Cinema Advertising Association on behalf the CAA (Cinema
Advertising Association). 3,000 face-to-face interviews are conducted annually
with respondents aged 4+.
The CAA is a trade association of cinema advertising contractors in the UK and Eire. It monitors, promotes and maintains standards of cinema advertising, including pre-vetting all cinema ads to ensure conformity with the British Codes of Advertising and Sales Promotion and the Advertising Standards Authority for Ireland.
CAVIAR
The survey provides the industry with key information on cinema going habits and film viewing in Britain. This includes cinema and specific film audience profiles; party size & composition; in-depth analysis of the cinemagoers last visit to the cinema; experience in the cinema complex; and consumption of other media including viewing of pay-per-view films and digital TV.
In addition, the CAA commissions and conducts research into the cinema as an advertising medium, including the UK cinema admissions monitor, publishing master lists of cinemas taking advertising and providing an industry umbrella for the annual CAVIAR studies.
5. Poster Audience (www.postar.co.uk)
Research
( POSTAR
formerly
OSCAR)
Until 2004 OSCAR provided information relating to poster sites in the UK through a programme of continuous field research. OSCAR was succeeded by POSTAR which has overhauled the research and data available for the over 120,000 outdoor panels throughout the UK. They did this by estimating vehicular and pedestrian traffic past each of the 100,000 UK roadside billboards.
POSTAR To further improve the marketability of poster sites, NOP carried out 9,000 12-minute pedestrian counts at sites across the country over 18 months, thereby enabling analysis of passer-by behaviour. Using cutting-edge infrared technology people's eye movements whilst travelling were assessed, either as a passenger or a driver. POSTAR also provide sample campaigns to enable advertisers to reach desired audiences in certain areas of the UK. In general terms, gross audience estimates for individual poster sites are made available to advertisers, along with visibility-adjusted audience estimates for each. Physical characteristics of sites are classified, and this along with vehicle and pedestrian count data can be made available for every ITV region, as can details for every site of the proximity of multiple retailers. Postar started in London a few years ago and began nationwide coverage in 2003. It aims to provide the closest relationship between opportunity to see and actually seen of any medium. This covers how many people have had the opportunity to see a specific poster campaign, and importantly, a realistic estimate of the number of people who have actually taken that opportunity.
Posters in the UK are bought increasingly on the basis of individual sites; OSCAR and now POSTAR - was developed to provide relevant audience data for this buying practice. The service is available to media planners and agency personnel online and in the form of a periodic digest.
6. National Readership Survey (NRS) (www.nrs.co.uk) NRS is published by National Readership Surveys Limited, with the surveys being done by Ipsos-Research Services Ltd at a cost of some 4 million per year. The board of NRS is made up of the IPA - 12% - on behalf of agencies; the Newspaper Publishers Association (NPA) - 44% representing national papers; the Periodical Publishers Association (PPA) covering magazine publishers - 44%; and the Incorporated Society of British Advertisers (ISBA).
NRS The NRS helps to establish reader, viewer, and listener profiles. It provides estimates of the number and nature of the people who read Britains newspapers and consumer magazines. Currently the Survey publishes data covering some 250 newspapers, newspaper
supplements and magazines. Its objective is to provide the common currency of readership research data for newspapers and magazines, by means of a continuous survey based on interview with a 35,000 panel.
NRS gives details of readers in terms of sex, age, regionality and many other demographic and lifestyle characteristics. This is used by publishers of newspapers and magazines, advertisers and ad agencies to plan, buy and sell advertising space in print media. Every year around 35,000 individuals are interviewed for the NRS. This sample is representative of the 15+ population in GB. Interviews are conducted on a one-to-one basis in respondents homes, and each interview lasts an average of 30 minutes. NRS used to use prompt cards to see how often people read or looked at publications, what TV they saw and radio they listen to. NRS findings reveal to advertisers and agencies the numbers of people and their characteristics for the top 250 publications and so aids in the setting of advertising rates and in the selection of publications to reach particular audiences profiles. Its predecessor was JICNARS, which developed the ABC social grades and which we will touch on again in a few moments.
II. Audience profiles (TGI etc) 1. Target Group Index (TGI) (www.tgisurveys.com) The TGI, which started in the UK in 1969, is a fast growing international network of single source market research surveys. It provides invaluable product, brand, media and attitudinal data in 57 countries around the world. TGI It exists to provide the advertising and media industries with a means of describing target groups for the broad spectrum of consumer goods and services. Importantly it also allows the identification of potential
strategies for communicating with these audiences. Today, TGI is used to assist in the understanding of target markets and to aid marketing and advertising decisions. A TGI survey collects information on many different aspects of its respondents, asking about product and brand, leisure activities, use of services, media exposure and preferences, attitudes and motivations and demographics.
The available data presents endless opportunities for market analysis and segmentation and helps to develop targeting and consumer understanding.
This massive-scale commercial research service produces annual and semi-annual statistical reports in 34 volumes linking reading, viewing and listening habits to the consumption of almost 3,000 brands in 13 separate product and service categories. The TGI, which is run by BMRB (British Market Research Bureau), collects data from a nationwide panel of 24,000 adults who are questioned on over 400 product fields in 200 UK areas. (Theres a TGI handout (from 2005) in QOL.) Panellists are questioned about what products/brands they use, papers they read, and what TV they view among other things, all by means of a postal questionnaire.
TGI covers the characteristics of users and the products they use, and relates demographic data to heavy, medium and light use of those products to readership, viewing and listening habits. The Index provides brand insight, consumer segmentation, market intelligence, target media, and user profiles across the following sectors - alcohol and soft drinks, appliances, communications, confectionery, drinks, holidays, consumer travel durables, and finances, food and hot
leisure,
household
products,
motoring, new technology, shopping, retail and clothing, tobacco, toiletries, pharmaceuticals and cosmetics.
All data can be analyzed by attitudes, demographics, lifestyle & media consumption. TGI is useful for comparing and selecting the best media for reaching a defined target audience for a wide range of products. 2. A Classification of Residential Neighbourhoods (ACORN) Underscoring ACORNs philosophy is the fact that the type of dwelling and area a person lives in is a good predictor of likely purchasing behaviour including the types of products and brands which might be purchased. This classification analyses homes, rather than individuals, as a basis for segmentation.
ACORN A socio-economic marketing segmentation system it makes its classifications based on the latest census figures. ACORN lumps residences into groups: agricultural (a), better-off council estates (e), affluent suburban housing (j), and unclassified housing (u). The 11 main categories are sub-divided into 38 neighbourhood types, taking into account 40 variables including demographics, housing and employment characteristics. So c (older housing of intermediate status) includes C10 (villages with non-farm employment) and C11 (older private housing with skilled workers). An extension of the ACORN classification is the rival Mosaic system, based on individual postal codes. Each code represents about 10 dwellings and groups are given an individual Mosaic label, of which there are 58. Mosaic comes from the idea that if a different colour was given to each category and superimposed on a map of the UK the resulting pattern would resemble a mosaic. From the information deduced it is possible to produce maps of areas based on housing classifications and to associate neighbourhoods with certain lifestyles and social grades. Taken together, the demographic bases described constitute the most popular bases for segmentation in consumer product markets, since they are often associated with differences in consumer demand. As such, they are meaningful to advertisers.
Occupation and social class are linked as the former is used to define the latter. It is, therefore, relatively easy to reach the different classes through their media and shopping habits, though boundaries between the purchasing power of different classes becomes blurred when, for example, skilled manual workers earn higher incomes than those in lower or intermediate management. When ACORN is run beside TGI data potential consumers for a product or service can be profiled according to where they live.
III.
Industry research
1. British Rate and Data (BRAD) (www.intellagencia.com) BRAD, owned by media group EMAP, has existed for 50 years. It provides accurate, comprehensive advertising information to
advertisers and agencies. It provides over 13,500 entries covering every media outlet - from papers to hot air balloons.
BRAD BRAD publishes updated rates and data (circulation data & target audience) on over 13,000 media entries across all sectors enabling planners to plan, buy and research media. Circulation and audience reach figures in each entry enable a comparison with other titles in the market. BRADnet gives the details online.
BRAD publishes monthly information including ABC figures and details of advertising rate cards for daily, national, weekly and
regional newspapers and virtually every separate media vehicle available to advertisers in Britain. The information includes: title of the publication, publisher, address, cover price, copy/cancellation deadlines, rate cards, series discounts, plus ABC and non-audited audience figures for business, professional and specialist consumer magazines. In addition BRAD publishes a quarterly list of advertising agencies, their clients and their expenditure. BRAD offers assistance to anybody involved in the commercial aspect of the media industry. By publishing this data agencies can plan and buy advertising and media owners and agencies can generate new business. It is arguably the media buyers indispensable reference tool. 2. Media Expenditure Analysis Ltd (MEAL) MEAL as such is no longer in existence, so it has little importance. Until 5 years ago it was operated by media analysis firm AC Nielsen, but I dont think it has been published since. Up until then, MEAL produced a quarterly digest of the estimate of press and television advertising plus additional products and brand advertising
information. Over 150,000 ads were monitored each month spread over 400 product groups, and MEAL calculated the amount being spent based on standard rate cards. The system did not take into account any discounts that might be available; hence the information was at best indicative rather than conclusive. However, it did enable advertisers to work out what their
competition is spending.The ten acronyms listed above are all essential to advertisers. The information provided allows companies both to build profiles of their customers and judge the best media to reach them.
IV.
Social grades
Social Classes Knowing the location and wealth of likely customers is vital both to business and to advertising. The NRS 'social grades', which are based on the occupation of the head of the household, make it possible (in theory) to identify groups of people with common characteristics and similar behavioural patterns and to identify the media which will reach prospective buyers most effectively. Note that the system is based on occupation of the Chief Income Earner (CIE) in each household and not on the income of the individual although the latter normally follows the former. The idea of social grades though intrinsically British, is universal but to lesser degrees elsewhere. It is open to criticism but as social class has been shown to be associated with patterns of media usage and buying behavior, the 6 distinctions are important to advertisers, who rely on this type of classification. Social Grade Classification Social grades in 2007 differ from those of 10 years ago. Maybe we are all more politically correct now, but Jefkins then referred to A as upper middle class and E as the lowest level of subsistence. A 2003 survey (published in The Guardian) gives a more meaningful
classification to include wealthy achievers (25%), urban prosperous (11%), comfortably off (27%), moderate means (15%), hard pressed (22%).
Social Grade Classification A Higher managerial, administrative & professional B Intermediate managerial, administrative & professional 21.6% C1 Supervisory or clerical & junior managerial/professional 29.1% C2 Skilled manual D Semi-skilled and unskilled manual 16.2% E Casual laborers, state-pensioners & the unemployed 8.8% What is of more interest and importance is how the percentages in each category keep changing. Though A in 1990 accounted for 3% of the population, B was 13% compared to almost 20% today, C1 is up from 22% to 27%, D has dropped from 20% to just over 16% and E, has increased from 9% to 11.7%. The ABC classification is more obvious when it comes to newspaper readership. Typically As and Bs read The Times, Financial Times and The Guardian, C1s the Daily Express and the Daily Mail and C2s and Ds The Sun, Mirror and Daily Star. So if you wanted to advertise an expensive sports car, you would look for a paper or magazine with a high readership of fairly rich 24-35 21% 3.4%
year-olds; in other words, an AB readership aged 24-35. You would also be 'buying' other readers as well, as many C1, C2 and Ds like to read about expensive cars - even if they cant afford one! But then younger people get older, and some C1, C2 and Ds may get promotion to the point where they can afford your car. Age and social grades do not work precisely but they help the advertiser to get fairly close to the audience he wants to reach. To every rule of thumb there are bound to be exceptions but none the less the concept of social grading, even in todays 'classless society' remains strong and in advertising, important.
V. Web advertising (See in Detail in the above heading Advertisement Production)
UNIT - 4 / INTRODUCTION TO SALES PROMOTION Definitions

American Marketing Association defines Sales Promotion includes those sales activities that supplement both personal selling and advertising and coordinate them and help to make them effective, such as displays, shows and expositions, demonstrations and other non-recurrent selling efforts not in the ordinary routine. (1960) Roger A Strang has defined Sales Promotions are short-term incentives or encourage purchase or sale of a product or service. John A Quelch has defined Sales Promotions are temporary incentives targeted at the trade (called trade promotions). While sales promotions generally aim to change purchase behavior, they vary in whether they attempt to persuade trade customers or end consumers to buy a product for the first time, to buy more, to buy earlier, or to buy more often. According to Philip Khotler Sales promotion consist of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and / or greater purchase of particular products / services by consumers or the trade. According to Kazmi and Batra Sales Promotions include incentive offering and interest creating activities which are generally short-term marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firms customers.
Objectives of Sales Promotion
1. Increase sales volume. 2. Speed up the sales of slow moving products. 3. To check the fluctuations in sales. 4. Attract new customers. 5. Launch new product and increase trial. 6. Encourage repeat purchase. 7. Clearance of excessive inventories. 8. Motivate dealers to stock and sell more. 9. Encourage dealers to participate in display and sales contests. 10. To gain advantageous shelf-space. 11. To increase store traffic. 12. Improve relationship with dealers. 13. To block competitors moves. 14. Motivate sales force. 15. To supplement advertising and personal selling efforts. 16. Deflect customers attention from price. Factors Influencing Sales Promotion Growth 1. Increasing Competition: After the introduction of economic liberalization, competition prevails in almost all goods and services. Survival of fittest is the only way in this intense domestic (national) and global (international) competition.
2. Customers have become more price-sensitive: Consumers in general have become more conscious (alert) about prices. Some researchers feel that this increased price sensitivity of customers is a
result of frequent sales promotions because consumers become conditioned to promotion.
3. Sales Promotions generally create an immediate positive impact on sales: Advertising, Personal Selling, and other methods of promotion produce a slower sales response as compared to sales promotion. Also since sales promotions are mostly for a short duration, or a specified period, this leads to a sense of urgency in consumers to buy now.
4. Products have become more standardized: Most brands are being perceived by consumers to be more or less similar a given price range because of the inability of manufactures to develop truly differentiated products.
5. Consumer Acceptance: As competition intensifies, and promotions proliferate (grow or multiply), consumers have learnt to earn the rewards of being smart shoppers. Over a period of time, they have also learnt that brands on promotion are not necessarily of lower quality (examples are Nike and Reebok sports footwear, Timex and Titan watches, Computers, Cell Phones, Four wheeler and Two wheeler and a large number of other brand name products). Consumers have learned that promotions are being extended to many product categories where such promotions were unheard of before.
6. Expectations of price decrease: With the entry of many different brands of consumer durable products in the same product category, consumers anticipate that the prices of durable goods will come down. This encourages them to postpone their purchases. To speed up the purchase in this segment of consumers, sales promotions, sales promotions are an effective as well as attractive method.
7. Advertising has become more expensive and less effective: All the advertising media have become quite expensive. Audio-visual medium, which is considered as the most effective medium for shortduration ads, may cost in excess of Rs 1,50,000 for a ten-second exposure during prime time. In many cases, consumers have reached a point a point of boredom due to excessive exposure to advertising on TV. Small companies cant afford huge sums of money on advertising, sales promotion is a more cost-effective promotion method to produce sales results.
8. Trade has become more powerful: Retailers and wholesalers have become powerful and find themselves in a position to demand extra benefits from the companies. They do not hesitate and play off one manufacturer against another.
9. Emphasis on sales volume: Towards achieving long-term profit goals, manufactures try to attain high sales volumes. Brand managers and product managers find themselves under pressures to achieve short-term sales results for the sake of their carriers. Compared to any
other promotional method, sales promotion is a more effective method to generate short-term sales volume.
10. Sales Promotions maximize profits: A number of economic theories conclude that a company can maximize profits by using sales promotion. Such promotion can permit price discrimination by allowing the brand to compete in two or more different market segments. For example, a premium brand of toilet soap may be on promoted with different prices in some price sensitive markets while in the remaining markets it is sold on its normal price.
11. Introducing an element of interest: There are number of promotions which are often called interest-promotions. Some of the more popular interest-promotion techniques are samples, scratch cards, contests and sweepstakes, free premiums and mail-in premiums. These promotions create an element of interest and excitement; consumers enjoy these and respond enthusiastically to such promotions.
12. Impulse (desire or urge) buying in increasing: It appears that the number of marginal customers is on the increase. Displays at the point-of-purchase lead to impulse buying (unplanned purchases) by consumers.
13. Sales promotion specialists are available: As a result of economic liberalization, the number of management institutions has increased. This has led to the availability of specialists who are not well paid but
can handle this specialized work more efficiently in the current market conditions where sales promotion has become more important.
14. Excess stocks: Because of increasing number of brands, it is becoming difficult for manufactures and dealers to anticipate sales in the future. This, at times, leads to excess inventories and the quickest way to clear the piled up inventories is to go for sales promotion.
Roles/purpose of sales promotion i.e., Consumer Promotion and Trade Promotion
1. Getting customers to try a new service or menu item. 2. Increasing off-peak sales. 3. Increasing sales in periods that coincide with major events, vacations, or special occasions. 4. Encouraging travel intermediaries to make an effort to sell services. 5. Helping sales representatives get business from prospects. 6. Facilitating intermediary sales. 7. To attract new triers, to reward loyal customers, and to increase the repurchase rates of occasional users (incentive type promotions). 8. It enables the manufactures to adjust to short-term variations in supply and demand. 9. To provide effective sales support. 10. To increase the speed of product acceptance.
Benefits of sales promotion

1. Communication: They gain attention and may lead the consumer to the product. 2. Incentive: They incorporate some concession, inducement, or contribution that gives value to the consumer. 3. Invitation: They include a distinct invitation to engage in the transaction now. Limitations of Sales promotion 1. There is a feeling that such seasonal sales promotional activities are mainly intended to sell an inadequate product. 2. The second criticism is that such discounts are not real. 3. These activities are short-lived, so the results realized are also shortlived. As soon as these concessions are withdrawn, the demand also reduces.
Sales Promotions Techniques

I. Consumer Sales Promotions
1. Coupons: certificates entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other products or attached to them, or inserted in magazine and newspaper ads.
2. Samples: Offer a free amount of a product or service door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer.
3. Price Packs (cents-off deals): Offers to consumers of savings off the regular price of a product flagged on the label or package. A reducedprice pack is a single package sold at a reduced price (such as two for the price of one). A banded pack is two related products banded together (such as a toothbrush and tooth paste).
4. Cash Refund Offers (rebates): Provide a price reduction after purchase rather than at the retail shop: consumer sends a specified proof of purchase to the manufacturer who refunds part of the purchase price by mail.
5. Premium (gifts): Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. A with-pack premium accompanies the product inside or on the package. A free in-the-mail premium is mailed to consumers who send in a proof of purchase, such as a box top or UPC code. A self-liquidating premium is sold below its normal retail price to consumers who request it.
6. Prices (contests, sweepstakes, and games): Prizes are offers of the chance to win cash, trips, of purchasing something. A contest calls for consumers to submit an entry to be examined by a panel of judges who will select the best entries. A sweepstakes asks consumers to submit their names in a drawing. A game presents consumers with something every time they buy-bingo numbers, missing letters-which might help them win a price.
7. Free trials: Inviting prospective purchasers to try the product without cost in the hope that they will buy.
8. Tie-in promotions: Two or more brands or companies team up on coupons, refunds, and contests to increase pulling power. 9. Trading Stamps: Used by large retailers and companies. Such stamps are attached with the quantity of purchase. On specified accumulation these are redeemable (usable) for various products and services. II. Trade Promotions 1. Advertising Materials: The advertising materials prepared by the company such as store signs, banners, shelf signs, boards, etc., are distributed to sub-dealers for display purposes. This in fact a method of advertising.
2. Store Demonstration: In the premises of the wholesaler or the retailer, the producers sales personnel will conduct special demonstrations for the companys product.
3. Special Displays and Shows: These are seasonal in character but could be arranged in an elaborate manner and for all the products of a company. Usually, these are arranged along with trade fairs and exhibitions.
4. Dealer Contests: This is an indirect way of increasing sales. It is conducted by the manufacturer at a wholesale or retail level. Such
contests may take the form of window display, internal store display, sales contests (large sales volume) etc. The winners are rewarded either in cash or in cash or in some interesting forms. This certainly involves financial commitments.
5. Dealer Premiums: This is an indirect way of increasing sales. It is conducted by the manufacturer at a wholesale or retail level. Such contests may take the form of window display, internal store display, sales contests (large sales volume etc). The winners are rewarded either in cash or in some other interesting form.
6. Push Money: Money paid to trade sales force for pushing additionally a specific product or product line.
7. Trade Allowances: These are temporary price reductions or reimbursement (Repayment or Compensation or Refund) of expenses incurred by dealers, in full or part. Following are some of the allowances: Trade or Buying Allowance: On purchase of specified quantity of a product, price reduction is offered. Buy-Back Allowance: A secondary incentive given to traders in the form of some money for each additional unit bought over and above the deal quantity. Count & Recount: A specific amount of money is offered after ascertaining the number of product units sold during a specified period.
Merchandise or Display Allowance: An allowance given to trade for arranging desired display and merchandising effort.
FACTORS Time Frame Primary Appeal Primary Objective ADVERTISING Long-term Emotional Image/brand building Contribution to Profit Moderate High High Low SALES PROMOTION Short-term Rational Sale PERSONAL SELLING Short/long-term Rational Sale/relationship PUBLICITY Long-term Emotional Goodwill
Cooperative Advertising and Promotion Allowance: Advertising and promotional costs incurred by the dealer are shared by the manufacturer at some agreed rate. Comparison of Sales Promotion with other Promotion Mix Elements
UNIT 5 Sales Promotion Campaign

Here are 7 steps to effectively plan and execute a successful promotion: 1. Name/Theme of Your Promotional Campaign (you can additionally use slogans or logos if you prefer). 2. Focus on specific products or services according to your client's needs. 3. Support materials/collateral needed to present your products or services successfully (posters, fliers, banners, signs, displays, etc.). 4. Get customer communication distributed about the event (Letters, direct mail, e-blast, e-newsletters, fliers, catalogues, etc.). 5. Have a "push list" of products or services available for all sales associates. 6. Create a clientele file for every customer attending your event. Not every client is going to buy from you, therefore ask non-purchasing
customers if they would like to sign up to be notified of future sales or promotions. 7. Follow-up immediately after your event is over, with thank you notes and/or a courtesy telephone call to all of your customers. This may be time consuming, but going this extra mile to thank your patrons will definitely pay off in the long run. Some of your training emphasis should reiterate the following: Approach and Greet (How to professionally begin your selling process in person, over the telephone or online) Build your sales through link or multiple selling Filling out a client file for all of your invitees or attendees Closing your sale productively Afterwards you want to evaluate the success of your event. This will allow you to closely examine the positive aspects, as well as the challenges. Track your sales during your event (date, sales, number of purchasing customers, etc.). Looking through the eyes of your customers, be sure that your business meets these primary guidelines: Visibility - Make sure your customers can easily find you if you have a storefront. Accessibility - You must be able to contact your customers and vice versa. If your business is home based or online, it is just as important as a storefront business to have your customers be able to reach you effortlessly. Availability - Make sure you are able to keep your supply of products or services in sync with demand. Effective communication will promote a long term relationship with your loyal and frequent customers. These are some essential steps to ensure that you will not only have a satisfied customer, but a repeat patron as well.
When planning a promotional campaign keep in mind that a campaign generally consists of three desired outcomes: Outcome 1: Your promotional message reaches your intended and targeted audience. Outcome 2: Your message is understood by your audience. Outcome 3: Your message stimulates the recipients and they take action.
The question is how do you achieve these outcomes with your campaign? The process is easy, but it takes "planning" time. Here are seven steps that will get your campaign off to the right start. Step 1: Assess Marketing Communication Opportunities. It's important in this first step to examine and understand the needs of your target market. Who is your message going out to? Current users, influencers among individuals, decision-makers, groups, or the general public? Step 2: What Communication Channels Will You Use? In the first step of planning you should have defined the markets, products, and environments. This information will assist you in deciding which communication channels will be most beneficial. Will you use personal communication channels such as face to face meeting, telephone contact, or perhaps a personal sales presentation? Or will the nonpersonal communication such as newspapers, magazines, or direct mail work better? Step 3: Determine Your Objectives Keep in mind that your objectives in a promotional campaign are slightly different from your marketing campaign. Promotional objectives should be stated in terms of long or short-term behaviors by people who have been exposed to your promotional communication. These objectives must
be clearly stated, measurable, and appropriate to the phase of market development.
Step 4: Determine Your Promotion Mix This is where you will need to allocate resources among sales promotion, advertising, publicity, and of course personal selling. Don't skimp on either of these areas. You must create an awareness among your buyers in order for your promotional campaign to succeed. A well rounded promotion will use all these methods in some capacity. Step 5: Develop Your Promotional Message This is the time that you will need to sit down with your team and focus on the content, appeal, structure, format, and source of the message. Keep in mind in promotional campaigns appeal and execution always work together. Step 6: Develop the Promotion Budget This is the exciting part. You must now determine the total promotion budget. This involves determining cost breakdowns per territory and promotional mix elements. Take some time to break down allocations and determine the affordability, percent of sales, and competitive parity. By breaking down these costs you will get a better idea on gauging the success potential of your campaign. Step 7: Determine Campaign Effectiveness After marketing communications are assigned, the promotional plan must be formal defined in a written document. In this document you should include situation analysis, copy platform, timetables for effective integration of promotional elements with elements in your marketing mix. You will also need to determine how you will measure the effectiveness once it is implement. How did the actual performance measure up to planned objectives. You'll need to gather this information by asking your target market whether they recognized or recall specific advertising messages, what they remember about the message, how they felt about the
message, and if their attitudes toward the company was affected by the message.
Promotion: Integrated Marketing Communication Integrated Marketing Communication (IMC) involves the idea that a firms promotional efforts should be coordinated to achieve the best combined effects of the firms efforts. Resources are allocated to achieve those outcomes that the firm values the most. Promotion involves a number of tools we can use to increase demand for our The most well known component of promotion is advertising, but we can also use tools such as the following: Public relations (the firms staff provides information to the media in the hopes of getting coverage). This strategy has benefits (it is often less expensive and media coverage is usually more credible than advertising) but it also entails a risk in that we cant control what the media will say. Note that this is particularly a useful tool for small and growing businesses especially those that make a product which is inherently interesting to the audience. Trade promotion. Here, the firm offers retailers and wholesalers temporary discounts, which may or may not be passed on to the consumer, to stimulate sales. Sales promotion. Consumers are given either price discounts, coupons, or rebates. Personal selling. Sales people either make cold calls on potential customers and/or respond to inquiries. In-store displays. Firms often pay a great deal of money to have their goods displayed prominently in the store. More desirable display spaces include: end of an aisle, free-standing displays, and near the check-out counter. Occasionally, a representative may display the product. Samples Premiums
PROMOTIONAL OBJECTIVES AND EFFECTIVENESS Generally, a sequence of events is needed before a consumer will buy a product. This is known as a hierarchy of effects. The consumer must first be aware that the product exists. He or she must then be motivated to give some attention to the product and what it may provide. In the next stage, the need is for the consumer to evaluate the merits of the product, hopefully giving the product a try. A good experience may lead to continued use. Note that the consumer must go through the earlier phases before the later ones can be accomplished. Promotional objectives that are appropriate differ across the Product Life Cycle (PLC). Early in the PLCduring the introduction stagethe most important objective is creating awareness among consumers. For example, many consumers currently do not know the Garmin is making auto navigation devices based on the global position satellite (GPS) system and what this system can do for them. A second step is to induce trialto get consumers to buy the product for the first time. During the growth stage, important needs are persuading the consumer to buy the product and prefer the brand over competing ones. Here, it is also important to persuade retailers to carry the brand, and thus, a large proportion of promotional resources may need to be devoted to retailer incentives. During the maturity stage, the firm may need to focus on maintaining shelf space, distribution channels, and sales. Different promotional approaches will be appropriate depending on the stage of the consumers decision process that the marketer wishes to influence. Prior to the purchase, the marketer will want to establish a decision to purchase the product and the specific brand. Here, samples might be used to induce trial. During the purchase stage, when the consumer is in the retail store, efforts may be made to ensure that the consumer will choose ones specific brands. Paying retailers for preferred shelf space as well as point of purchase (POP) displays and coupons may be appropriate. After the
purchase, an appropriate objective may be to induce a repurchase or to influence the consumer to choose the same brand again. Thus, the package may contain a coupon for future purchase. There are two main approaches to promoting products. The push strategy is closely related to the selling concept and involves hard sell and aggressive price promotions to sell at this specific purchase occasion. In contrast, the pull strategy emphasizes creating demand for the brand so that consumers will come to the store with the intention of buying the product. Hallmark, for example, has invested a great deal in creating a preference for its greeting cards among consumers. There are several types of advertising. In terms of product advertising, the pioneering ad seeks to create awareness of a product and brand and to instill an appreciation among consumers for its possibilities. The competitive or persuasive ad attempts to convince the consumer either of the performance of the product and/or how it is superior in some way to that of others. Comparative advertisements are a prime example of this. For instance, note the ads that show that some trash bags are more durable than others. Reminder advertising seeks to keep the consumer believing what other ads have already established. For example, Coca Cola ads tend not to provide new information but keep reinforcing what a great drink it is.
DEVELOPING AN ADVERTISING PROGRAM Developing an advertising program entails several steps:
Identifying the target audience. Markets reports can be bought that investigate the media habits of consumers of different products and/or the segments that the firm has chosen to target. Determining appropriate advertising objectives. As discussed, these objectives might include awareness, trial, and repurchase, inducing consumers to switch from another brand, or developing a preference for the brand. Settling on an advertising budget. Designing the advertisements. Numerous media are available for the advertiser to choose from. A list of some of the more common ones may be found on PowerPoint slide #11. Each medium tends to have advantages and disadvantages.
It is essential to pre-test advertisements to see how effective they actually are in influencing consumers. An ad may have to be redesigned if it is found not be to be as effective as targeted. Note that selecting advertisements is often a numbers game where a lot of advertisements are created and the ones that test best are selected.
ADVERTISING STRATEGIES Depending of the promotional objectives sought by a particular firm, different advertising strategies and approaches may be taken. The following are some content strategies commonly used.
Information dissemination/persuasion. Comparative ads attempt to get consumers to believe that the sponsoring product is better. Although these are frequently disliked by Americans, they tend to be among the most effective ads in the U.S. Comparative advertising is illegal in some countries and is considered very inappropriate culturally in some societies, especially in Asia.
Fear appeals try to motivate consumers by telling them the consequences of not using a product. Mouthwash ads, for example, talk about the how gingivitis and tooth loss can result from poor oral hygiene. It is important, however, that a specific way to avoid the feared stimulus be suggested directly in the ad. Thus, simply by using the mouthwash advertised, these terrible things can be avoided.
Attitude change through the addition of a belief. This topic was covered under consumer behavior. As a reminder, it is usually easier to get the consumer to accept a new belief which is not inconsistent with what he or she already believes than it is to change currently held beliefs.
Classical conditioning. A more favorable brand image can often be created among the consumer when an association to a liked object or idea is created. For example, an automobile can be paired with a beautiful woman or a product can be shown in a very upscale setting.
Humor appeal. The use of humor in advertisements is quite common. This method tends not to be particularly useful in persuading the consumer. However, more and more advertisers find themselves using humor in order to compete for the consumers attention. Often, the humor actually draws attention away from the productpeople will remember what was funny in the ad but not the product that was advertised. Thus, for ads to be effective, the product advertised should be an integral part of what is funny.
Repetition. Whatever specific objective is sought, repetition is critical. This is especially the case when the objective is to communicate specific information to the customer. Advertising messageseven simple onesare often understood by consumers who have little motive to give much attention to advertisements to which they are exposed. Therefore, very little processing of messages is likely to be done at any one time of exposure. Cumulatively, however, a greater effect may result.
Celebrity endorsements. Celebrities are likely to increase the amount of attention given to an advertisement. However, these celebrities may not be consistently persuasive. The Elaboration Likelihood Model discussed below identifies conditions when celebrity endorsements are more likely to be effective.

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UNIT 1 / ADVERTISING

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There are two types of Advertising Objectives,

General Objectives. Specific Objectives.

II. Specific Objectives of Advertising

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Elements to Be Considered In Setting an Objective:

Copyright 1999 Prentice Hall

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Setting Advertisement Objectives Traditional - RIP acronym = Remind - Inform Persuade

Addition to Advertising Objectives

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On the basis of the purpose advertising is usually classified into:

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5. It enables them to have product information. 6. It ensures more economical selling.

Salesmanship is incomplete without advertising. It is a forerunner of a salesman in the distribution of goods.

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Benefits to the Community

Drawbacks or Objection or Criticisms:

Meaning & Introduction of DAGMAR:

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Unaware Aware Comprehension and Image Attitude Action

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Definition of Advertising Agency

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Reasons for Losing Clients

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Other Types of Agencies

How the Agencies Acquire (get or buy) New Clients

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demonstrates its outstanding work.

Client or Advertisers Role in Organizing for Advertising

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Different Advertising Organization Systems

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General Steps in Developing and Implementing an Advertising Campaign

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UNIT 2 / ADVERTISEMENT MEDIA

Important Terminologies of Media Planning

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Advertising Media Planning

The two basic tasks of marketing communications are;

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Difficulties / Problems of Media plan

Developing / Steps / Procedures of Media Plan / Media Planning

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2.1.4. Primary and Secondary Target Audience

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