48 TYPES OF ADVERTISING AGENCIES

CHAPTER

8

TYPES OF ADVERTISING AGENCIES
CHAPTER OUTLINE
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.

OBJECTIVES:
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

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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

Account handling

Creative department

Media department

Production department

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.

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Jakarta . and this evolved into full service advertising agencies which offer a number of services to promote all aspects of the products/services. which the client and advertising agencies may call upon as needed.53 TYPES OF ADVERTISING AGENCIES POINTS TO REMEMBER • • There are four basic elements to an advertising agency: account handling. Specialist agencies emerged to cater to more specialized needs of the client companies. Other departments are added to meet clients needs. such as sales promotion. creative. direct response and public relations. are sometimes used by smaller companies. • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . media and production departments. Full service advertising agencies. There are supporting consultancies. although most often used by big FMCGs companies.

Once recognized by the media. but also for other specific and technical aspects of the business. the criteria. 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. Criteria for recognition To obtain recognition. the agency applies for membership in a recognized trade associations. agency will receive many privileges from the media houses. OBJECTIVES: 1. Persatuan Perusahaan Periklanan Indonesia (PPPI) is one such organization. If the agency caters to high profile and big spender client companies. This chapter will explain the concept of recognition and how it relates to the agency remuneration system. it reflects the agency’s financial strength and reputation. an advertising agency’s reputation is one of its selling points. To understand the agency recognition system. For an agency reputation means that it is recognized not only for its work. as it is safe to assume that high profile clients will choose to work with reputable agencies. such as longer credit terms. 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. more discounts and bonuses. Another assurance is the agency’s clients list and track record in credit payment. and trade association granting recognition 2.54 AGENCY RECOGNITION AND REMUNERATION CHAPTER 9 AGENCY RECOGNITION AND REMUNERATION CHAPTER OUTLINE As a service provider. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Good business relations with the media are very important for the agency to carry out its commitment to its clients.Jakarta .

media discounts are rebated to client.000.000.000 Rp 1. all 3 may be used: the commission system for media services.000 In this case.500. Variation on the commission and fee system The payment system described above can take any combination.000 Rp 8.000 = Rp 9. When the agency provides full service.55 AGENCY RECOGNITION AND REMUNERATION Agency income The commission system The commission system is based on above the line media expenditure.Jakarta . it is decided the percentage the agency will receive from the client’s above the line expenditure. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Example: Rate card price: Discount 20%: Cost after disc Agency com 15% on gross Cost to client Rp 10. Agency fee The fee system is income generated by agency for their time and skills. When using this system.500. and the mark up is calculated based on a certain percentage of the costs submitted by the supplier.000 Rp 1. In the agency –client contract/agreement. thus ensuring satisfactory result.000 Rp 11. For this type of work. For instance : Printing cost Mark up 15% Cost to client Rp 10.000. 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.000 Rp 8.000. the agency is entitled for 15% ( if this is the % agreed on the agency-client contract) on gross media costs.500.000 + Rp 1. especially as nowadays many agencies operate increasingly like consultants advising their clients on marketing communication strategies.000.000 Rp 2. 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. agencies usually assigned a third party.500.000 The handling fee “mark up” covers the agency time and expertise in overseeing the work done by the supplier.500. Handling charges or “mark-ups” Handling charges usually applies for below the line activities and production of advertising materials.

agency’s client list and track record of media payment. • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Agency and client relationships are based on effective service plus cooperation.Jakarta . and other privileges The agency income is derived from the agency commission which is generated from media commissions. agencies are entitled for media commissions (discounted from rate card price). Any of the above payment system can be combined depending on service rendered and as stipulated in the agency-client contract. agency fee for providing strategic advice to clients and handling fee or mark ups for supervision of third parties.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. such as PPPI. Once recognized. trust and respect on both sides.

3. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Therefore this department plays a vital role in maintaining and strengthening agency-client relationship. To understand the media planning and buying function 5. OBJECTIVES: 1. This chapter will provide an understanding of the advertising agency’s organization.Jakarta . 4. To understand the functions of the main departments of the advertising agency 2. 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.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. describing the role and responsibilities of each department. from receiving and interpreting brief 4. To understand the area of responsibility of the account handling department especially in relation with briefing and coordinating with other departments 3. 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. and how they join force to provide satisfactory service to the client. To understand how the creative department works. 2.

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. Account executive The account executive ensures that all aspects of the work are carried out to everyone’s satisfaction.58 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES There three level as follows: Account director The account director. Creative directors have usually risen through the agency’s structure from copywriting or art directing. this function is undertaken by the account director. brand or service is that of the creative director. He may work on different accounts with different executives and support teams. As the head of the creative. medium or long term. He leads the account team and other departments in the formation of strategy and is responsible for the overall implementation of the campaign. 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. The concern of the account director is to ensure that the work undertaken for the clients meets their objectives. making sure that work is performed on time and meets the agency standard of quality. In small agencies. He also communicates with the client frequently to ensure that line of communication between agency and client is always open and healthy. competitors activities and consumer behavior.Jakarta . Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . 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. whether short . Creative director The responsibility of ensuring that the message suits the product. Creative department the creative department is the producer of ideas and concept and is very important in establishing and maintaining reputation of the agency. The tasks associated with this position is liaising with the other three departments of the advertising agency.

They learn to understand what the client will accept and will reject. complete campaigns have been thrown out by the client. In making advertising concept. the client is not convinced then it is up to the account handlers to break the news to the creative team. However. for example brand awareness for launching of new brand target audience: to whom the advertising message is addressed communication strategy: positioning. to get them accepted by 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. 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. in fact. the creative team prepares the finishing touches to the concept and presentation schedule is arranged with the client.Jakarta . the account handler. The art director will brief the compugraphic designer so he can help the art director in preparing the visual part of the concept. whether these are expressed formally or merely implied by the client’s behavior or attitude. as they have been carefully thought out to enhance and reinforce the advertiser’s message. Role of the account handlers in the creative process As the account handlers. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . promise. the copywriter. If. 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. are in regular contact with the client. also explains and defends the creative ideas. of all levels. and so they form a vital link in communicating what is required without inhibiting the creative process. On some occasions. but in many cases the campaign requires only a small change of emphasis. he supervises more junior position. when presenting the concept. and as he is a senior member of the team. If everything is in order. 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. or the direction/ guidelines provided by the creative director. they are absorbing the needs and wants of the client. tag line. copy chief/copywriter and art director sit down together to interpret the advertising brief. The next step is to discuss the concept. or copy platform with the creative director.

etc. This is called intramedia comparison. which radio station and programs. TV ratings. the role of media research is to support media planners with providing media data such as audience data. radio and television programs which might have audience profiles similar with the profile of the target audience. 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.Jakarta . Media planners The media planner takes the statistical research undertaken by the media researcher as the basis for deciding which media. television (intermedia decision) or which newspaper. to gain attention and create awareness as well as image building ● national newspapers and magazines. for co-operative advertising or advertisements to draw attention to local outlets ● radio. radio. this is known as intermedia comparison. to create image and mood for the product (as well as local stations to draw attention to local outlets/stockists) ● cinema. media penetration. Another factor that must be considered is the ability of the medium to carry the message. If comparison is made between different types of media (newspaper vs magazine). or which TV channel and programs (intramedia decision) . will be the most appropriate to carry the advertising. for impact. It is possible off course that several media can target the same audience. which leaves option to decide on which can be used to deliver different aspect of the message. Much of this complicated media data is available on line. 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. The media department can look at individual publications. to remind as well as give impact (but on a limited basis as people go the cinema infrequently) ● trade journals. by subscription to computer databases operated by the independent media research organization. newspaper. Therefore . to convince the retailers of the messages being communicated by direct mail Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .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.

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. and media schedule to show the selected media. time and frequency and the budget/costs. printers.61 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES The media planner then produce a media plan which provide the media objectives and strategy. Media buyer The final process of the media department is to buy the advertising space and airtime. The media buyers will negotiate with media houses for discounts and credit terms. The media plan is presented to the client by the media planner and the account handlers for discussion and approval. 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. etc so the role of the production department is coordinating and supervising the work of the selected external production suppliers.Jakarta . Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . One of the best strategies to secure good discounts is to buy large volume of space or airtime.

The media department is responsible for research to establish the media which would be best suited to reach the client’s target audience. STIKOM LSPR . This would include determining which were the best slots. television companies and contractors for outdoor and transport advertising (poster) and cinema advertising for the benefit of the client.Jakarta ● ● ● ● ● ● ● ● ● ● Introduction to Advertising | Advertising and Media Planning . The creative director works with creative teams to develop the key concepts and copy platform to carry the client’s message. Based on the approved schedule. based on a creative brief. the media buyer negotiates the best deals in terms of position and location related to the lowest cost. but might include attention to details that may affect the well being of the clients and their accounts.62 FUNCTIONS OF DEPARTMENTS IN ADVERTISING AGENCIES Points to remember ● ● . 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. 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. positions. or cinema screen. Account handling is based on responding to campaign and advertising briefs prepared by clients outlining the requirements that they want fulfilled. The media planner creates detailed media schedules and media expenditure for the client’s approval. television or radio station. locations or sites and not just the overall medium but the particular publication. ● The functions of meeting clients’ needs are coordinated by the account handling team with the assistance of an account planner. 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 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. their products and services.

Advertising is a marketing problem solving tool. layout and script. This chapter discusses the meaning of creativity in advertising.63 CREATION OF ADVERTISEMENTS AND COMMERCIALS CHAPTER 11 CREATION OF ADVERTISEMENTS AND COMMERCIALS CHAPTER OUTLINE The creation of advertisements and commercials requires specific skills. therefore contributing to sales • Effective in establishing brand image • it must be ethical Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .However. 3. • 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.Jakarta . being different and getting attention are not the only criteria for creativity in advertising. A unique advertisement or commercial always gets the audience’s attention and make the commercial or advertisement stands out among other advertisements and commercials . Therefore advertising must be persuasive and motivates the audience by providing advertising message that answers to the target audience’s needs and wants. 4. OBJECTIVES: 1. 5. 2. Marketers/advertisers financed the advertising campaign to achieve its marketing objectives. • Effective in helping the advertiser achieve its marketing objectives. Creativity in advertising means. 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. First of all there are specific skills to interpret information written on the creative brief. how concepts are developed and how creative strategy are realized in the form of storyboard. 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. which is the basis for the concept development of advertisements and commercials.

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 message execution should be: • attractive. all ideas that come are listed and discussed. The big idea will be formulated into the creative strategy that is what message to be conveyed. The creative strategy The two previous processes will result in finding the “big” idea. 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. The ideas might relate to the feature and benefits of the products or consumer behavior that you want to evoke with your message.Jakarta . 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. Brainstorming It is the practice of the creative people to brainstorm together to get ideas. layout for print advertisements and script for radio commercials Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . The creative team under the direction of the creative director will study and analyzed the information in the brief. When brainstorming. 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 script for TV commercial is short and concise. Body copy The body copy is an elaboration of the statement or promise made in the headline or sub headline. camera angle.65 CREATION OF ADVERTISEMENTS AND COMMERCIALS TV commercials Television has other elements over print advertising: visuals. Below each frame is written the dialogues. music and sound effects. among others are the creative strategy. The format of the headline depends on many factors. Therefore the function of the body copy is to persuade by giving information that will motivate the target audience to use the brand. so that potential customers will act in favor of the brand compared to that of the competitor’s. Every scene in the storyboard is framed like a TV screen. sounds. 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. newspapers. and further enriched with music and sound effects to create interests and get attention. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . thus providing powerful impact to the advertising message. movements. However the same principle applies. Print advertisement Print advertisement refers to advertising placed in magazines. the commercial has to attract. 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.Jakarta . tabloids. so that it will be read by the target audience. etc. The storyboard is used by the agency to explain and sell the advertising concept to the client. The storyboard The concept of TV commercial is called the storyboard. The storyboard contains the story line to communicate the “big “idea and visuals are used to explain the story line. creates interests and desire.

to convey the advertising message in a simple way to ensure comprehension and to establish the brand image. it can be used to create the most marvelous word-pictures using the listeners’ imaginations. to enhance the positioning and to create overall mood.66 CREATION OF ADVERTISEMENTS AND COMMERCIALS Slogan/tagline Slogan or tagline is used to provide the final persuasion. Visual The visual of a print advertisement is often the most visible and dominant element. yet. Again the main objective is to get attention. Radio After the so-called excitement of the all-singing and all-dancing television. slogan/ tagline conclude the whole advertising message. despite only having sound. • Music. 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. Tagline is usually catchy and easy to remember. • Sound effects to promote imagination in the listeners mind. to get attention. It also strengthens the positioning of the brand. Layout Layout is how all of the above elements are placed in the advertisement. With sound. by giving a phrase of reason to use the brand. Written in only a few words. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . radio may seem a dull medium for any creativity. The elements of radio commercials are: • Script containing the main message. the promise and the positioning of the brand. It is created to get attention and to communicate the concept of the advertisement and to convey the brand image.Jakarta .

sound. slogan/ tagline. newspapers. and camera directions have to be included as well as dialogues. sub headline .Jakarta . 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. tabloids. body copy. visual and layout Although radio only has sound. simple and easy to understand and must establish the brand positioning. Storyboards are used by agency to explain the concept of TV commercial to their clients Print advertisement refers to advertising placed in magazines. it can be used imaginatively with music and sounds effects • • • • • • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . movement. persuasive and motivating the consumers to use the brand so helps to increase sales. For a television commercial.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. elements such as pictures. The elements of print advertising are : headline. relates to the needs and wants of the consumers. etc. The storyboard contains the story line to communicate the “big “idea and visuals are used to explain the story line.

To understand the production process of TV commercial. The job numbering system is vital to keep tract of the work through agency and suppliers until completion. however in smaller agencies this function is performed by the production manager. 4.68 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. TV producer and radio producer. recording studios. Therefore. in smaller agency all production process are undertaken by one producer). To understand the production process of print advertisement and other printed promotion materials 3. production houses. begins the production process by allocating a job number and title. • Monitoring the production process. 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. the producer (in bigger sized agency there are print producer. 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. OBJECTIVES: 1. To understand the role of the production department in ensuring production of advertising materials are done in a professional manner 2. To understand the production process of radio commercial The role of the production department Once the concept – copy and layout (visual). In bigger agencies progressing work to outside suppliers are monitored by the traffic controller. TV and radio commercials. 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. or storyboard has been approved by the client. 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 .Jakarta .

This is to ensure that production of the agency’s work is to the highest standard and are done on schedule. Producing TV commercials Once the story board and script is completed. tag line.Jakarta . The print production process begins after the client has approved the copy and layout (concept). It consists of appointing the agency print producer. Producing printed advertisement and other printed promotional material. preparing detailed planning such as costing. casting. The printing process nowadays uses digital techniques develop for computer printers such as inkjet or laser printer. Every print can be different because printing plates are not required and less waste of chemical and paper. the traditional way of producing print materials by way of color separation and proof prints are no longer practiced. timing. 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. make up and wardrobe. The production process is as follows Pre production process: This stage is the preparation stage prior to actually producing the print material. location hunting or studio set up. Since the advancement of computer technology. Throughout the whole workload of the production department. headline. All the elements of the print materials: visuals (photo or illustration). the TV producer is asked for advice on the following Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . body copy. The client has to approve the finished product and then the print advertisement is dispatch to media for placement. etc are all incorporated in the computerized artwork. the key elements are quality control and following tight production schedule. The process is much faster and more cost efficient compared to traditional printing methods.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. Post production The next step is taking the final artwork for printing. appointing photographer.

selecting the production house: as production of TV commercial is outsourced to a production house. while others toned down. post production editing: this includes recording and dubbing the voice overs. creative team. production team and the production house team are conducted to ensure the production process will go smoothly. 4. the actual filming may try different angles and approaches. 8. The production house will submit detailed costing and time frame for approval by the agency. some colors can be emphasized. casting. These meetings are called pre production meetings. therefore one needs to be appointed). appointing the TV producer: once the storyboard is approved by client and ready for production. Although it is strictly guided by the planning and the discussions in the pre production meetings. The next step is presentation of storyboard to client 3. 2. and edited by computerized techniques to produce the commercials on broadcast standard video tapes. dispatch to media: the TV commercial is transferred into video tapes/ DVD and dispatch to TV stations. wardrobe. the TV producer will then begin the process of selecting the production house and the director. as well as color corrections. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . initial approval : further checking to ensure that the script will not create problems legally or ethically. approval of censor board: all commercials must be censored to ensure compliance to ethical regulations. Production 6. detailed planning: once the proposal from the production house is approved. to be used if the original angles didn’t work. 15” and 5” duration. filming: studio or on location shooting. feasibility study: The TV producer will check if the storyboard is feasible technically. detailed planning to produce the commercial begins: location hunting. This will save the expense of re filming. music and sound effects.70 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA Pre production 1. Post production 7. The commercial is edited into 30”. With computer technology. Commercials are still made on 35mm film. make up artists. 5. The TV producer will also make sure it can be produced within budget and time frame. Several meetings between account handlers. etc.Jakarta . the agency TV producer is appointed. (in bigger sized agency there may be more than one TV producer. 9.

71 PRODUCTION OF ADVERTISING MATERIALS IN MEDIA Producing radio commercials The production of radio commercial starts with an approved script. selecting voice talents. Pre production The radio producer prepares the detailed planning such appointing the recording studio. producing the jingle. costing. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . if any. copyrights for music if any.Jakarta . sound effects . Production At this stage all audio element are mixed and recorded at the recording studio. 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.

sound effects are mixed and recorded at the recording studio 3. approval by board of censor 9. it is transferred to CD format and dispatch to radio stations for placement.Jakarta . the production process begins after the script is approved and the radio producer will make detail planning 2. studio and location filming 7. TV commercials The production of a television commercial starts with a feasibility study is based on the script and perhaps a storyboard. 2. all the audio elements such as voice over. • It also ensures that works are done as scheduled and meets the agency’s standard of quality. detailed planning 6. • The production department coordinates all work required for the production process internally with relevant departments of the advertising agency. dispatch of finished commercials to television stations or channels. post-production editing 8. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . which is more time and cost efficient compared to traditional printing process. music. Radio commercials 1.72 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. The stages of producing television commercials are: 1. The job numbering system is vital to keep tract of the work through agency and suppliers until completion. 3. once demo or sample recording is approved by client. 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. 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. 4.

It is used to carry and convey advertising message to the target audience. To understand different types of media and how it used in advertising. this chapter will go through the many categorizations of media used by advertising agency. It will also show the extent of media available for advertising and how it is used to achieved optimum result. To do this efficiently and effectively. advertising message will not reach the target audience. watch. as TV spots are relatively more expensive than other media placements costs. To understand the use of print media. OBJECTIVES: 1. The role of media in advertising Without media. how often. therefore a rather small budget may not be feasible for buying TV spots • Media data: who reads it. therefore media planners must be sure that the most effective and efficient media is selected to carry the advertisements and commercials. listen. etc • Media characteristics: o Physical o Restrictions o Timing for booking Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .Jakarta . etc. Thus several considerations are undertaken: • Media costs: what media to be used to accommodate the advertising budget given. media characteristics. To understand the extend of media available for advertising 2. how many. Media cost is the largest part of the advertising budget. media planners have to make several considerations. such as media data. As one of the chapter about media. For example. 3.73 MEDIA IN ADVERTISING AND PRINTED MEDIA CHAPTER 13 MEDIA IN ADVERTISING AND PRINTED MEDIA CHAPTER OUTLINE Media serves an important role in advertising.

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. Agency commission is gained from above the line media. tabloids Radio – local and national Television- national. thus contributing the agencies main source of income. Primary media The media most often used to carry the advertising message. local. brochures.tabloids. Secondary media The media used to support the primary media. when electing above the line media and below the line media. radio. However. reach specific audience Agencies income limited to design and production Leaflets. Below the line • • • • Specific. The main consideration is reach and costs. 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.Jakarta . magazines. mobile are in this categorization. cable Outdoor - billboards. signage Mobile - public transport Cinema Internet Direct mail - brochures. 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. newspapers. agency will focus on the client’s promotional objectives.74 MEDIA IN ADVERTISING AND PRINTED MEDIA Media used in advertising • • • • • • • • Press/print – newspapers. outdoor. made for specific purpose Limited reach. magazines. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . posters.

high in news value. Tabloids are not published daily like newspapers. Consumer magazine teenagers –boys: Hai. various trade magazines are also available usually published by trade associations. Nova for women and Cek & Ricek for celebrity news. etc) The characteristics of newspaper are high reach of the target audience. etc National Newspaper-evening: Suara Pembaruan. Kartini. Republika. It has a better production quality than newspapers. Tabloids Tabloids can be said as a cross between newspapers and magazine. Business Magazine: SWA. Most magazines are circulated nationwide. offers a variety of size for purchase. Consumer magazine –business: Gatra. etc National newspapers-English language: Jakarta Post. Jawa Post- Surabaya/Jawa Timur. etc National newspapers-business: Business Indonesia. Consumer magazine-women fashion: Dewi. so advertisements look more attractive.75 MEDIA IN ADVERTISING AND PRINTED MEDIA Printed media Newspapers • • • • • National newspapers- general : Kompas. Consumer magazine –parenting: Ayah Bunda. Beside consumer magazines. etc Regional/local newspapers: Pikiran Rakyat (Bandung/Jawa Barat. 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. Lifestyle magazine: Prestige.Jakarta . In appearance and paper quality they are more similar to newspapers. Consumer magazine teenagers –girls: Cosmo girls. but weekly. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Tabloids worth mentioning here are: Bola for the soccer fan. has a longer life and higher duplication of readers than newspaper. Magazines Magazines are more segmented than newspapers as shown below • • • • • • • • Consumer magazines- women general: Femina. but in content and segmentation are more like magazines. However. Magazines are segmented.

Secondary media is selected to support the primary media.76 MEDIA IN ADVERTISING AND PRINTED MEDIA Points to remember • • Media is used in advertising to reach the target audience. regional/local. primary and secondary media. Above the line media and below the line media are initially defined to differentiate which media generate the most income for the agency. teenagers. 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.Jakarta . chosen based on the audience it represents and the costs. and business/ trade magazines. • • • • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Magazines represent many segments of the market. Newspapers are further categorized into. men. general and business. magazines and tabloids. below the line media. Categorization of media includes. national. However. above the line media. Since there are many types of media. the selection of above the line media and below the line media must take into account the promotion objectives. Primary media is media most often used to carry the advertisement. Printed media consists of newspapers. such as consumer magazines for women. 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).

The revenue from selling advertising spots pays for the production of programs or buying programs from overseas. where popular high rated programs are relayed. Advertisers pay increased air time price for high rated programs. as each media differ in characteristics and hence have their own strengths and weaknesses. Many television channels will compete with each other to offer programs which will command highest viewers.Jakarta . To understand the use of television as an advertising medium 2. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . OBJECTIVES: 1. It delivers moving pictures which can enhance the persuasiveness of the message. also important for many aspects of promotion such as outdoor media. Television if can be afforded by the advertiser. Advertisers will opt to buy spot at peak hours or “ prime time” . direct mail. 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. To understand how profile of television and radio audiences differs according to the channels and stations. this chapter will focus on broadcast media: television and radio. cinema. lively manner to large target audiences. Other media. To understand the use of radio as an advertising medium 3. the programs and time of day 4.77 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. Sound effects and music/ jingle are often used to reinforce mood for the brand. The previous chapter and this chapter will show the importance of selecting the appropriate media to achieve specific advertising and promotion objectives. It will discuss how these media are used as advertising media. door to door distribution and POS displays will also be presented in this chapter. has definite advantages. Television can swiftly and effectively communicate benefits and advantages in an effortless. it is often the first choice to advertise FMCGs and consumer durables. especially if they are targeted at the so called ‘mass audiences’.

and creating specific talk show programs are also gaining popularity among advertisers. The use of satellites enables the receipt of more channels to the viewers compared to the use of land based transmitters. One of the advantages or radio. using direct response marketing with their target market.78 BROADCAST MEDIA AND OTHER MEDIA Terrestrial television used land based transmitters to relay their programs . Radio Radio is broadcast via airwaves. The optical fibers used are two way. latest development on particular news of interests. is that it can be listened to anytime. traffic condition. so that a radio station is operated by contractor under license. Thus emerge shopping channels. Hence emerge business news radio stations. which are strands of glass along which tiny light beams are passed to carry the television signal. Radio also provides information important to the listeners such as weather forecasts. etc. Advertising spots are 30 seconds or 60 seconds. stations directed at the female segment of the population. Radio covers a local area and most radio stations have developed a distinct programming format to cater to specific segments of the population. International advertisers benefit from satellite television in that it can reach international audiences. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Lack of pictures is not really a problem. Cable television is carried by optical fibers. 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. 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. Beside spot advertising and sponsorship.Jakarta . where the announcers relay the advertising message. 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. 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. thus the prime time are usually directed at working people. the use of which is controlled by government. Today it has evolved into mobile advertising. etc and such information may be sponsored by the advertiser. other means of promotion using radio are: Ad lip. pedestrian crossing bridge and shop signage. Other media Outdoor advertising Outdoor advertising involves putting the advertising message on billboard. using public transport as advertising medium.

it has sounds and movements. it is highly successful. and this has to be done precisely. the estimated number that pass each day and how times a day they pass. with a number of screens to have several films showing to different audience. Cinema goers are usually teenagers and young adults. Targeting depends on getting the right mailing lists of named individuals.79 BROADCAST MEDIA AND OTHER MEDIA Billboards are controlled by specialist media agency and advertisers can rent for a period of time.Jakarta . colors. 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. business owners . unlike television where people can switch channels or do other activities during commercial break. the brand name. Another variation of door-to-door is inserting the leaflet in the newspaper. so brands targeting this segment often find cinema as quite an effective medium for advertising. providing off course the target audience has a similar profile to the readers. This is undertaken by direct mail houses. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . In fact. and the large screens in a darkened room with impressive audio system. Cinema has its own way of delivering the advertising message. the powerful visual and brief associated message will subconsciously remind them of the television or magazine campaign they have seen. Billboards are not placed randomly but are selected with care based on research data indicating the profile of the public. direct mail has become known as ‘junk mail’ owing to too many companies are doing it badly. which build or create lists of names and addresses within certain categories such as professionals. The advantage of outdoor advertising is that people cannot really avoid it. Cinema Most cinemas are complexes. Moreover. Off course people don’t stop to look at a billboard. etc. 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. The areas to receive the door-to-door are mapped according to the profile of the target audience. time such as weekend. Selection of cinema is based on who will see the film. provided it is addressed correctly (by name. there is the captive audience. the location of the cinema. Door-to-door distribution Door-to-door distribution simply means delivering promotion materials to people’s houses. Direct mail Unfortunately. etc.

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 . Since competition for space is fierce. promotion campaign usually employs various media: TV commercial to gain awareness. It will also remind them of the key advertising message. • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . POS displays must be well planned and budgeted. The media combination No promotion plan can really be effective by using one medium. As they promote sales. such materials are welcomed by the retailers. To achieve maximum impact. 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.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. • 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.

sales promotion offers. radio advertising with sounds and music helps to create a powerful and personalized image of the brand. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .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. Although lacking visuals. Cinema provides impact in terms of large screen. etc to specific target audiences in certain neighborhoods. as reminder.Jakarta . the higher the price for the spot. Outdoor advertising cannot be avoided and carry brief messages. while doing other things. Direct mail can be effective provided if executed properly. the right targeting. Door-to-door advertisers allow advertisers to deliver leaflet. sounds and movements. correctly addressed. Different programs attract different profile of audiences. Television has prime time showing high rated programs. POS is an effective way to remind customers of the brand image and key advertising message of brands that are sold in the store. and the type of viewer changes throughout the day’s programming. Radio is an effective advertising medium as it can be listened to anywhere and anytime. Cinema is effective to reach young audience and also provide captive audience. The higher the number of people watching the program. and contain useful and persuasive messages.

Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . This chapter will discuss how agencies acquire the information needed to make media plans. Penetration is also called coverage (especially in printed media) and reach in broadcast media. that is to see which radio listeners are viewers of which TV channels and programs and which newspapers and magazines they read. Using information regarding audience profile. penetration and media rates.82 MEDIA PLANNING CHAPTER 15 MEDIA PLANNING CHAPTER OUTLINE Media research is the first and fundamental step in media planning. and how this data is used for planning media. media research is being used to investigate inter media habits.Jakarta .above the line As advertising campaigns are being based on integrated marketing communications. To understand what data is needed for below the line media 4. For media houses. OBJECTIVES: 1. agencies employ the services of independent media research companies. is very crucial in making a strategic media plan. To understand the need of media research for media planning purposes and how it is required 2. This chapter will elaborate the process of media planning and media buying. and these are not only based on the size of the space or the duration of the airtime. To understand how media data is used in media planning and buying Media research. For advertising agencies. how many read them and what types of people they are – requires media research. To understand how many people buy specific newspapers and magazines. Similar information is also required for broadcast media such as who watches and listens to television and radio programs. To understand what data is needed for inter media planning of above the line media 3. agencies can select the best media to target the desired market effectively and can calculate the required budget. 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. or more importantly. To fulfill the needs of media data. the result of the research allows them to set rates (costs) of advertising space and airtime. but most importantly on how many people will be exposed to the advertising message and their purchasing power to buy certain goods and services. what data is needed.

Research-below the line Direct mail There is no media research for direct mail. and also indicate an estimate of the number of people in each classification. published annually an advertiser and agency guide to media in Indonesia called the Media Scene.g.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. figures are available on the number of times that a website is “visited”. media planners will select media that will direct advertising messages effectively and efficiently to the target audience. but there are ways of establishing the number of potential contacts that a mailing can reach. majority of users are young and may be lacking in buying power). Currently there is no research undertaken by independent research organization into effectiveness of POS materials. PPPI. 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. buying power. Media data can be obtained by working together with a world wide media research organization such as AC Nielson. 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.Jakarta . In addition. Local research companies are often used by advertisers and advertising agencies to conduct omnibus surveys and competitors advertising expenditures. Media Planning Based on the analysis of the media data obtained from above mentioned research. 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. Consequently. professions. 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 . Its effectiveness relies upon the evaluation of the advertisers marketing and promotion team. they are not fully recognized as mainstream media and so little research has been undertaken into their effectiveness as advertising media. However. valid and unbiased. Mailing lists are classified by names and addresses. The Indonesian advertising trade organization. media houses also provide what is called media kit.

Jakarta . Advertising rates (including rates for special positions or peak viewing times) 6.84 MEDIA PLANNING 1. The scope of media planning • Media objective: what is to be achieved . while cinema chains issue lists of forthcoming films 5. method of printing and requirements for film for printed media). etc) 3. Frequency (daily. Mechanical details (e. Profile of readers (or viewers or listeners. weekly or monthly appearance) 7. features or sections.g. An editorial schedule of subjects to be covered in the publication so that advertisers can place their advertisements in special issues. 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. Circulation and readership figures (or viewing or listening figures) 2. For television. Area of coverage (in geographic terms) 4. 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 . this takes the form of video presentation.

Why the audience wants to use the brand 10. Duration of campaign 13. The elements are the costs for advertising space/airtime divided by 1000 readers/ audience. Past advertising efforts and result 6. Media budget Media efficiency As mentioned above. Product/brand information: physical characteristics. 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. etc 2. 11. Cost per thousand= Cost of Space ------------------------------------------Readership divided by 1000 Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . Consumer buying and usage habits 7. Brand performance in the market: market share and other indication of how the brand is doing among its competitors 4. Market area: the campaign coverage of marketing area. Target audience 9. Direct competitors: who and what they do. benefits. Media recommended by advertiser 12. use. It contains the following information: 1. how do they differ with the brand 8. 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. to determine which is more cost efficient. Advertising objective: what the advertiser wants to achieve through advertising campaign 5.Jakarta .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.

86 MEDIA PLANNING Media buying The media buying is the implementation of media planning. The media buyer also follows up with the account handler to ensure that the client pays the media bills on time. meaning that after the approval of the media schedule by the client. so that media can be paid on time too. the media buyer is responsible to purchase space or airtime for the advertisers.Jakarta . they have two interests to achieve: 1. 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. In doing this. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . For the agency: finds opportunities to earn extra money ( more discounts. For the advertiser: negotiates the best price ( discounts) 2.

Media efficiency is calculated via various methods such as the CPT (cost per thousand).87 MEDIA PLANNING Points to remember • • The media process consists of media research.Jakarta . The most effective and cost efficient media are the main considerations when making a media plan. Media buyers will proceed to buy space and air time once the media schedule is approved by the advertisers. rates are important considerations in the media planning process Media research is undertaken by independent media research organizations to ensure. Media buyers will check that advertisements and commercials appear as scheduled and that media bills are paid on time. media planner will create media plan and schedule consisting of macro media selection and micro media selection. • • • • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . accurate. valid and unbiased data Account handlers prepare media brief containing information to be used as a basis for formulating media plan. planning and buying Media research is crucial as accurate data regarding the media’s audience and media characteristics such as penetration. Upon receiving the media brief.

that the customer is being protected. it is important that the advertising message does not impact the target audience in a negative way. The voluntary controls ensure advertisers maintain the standard of behavior which protect the reputation of the industry and so ensure by implication. A creative advertisement or commercial can in its own unique way make the consumers understand why a certain brand will benefit them. promising beauty and image. To understand the objectives and role of advertising code of practice 2. This chapter discusses the objectives and roles of code of advertising practice and how it benefits the advertisers. Advertisers and its target audience must build and maintain a long term relationship to ensure consumer trust and loyalty.Jakarta . Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . To motivate the consumers.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. be its rational benefits such as value for money or emotional benefits. OBJECTIVES: 1. An advertisement or commercial is creative not just because it is different than other advertisements or commercials. The advertising code of practice strives to ensure that consumers expectation are met. Most advertisers and advertising agency prefer voluntary control. emotions and behavior. advertising agencies and consumer. but because it motivates the consumers without over promising and without misconceptions. creative advertising is also ethical advertising. meaning they themselves control what should be said and what should not be said in an advertisement or commercial. Therefore. To understand how the advertising code of practice benefits the advertisers. In short. advertising messages focus on the consumer benefits. advertising agencies and consumers Advertising creativity and ethics Creativity and persuasiveness is the basis of the advertising message. bearing in mind the interest of the target audience. and that advertisers and advertising agencies work together to fulfill this expectation.

lack of knowledge or inexperience of consumers) • be truthful (by not misleading through inaccuracy. • 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.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. sex or disability) • be honest (by not exploiting credulity. omission.Jakarta . 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 . ambiguity. therefore helps the consumer to select the right brand to serve their needs. 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. exaggeration. religion. thus establishing consumer’s confidence in using the brand • Advertising message is focused and informative.

g.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. personalities) without permission • use only genuine testimonials related to the product (and have written permission to do so from the individuals. publications or organizations involved) • indicate clearly that advertisements are not editorial matter Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .Jakarta .

Jakarta . an advertisement /commercials must be unique. meaning they themselves control what should be said and what should not be said in an advertisement or commercial. that the customer is being protected. The advertising code of practice ensures long term relationship between consumers and advertisers and also guides advertising agencies to create creative and ethical advertising. answers to consumers needs and also must be ethical.91 ETHICS AND CODES OF PRACTICE Points to remember • • The advertising industry prefers voluntary control. To be creative. The advertising code of practice also aims to promote healthy competition among advertisers. The voluntary controls ensure advertisers maintain the standard of behavior which protect the reputation of the industry and so ensure by implication. • • • Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .

and discuss the basics of agency and client business relationship. agencies also need to formulate contract agreements with third parties to safeguard their interests as well as their clients. (A consideration is an old term usually meaning a sum of money. production houses and suppliers. As agencies act on behalf of their clients with third parties: the media. an acceptance.) 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 . To understand contract agreements between agencies and third parties 3. This is called an agreement and becomes a contract only when a consideration is included by the first party and accepted by the second.Jakarta . copywriters. advertising agencies rely on the long term and mutually fruitful relationship with its clients. An offer (of goods or services) by one party and an acceptance (of the offer) by a second party. To understand agency-client business relationship Agency/client contracts and agreement Every company involved in marketing makes contracts. and photographers as well as printers). This chapter will cover the agency. 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. freelance compugraphers. agency and third party contract. Many advertisers have been known to stay with their agencies for many years.92 ADVERTISING AND THE LAW CHAPTER 17 ADVERTISING AND THE LAW CHAPTER OUTLINE Like any other service provider. A contract consists of three elements – an offer. To understand contract agreement between agencies and its clients 2. Contracts are made between agencies and clients as well as between agencies and suppliers (like the media owners.client contract agreement. OBJECTIVES: 1. and a consideration.

but they are learning about each other.Jakarta . mark-ups and handling charges (for both the agency’s work and that of third-party suppliers) ● repayments of volume and other discounts. Client shows his eagerness by providing the Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . 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. his objectives are realistic and clear and he has the financial means. • Conflict of interest: agency has been appointed by client’s direct competitor who has more promising business potential. a business relationship has to pass several cycles to survive: The introduction cycle At this stage. The client is impressed with the agency’s skills and experience. etc) Termination of contract Termination of contract may be initiated by the agency or client. its eagerness to serve the client by showing understanding of the client’s business and market.93 ADVERTISING AND THE LAW ● provisions for terminating the contract ● terms of business (regarding payment of the agency. These positive impressions then lead the relationship to the next cycle. The agency has a positive feeling about the client: he shows understanding of how an agency work. its human resources. 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. The goal: long term and profitable business partnership Just like everything else. Agency will continue to impress clients with their professionalism and service excellent. agency and client has not formalized their relationship. The development cycle The relationship is formalized by a contract.

then the quality of work that it gives to its clients suffers. it also commissioned production establishments to produce advertising materials on behalf of its clients. If the client does not pay. As long as effective solutions are found and the motivation to work together persists. then usually agency and client can form a very long and successful working relationship. So if the agency buys space form the media. with no registration required (unlike a trade mark under older legislation). This is the case unless the client insists on a clause assigning ownership in the agency/client agreement.94 ADVERTISING AND THE LAW information needed by agency. At this stage work rules and condition for team work is established. The maintaining cycle The key at this cycle is effective communication to support effective teamwork. Mistakes made at this cycle are usually forgiven. agency must foot the bill. expectation increases. Konimex and Matahari Advertising has worked together for 30 years.Jakarta . Cone & Belding (FCB) worked with Sunkist for 85 years. The rights to all work done by the agency (including artwork) belong to the agency. problems also arises. it makes contract with the media and sells the space back to its clients. the termination could be amicable or could be a negative experience for both parties. Foote. indirectly influenced agency and client business relationship. As work intensified. This is an automatic right. The termination cycle Many factors can lead to termination of business relationship as previously described. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . even though the work has been commissioned by and paid for by the client. Agency/third party contracts and agreements Agency buys advertising space and airtime from the media houses. The law of copyright Anyone who creates something has a right to protect it from being copied or used by other party. The working relationship between agencies and its third parties. if the agency cannot manage its third parties. and like so many other things in life. The same with other third parties employed by the agency on behalf of its clients This is why agencies are required to be creditworthy. 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.

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.

which forms an agreement. together with a consideration. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . agency also form contract agreement with third parties. Copyright covers the ownership of words. The goal of agency and client working relationship is long term business partnership. As agency buys many service from other third parties on behalf of its clients. etc).Jakarta . artistic works (photographs. A business relationship consists of several cycles which if passed successfully will ensure a mutually beneficial business relationship between agencies and its clients. as long as provisions for termination have been met. usually a sum of money A contract can be terminated by either agency or client.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 . illustrations. music and many other created elements.

• Showing how to fulfill objectives. Testing the market place Testing of the market place to discover information such as the level of market response to the brand. motivations and opinion by the customers and consumers are found. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . 4. Successful campaigns will enhance advertiser’s confidence in the methods of advertising as well as on the professionalism of the advertising agency. On the other hand positive attitudes can also be discovered and then enhanced in the campaign. 2. To understand continuous research to monitor performance of advertising and promotion. • Highlighting opportunities that can be exploited for further business growth. This chapter will explain the various methods of testing and evaluation to ensure that campaigns are planned strategically and executed appropriately. or positioning and communicating brands more effectively. are initially taken by the advertiser’s marketing team. 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. then the agency can find ways to re-position the brand so it will be perceived in a positive way. To understand the reasons for doing testing and evaluation. 3. If negative attitudes. To understand the methods of pre-campaign testing. It is imperative to establish the market situation such competitive environment.Jakarta . consumer perception and attitudes. Their findings are then briefed to their agency. before planning and executing an advertising and promotion campaign. • Indicate short and long term plans. To understand the methods of evaluating a campaign. OBJECTIVES: 1. Reasons for testing are: • Seeing where things may go wrong so can be avoided. how the company and the brands are perceived by the consumers and customers.97 ADVERTISING TESTING AND EVALUATION CHAPTER 18 ADVERTISING TESTING AND EVALUATION CHAPTER OUTLINE Market situation is very complex.

Research methods are qualitative or quantitative. To get the most of these activities. Quantitative research: On the other hand. an open questionnaire requires the respondent to provide more descriptive answers. Split-run testing Introduction to Advertising | Advertising and Media Planning STIKOM LSPR .Jakarta . skilled interviewers and facilitators are used with a well designed questionnaire.98 ADVERTISING TESTING AND EVALUATION Testing and evaluating advertising Testing an evaluation of advertising takes place before. Qualitative research: This type of research is used to find out the extent of attitudes and beliefs within the market place. during and after campaign. Aspects to be tested: • • • • • • What is the impact of the advertisement or the commercial? How does the target audience relate to the message. therefore money and time well spent. quantitative research aims to establish size and mostly demographic nature of the target or market. 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 is often used to test concepts. This is important because the advertiser and advertising agency wants to be sure that the advertising will achieve the objectives. A closed questionnaire requires only Yes or No answer. It involves small number of people therefore requires less funding and easier to set up. As this type of research provides valuable insights into opinions relating to advertising research. 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.

such as coupon. Checking the campaign. For broadcast media. or from memory of actual types of advertising or product classes. Reading and noting This is used to test the percentage of people who look at particular page of a magazine. it is equally important that the likely effectiveness of the advertising campaign should be tested before it is carried out nationwide. The recall testing can be either unaided or aided. the individuals are shown a selection of advertisements or cards with brand names and are asked which they have seen. Checking responses and sales Increased inquiries and sales are of course the easiest objectives to measure. However. Coupons are coded. This is especially true if some response mechanisms are included in the advertisement. Post-production testing Post-production testing means looking if the advertisements are recalled and that the advertising objectives are met. so the advertiser can see from which media the coupons have cut.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. With aided recall. 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. voucher copy is given to the agency and for commercials a time table of commercials transmitted in a chronological order is provided. the individuals are asked to respond instantly and recall advertisements and their contents from a test selection of advertisements. In the first. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . a free number (toll free number) is often used to measure the number of responses received. Test marketing This is a rather elaborate and expensive method.Jakarta . For press advertisements . and how many percent saw the advertisements and actually read the content. This is checking to ensure that the advertisements and commercials appear at the right time and at the right place. as a mini campaign is conducted to assess brand acceptance and promotional techniques.

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. Tracking studies Advertisers subscribe to this means of continuous research to receive 13 reports produced every 4 weeks throughout the year. One of the best-known kinds of panel records the television commercial breaks and programs that viewers watch. or services. clothing or consumer durables. Like retail audits. toiletries. so that it is possible to see the effect of an advertising campaign by the variations in stock turnover of a particular brand. it concentrates on certain categories of product. It also can be used prior to the campaign to get an understanding of the market place. Retail and dealer audits The research involves taking stock levels and accounting for all stock deliveries over a regular period. drinks. retailing or financial services. This is a valuable way of determining how many people may have seen a commercial. with the data being transmitted to the market research company for central processing and analysis. such as confectionery. Introduction to Advertising | Advertising and Media Planning STIKOM LSPR . 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. Members of other panels use bar-code scanning devices (similar to those used in supermarkets) to record purchases. such as travel. Opinion polls A poll or survey is conducted to detect changes in awareness and opinions over a period of time. It covers a number of products and brands.Jakarta . They might also be chosen to complete questionnaires on a regular but voluntary basis. Based on this the effect of advertising and promotion can be evaluated.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.

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