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GLOBAL ADVERTISING

Top Global Advertisers

Top Global Advertising Agencies

The Global Ad Agency Job


To coordinate with the global advertiser in terms of final message creation & media selection To effectively construct a media schedule for the various local markets within its global network To communicate the global advertisements effectively into various smaller local markets To account for across-country variability in financial arrangements & payments

Global Advertising Defined

GLOBAL ADVERTISING media advertising that is more or less uniform across many countries, often, but not necessarily in media vehicles with global reach

Pros and Cons of Global Advertising


ADVANTAGES

CONSISTENCY OF BRAND COMMUNICATIONS MEDIA SPILLOVER COST SAVINGS IMPROVED PRODUCTION LEVERAGING A GREAT IDEA
DISADVANTAGES

IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY ACCEPTABLE APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE PRODUCT USAGE IS NOT THE SAME LOCAL CREATIVITY IS STIFLED

Drivers of Global Advertising


SUPPLY SIDE
1) GLOBAL AD AGENCIES 2) GLOBAL MEDIA DEMAND SIDE 3) GLOBAL CUSTOMERS 4) PREFERENCE CONVERGENCE

5) GLOBAL COMPETITORS

Four Components of Global Advertising


1. STRATEGY Global ads involve products &services that are positioned similarly across markets, wherein the products appeal is consistent

2. ORGANIZATION global ads are typically directed from headquarters with the help of advertising agencies with a global network
3. MEDIA with global reach are used, creating spillover that crosses borders to reach customers in different countries & follows traveling customers around the globe 4. MESSAGE & CREATIVE copy & visualization may be uniform across markets, uniformity decreases based on how different each local market is from another

Global Ad Categories
IDENTICAL ADS ads are identical, usually with localization only in terms of language voice-over changes & simple copy translations (e.g. the Marlboro cowboy ads)

PROTOTYPE ADVERTISING the same ads, but the voice-over may be changed to avoid language & cultural problems, & the ad may be re-shot with local celebrities (e.g. Drakkar Noir) PATTERN STANDARDIZATION similar but less structured global approach, wherein the positioning theme is unified & some alternative creative concepts are planned, but execution differs between markets (e.g. Xerox)

Global Ads: Same everywhere?


PROTOTYPE ADVERTISING Brand Name same Theme same Visual same Positioning same Actors same PATTERN STANDARDIZATION Brand Name same Theme same Visual same Positioning same Actors not same

Words same
Language (local) Media same Materials same Slogan same

Words not same


Language (local) Media not same Materials not all same Slogan same

Web Ads Are Naturally Global


WEB ADS are those boxed inserts on the screen that appear as you surf the web. They are interactive in the sense that you can click on them to get more information about the product/service. Types of Web ads:
Banner ads most common, measured in pixels Tickers banner ads that move across the screen

Interstitial ads ads that flash while a request is being handled, filling up idle loading time.
Pop-up ads ads that appear once a site has been loaded prior to webpage access Transactional ads let you order/request something without leaving the current webpage

Roadblocks full screen ads that users must pass through to get to other screens
Rich media ads the web version of a TV commercial, with audio and motion

The International Mass Communication Process


Producer/ marketer/ advertiser Sets objectives and advertising budget Advertising agency Develops message (encoding) and selects media Mass Media Carries the message Opinion leaders, individuals Receive the message and interpret (decoding) Individuals Think, feel and act (hierarchy of effects)

Coordination and control

Generate feedback on effects

Senders cultural setting

Receivers cultural setting

Cultures and Visual vs Verbal Processing


VISUAL PROCESSING VERBAL PROCESSING

TV commercials Radio Ads Low literacy Younger Segments Low Involvement products High context societies

Magazines

Newspapers

High Literacy Older segments High involvement products Low context societies

The Hierarchy of Effects


ADVERTISING EXPOSURE

AWARENESS

KNOWLEDGE

LIKING/ATTITUDE

PREFERENCE

TRIAL

REPEAT PURCHASE/LOYALTY

Matching Ad Objectives and Media


AWARENESS TV, Radio

KNOWLEDGE

Words (spoken/written), Print, TV/Radio

ATTITUDE CHANGE & IMAGE BUILDING

TV, Magazines, Cinema, Outdoor Ads

INFLUENCE BEHAVIOR

Media must be timely, newspapers, TV

Global Advertising is Most Powerful When


the image communicated can be identical across countries countries

the symbols used carry the same meaning across the product features desired are the same the usage conditions are similar across markets

Goodyears Latin-Am. Campaign Planning

Global Tire Ads: Language pitfalls


How do you say tire in Latin Americas Spanish? What to say CAUCHOS Where to say it Venezuela

CUBIERTAS
GOMAS LLANTAS

Argentina
Puerto Rico Mexico, Peru, Guatemala, Colombia

NEUMATICOS

Chile

Goodyear: Lessons for Global Advertisers


1. By focusing on regions, it may be possible to reap the scale benefits & cost efficiencies of global advertising without sacrificing too much on the side of local adaptation.

2.

The early involvement of country subsidiaries & agency professionals not only facilitates later acceptance of unified themes but also helps broaden the sources of powerful campaign concepts.

3.

The process by which pattern standardization is arrived at needs to allow open & free exchange.

4.

Even when the company has operated for years in a market, research is still necessary, especially when conditions are changing.

Takeaway

As the affluence of countries grows, new products/services appear, & customers need more information.

Advertising becomes more important and advertising expenditures as a percentage of GDP increase.

Takeaway

As markets integrate, global communications expand, & customers become more similar, pan-regional advertising campaigns will become increasingly cost-efficient & more effective than multi-domestic advertising.

Takeaway

Instead of complete uniformity, global advertising tends to follow a pattern standardization approach with unified slogan, visualization, & image but with local execution in terms of language, spokespersons, & copy. This helps avoid the pitfalls of standardized & translated messages.

Takeaway

The global advertising agency is often at an advantage over local rivals when it comes to global /regional advertising.

But independent local advertising agencies have combined with others to form multinational networks & can sometimes offer stronger local talent.

Takeaway

Developing a global campaign takes time, effort, & planning. The process should involve headquarters and ad agency managers & local representatives whose knowledge will help formulate the global communication strategy.