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. General Objectives.
II. 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 15-4
Advertising Objectives
• Specific Communication Task
• Accomplished with a Specific Target Audience
• During a Specific Period of Time
Informative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand
Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another 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 organization‘s image or position.
2. Persuasive advertising:
 To increase customer preference for the organization‘s 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 organization‘s

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
organization‘s 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 product‘s 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 product‘s 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 agent‘s
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 agency‘s 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-à-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 agency‘s efforts devoted to

planning, developing and implementing the client company‘s
advertising campaign and an assessment of the achievements.
 Depending on the importance of advertising in a company‘s

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 client‘s dissatisfaction with the agency‘s 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 account‘s profitability
for the agency.
5. New managers in client‘s 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 agency‘s account list.
7. A change in the client‘s 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 client‘s
size and the advertising budget. The account executive‘s 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 client‘s 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 client‘s 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 agency‘s ‗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 agency‘s 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 advertiser‘s 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 agency‘s 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 Advertiser’s 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 company‘s 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 brand‘s/service‘s 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. Message Creation and

ii. 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 thirty-

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, business-
to-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 effectiveness of various
media/vehicles
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 26-
to-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 1945-
1964), 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 game-
watching 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 five-
bladed 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 -.2 -.1 +.1 +.2 New brand
High brand share -.2 -.1 +.1 +.2 Low brand share
High brand loyalty -.2 -.1 +.1 +.2 Low brand loyalty
Long purchase cycle -.2 -.1 +.1 +.2 Short purchase cycle
Less frequent usage -.2 -.1 +.1 +.2 Frequency usage
Low share of voice -.2 -.1 +.1 +.2 High share of voice
Target other group -.2 -.1 +.1 +.2 Target old people or children
Message Factors
Low message complexity -.2 -.1 +.1 +.2 High message complexity
High message uniqueness -.2 -.1 +.1 +.2 Low message uniqueness
Continuing campaign -.2 -.1 +.1 +.2 New campaign
Product-focused message -.2 -.1 +.1 +.2 Image-focused message
Low message variety -.2 -.1 +.1 +.2 High message variety
High wearout -.2 -.1 +.1 +.2 Low wearout
Large advertising units -.2 -.1 +.1 +.2 Small advertising units
Media Factors
Low clutter -.2 -.1 +.1 +.2 High clutter
Favorable editorial setting -.2 -.1 +.1 +.2 Neutral editorial setting
High audience -.2 -.1 +.1 +.2 Low audience attentiveness

attentiveness
Continuous scheduling -.2 -.1 +.1 +.2 Pulse or flight scheduling

Few media vehicles -.2 -.1 +.1 +.2 More media vehicles
High repeat exposure -.2 -.1 +.1 +.2 Low repeat exposure media
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 Low
High CDI Low CDI

High
BDI High BDI High BDI
High CDI Low CDI

Low
Low BDI Low BDI
 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 CDI 75% 25% Weighted Spending

Market Weighted Weighted Sum Percentage
BDI CDI
North 74 89 56 22 78 16%
East 111 99 83 25 108 22%
Central 93 129 69 32 102 20%
South 139 109 104 27 131 26%
West 83 74 63 19 81 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 low-
sales months.
 The second factor that affects when advertising is scheduled is the
product purchase cycle: the interval between two purchases. Fast-
moving 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 cross-
title 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 cross-
vehicle 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 ad‘s 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 ad‘s illustration should attract and hold the reader‘s 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
reader‘s 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 reader‘s 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
company‘s 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 we‘ll 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 we‘ll 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 it‘s 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 advertiser‘s 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. (We‘ll 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 ½ 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 we‘ll 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 don‘t 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) it‘s around 850,000; the Daily
Mirror sold over 3½ 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 above-
the-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 it‘s 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 – it‘s 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.
You‘ll 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. 4‘s 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; it‘s 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 can‘t 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, radio‘s 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 we‘ll 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 doesn‘t 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 isn‘t 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 ¼ 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.

 It‘s 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 don‘t 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 isn‘t 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 listener‘s 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 doesn‘t 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, cinema‘s key audience – families and children – is the
same as is historically targeted by TV
Cinema audience profile
 That aside, cinema‘s 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, S‘bury

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 socio-
economic 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 web‘s
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 we‘ll 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 advertiser‘s 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 brand‘s 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 web‘s 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.
 The technical term for adequate recall is

effective frequency.
 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 test-
drives 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 company‘s products (say a software package)

can appear when a competitor‘s 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 didn‘t 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 public‘s interest, not the organisation‘s

 Make the news easy to read; avoid jargon; personalise the story
 Don‘t say anything ‗off the record‘
 State the most important fact at the beginning – e.g. mention the decision
taken before going into the background
 Don‘t argue with journalists – you‘ll 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 you‘ll 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.
 ABC’s 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 6-
monthly 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.
 There’s a handout in QOL indicating how quoting ABC figures
can impact positively on a magazine’s 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 self-
completion 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 ½ 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 you‘ll 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 cinema-
goers‘ 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 Research ( POSTAR – formerly OSCAR)

(www.postar.co.uk)
 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
Britain‘s 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. (There‘s 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, consumer durables, finances, food and hot
drinks, holidays, travel and 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 ACORN‘s 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 buyer‘s 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 don‘t 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 3.4%
B Intermediate managerial, administrative & professional
21.6%
C1 Supervisory or clerical & junior managerial/professional
29.1%
C2 Skilled manual 21%
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, C1‘s the Daily
Express and the Daily Mail and C2‘s and D‘s 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

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 can‘t 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 today‘s '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 firm‘s 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 competitor‘s 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 short-
duration 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 can‘t 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 short-
lived. 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 reduced-
price 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 producer‘s sales personnel will conduct special
demonstrations for the company‘s 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 ADVERTISING SALES PERSONAL PUBLICITY

PROMOTION SELLING
Time Frame Long-term Short-term Short/long-term Long-term
Primary Appeal Emotional Rational Rational Emotional
Primary Objective Image/brand Sale Sale/relationship Goodwill
building
Contribution to Profit Moderate High High Low
 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

firm‘s promotional efforts should be coordinated to achieve the best
combined effects of the firm‘s 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 firm‘s 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 can‘t 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 PLC—during the introduction stage—the 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 trial—to 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 consumer‘s 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 one‘s
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 consumer‘s attention. Often, the humor
actually draws attention away from the product—people 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 messages—even simple
ones—are 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.

Unit - 1 / Advertising

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Unit - 1 / Advertising

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UNIT – 1 / ADVERTISING

Literal meaning of Advertising:

Elaboration of the above definition:

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There are two types of Advertising Objectives,

a) Stimulating Demand – It can be done in two ways, first the present

II. Specific Objectives of Advertising

a) Preparing ground for new product.

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4. Using Intervening and Behavioral Variables.

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Setting Objectives 15-4

Informative Advertising Persuasive Advertising

Comparison Advertising Reminder Advertising

 Copyright 1999 Prentice Hall

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Traditional - RIP acronym = Remind - Inform – Persuade

 To create awareness of the organization.

 To increase customer preference for the organization‘s services.

 To remind customers about where they can book the organization‘s

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Addition to Advertising Objectives

 Compares one brand with another.

Difference between Consumer and Trade Advertising

 Consumer advertising: aimed at the customers who will actually use

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1. To make an immediate sale.

1. Communicating with customers.

 Advertising is a major way of establishing communication between

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3. Contribution to Economic Growth.

4. Catalyst for Change.

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

1. Primary Demand Advertising. The main aim of such advertising is

2. Product or Institutional Advertising. John Hobson of the Hobson

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3. Co-operative Advertising. When manufacturers, wholesalers and/or

4. Commercial Advertising. It is also termed as business advertising. It

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6. Direct Action Advertising. Advertising that stresses and persuades

Benefits to Wholesalers and Retailers:

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Salesmanship is incomplete without advertising. It is a forerunner of a

1. Introducing the product is made easy.

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1. Advertising is educative in nature.

Drawbacks or Objection or Criticisms:

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1. Advertising appeals make people to such articles as might affect their

Meaning & Introduction of DAGMAR:

 DAGMAR – Defining Advertising Goals for Measured Advertising

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 The initial communication task of the brand is to increase consumer

The second important concept of the DAGMAR approach is that the

1. Measurement procedure – Goals to be made specific and it should

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Definition of Advertising Agency

The American Association of Advertising Agencies or 4As has given the

General Meaning of Advertising Agency

―It is an independent organization that provides one or more specialized

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 According to James Melvin Lee ―William Bradford publisher of the

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