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TYPES OF ADVERTISING AGENCIES
Advertising agents were initially established to sell space on behalf of newspapers in the early 1800’s in England. As product owners started to realize that they need to draw the market attention to their products, advertising became a very important part of their business process. As print media’s technology evolved, illustrators and designers were employed to make print advertising more interesting. As the marketing science matured, the whole process of advertising was getting very complicated, there was more significant need to get impact, attract consumers and convince them the merits of the products or services. In response to this, advertising agencies took on more people with specialized skills, and today advertising is a highly specialized industry, helping marketers all over the world creating winning brands. This chapter will discuss the basic services of an advertising agency and then described the different types of advertising agencies, established to cater to the different and complex needs of the increasingly competitive business environment.
1. To understand the basic elements of an advertising agency in providing service to their clients 2. To understand the different services offered by advertising agencies. 3. To understand the function of associated agencies and consultancies
The advertising agency
“An advertising agency is an independent organization of creative and business people who specialized in developing and preparing advertising plans, advertisements and other promotional tools. It purchases advertising space and time in the media on behalf of their client.” (AAAA- American Advertising Agencies Association) The basic elements of an agency business
Introduction to Advertising | Advertising and Media Planning
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49 TYPES OF ADVERTISING AGENCIES
Account Handling Competitive business environment demanded more complex marketing communication process. As a result of this the agency’s clients became more demanding and therefore there was a need for some kind of coordination and liaison between the client and the departments of the advertising agency- a need met by the account handler. Advertising Agencies
This the role of the account handling: • Advise the client company on how their products can be branded and positioned in the market place to counter act competitors • Responsible for all clients contact to establish the broad requirements of the clients. • Brief the various departments of the advertising agency with regards to client requirements • Ensure advertising campaign help to solve the client’s marketing problem • Manage the advertising budget and ensures costs are justified. • Ensure clients are happy with agency’s overall service. Creative Department Creativity is what really builds an agency reputation. Advertising is about visual and copy elements that attract attention and convince the market to use the brands advertised. Thus advertising creativity is about creating messages that will effectively establish positive brand image and positioning. The creative department is led by a creative director, backed by an art director and copywriter. Media Department Electronic, telecommunications and computer technology resulted in extensive choice of media. Therefore, the media department must undertake extensive research to design an Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
50 TYPES OF ADVERTISING AGENCIES
effective media plan and schedule to deliver advertising messages to the target audience. Then to ensure the best deal budget wise, the media buyers in the media department must go through negotiation process with the media houses, as there is no fixed price for media space and airtime Production Department The production department is responsible for the production process if TV, print and radio commercials. The actual production process itself is not done in the agency, but is outsourced to production houses, printers and recording studios. The role of the production department is to select the third parties and supervises their work and coordinates with the creative and account handling teams. The full service advertising agency The full service advertising agency is set up to meet the extended needs of the client company for advertising and promotions services. Hence the organization consist of the basic elements of the advertising agency previously mentioned, plus others such as marketing public relations, brand activation, etc. Companies using this type of agencies are usually large FMCG manufacturers with large advertising expenditure. Working with full service advertising agencies is very convenient for these large companies as all of their promotion needs are under “one roof”, so to speak, making control and supervision of the advertiser easier. However, a smaller company who may not have an advertising department, may also seek the benefits of working with a full service advertising agency. Specialist agencies Specialist agencies are emerging for two main reasons: 1. The successful individuals working in advertising agencies see the potential of establishing their own agencies for the reason of earning more money as business owners. A creative director for example might go on his own to establish specialist creative agency sometimes known as “creative boutique” 2. A big a full service agency might choose to fragment itself into several specialist agencies for several reasons: more efficient and effective business strategy being one of them. As specialist agencies, they can work together on clients which need full service, and then can pursue business on their own according to their specialty. A la carte agencies A client may choose to work with this type of agency, because it does not need the total offering of the full service advertising agency. A la carte agency is often the choice of advertising managers who handle most of the advertising in house or internally. A company who needs the service of an advertising agency on an occasional basis, for example when launching a new packaging design, may need the creative resources of the agency to create the new designs. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
51 TYPES OF ADVERTISING AGENCIES
Freelance designers ad copywriters After gaining several years experience working in an agency, creative people often it is more exiting to work on their own as freelancers. Their service will be called upon by agencies when they have more workload then they can handle. This type of working arrangement suits smaller agencies, as they don’t have to hire full time staff, thus avoiding high overhead costs. This in turn provide cost advantage for the client, in that the client pays only for what is used ( after agency’s mark up) rather than having to cover the costs of agencies overhead with full time staff. Another advantage is that freelance creative may bring a fresh approach or have a special style that reflects the clients requirement. Media Independents Advertising agencies are able to negotiate favorable prices with the media due to the sheer volume of space and air-time that they purchase on behalf of their own clients. It was realized that if the media department could buy on behalf of several agencies representing even more clients there would be further economies of scale by buying in bulk. And so media specialists set up the media independents. They are called “media independents” as they act independently of the advertising agencies and its media department. Media independents agencies are used by full service as well as a la carte agencies, as they have better buying powers and can negotiate favorable prices, which they pass on to the agencies, who pass them on, in turn to their clients. Clients working with creative boutiques or freelance creative may also opt to work with media independent agencies. Specialist media agencies These are agencies which specialize in one particular medium such as outdoor, mobile advertising or foreign publications. This is so because the buying condition differs than that of mass media, and often these types of agencies have different trade permit than agencies previously described. Associated agencies and consultancies Sales promotion consultancies These consultancies specialize in developing sales promotional schemes to meet the marketing and sales objectives of any company. They have a wide range of skills and expertise and are able to evolve a proposal aimed at stimulating customers or motivating intermediaries (including their sales staff). They specialize in media advertising, direct mail and door-to-door distribution, although they may work with media independents for their media bookings. They also select the gifts and other incentives needed in the promotion scheme. An agency of this type may work with an advertising agency or directly with the marketing department of a company. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR - Jakarta
52 TYPES OF ADVERTISING AGENCIES
Direct response marketing agencies In providing service direct response agencies will consider profiles, market penetration and wastage, and select the appropriate media to get to their target audience. Direct mail is often used to mail catalogues and brochures. Much of the work of this type of agency is database or relationship marketing. Telemarketing Another form of direct response is promotion via telephone, which may be operated by the company in house or outsourced to an agency which specialized in this service. However, this type of promotion has got a bad reputation, mainly due to the poorly trained telemarketers. Public relations (PR) consultancies Public relations consultancies are retained by organizations on a fee basis, usually for a year at a time. Their job is to inform, create goodwill and communicate the company’s image and reputation, as well as promote the corporate and brand names. A PR consultant produces publicity materials such as news releases, articles and feature stories. They conduct press conferences, briefings and interviews to gain editorial coverage (or so called “free publicity “ as space for these activities are not purchased). As media coverage cannot be guaranteed, PR consultants have to develop news writing skills to increase the likelihood that their stories will be printed. Although marketing public relations help to promote brands in the market place, but the message carried are informative rather than persuasive. PR consultancies also prepare road shows, seminars, exhibitions, to improve relationship between the companies at its customers.
Introduction to Advertising | Advertising and Media Planning
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Full service advertising agencies. media and production departments.Jakarta . Other departments are added to meet clients needs. • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . and this evolved into full service advertising agencies which offer a number of services to promote all aspects of the products/services. direct response and public relations. Specialist agencies emerged to cater to more specialized needs of the client companies. although most often used by big FMCGs companies. creative. are sometimes used by smaller companies. which the client and advertising agencies may call upon as needed. There are supporting consultancies.53 TYPES OF ADVERTISING AGENCIES POINTS TO REMEMBER • • There are four basic elements to an advertising agency: account handling. such as sales promotion.
but also for other specific and technical aspects of the business. the criteria. Once recognized by the media. Another assurance is the agency’s clients list and track record in credit payment. the agency applies for membership in a recognized trade associations. Criteria for recognition To obtain recognition. and trade association granting recognition 2. To understand how agency gain income and profit by the various remuneration methods Agency recognition The most important recognition to an agency is that by the media houses. agency will receive many privileges from the media houses.Jakarta . as it is safe to assume that high profile clients will choose to work with reputable agencies. Persatuan Perusahaan Periklanan Indonesia (PPPI) is one such organization. it reflects the agency’s financial strength and reputation. such as longer credit terms. For an agency reputation means that it is recognized not only for its work. The media must be sure that the agency has a substantial financial strength to pay the media services used by the agency on behalf of its clients. If the agency caters to high profile and big spender client companies. Good business relations with the media are very important for the agency to carry out its commitment to its clients. OBJECTIVES: 1.54 AGENCY RECOGNITION AND REMUNERATION CHAPTER 9 AGENCY RECOGNITION AND REMUNERATION CHAPTER OUTLINE As a service provider. To understand the agency recognition system. an advertising agency’s reputation is one of its selling points. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . This chapter will explain the concept of recognition and how it relates to the agency remuneration system. more discounts and bonuses.
000 + Rp 1.500. When the agency provides full service.000. For this type of work.55 AGENCY RECOGNITION AND REMUNERATION Agency income The commission system The commission system is based on above the line media expenditure.000. thus ensuring satisfactory result. media discounts are rebated to client.000 Rp 8.500. For instance : Printing cost Mark up 15% Cost to client Rp 10.000 Rp 1.000 In this case. the agency is entitled for 15% ( if this is the % agreed on the agency-client contract) on gross media costs. fee system for consultation and concept development and mark ups for jobs where agency supervision of third party are required such as in producing advertising and other promotion materials. it is decided the percentage the agency will receive from the client’s above the line expenditure.000 The handling fee “mark up” covers the agency time and expertise in overseeing the work done by the supplier. Variation on the commission and fee system The payment system described above can take any combination. especially as nowadays many agencies operate increasingly like consultants advising their clients on marketing communication strategies. When using this system. Handling charges or “mark-ups” Handling charges usually applies for below the line activities and production of advertising materials. and the mark up is calculated based on a certain percentage of the costs submitted by the supplier. In the agency –client contract/agreement.500. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .000. Example: Rate card price: Discount 20%: Cost after disc Agency com 15% on gross Cost to client Rp 10.000 Rp 11.500. all 3 may be used: the commission system for media services. agencies usually assigned a third party.500.Jakarta . Agency fee The fee system is income generated by agency for their time and skills.000 Rp 2.000.000 = Rp 9.000 Rp 1.000 Rp 8.000. Advertisers may accept the fee system if they in turn receive objective and expert advice from their agencies resulting in agency-client relationship based on trust and mutual benefits.
Once recognized. agency’s client list and track record of media payment.56 AGENCY RECOGNITION AND REMUNERATION Points to remember • • • • Agency recognition by the media is vital for an agency to buy airtime and space on behalf of the client Criteria for recognition are membership at advertising trade association. agency fee for providing strategic advice to clients and handling fee or mark ups for supervision of third parties. Any of the above payment system can be combined depending on service rendered and as stipulated in the agency-client contract. such as PPPI. agencies are entitled for media commissions (discounted from rate card price). and other privileges The agency income is derived from the agency commission which is generated from media commissions.Jakarta . Agency and client relationships are based on effective service plus cooperation. trust and respect on both sides. • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .
To understand how the creative department works. describing the role and responsibilities of each department. Account handling Creative Production Media Account handling The main function of this department is to liaise with the clients and to discuss needs and wants and to interpret them for the various agency departments.Jakarta . Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . To understand the media planning and buying function 5. 2. 3.57 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES CHAPTER 10 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES CHAPTER OUTLINE The service provided by an agency to their clients very much depends on how effective is the teamwork between the departments of the advertising agency. 4. To understand the production department’s role in ensuring concept are implemented in publication and broadcasting Functions of the basic advertising agency The four main departments in the advertising agency 1. OBJECTIVES: 1. To understand the area of responsibility of the account handling department especially in relation with briefing and coordinating with other departments 3. Therefore this department plays a vital role in maintaining and strengthening agency-client relationship. from receiving and interpreting brief 4. To understand the functions of the main departments of the advertising agency 2. This chapter will provide an understanding of the advertising agency’s organization. and how they join force to provide satisfactory service to the client.
Creative department the creative department is the producer of ideas and concept and is very important in establishing and maintaining reputation of the agency. he directs the art director and copywriter in establish creative concept and strategy to meet the requirement of the campaign outlined in the creative brief. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . competitors activities and consumer behavior. Account planner The account planner is responsible for ensuring that the actions taken by the agency will support the long term development of the brand. making sure that work is performed on time and meets the agency standard of quality. Creative director The responsibility of ensuring that the message suits the product. this function is undertaken by the account director. Account executive The account executive ensures that all aspects of the work are carried out to everyone’s satisfaction. He leads the account team and other departments in the formation of strategy and is responsible for the overall implementation of the campaign.58 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES There three level as follows: Account director The account director. He also communicates with the client frequently to ensure that line of communication between agency and client is always open and healthy. The concern of the account director is to ensure that the work undertaken for the clients meets their objectives. medium or long term. In small agencies.Jakarta . As the head of the creative. whether short . In doing so the account planner studies market trends. the most senior level is concerned with the overall health and strategy of clients accounts under his responsibilities. Creative directors have usually risen through the agency’s structure from copywriting or art directing. brand or service is that of the creative director. The tasks associated with this position is liaising with the other three departments of the advertising agency. He may work on different accounts with different executives and support teams.
promise. he supervises more junior position. Once the creative team agrees on the concept. etc media platform Copy chief/copywriter/ art director/compugraphic designer The copy chief is a position in the creative department who is responsible for writing the copy (wordings) of the advertising. they will discuss it with the account handling team to ensure that the copy platform addresses the marketing issue to be resolved by the advertising campaign. Role of the account handlers in the creative process As the account handlers. tag line. On some occasions. when presenting the concept. for example brand awareness for launching of new brand target audience: to whom the advertising message is addressed communication strategy: positioning. but in many cases the campaign requires only a small change of emphasis. and so they form a vital link in communicating what is required without inhibiting the creative process. are in regular contact with the client. the copywriter. and as he is a senior member of the team. or copy platform with the creative director. they are absorbing the needs and wants of the client. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . the creative team prepares the finishing touches to the concept and presentation schedule is arranged with the client.59 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES Elements of the creative brief • • • • • • • • • the reason for advertising : launching of new brand the objective of advertising. also explains and defends the creative ideas. in fact. of all levels. They learn to understand what the client will accept and will reject.Jakarta . If. The next step is to discuss the concept. the essence of the advertising message rationale: the supporting factors for the promise so the message is credible key benefits of the product or factors that fulfill the needs and wants of the target audience the advertising tone the mandatory such as logo. If everything is in order. In making advertising concept. to get them accepted by the client. the client is not convinced then it is up to the account handlers to break the news to the creative team. complete campaigns have been thrown out by the client. the account handler. whether these are expressed formally or merely implied by the client’s behavior or attitude. However. or the direction/ guidelines provided by the creative director. The art director will brief the compugraphic designer so he can help the art director in preparing the visual part of the concept. as they have been carefully thought out to enhance and reinforce the advertiser’s message. copy chief/copywriter and art director sit down together to interpret the advertising brief.
television (intermedia decision) or which newspaper. this is known as intermedia comparison. which radio station and programs. for impact. radio and television programs which might have audience profiles similar with the profile of the target audience. by subscription to computer databases operated by the independent media research organization. It is possible off course that several media can target the same audience. the role of media research is to support media planners with providing media data such as audience data. to remind as well as give impact (but on a limited basis as people go the cinema infrequently) ● trade journals. etc. newspaper.Jakarta . The media department can look at individual publications. Therefore . to gain attention and create awareness as well as image building ● national newspapers and magazines. media penetration. radio. TV ratings. to convince the retailers of the messages being communicated by direct mail Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . which leaves option to decide on which can be used to deliver different aspect of the message. If comparison is made between different types of media (newspaper vs magazine). to give detailed information such as specifications and credit details as well as offering the opportunity to include a response coupon ● regional and local newspapers. to create image and mood for the product (as well as local stations to draw attention to local outlets/stockists) ● cinema.60 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES Media department The media department is split into three areas: • Media research • Media planning • Media buying Media researcher Media data such as audience data is essential for media department of the advertising agency in order to select appropriate media to place the advertisements and commercials. Much of this complicated media data is available on line. will be the most appropriate to carry the advertising. This is called intramedia comparison. or which TV channel and programs (intramedia decision) . Another factor that must be considered is the ability of the medium to carry the message. so the media planner must consider the following characteristic of the medium: ● television advertising. Such data will help provide a strategic media plan to support the advertising objectives. Media planners The media planner takes the statistical research undertaken by the media researcher as the basis for deciding which media. for co-operative advertising or advertisements to draw attention to local outlets ● radio.
Since actual production of advertising materials are not done in house at the agency but are outsourced to the appropriate productions houses. The agency credit record is also a factor often considered by media houses to give discounts and other privileges to the agency. Production Department The responsibility of the production department is to make sure that everything that is needed to produce the final advertisement is prepared cost effectively to the highest quality and then delivered to the right place at the right time and in the right format. One of the best strategies to secure good discounts is to buy large volume of space or airtime. The media buyers will negotiate with media houses for discounts and credit terms. time and frequency and the budget/costs. etc so the role of the production department is coordinating and supervising the work of the selected external production suppliers. The media plan is presented to the client by the media planner and the account handlers for discussion and approval. printers. and media schedule to show the selected media.61 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES The media planner then produce a media plan which provide the media objectives and strategy. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .Jakarta . Media buyer The final process of the media department is to buy the advertising space and airtime.
STIKOM LSPR . television or radio station. television companies and contractors for outdoor and transport advertising (poster) and cinema advertising for the benefit of the client. The media department is responsible for research to establish the media which would be best suited to reach the client’s target audience. but might include attention to details that may affect the well being of the clients and their accounts. The production department ensures that advertisements and commercials are completed as scheduled and meets the agency standard of quality The production department co-ordinates with external production suppliers such as production houses and printers for the production of all promotional material generated by the agency. based on a creative brief. ● The functions of meeting clients’ needs are coordinated by the account handling team with the assistance of an account planner. Concepts are worked up into visuals (by a compugraphic designer) and copy (by a copywriter) or storyboards and scripts (by a scriptwriter) to a standard that can be presented to the client.Jakarta ● ● ● ● ● ● ● ● ● ● Introduction to Advertising | Advertising and Media Planning . Account handling is based on responding to campaign and advertising briefs prepared by clients outlining the requirements that they want fulfilled. Based on the approved schedule. The role of the creative department is to find a way that is credible but still has attractiveness to communicate the benefits and advantages of clients. The media department negotiates packages with radio stations. This would include determining which were the best slots. locations or sites and not just the overall medium but the particular publication. Account handling consists of account directors (responsible for strategy) and account executives (who liaise with the client and other agency departments on getting the work completed) The account planner’s role is primarily concerned with the long-term solution of the client’s needs and wants. The media planner creates detailed media schedules and media expenditure for the client’s approval. or cinema screen. the media buyer negotiates the best deals in terms of position and location related to the lowest cost. The creative director works with creative teams to develop the key concepts and copy platform to carry the client’s message. their products and services.62 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES Points to remember ● ● . positions.
4. This chapter discusses the meaning of creativity in advertising. Marketers/advertisers financed the advertising campaign to achieve its marketing objectives. 2. Creativity in advertising means. • Effective in helping the advertiser achieve its marketing objectives. layout and script. being different and getting attention are not the only criteria for creativity in advertising. 5.Jakarta . 3. how concepts are developed and how creative strategy are realized in the form of storyboard.However. A unique advertisement or commercial always gets the audience’s attention and make the commercial or advertisement stands out among other advertisements and commercials . First of all there are specific skills to interpret information written on the creative brief. To understand what is creativity in advertising To understand the creative process in developing advertising concept To understand how to prepare TV commercials To understand how to prepare print advertisements To understand how to prepare radio commercials Creativity in advertising Creativity is definitely one the most important aspect in advertising. Then there are specific skills in the formulation of creative strategy and message execution in the form of writing copy and scripts as well as art direction for the visual part of the advertisement and commercial. Therefore advertising must be persuasive and motivates the audience by providing advertising message that answers to the target audience’s needs and wants. Advertising is a marketing problem solving tool. which is the basis for the concept development of advertisements and commercials. OBJECTIVES: 1. therefore contributing to sales • Effective in establishing brand image • it must be ethical Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .63 CREATION OF ADVERTISEMENTS AND COMMERCIALS CHAPTER 11 CREATION OF ADVERTISEMENTS AND COMMERCIALS CHAPTER OUTLINE The creation of advertisements and commercials requires specific skills. • Provide a unique and effective way to communicate with the target audience • Creating advertising message which relates and provides answers to the target audience’s needs and wants • Persuasive message which motivates the consumers.
to whom and with what approach: • who to influence • what to say in order in order to influence • how to say in order to influence Then the creative strategy is implemented in what is called the message execution which simply means the technique to convey the advertising message to the target audience. The creative team under the direction of the creative director will study and analyzed the information in the brief. The big idea will be formulated into the creative strategy that is what message to be conveyed. The message execution should be: • attractive. Brainstorming It is the practice of the creative people to brainstorm together to get ideas. attention getting • simple and easy to understand • able to create the perception as defined in the creative strategy Message execution takes the form of storyboard for TV commercials. The creative strategy The two previous processes will result in finding the “big” idea.Jakarta . The ideas might relate to the feature and benefits of the products or consumer behavior that you want to evoke with your message. layout for print advertisements and script for radio commercials Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . to get the essence of: • The advertising objective • The audience needs/ wants/problems • The aspects of the brand which can fulfill the needs/wants or solve the problems of the target audience • The motivation to buy the brand • The way to communicate effectively. When brainstorming. all ideas that come are listed and discussed. The ones with potentials are short listed and finally the “big” idea is selected.64 CREATION OF ADVERTISEMENTS AND COMMERCIALS The creative process Studying the creative brief The creative brief provides the information required by the creative team and is used to guide them in developing the concept.
Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . The format of the headline depends on many factors. Body copy The body copy is an elaboration of the statement or promise made in the headline or sub headline. sounds. The storyboard contains the story line to communicate the “big “idea and visuals are used to explain the story line. The script for TV commercial is short and concise. However the same principle applies. Therefore the function of the body copy is to persuade by giving information that will motivate the target audience to use the brand. newspapers. Every scene in the storyboard is framed like a TV screen.65 CREATION OF ADVERTISEMENTS AND COMMERCIALS TV commercials Television has other elements over print advertising: visuals. camera angle. so that it will be read by the target audience. tabloids. and further enriched with music and sound effects to create interests and get attention. creates interests and desire. Print advertisement Print advertisement refers to advertising placed in magazines. movements.Jakarta . thus providing powerful impact to the advertising message. among others are the creative strategy. etc. The storyboard is used by the agency to explain and sell the advertising concept to the client. Elements of print advertisement are: • • • • • • headline sub headline body copy/main copy slogan/tagline visual layout Headline Headlines are used to attract attention to the advertisement. so that potential customers will act in favor of the brand compared to that of the competitor’s. the media used and how it should relate to the visual and body copy Sub headline The sub headline is used to support or enhanced the message in the headline: such as to provide information and improved understanding. The storyboard The concept of TV commercial is called the storyboard. music and sound effects. Below each frame is written the dialogues. the commercial has to attract.
despite only having sound. It also strengthens the positioning of the brand. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . • Music. Tagline is usually catchy and easy to remember. to get attention.Jakarta . Again the main objective is to get attention. slogan/ tagline conclude the whole advertising message.66 CREATION OF ADVERTISEMENTS AND COMMERCIALS Slogan/tagline Slogan or tagline is used to provide the final persuasion. Written in only a few words. radio may seem a dull medium for any creativity. to convey the advertising message in a simple way to ensure comprehension and to establish the brand image. Layout Layout is how all of the above elements are placed in the advertisement. to enhance the positioning and to create overall mood. With sound. there are not only the words but the fact that the words can be dramatic or humorous while sound effects and music can create exactly the right mood. yet. • Sound effects to promote imagination in the listeners mind. Visual The visual of a print advertisement is often the most visible and dominant element. It is created to get attention and to communicate the concept of the advertisement and to convey the brand image. Radio After the so-called excitement of the all-singing and all-dancing television. by giving a phrase of reason to use the brand. the promise and the positioning of the brand. The elements of radio commercials are: • Script containing the main message. it can be used to create the most marvelous word-pictures using the listeners’ imaginations.
relates to the needs and wants of the consumers. and camera directions have to be included as well as dialogues.Jakarta . The storyboard contains the story line to communicate the “big “idea and visuals are used to explain the story line. The creative process begins with the creative team studying and analyzing the essence of the brief and brainstorm together to get ideas The big idea is formulated in the creative strategy which basically means conveying what message to whom and using what approach The message execution is simply the technique in which to convey the message to the target audience The message execution must be attractive. it can be used imaginatively with music and sounds effects • • • • • • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . sub headline . slogan/ tagline. newspapers. tabloids. Storyboards are used by agency to explain the concept of TV commercial to their clients Print advertisement refers to advertising placed in magazines. movement. The elements of print advertising are : headline.67 CREATION OF ADVERTISEMENTS AND COMMERCIALS POINTS TO REMEMBER • • Creativity is a very important aspect of advertising A creative advertising means that it is effective in helping the advertisers reach his advertising objectives. simple and easy to understand and must establish the brand positioning. sound. elements such as pictures. etc. For a television commercial. persuasive and motivating the consumers to use the brand so helps to increase sales. visual and layout Although radio only has sound. body copy.
In bigger agencies progressing work to outside suppliers are monitored by the traffic controller. recording studios.Jakarta . ensuring conformation to production schedule • Ensuring that standard quality is met Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . It will also describe the production process of print advertising . This chapter will describe the role of the production department to ensure that production of advertising materials is conducted professionally and on time for the clients advertising campaign. The job numbering system is vital to keep tract of the work through agency and suppliers until completion. production houses. To understand the production process of TV commercial. TV producer and radio producer. The production department of the advertising agency is mainly responsible for coordinating work between the outside suppliers and the various departments of the advertising agency such as the account handling and creative departments. the responsibilities of the production department are as follows: • Coordinating all work required for the production process internally with relevant departments: creative and account handling ( to handle all communication with client) and externally with the suppliers. in smaller agency all production process are undertaken by one producer). however in smaller agencies this function is performed by the production manager. or storyboard has been approved by the client.68 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA CHAPTER 12 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA CHAPTER OUTLINE The production of advertising material is outsourced to a third party : printing establishments. 4. the producer (in bigger sized agency there are print producer. Therefore. To understand the role of the production department in ensuring production of advertising materials are done in a professional manner 2. • Monitoring the production process. To understand the production process of radio commercial The role of the production department Once the concept – copy and layout (visual). To understand the production process of print advertisement and other printed promotion materials 3. begins the production process by allocating a job number and title. OBJECTIVES: 1. TV and radio commercials.
69 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA • Ensuring that all costs borne by agency are allocated to the right job and prepare invoices for approval to the account handlers. The production process is as follows Pre production process: This stage is the preparation stage prior to actually producing the print material. casting. The printing process nowadays uses digital techniques develop for computer printers such as inkjet or laser printer. It consists of appointing the agency print producer. the key elements are quality control and following tight production schedule. Production At this stage the finish artwork is prepared by the compugraphic designer who has taken over tasks of the paste up artists prior to computer technology. This is to ensure that production of the agency’s work is to the highest standard and are done on schedule. The client has to approve the finished product and then the print advertisement is dispatch to media for placement. Producing printed advertisement and other printed promotional material. Since the advancement of computer technology. Every print can be different because printing plates are not required and less waste of chemical and paper. Producing TV commercials Once the story board and script is completed. make up and wardrobe. The process is much faster and more cost efficient compared to traditional printing methods. appointing photographer. preparing detailed planning such as costing. The print production process begins after the client has approved the copy and layout (concept). body copy. Post production The next step is taking the final artwork for printing. headline. location hunting or studio set up. Throughout the whole workload of the production department. the TV producer is asked for advice on the following Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . timing. etc are all incorporated in the computerized artwork.Jakarta . All the elements of the print materials: visuals (photo or illustration). tag line. the traditional way of producing print materials by way of color separation and proof prints are no longer practiced.
and edited by computerized techniques to produce the commercials on broadcast standard video tapes. to be used if the original angles didn’t work. filming: studio or on location shooting. some colors can be emphasized. detailed planning to produce the commercial begins: location hunting. the actual filming may try different angles and approaches.Jakarta . Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Production 6. The next step is presentation of storyboard to client 3. This will save the expense of re filming. detailed planning: once the proposal from the production house is approved. as well as color corrections. Commercials are still made on 35mm film. make up artists. while others toned down. feasibility study: The TV producer will check if the storyboard is feasible technically. creative team. 8.70 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA Pre production 1. therefore one needs to be appointed). the TV producer will then begin the process of selecting the production house and the director. appointing the TV producer: once the storyboard is approved by client and ready for production. These meetings are called pre production meetings. Although it is strictly guided by the planning and the discussions in the pre production meetings. initial approval : further checking to ensure that the script will not create problems legally or ethically. (in bigger sized agency there may be more than one TV producer. music and sound effects. The TV producer will also make sure it can be produced within budget and time frame. wardrobe. dispatch to media: the TV commercial is transferred into video tapes/ DVD and dispatch to TV stations. The production house will submit detailed costing and time frame for approval by the agency. 15” and 5” duration. Several meetings between account handlers. etc. With computer technology. 5. approval of censor board: all commercials must be censored to ensure compliance to ethical regulations. post production editing: this includes recording and dubbing the voice overs. 2. 4. 9. casting. selecting the production house: as production of TV commercial is outsourced to a production house. The commercial is edited into 30”. the agency TV producer is appointed. production team and the production house team are conducted to ensure the production process will go smoothly. Post production 7.
sound effects . selecting voice talents. costing.Jakarta . Durations of radio commercials are usually 30” to 60’ Post production Once the sample recording is approved by the client then the commercials are transferred to CD format and dispatch to radio stations for placement. Pre production The radio producer prepares the detailed planning such appointing the recording studio. Production At this stage all audio element are mixed and recorded at the recording studio. producing the jingle. copyrights for music if any.71 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA Producing radio commercials The production of radio commercial starts with an approved script. if any. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .
approval by board of censor 9. which is more time and cost efficient compared to traditional printing process. • It also ensures that works are done as scheduled and meets the agency’s standard of quality.Jakarta . all the audio elements such as voice over. 4. detailed planning 6. music. 3. feasibility study by the head of television production script approval to ensure compliance with ethical board appointment of the producer (and production assistant) from within the agency selection of director from a television commercial production company taking account of detailed costing 5. Radio commercials 1. once demo or sample recording is approved by client. TV commercials The production of a television commercial starts with a feasibility study is based on the script and perhaps a storyboard.72 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA Points to remember The role of the production department • The production process begins by allocating a job number and title. post-production editing 8. • The production department coordinates all work required for the production process internally with relevant departments of the advertising agency. sound effects are mixed and recorded at the recording studio 3. the production process begins after the script is approved and the radio producer will make detail planning 2. it is transferred to CD format and dispatch to radio stations for placement. studio and location filming 7. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . dispatch of finished commercials to television stations or channels. 2. The job numbering system is vital to keep tract of the work through agency and suppliers until completion. The stages of producing television commercials are: 1. Press advertisement • the production department is in charge of the production process which includes preparing final artwork and printing process • final artwork is done by the compugraphic designer and is the conversion of copy and visual into finished or camera ready artwork • The finished artwork is processed by way of digital printing process.
therefore media planners must be sure that the most effective and efficient media is selected to carry the advertisements and commercials. To understand the extend of media available for advertising 2. 3. Thus several considerations are undertaken: • Media costs: what media to be used to accommodate the advertising budget given. It will also show the extent of media available for advertising and how it is used to achieved optimum result. advertising message will not reach the target audience. this chapter will go through the many categorizations of media used by advertising agency. listen. The role of media in advertising Without media. as TV spots are relatively more expensive than other media placements costs. how many. media characteristics. To understand the use of print media. As one of the chapter about media. watch. media planners have to make several considerations. such as media data. OBJECTIVES: 1.Jakarta . etc. To understand different types of media and how it used in advertising. Media cost is the largest part of the advertising budget. therefore a rather small budget may not be feasible for buying TV spots • Media data: who reads it. how often. To do this efficiently and effectively. For example. etc • Media characteristics: o Physical o Restrictions o Timing for booking Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .73 MEDIA IN ADVERTISING AND PRINTED MEDIA CHAPTER 13 MEDIA IN ADVERTISING AND PRINTED MEDIA CHAPTER OUTLINE Media serves an important role in advertising. It is used to carry and convey advertising message to the target audience.
cable Outdoor - billboards. signage Mobile - public transport Cinema Internet Direct mail - brochures. posters. Secondary media The media used to support the primary media. brochures. Below the line • • • • Specific. are in this category Primary and secondary media The principle of primary and secondary media is of greater importance than above the line and below the line media to the advertiser. thus contributing the agencies main source of income. tabloids Radio – local and national Television- national. local.74 MEDIA IN ADVERTISING AND PRINTED MEDIA Media used in advertising • • • • • • • • Press/print – newspapers. agency will focus on the client’s promotional objectives. radio. reach specific audience Agencies income limited to design and production Leaflets. Primary media The media most often used to carry the advertising message. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . newspapers. Above the line media • • • • Provide high reach of the target audience Spots and spaces purchased for advertising Agencies source of main income from media commissions TV. Agency commission is gained from above the line media. made for specific purpose Limited reach. outdoor. However. The main consideration is reach and costs. mobile are in this categorization.tabloids. magazines. when electing above the line media and below the line media. catalogues Above the line and below the line media This categorization of media is used by agencies to distinguish media which are vital for the agencies main source of income. magazines.Jakarta .
Nova for women and Cek & Ricek for celebrity news. It has a better production quality than newspapers. Magazines are segmented. Consumer magazine teenagers –boys: Hai. Consumer magazine teenagers –girls: Cosmo girls.Jakarta . has a longer life and higher duplication of readers than newspaper. Tabloids worth mentioning here are: Bola for the soccer fan. etc National Newspaper-evening: Suara Pembaruan. it has a short life only half a day and the quality of paper may not be suitable for advertisements relying on visual impact such as high end fashion brand. In appearance and paper quality they are more similar to newspapers. Tabloids are not published daily like newspapers.75 MEDIA IN ADVERTISING AND PRINTED MEDIA Printed media Newspapers • • • • • National newspapers- general : Kompas. Lifestyle magazine: Prestige. Kartini. so advertisements look more attractive. Republika. Beside consumer magazines. various trade magazines are also available usually published by trade associations. Magazines Magazines are more segmented than newspapers as shown below • • • • • • • • Consumer magazines- women general: Femina. offers a variety of size for purchase. Jawa Post- Surabaya/Jawa Timur. etc Regional/local newspapers: Pikiran Rakyat (Bandung/Jawa Barat. However. but in content and segmentation are more like magazines. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . but weekly. etc) The characteristics of newspaper are high reach of the target audience. etc National newspapers-English language: Jakarta Post. Consumer magazine –business: Gatra. Consumer magazine-women fashion: Dewi. Consumer magazine –parenting: Ayah Bunda. Business Magazine: SWA. etc National newspapers-business: Business Indonesia. Tabloids Tabloids can be said as a cross between newspapers and magazine. Most magazines are circulated nationwide. high in news value.
above the line media. Primary media is media most often used to carry the advertisement. the selection of above the line media and below the line media must take into account the promotion objectives. below the line media. Categorization of media includes. magazines and tabloids. national. primary and secondary media. men. general and business. Printed media consists of newspapers. Secondary media is selected to support the primary media. Newspapers are further categorized into. and business/ trade magazines.76 MEDIA IN ADVERTISING AND PRINTED MEDIA Points to remember • • Media is used in advertising to reach the target audience. Tabloids are similar to newspapers in terms of paper quality but are similar to magazine in term of segmentation. content and time of publication (weekly instead of daily). However. Since there are many types of media. Magazines represent many segments of the market. teenagers. regional/local. • • • • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . the media planners must refer to media data to ensure that the media selected is appropriate in that it is the most effective and cost efficient media to reach the target audience. Above the line media and below the line media are initially defined to differentiate which media generate the most income for the agency. such as consumer magazines for women.Jakarta . chosen based on the audience it represents and the costs.
this chapter will focus on broadcast media: television and radio. To understand the use of television as an advertising medium 2. To understand how the following media deliver advertising messages: » Outdoor media » Cinema » Door to door » POS ( point of sales) The broadcast media Television Although television is not always a primary medium. as each media differ in characteristics and hence have their own strengths and weaknesses. Advertisers will opt to buy spot at peak hours or “ prime time” . Advertisers pay increased air time price for high rated programs. It will discuss how these media are used as advertising media. also important for many aspects of promotion such as outdoor media. Many television channels will compete with each other to offer programs which will command highest viewers. direct mail. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . To understand the use of radio as an advertising medium 3. lively manner to large target audiences. it is often the first choice to advertise FMCGs and consumer durables. It delivers moving pictures which can enhance the persuasiveness of the message.77 BROADCAST MEDIA AND OTHER MEDIA CHAPTER 14 BROADCAST MEDIA AND OTHER MEDIA CHAPTER OUTLINE Having discussed the role of media in advertising and the printed media. To understand how profile of television and radio audiences differs according to the channels and stations.Jakarta . Television can swiftly and effectively communicate benefits and advantages in an effortless. Other media. The previous chapter and this chapter will show the importance of selecting the appropriate media to achieve specific advertising and promotion objectives. cinema. Sound effects and music/ jingle are often used to reinforce mood for the brand. the programs and time of day 4. has definite advantages. door to door distribution and POS displays will also be presented in this chapter. The revenue from selling advertising spots pays for the production of programs or buying programs from overseas. where popular high rated programs are relayed. especially if they are targeted at the so called ‘mass audiences’. Television if can be afforded by the advertiser. OBJECTIVES: 1.
whilst satellite television used high powered electronic beam from an earth station to a satellite in space which is then reflected back to be collected by receiver dishes outside houses or buildings. etc and such information may be sponsored by the advertiser. is that it can be listened to anytime. as the combination of tone and style of voice plus music and sound effects can often paint a powerful “picture” in the mind of the listeners. Prime times are early morning when people are in their cars to go to work and again early evening when they are going back from work. thus the prime time are usually directed at working people. Today it has evolved into mobile advertising. latest development on particular news of interests. Radio Radio is broadcast via airwaves. Radio also provides information important to the listeners such as weather forecasts. One of the advantages or radio. Advertising spots are 30 seconds or 60 seconds. The optical fibers used are two way. traffic condition. Beside spot advertising and sponsorship. Lack of pictures is not really a problem. Cable television is carried by optical fibers. Hence emerge business news radio stations. and creating specific talk show programs are also gaining popularity among advertisers. etc.78 BROADCAST MEDIA AND OTHER MEDIA Terrestrial television used land based transmitters to relay their programs . The use of satellites enables the receipt of more channels to the viewers compared to the use of land based transmitters. Other media Outdoor advertising Outdoor advertising involves putting the advertising message on billboard. Radio covers a local area and most radio stations have developed a distinct programming format to cater to specific segments of the population. using direct response marketing with their target market. the use of which is controlled by government. pedestrian crossing bridge and shop signage. International advertisers benefit from satellite television in that it can reach international audiences. Thus emerge shopping channels. using public transport as advertising medium.Jakarta . so there are immense opportunities for advertisers to discuss their products on television for customers to buy at the press of button on the remote control unit. stations directed at the female segment of the population. where the announcers relay the advertising message. which are strands of glass along which tiny light beams are passed to carry the television signal. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . so that a radio station is operated by contractor under license. other means of promotion using radio are: Ad lip.
the brand name. it is highly successful. etc. Moreover. there is the captive audience. Targeting depends on getting the right mailing lists of named individuals. with a number of screens to have several films showing to different audience. Cinema has its own way of delivering the advertising message. time such as weekend. direct mail has become known as ‘junk mail’ owing to too many companies are doing it badly. and this has to be done precisely. Door-to-door distribution Door-to-door distribution simply means delivering promotion materials to people’s houses. This is undertaken by direct mail houses.Jakarta . The areas to receive the door-to-door are mapped according to the profile of the target audience. Off course people don’t stop to look at a billboard. unlike television where people can switch channels or do other activities during commercial break. The advantage of outdoor advertising is that people cannot really avoid it. and the large screens in a darkened room with impressive audio system. Companies can now build their own mailing lists on computer databases and code them in such a way that they can target mail shots to individuals based on goods and services already bought and the pattern of buying. etc. it has sounds and movements. the estimated number that pass each day and how times a day they pass. the location of the cinema. to the potential buyer or user) with a mailing piece (or promotional leaflet) and a message that appeals to the customers’ or consumers’ needs and wants.79 BROADCAST MEDIA AND OTHER MEDIA Billboards are controlled by specialist media agency and advertisers can rent for a period of time. Cinema goers are usually teenagers and young adults. provided it is addressed correctly (by name. Direct mail Unfortunately. business owners . colors. Another variation of door-to-door is inserting the leaflet in the newspaper. In fact. so brands targeting this segment often find cinema as quite an effective medium for advertising. Billboards are not placed randomly but are selected with care based on research data indicating the profile of the public. the powerful visual and brief associated message will subconsciously remind them of the television or magazine campaign they have seen. Cinema Most cinemas are complexes. providing off course the target audience has a similar profile to the readers. Selection of cinema is based on who will see the film. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . which build or create lists of names and addresses within certain categories such as professionals.
• • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . free standing in the store Dummy pack (actual size or enlarged) Crowners to put on bottle necks Open/closed sign In store videos Shop signs The purpose is to get customer’s attention and to remind them that the brands are available in the store.Jakarta . such materials are welcomed by the retailers. To achieve maximum impact.80 BROADCAST MEDIA AND OTHER MEDIA Point of Sales (POS) displays POS are used at the retail or outlet where the brand is sold and can take the form of : • • • • • • • • Stickers/show cards on counters Hanging mobiles suspended from ceiling Metal displays. The media combination No promotion plan can really be effective by using one medium. Since competition for space is fierce. • POS materials to promote sales of brands in shops where they are sold Advertising can be supported by other promotion techniques: • • • • Sales promotion to encourage purchase through incentives Personal selling to encourage interaction with customers Exhibitions to show product and product demonstration Sponsorship to create goodwill. POS displays must be well planned and budgeted. impact and image Newspapers and magazines to provide detailed information such as specifications Radio as reminders to a specific segment and create mood for the brand Cinema for impact and reminder to a specific segment Direct mail to inform retailers about product benefits and to provide detailed information to consumers. promotion campaign usually employs various media: TV commercial to gain awareness. It will also remind them of the key advertising message. As they promote sales.
while doing other things. the higher the price for the spot. Television has prime time showing high rated programs.Jakarta . The higher the number of people watching the program. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . sales promotion offers. correctly addressed. and contain useful and persuasive messages. Door-to-door advertisers allow advertisers to deliver leaflet. Direct mail can be effective provided if executed properly. the right targeting. etc to specific target audiences in certain neighborhoods. Cinema is effective to reach young audience and also provide captive audience. Outdoor advertising cannot be avoided and carry brief messages. Cinema provides impact in terms of large screen. Although lacking visuals. sounds and movements.81 BROADCAST MEDIA AND OTHER MEDIA Points to remember • • • • • • • • • • • • Television is an effective media as it has sound and movement to reinforce the advertising message. Different programs attract different profile of audiences. radio advertising with sounds and music helps to create a powerful and personalized image of the brand. POS is an effective way to remind customers of the brand image and key advertising message of brands that are sold in the store. Radio is an effective advertising medium as it can be listened to anywhere and anytime. and the type of viewer changes throughout the day’s programming. as reminder.
media research is being used to investigate inter media habits. This chapter will elaborate the process of media planning and media buying. what data is needed. the result of the research allows them to set rates (costs) of advertising space and airtime. is very crucial in making a strategic media plan. agencies employ the services of independent media research companies. but most importantly on how many people will be exposed to the advertising message and their purchasing power to buy certain goods and services. how many read them and what types of people they are – requires media research. penetration and media rates. To understand how media data is used in media planning and buying Media research. and how this data is used for planning media. Penetration is also called coverage (especially in printed media) and reach in broadcast media. Using information regarding audience profile. To fulfill the needs of media data. This chapter will discuss how agencies acquire the information needed to make media plans. For media houses.82 MEDIA PLANNING CHAPTER 15 MEDIA PLANNING CHAPTER OUTLINE Media research is the first and fundamental step in media planning. agencies can select the best media to target the desired market effectively and can calculate the required budget. Similar information is also required for broadcast media such as who watches and listens to television and radio programs. or more importantly. and these are not only based on the size of the space or the duration of the airtime. OBJECTIVES: 1. To understand how many people buy specific newspapers and magazines. To understand what data is needed for below the line media 4. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . that is to see which radio listeners are viewers of which TV channels and programs and which newspapers and magazines they read. For advertising agencies.above the line As advertising campaigns are being based on integrated marketing communications. To understand what data is needed for inter media planning of above the line media 3.Jakarta . media research is important to establish the profile of who receives the advertising message as well as the depth or penetration in the market place. To understand the need of media research for media planning purposes and how it is required 2.
media houses also provide what is called media kit. Media data can be obtained by working together with a world wide media research organization such as AC Nielson.g. Media Planning Based on the analysis of the media data obtained from above mentioned research. buying power. majority of users are young and may be lacking in buying power). they are not fully recognized as mainstream media and so little research has been undertaken into their effectiveness as advertising media. published annually an advertiser and agency guide to media in Indonesia called the Media Scene. media planners will select media that will direct advertising messages effectively and efficiently to the target audience. and also indicate an estimate of the number of people in each classification. figures are available on the number of times that a website is “visited”. but there are ways of establishing the number of potential contacts that a mailing can reach. Consequently. Its effectiveness relies upon the evaluation of the advertisers marketing and promotion team. Currently there is no research undertaken by independent research organization into effectiveness of POS materials. Internet and POS The Internet and World Wide Web are still in their infancy and not readily available to some of the key target groups that an advertiser wants to reach (e.83 MEDIA PLANNING Independent research organizations Independent research organizations are used to establish media data to assure advertisers and advertising agencies that the research is accurate. professions. valid and unbiased.Jakarta . Local research companies are often used by advertisers and advertising agencies to conduct omnibus surveys and competitors advertising expenditures. The media kit contains interpretation of data collected and analyzed by the independent media research organizations: Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Research-below the line Direct mail There is no media research for direct mail. The Indonesian advertising trade organization. In addition. Therefore the agency’s media department can rely on the data and be assured that the media they buy on behalf of the clients will reach the advertisers target audience. Mailing lists are classified by names and addresses. However. PPPI. Data base technology allows for cross-tabulation of different criteria to build a list tailored made to match the audience profile the advertisers want to reach.
The scope of media planning • Media objective: what is to be achieved . Advertising rates (including rates for special positions or peak viewing times) 6. Profile of readers (or viewers or listeners. this takes the form of video presentation. An editorial schedule of subjects to be covered in the publication so that advertisers can place their advertisements in special issues. etc) 3.Jakarta . method of printing and requirements for film for printed media).g. Circulation and readership figures (or viewing or listening figures) 2. features or sections. qualitative as well as quantitative • Media strategy : how is the best way to achieve the above objective • Media schedule: the implementation of media strategy: when and where to place the advertisements and commercials • Media budget: costs required to place the advertisements/commercials. Area of coverage (in geographic terms) 4. For television. Frequency (daily. Mechanical details (e. Media objectives: • • • • • Who to reach with the use of selected media How many How often (frequency) Effective reach needed to get your message across Media budget Media strategy • • • • • Which media to use: (macro media selection and micro media selection) Budget allocation for each type of media Monthly reach and frequency Media efficiency Size and duration of advertising Media schedule • Showing the most effective and efficient use of media selected • Showing the reach and frequency as stated in the media objective Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . while cinema chains issue lists of forthcoming films 5.84 MEDIA PLANNING 1. weekly or monthly appearance) 7.
Advertising objective: what the advertiser wants to achieve through advertising campaign 5. Media budget Media efficiency As mentioned above. media plan strives to select the most cost efficient media to place the advertising message. Marketing objective: what the advertiser wants to achieve with marketing efforts 3. Media recommended by advertiser 12. Target audience 9. Cost per thousand= Cost of Space ------------------------------------------Readership divided by 1000 Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . 11. Why the audience wants to use the brand 10. etc 2.Jakarta . The elements are the costs for advertising space/airtime divided by 1000 readers/ audience. how do they differ with the brand 8. It contains the following information: 1. Therefore there are ways to compare media efficiency as shown below Cost per thousand (CPT) The above is used to compare the cost of different media. Market area: the campaign coverage of marketing area. Brand performance in the market: market share and other indication of how the brand is doing among its competitors 4. use. to determine which is more cost efficient. Consumer buying and usage habits 7. benefits. Past advertising efforts and result 6. Duration of campaign 13.85 MEDIA PLANNING Media budget • Monthly media budget • Macro media budget • Overall campaign budget Media brief Media brief is a document prepared by the account handler which contains all relevant information required by the media planner. Product/brand information: physical characteristics. Direct competitors: who and what they do.
86 MEDIA PLANNING Media buying The media buying is the implementation of media planning. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . For the advertiser: negotiates the best price ( discounts) 2. so that media can be paid on time too. meaning that after the approval of the media schedule by the client. In doing this. The media buyer also follows up with the account handler to ensure that the client pays the media bills on time. flexible terms of payment) The media buyer is also responsible for making sure that the advertisement appears in the media as per media purchase order and that the agency is billed as per agency –media buying contract. For the agency: finds opportunities to earn extra money ( more discounts. the media buyer is responsible to purchase space or airtime for the advertisers.Jakarta . they have two interests to achieve: 1.
Media efficiency is calculated via various methods such as the CPT (cost per thousand). planning and buying Media research is crucial as accurate data regarding the media’s audience and media characteristics such as penetration. media planner will create media plan and schedule consisting of macro media selection and micro media selection. Upon receiving the media brief. valid and unbiased data Account handlers prepare media brief containing information to be used as a basis for formulating media plan. Media buyers will proceed to buy space and air time once the media schedule is approved by the advertisers. • • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . The most effective and cost efficient media are the main considerations when making a media plan. accurate.Jakarta . rates are important considerations in the media planning process Media research is undertaken by independent media research organizations to ensure.87 MEDIA PLANNING Points to remember • • The media process consists of media research. Media buyers will check that advertisements and commercials appear as scheduled and that media bills are paid on time.
To understand how the advertising code of practice benefits the advertisers. bearing in mind the interest of the target audience. Advertisers and its target audience must build and maintain a long term relationship to ensure consumer trust and loyalty. emotions and behavior. To understand the objectives and role of advertising code of practice 2. advertising agencies and consumer. it is important that the advertising message does not impact the target audience in a negative way. that the customer is being protected. promising beauty and image. Most advertisers and advertising agency prefer voluntary control.88 ETHICS AND CODES OF PRACTICE CHAPTER 16 ETHICS AND CODES OF PRACTICE CHAPTER OUTLINE Advertising is very powerful and can impact the target audience way of thinking. advertising messages focus on the consumer benefits. To motivate the consumers. The voluntary controls ensure advertisers maintain the standard of behavior which protect the reputation of the industry and so ensure by implication. OBJECTIVES: 1. A creative advertisement or commercial can in its own unique way make the consumers understand why a certain brand will benefit them. In short. and that advertisers and advertising agencies work together to fulfill this expectation. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . The advertising code of practice strives to ensure that consumers expectation are met. be its rational benefits such as value for money or emotional benefits. meaning they themselves control what should be said and what should not be said in an advertisement or commercial. but because it motivates the consumers without over promising and without misconceptions. creative advertising is also ethical advertising. An advertisement or commercial is creative not just because it is different than other advertisements or commercials. Therefore.Jakarta . This chapter discusses the objectives and roles of code of advertising practice and how it benefits the advertisers. advertising agencies and consumers Advertising creativity and ethics Creativity and persuasiveness is the basis of the advertising message.
ambiguity. thus establishing consumer’s confidence in using the brand • Advertising message is focused and informative. • Educate the consumers by giving examples and appropriate information For advertisers and advertising agencies • To use as standard practice in order to uphold professionalism and reputation of the marketing and advertising business • To promote healthy competition among advertisers • To practice corporate social responsibilities • To provide guidelines in creating concepts with the consumers interests in mind. exaggeration.89 ETHICS AND CODES OF PRACTICE Advertising code of ethics: objectives For consumers • Protect consumers from over promise and misleading information and perception • Motivates the consumers to use the brand because advertising message answers to consumers’ needs and wants • The advertising message is credible. The Advertising Code: general The Advertising Code states that all advertisements should: • be legal (and do not break the law or incite anyone to break the law) • be fair and promote healthy competition by not exploiting negatively competing brands • be decent (and should not cause serious or widespread offence on the grounds of race.Jakarta . religion. lack of knowledge or inexperience of consumers) • be truthful (by not misleading through inaccuracy. etc) • show responsibility to the consumer and to society • follow business principles of ‘fair competition’ • not bring advertising into disrepute • apply the Code in spirit as well as in the letter Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . omission. sex or disability) • be honest (by not exploiting credulity. therefore helps the consumer to select the right brand to serve their needs.
Jakarta .g. publications or organizations involved) • indicate clearly that advertisements are not editorial matter Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . personalities) without permission • use only genuine testimonials related to the product (and have written permission to do so from the individuals.90 ETHICS AND CODES OF PRACTICE • be able to be substantiated • not exploit or exaggerate fear • not show or encourage dangerous practices (especially with the young) • not encourage drinking and driving • not condone violent or anti-social behavior • not use people (e.
The voluntary controls ensure advertisers maintain the standard of behavior which protect the reputation of the industry and so ensure by implication.Jakarta . The advertising code of practice also aims to promote healthy competition among advertisers. To be creative.91 ETHICS AND CODES OF PRACTICE Points to remember • • The advertising industry prefers voluntary control. • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . that the customer is being protected. answers to consumers needs and also must be ethical. The advertising code of practice ensures long term relationship between consumers and advertisers and also guides advertising agencies to create creative and ethical advertising. meaning they themselves control what should be said and what should not be said in an advertisement or commercial. an advertisement /commercials must be unique.
This relationship is formalized by the agency –client contract agreement which guides how each party work together to maintain a professional working relationship which may lead to a long standing business partnership. agencies also need to formulate contract agreements with third parties to safeguard their interests as well as their clients.client contract agreement. OBJECTIVES: 1. (A consideration is an old term usually meaning a sum of money. production houses and suppliers. This chapter will cover the agency. advertising agencies rely on the long term and mutually fruitful relationship with its clients. To understand contract agreement between agencies and its clients 2. A contract consists of three elements – an offer. and photographers as well as printers). and a consideration. Contracts are made between agencies and clients as well as between agencies and suppliers (like the media owners. To understand agency-client business relationship Agency/client contracts and agreement Every company involved in marketing makes contracts. This is called an agreement and becomes a contract only when a consideration is included by the first party and accepted by the second. and discuss the basics of agency and client business relationship. An offer (of goods or services) by one party and an acceptance (of the offer) by a second party. copywriters.Jakarta . Many advertisers have been known to stay with their agencies for many years. As agencies act on behalf of their clients with third parties: the media.92 ADVERTISING AND THE LAW CHAPTER 17 ADVERTISING AND THE LAW CHAPTER OUTLINE Like any other service provider. agency and third party contract. an acceptance. freelance compugraphers. To understand contract agreements between agencies and third parties 3.) Listed below are the areas that a typical contract would cover: ● period of initial contract (usually 1 year) ● length of notice period (usually 3 months) ● clear definition of the services to be provided ● statement of approval procedures for work produced Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .
93 ADVERTISING AND THE LAW ● provisions for terminating the contract ● terms of business (regarding payment of the agency. The client may terminate the agency for the following reasons: • • • • • • Unsatisfactory service Slacking in creativity Client’s new management wants to explore other agencies Change in agency’s management or personnel Agency’s pricing Wants fresh new ideas The following reasons usually lead to termination of contract by agency • The client doesn’t honor the terms of payment in the contract agreement • The client’s business is not profitable: agency spends more man hour than it charges the client but cannot ask for higher fees. but they are learning about each other. including commissions from the media owners ● the rights of the advertiser to use other suppliers ● arbitration or means of settling disputes should they arise ● insurance (for professional indemnity. its human resources. Agency will continue to impress clients with their professionalism and service excellent. The agency has a positive feeling about the client: he shows understanding of how an agency work.Jakarta . its eagerness to serve the client by showing understanding of the client’s business and market. agency and client has not formalized their relationship. a business relationship has to pass several cycles to survive: The introduction cycle At this stage. etc) Termination of contract Termination of contract may be initiated by the agency or client. Client shows his eagerness by providing the Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . mark-ups and handling charges (for both the agency’s work and that of third-party suppliers) ● repayments of volume and other discounts. • Conflict of interest: agency has been appointed by client’s direct competitor who has more promising business potential. his objectives are realistic and clear and he has the financial means. The client is impressed with the agency’s skills and experience. The goal: long term and profitable business partnership Just like everything else. These positive impressions then lead the relationship to the next cycle. The development cycle The relationship is formalized by a contract.
So if the agency buys space form the media. even though the work has been commissioned by and paid for by the client. and like so many other things in life.94 ADVERTISING AND THE LAW information needed by agency. it also commissioned production establishments to produce advertising materials on behalf of its clients. Agency/third party contracts and agreements Agency buys advertising space and airtime from the media houses. As long as effective solutions are found and the motivation to work together persists. if the agency cannot manage its third parties. If the client does not pay. This is an automatic right. indirectly influenced agency and client business relationship. As work intensified. with no registration required (unlike a trade mark under older legislation). then usually agency and client can form a very long and successful working relationship. problems also arises. expectation increases. the termination could be amicable or could be a negative experience for both parties. it makes contract with the media and sells the space back to its clients. The law of copyright Anyone who creates something has a right to protect it from being copied or used by other party. then the quality of work that it gives to its clients suffers. The same with other third parties employed by the agency on behalf of its clients This is why agencies are required to be creditworthy. agency must foot the bill. The rights to all work done by the agency (including artwork) belong to the agency. Anyone who copies any aspect of an advertisement without permission can be sued for an injunction and damages by an owner through a civil action. The working relationship between agencies and its third parties. Cone & Belding (FCB) worked with Sunkist for 85 years.Jakarta . This is the case unless the client insists on a clause assigning ownership in the agency/client agreement. At this stage work rules and condition for team work is established. The termination cycle Many factors can lead to termination of business relationship as previously described. Konimex and Matahari Advertising has worked together for 30 years. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Mistakes made at this cycle are usually forgiven. Foote. The maintaining cycle The key at this cycle is effective communication to support effective teamwork.
Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .Jakarta .95 ADVERTISING AND THE LAW Other copyrights to be considered • Work by photographers. free lance designers etc commissioned by the agency on behalf of its clients • The use of materials from external source as such the right to use the cartoon character Mickey Mouse.
As agency buys many service from other third parties on behalf of its clients. which forms an agreement. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .Jakarta . artistic works (photographs. illustrations. etc). as long as provisions for termination have been met. The goal of agency and client working relationship is long term business partnership. A business relationship consists of several cycles which if passed successfully will ensure a mutually beneficial business relationship between agencies and its clients. usually a sum of money A contract can be terminated by either agency or client. Copyright covers the ownership of words. agency also form contract agreement with third parties. together with a consideration. music and many other created elements.96 ADVERTISING AND THE LAW Points to remember • • • • • • • Agency and client formalized their working relationship with a contract agreement A contract consists of an offer ad an acceptance .
If negative attitudes. • Showing how to fulfill objectives. Reasons for testing are: • Seeing where things may go wrong so can be avoided. To understand the methods of pre-campaign testing. The agency will then conduct their own research to find other pertinent information which will guide them to plan an effective campaign. This to ensure that the campaign is effectively directed at relevant market issues. before planning and executing an advertising and promotion campaign. Testing the market place Testing of the market place to discover information such as the level of market response to the brand. 3. • Indicate short and long term plans. or positioning and communicating brands more effectively. 4. are initially taken by the advertiser’s marketing team. Successful campaigns will enhance advertiser’s confidence in the methods of advertising as well as on the professionalism of the advertising agency. OBJECTIVES: 1. consumer perception and attitudes. • Highlighting opportunities that can be exploited for further business growth.97 ADVERTISING TESTING AND EVALUATION CHAPTER 18 ADVERTISING TESTING AND EVALUATION CHAPTER OUTLINE Market situation is very complex. This chapter will explain the various methods of testing and evaluation to ensure that campaigns are planned strategically and executed appropriately. 2.Jakarta . motivations and opinion by the customers and consumers are found. how the company and the brands are perceived by the consumers and customers. Their findings are then briefed to their agency. To understand continuous research to monitor performance of advertising and promotion. To understand the methods of evaluating a campaign. then the agency can find ways to re-position the brand so it will be perceived in a positive way. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . It is imperative to establish the market situation such competitive environment. To understand the reasons for doing testing and evaluation. On the other hand positive attitudes can also be discovered and then enhanced in the campaign.
Pre-production testing The objective of pre-production testing is to ensure that the creative ideas and concept will get the message across to the target audience. It involves small number of people therefore requires less funding and easier to set up. Split-run testing Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . This is important because the advertiser and advertising agency wants to be sure that the advertising will achieve the objectives. Aspects to be tested: • • • • • • What is the impact of the advertisement or the commercial? How does the target audience relate to the message. Quantitative research: On the other hand. it is often used to test concepts. therefore money and time well spent. Research methods are qualitative or quantitative. Is it understood? Does the message convey the right image? Is the message credible? Is it persuasive enough? Does it stands out among other advertisement/commercial Discussion and interview methods • Group discussion • Depth one-on-one interview • Semi structured and structured interview The individuals selected to participate in discussion and interviews have similar profiles to the target audience. To get the most of these activities. As this type of research provides valuable insights into opinions relating to advertising research. quantitative research aims to establish size and mostly demographic nature of the target or market. an open questionnaire requires the respondent to provide more descriptive answers. during and after campaign. Qualitative research: This type of research is used to find out the extent of attitudes and beliefs within the market place. skilled interviewers and facilitators are used with a well designed questionnaire. A closed questionnaire requires only Yes or No answer.98 ADVERTISING TESTING AND EVALUATION Testing and evaluating advertising Testing an evaluation of advertising takes place before.Jakarta .
voucher copy is given to the agency and for commercials a time table of commercials transmitted in a chronological order is provided. such as coupon. and how many percent saw the advertisements and actually read the content. Post-production testing Post-production testing means looking if the advertisements are recalled and that the advertising objectives are met. the individuals are asked to respond instantly and recall advertisements and their contents from a test selection of advertisements. Test marketing This is a rather elaborate and expensive method. the individuals are shown a selection of advertisements or cards with brand names and are asked which they have seen. This is especially true if some response mechanisms are included in the advertisement. Checking the campaign. With aided recall. For broadcast media. or from memory of actual types of advertising or product classes. as a mini campaign is conducted to assess brand acceptance and promotional techniques. Checking responses and sales Increased inquiries and sales are of course the easiest objectives to measure. This is checking to ensure that the advertisements and commercials appear at the right time and at the right place. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . The recall testing can be either unaided or aided. so the advertiser can see from which media the coupons have cut. For press advertisements . a free number (toll free number) is often used to measure the number of responses received. In the first. Coupons are coded. it is equally important that the likely effectiveness of the advertising campaign should be tested before it is carried out nationwide.Jakarta . However. Reading and noting This is used to test the percentage of people who look at particular page of a magazine. Recall testing The objective of recall testing is to see if people remembered the advertisement among other advertisements that they have seen the day before.99 ADVERTISING TESTING AND EVALUATION A split –run test is done by placing two concepts in different edition of the same publication and seeing if there is a difference in perception.
so that it is possible to see the effect of an advertising campaign by the variations in stock turnover of a particular brand. or services. This is a valuable way of determining how many people may have seen a commercial. Opinion polls A poll or survey is conducted to detect changes in awareness and opinions over a period of time. toiletries. One of the best-known kinds of panel records the television commercial breaks and programs that viewers watch. Members of other panels use bar-code scanning devices (similar to those used in supermarkets) to record purchases. Like retail audits. it concentrates on certain categories of product.Jakarta . Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . with the data being transmitted to the market research company for central processing and analysis. It covers a number of products and brands. drinks. They might also be chosen to complete questionnaires on a regular but voluntary basis. Tracking studies Advertisers subscribe to this means of continuous research to receive 13 reports produced every 4 weeks throughout the year. One major advantage of panels is that agencies and advertisers can subscribe to these services on a continuous basis or immediately prior to a campaign to monitor the purchases through the life of the advertising or promotion. retailing or financial services.100 ADVERTISING TESTING AND EVALUATION Continuous testing ad testing during campaign Consumer panels Panels are groups of people who agree to report on their buying behavior either by giving regular interviews or by completing daily diaries of their purchases. such as confectionery. Retail and dealer audits The research involves taking stock levels and accounting for all stock deliveries over a regular period. It also can be used prior to the campaign to get an understanding of the market place. Based on this the effect of advertising and promotion can be evaluated. such as travel. This research involves weekly self–completion questionnaires by selected respondents to monitor how effectively advertised brands are being communicated. It also monitors the respondent’s media habits. clothing or consumer durables.
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