Unit 4 Advertising For Business

History of Advertising Segment

● Advertising surrounds us everyday

● the average consumer is exposed to more than _2000_________ advertising

messages a week

● more than _____500_______ billion is spent annually on advertising

worldwide

● there are more than ___13,000________ advertising agencies in the U.S.

employing more than _____177,000_________ people

1. History of Advertising
• The most important events in America include:

− 1704: the first newspaper advertisement, an announcement seeking a

buyer for an Oyster Bay, Long Island, estate, published in the Boston News
Letter

− 1742: Benjamin Franklin’s __general_________________Magazine prints

first American magazine ads.

− 1843: Volney Palmer opens first advertising agency in Philadelphia

2. History of Advertising
• The most important events in America include:

− 1867: Francis Wayland Ayer opens N.W Ayer & Son in Philadelphia and
implants the first _comission_______________system base on ‘open
contracts’

− a business commits to pay an amount to run their ad for a certain

amount of time, and the newspaper or magazine runs it for
the time paid

− 1873: first convention of advertising _agents_________________is held

in New York

3. History of Advertising
 Unit 4 Advertising For Business
• The most important events in America include:
− 1887: the American Newspaper Publishers Association is formed

− 1899: ___campbell_____________________Soup Co.® makes first

advertising buy

− 1906: Kellogg’s® places first ad for Corn Flakes® in six Midwestern

newspapers

− 1922: AT&T ® radio stations offer 10 minutes of ____radio_________ time

for $100, Queensboro Corp. (a Long Island real estate firm) buys first spot
and has the first radio ad broadcasted

4. History of Advertising
• The most important events in America include:
− 1936: Life® publishes first edition, later becomes the first magazine to carry
$100 million _____annually___________in advertising

− 1938: radio surpasses magazine as a source of advertising revenue

− 1943: the War __advertising_____________Council is organized to help

prepare voluntary advertising campaigns for wartime efforts (Rosie the
Riveter 1941-1945)

5. History of Advertising
• The most important events in America include:
− 1953: the Advertising Research _foundation______________is established

− 1954: CBS® becomes the largest advertising medium in the world

− 1955: the ___marlboro_____________________Man campaign debuts

− 1956: videotape recording makes prerecorded commercials possible

6. History of Advertising
• The most important events in America include:
− 1963: “The _pepsi_______________Generation” kicks off the cola wars

− 1976: The Supreme Court grants advertising First Amendment

 Unit 4 Advertising For Business
protection

− 1993: the ____internet_________________becomes a reality (five

million users worldwide get online)

7. History of Advertising
• Relates to today’s market because ____business____________________still
want the same thing
− their message out where people can see it
− people to be _____persuaded_________________to buy their product

Advertising Plans Segment

1. Advertising Campaigns
• Consist of these components:

− campaign objectives
− identification of primary and secondary ___target_________markets
− a list of selected advertising media
− a schedule of advertising
− a detailed______________budget

2. Campaign Objectives

• Identify the specific ambitions or intended outcomes of the plan

• Should be specific and measurable

• Should include a ___deadline_______________or time frame

• Should relate to the company’s overall ___mission____________and purpose

3. Campaign Objectives
• Examples include:
− increase sales by ____10________________as compared to last year
 Unit 4 Advertising For Business
− distribute customer reward cards by Monday the 15th
− implement a new line of men’s wear by ____october_________

4. Primary & Secondary Markets

5. Developing an Advertising Plan

• Includes the following key actions:
− determine the financial power
• what can you afford
− determine the urgency of the message or ___campaign ____________
− evaluate the pay off and benefits
− analyze the impact of each ___advertising__________________medium

6. Selecting an Advertising Approach

• Includes the following important considerations:

− reach
− ___frequency_______________

− media impact
− _media________________ timing
− cost

7. Reach
− Is the percentage of customers within a specific target market who are
 Unit 4 Advertising For Business
exposed to an advertising message
− Refers to how many people ____heard_______________or saw a message
− Refers to the ___extent_____________________to which an idea is spread

8. Frequency
• Is the __average____________ number of times a consumer is exposed to a
message
• Is needed to establish frequency __goals___________
• Is directly related to the __repititons__________ of an advertisement.

9. Media Impact
− Refers to how ___effective___________an advertisement will be in
various outlets
− Is discovered through analysis of the best advertising media for a given
____message______________.
− Determines the top advertising methods which should be used to
maximize consumer interest

10. Media Timing

− Refers to when an advertisement should be run
− Consists of a _continous______________, flighting or pulsing pattern

11. Continuous Ads

− Run on a scheduled basis for a given time period
− Provide greater ___exposure________________over a longer period of time
− Are designed to keep current customers using a product
− Can be predicted in terms of time __slot_________________and run times
− Are designed to build consumer loyalty

12. Flighting Ads

− Run heavily for a short period of time, stop completely, then return
heavily

− Are used for seasonal __merchandise_______________________, for new

products or in response to competitors’ efforts
 Unit 4 Advertising For Business
− Are supported by the discounts often given on large blocks of
advertising purchased at once

− Can be quite effective because the heavy schedule increases

___frequency_________ levels.

13. Pulsing Ads

− Combine continuous and flighting patterns
− Are scheduled heavily in an irregular manner with stretches of light
___scheduling_____________ between
− Are usually less expensive but still gain recognition
− Are unpredictable in terms of exact timing or “ ___time slot______________”
− Are usually used for products, such as clothes, which sell all year but are
sensitive to seasonal changes

14. Advertising Costs

− Should comprise at least _20________________of a company’s budget
− Are calculated based on CPM, or cost per thousand
− refers to the media cost of making 1,000 impressions
− is used to determine the value or effectiveness of a medium

15. Advertising Costs

− Examples include:
− $1.55 million for a 30 second ad time slot in the __championship
_____________ games for the NCAA® Men’s Division I Basketball
Tournament on CBS® in 2015
− $112,000 is the average cost for a 30 second ad to run on television
during a prime time broadcast

16. Advertising Costs

− Examples include:
• $285,934 is the average cost for a 30 second commercial during ‘The Big
 Unit 4 Advertising For Business
Bang Theory’ on CBS ®
• $331,691 is the average cost for a 30 second commercial during AMC ®
‘The Walking Dead’

17. Newspaper Rates

− Fluctuate based on ____frequency______________and repeat purchases
− Are based on the size and location of the ad
− front page ads and insert ads are more expensive
− Are influenced by the presence of color
− Are influenced by daily rates
− weekend rates are more expensive

18. Magazine Rates

− Are based on the following:
• Circulation
− number of magazines distributed
• Readership
− circulation times the number of people who read each paper
• Production Techniques
− color and __design________________costs
• Placement or location of the ad

19. Online Advertising Rates

− Are determined based on the type of medium
− banner ads, pop-ups, etc.
− Vary based on the number of website “ ____hits____________” or viewing
rates
− Can be calculated based on CPM or CPC
− ___cost per click______________________ (CPC) charges an advertiser
for each time someone physically clicks on the ad rather than just sees
the ad

20. Radio Rates

 Unit 4 Advertising For Business
− Are based on the following:
• time of day
− _peak________________ drive times are the most expensive
• station formatting

• commercial length (30 or 60 second spot)

• production costs, sound effects and ______narration__________

21. Television Rates

− Vary based on the __time_____________of day
− prime time (7 p.m. to 10 p.m.) is the most expensive
− Are influenced by the number of viewers or “ratings”
− Fluctuate between ___national________________and local stations
− Are influenced by production cost