Advertising

Principles and
Practices
10th Edition
Chapter 1:
Advertising
 What is
advertising?
Advertising is a paid form of persuasive
communication that uses mass and
interactive media to reach broad
audiences

To connect an identified sponsor

with buyers (a target audience)

Provide information about products (goods,

services, and ideas)
 Advertising’s Identification
Identifies a product and/or the store
Basic Functions where it’s sold

Information
Advances in printing technology
expanded literacy, making commercial
messages available to the masses
Persuasion

With widespread marketing,

recognizable brand names became
more important
Strategy
Message
The logic behind an advertisement
The concept behind a message
stated in objectives that focus on
and how it is expressed based on
areas such as sales, emotional
consumer insights.
appeal, or brand reputation.

Key

Media Components Evaluation

Targets prospective buyers by
Based on strategic objectives
matching their profiles to media and professional standards
audiences.
Common Types
of Advertising
Brand Advertising
01 Focused on long-term brand
POINT
#1 identity and image

Retail or Local Advertising

02 Focused on selling merchandise in a
POINT geographical area
#2
 Direct-Response Advertising
03 Tries to stimulate an immediate
POINT customer response
#3

Business-to-Business Advertising
04 Sent from one business to another
POINT
#4

Institutional Advertising

05
POINT Establishes a corporate identity; attempts to
#5
win the public over to the organization’s
point of view
 Nonprofit Advertising
06 Used by not-for-profit organizations to
POINT reach customers, members, volunteers,
#6 and donors

Public Service Advertising

07 Usually produced and run for free on
behalf of a good cause
POINT
#7

Specialized Advertising
08 Used to address specific areas such as
POINT health care, green marketing,
#8
international campaigns
 Is advertising the only tool?

Publicity Public relations Direct-response

 WHAT ROLES DOES ADVERTISING PLAY?

Marketing and communication roles

• It transforms a product into a distinctive brand by creating a brand image.

Economic and societal roles

• Advertising works to create demand for brands and lower prices for
consumers.

• Advertising shapes our self-image and sense of style through things we wear
and use.

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 BRINGING IT ALL TOGETHER

All advertising:

• Demands creative, original

messages.

• Must be strategically sound,

well executed.

• Is delivered through some

form of media.

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 A KEY PRINCIPLE

“Advertising generates cost efficiencies by increasing

demand among large groups of people, resulting in
higher levels of sales and ultimately, lower prices.”

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THE ADVERTISING WORLD

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 WHO ARE THE KEY PLAYERS?

The Organization
• The message sponsor or advertiser

• Likely to have a marketing team that initiates the advertising

effort

• Hires the advertising agency

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 WHO ARE THE KEY PLAYERS?

The Agency
• Creates, produces, and distributes the messages.

• Employs experts who are passionate about their work.

• Can negotiate the best media deals for clients.

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 WHO ARE THE KEY PLAYERS?

The Media
• Channels of communication that deliver messages and engage
audiences.

• Many are large media conglomerates such as Time Warner and

Viacom.

• The mass media enable advertisers to reach many people with a

single message in a cost-efficient manner.

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 WHO ARE THE KEY PLAYERS?

Professional Suppliers
and Consultants

• Provide specialized services

to advertisers and agencies.

• Includes artists, writers,

photographers, producers,
printers, and vendors who supply
user-generated content online

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 TYPES OF AGENCIES

• Specialized Agencies
• Specialize in certain functions, audiences, industries or markets.

• Creative Boutiques
• Small agencies that work only on the creative execution of an
idea or product.

• Media-Buying Services
• Specialize in the purchase of media for clients

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 TYPES OF AGENCIES

• Agency Networks and Holding Companies

• Large conglomerations of agencies under a central
ownership

• One or more agency network, usually with

multiple offices

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 HOW ARE AGENCY JOBS ORGANIZED?

The five main areas:

1. Account management
2. Account planning and research
3. Creative development and research
4. Media research, planning, and buying
5. Internal operations

Let’s take a look at each one……

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 AGENCY JOBS......

Account management
• This team acts as a liaison between the client and agency.
• The account executive interprets the client’s marketing
research, strategy for the agency.

Account planning and research

• This team gathers market intelligence and acts as the voice of
the consumer.
• Strategic specialists research consumers’ wants, needs and
brand relationships.

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 AGENCY JOBS......

Creative development and production

• Includes copywriters, art directors, and producers.

Media research, planning, and buying

• This department provides research, planning, and buying
services.

Internal operations
• Includes traffic, print production, finance, and human resources.

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 HOW ARE AGENCIES PAID?
From three main sources:
1. Commissions: based on
media billings.
2. Fees: based on an hourly
rate or project. Also covers
travel and various expenses.
3. Retainers: A regular amount
billed each month, based on
projected work.

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 HOW ARE AGENCIES PAID?
Two recent trends:

1. Based on performance: the agency is paid a

percentage of the client’s sales or marketing budget.

2. Value billing: the agency is paid for its creative and

strategic ideas rather than for executions and media
placements.

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 HOW IS THE PRACTICE
OF ADVERTISING CHANGING?

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 CONSUMER IN CHARGE

• The days of pounding people with images, shoving them

down their eyeballs are over.

• Consumer-generated advertising creates valuable brand

publicity.

• Consumers have taken control of media and marketing

through the Web and social media.

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 BLURRING LINES
AND CONVERGING MEDIA

• Television is still a major player, but the number of cable

channels has exploded.

• Digital media has fragmented the media world with new,

ever-changing forms.

• Agencies must take a stronger leadership role in the

development of brand strategy.

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 ACCOUNTABILITY AND EFFECTIVENESS

• Accountability: This has grown in importance over the

past two decades.
• Effectiveness: In tight economic times, it is more critical
than ever to deliver results.

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 GAME OF THRONES CAMPAIGN BY DROGA5

We needed to ensure the legacy of Game of

Thrones lived on past the rolling of the final
credits.
And we needed to impress the diehard fans
who devoted nearly a decade of their lives to
watching the show.

These were the stakes. #FORTHETHRONE

https://droga5.com/work/hbo-game-of-thrones-2/
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 A QUESTION FOR YOU……

What is an effective ad?

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 Effective ads deliver the message the advertiser
intended, and that consumers respond to as the
advertiser hoped they would.

Effectiveness is gauged according to predetermined

objectives.
 AWARD SHOWS

• Industry awards showcase the best in advertising and

marketing communication.

• The Effie Award is given for the most effective ads.

• The Clio Award is based on creativity.

As a class: check them out at:

www.effie.org
www.clioawards.com
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INTEGRATED MARKETING COMMUNIC ATION
(IMC)

The first principle of IMC:

“Everything communicates!”

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INTEGRATED MARKETING COMMUNIC ATION
(IMC)

• IMC is all about integration.

• IMC is the primary tool of brand communication.

• Brand messages must complement one another and

present the same basic brand strategy.

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 IT’S A WRAP
“OLD SPICE: THE SMELL OF SUCCESS”

• Old Spice generated excitement with guys who were

not current customers and women who typically made
most body wash purchases.

• The “hunk” atop the horse captivated the audience –

think “eye candy!”

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 IT’S A WRAP
“OLD SPICE: THE SMELL OF SUCCESS”

Key lessons
• Old Spice used research to generate insights that drove the
campaign.

• They involved both men and women in the conversation about

what a guy should smell like.

• The campaign generated an incredible amount of free public

relations and social media buzz.

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