ADVERTISING

ADVERTISING

Advertising is one of the oldest, most visible and most

important instruments of the marketing communications mix.
Needless to say, large sums of money are spent on
advertising.
 Interestingly, no other marketing phenomenon is subject to
so much public debate and controversy.
 ADVERTISING DEFINITION

Advertising can be defined as any paid, non-personal

communications through various media by an identified company,
non-profit organisation or individual.

It is a good communication tool to inform and persuade regardless the

product type (good, service, idea,...etc).

GLOBAL AD SPENDING
 THE CREATIVE ADVERTISING STRATEGY

A good creative advertising strategy summarises the main

message into a creative idea and approach that is sustainable.
A good creative idea can be implemented in various media and
tools, and is rich and relevant enough to be used over a period
of time.
TYPES OF ADVERTISING
 CREATIVITY IN ADVERTISING

The most general way to define it is ‘a violation of

expectations’.
Creativity in advertising has at least two dimensions.:
different, and highly unique and novel also relevant and
meaningful.
Award winning advertisements?
ADVERTISING APPEALS
 RATIONAL APPEALS

 Rational advertising appeals, on the other hand, contain features, practical

details and verifiable, factually relevant cues that can serve as evaluative
criteria.
 These include: price, value, quality, performance, components,
availability, taste, warranties, new ideas…etc.
 EMOTIONAL APPEALS

Emotional advertising appeals are advertisements whose

main purpose is to elicit affective responses and to
convey an image.
These include: humour, fear, shock tactics, music,
warmth…etc.
 BUT WAIT…

 Mixed appeals also exist.

 For both rational and emotional appeals, different formats or execution strategies
can be used.
 Also, it has to be added here that several of the formats that can be used for
rational appeals could just as well be used for emotional appeals.
 None of the execution strategies works in all situations and for all target groups,
therefore, caution should be taken to select the right technique. (Ex: Emotions
may be misperceived).
 ADVERTISING THEORY

In developing an advertising campaign, the following elements

(the first two are actually theoretical approaches) help provide a
solid foundation and assist in developing effective campaigns:
1. The hierarchy of effects model
2. Means–end chain
3.Verbal and visual elements
 VISUAL AND VERBAL ELEMENTS

 Most major forms of advertising contain visual and verbal or written elements.
 A visual ad places the greatest emphasis on a picture or the optical element of the
presentation.
 A verbal or written ad places more emphasis on the copy.
 Visual and verbal elements work together to create an advertisement that
meets the desired stage of the hierarchy of effects model or the attribute-
benefit-personal value chosen from a means–chain.
 VISUAL AND VERBAL ELEMENTS

Many ads provide minimal amounts of information and

rely on visual elements to communicate.

Visual images often lead to more favourable attitudes

toward the advertisement and the brand.
 VISUAL AND VERBAL ELEMENTS

Verbal messages tend to be stored in the left side of the

brain only.
Visuals tend to be more easily remembered than verbal
copy because they are stored in the brain as both pictures
and words which eases the recall process.
 CONCRETE VS ABSTRACT

Visual images range from concrete and realistic to

highly abstract.
A concrete visual displays something
recognizable as a person, place, or thing.
In an abstract image, the subject becomes more
difficult to recognize.
 CONCRETE VS ABSTRACT

Concrete pictures instil a higher level of recall and lead to more

favourable attitudes than those without pictures or abstract images.
Why? This is they allow the image to be stored in the brain with
both visual and verbal elements.
 Ex: Viewers process an advertisement with a picture of spaghetti
as both a picture and as a verbal representation.
 VISUAL ESPERANTO

Visual Esperanto: a universal language that makes global

advertising possible for any good or service by recognizing
that visual images are more powerful than verbal descriptions.
Advertisers often use visual imagery in international marketing.
Visual Esperanto advertising recognizes that visual images are
more powerful than verbal descriptions and transcends
cultural differences.
TO ILLUSTRATE THE POWER OF A VISUAL IMAGE COMPARED TO
A VERBAL ACCOUNT, THINK OF THE WORD “EXOTIC”
THE IMPACT OF ADVERTISING EXPENDITURES
THE IMPACT OF ADVERTISING EXPENDITURES
THE IMPACT OF ADVERTISING EXPENDITURES
 THRESHOLD EFFECTS

 Early effects of advertising may be minimal.

 At first, few behavioural responses occur, then, over time, a consumer
who has been repeatedly exposed to a company’s message will
recall the brand and eventually becomes willing to make an inquiry or
purchase.
 Threshold effects occur at the point in which the advertising program
begins to have a significant impact on consumer responses.
 DIMINISHING RETURNS

Almost all campaigns reach a point of saturation where further

expenditures have a minimal impact.
Diminishing returns mean that incremental increases in expenditures
in advertising result in smaller and smaller increases in sales.
Analysis reveals that further advertising and promotional
expenditures adversely affect profits, because sales increases are less
than what the company spends on the additional marketing or
advertising.
 CARRYOVER EFFECTS

 Consumers purchase many products only when they need them, such as
washing machines and refrigerators.
 Promotions for these products should be designed to create brand recall,
which occurs when the consumer has been exposed to the company’s
message for so long that, when the time comes to buy, the individual
remembers the brand name. This indicates the presence of carryover
effects!
 Ex: when a washing machine breaks down and requires a replacement,
remembering the Maytag brand will be the company’s goal.
 WEAR-OUT EFFECTS

 At a certain point, an advertisement or particular campaign simply becomes “old”

or “boring.”
 Consumers tend to ignore the advertisement or tune it out and they may
develop negative attitudes.
 This indicates wear-out effects!
 Half of all campaigns last too long and experience wear-out effects, nevertheless,
the long-term effect of advertising remains twice as high as the short-term effect.
 Discovering the balance between wear-out and long-term impact remains
challenging.
 DECAY EFFECTS

 When a company stops advertising, consumers often begin to forget the

message, which indicates decay effects.
 In some instances, a dramatic degree of decay takes place.
 In others, the carryover effects are strong enough that some time elapses
before the brand drops out of the consumer’s mind.
 The presence of decay effects means that companies should continue
to engage in some form of marketing communications to keep the
brand in people’s thoughts.
IN HOUSE VS EXTERNAL ADVERTISING AGENCIES
 IN HOUSE VS EXTERNAL ADVERTISING AGENCIES

In-house advertising creates several advantages:

Lowers costs and retains better control of the message (more
control)
Members have a better understanding of the firm’s products
and mission and more quickly produce advertisements.
More consistent, due to a lower turnover rate in the creative
team.
 IN HOUSE VS EXTERNAL ADVERTISING AGENCIES

 While companies may take advantage of in-house resources, many also

outsource specific functions, such as writing, filming, recording, and
editing advertisements.
 Most utilize media companies to plan and purchase media time (on
television and radio) and space (in magazines, in newspapers, and on
billboards).
 Many employ external agencies to handle social media activities.
 IN HOUSE VS EXTERNAL ADVERTISING AGENCIES

 Outside advertising agencies offers several advantages:

 Costs less when compared to less efficient in-house facilities (in-house employees spend more
time on campaigns and ad designs than would an agency…cost is not always monetary).
 The agency provides greater expertise and may have access to top talent in the industry.
 Advertising agencies offer an outside perspective not influenced by internal corporate politics
and personal biases.
 Many agency professionals better understand consumers and trends because they work with a
number of clients over an array of products.
 Knowledge gained from one product can often be transferred to other, even unrelated
products.
 IN HOUSE VS EXTERNAL ADVERTISING AGENCIES

 Advertising agencies provide a variety of options as all sizes and types

of agencies exist.
 At one end of the spectrum, highly specialized agencies offer one specific
service (for example, making television ads) or serve one type of clients.
 At the other end of the spectrum, full-service agencies that deliver
every type of advertising and promotional activity.
 FYI…

 Media service companies negotiate and purchase media packages (called media buys)
for companies.
 Direct-marketing agencies handle every aspect of a direct-marketing campaign
through telephone orders, internet programs, and direct mail.
 Consumer promotions, trade promotions, or both.
 Developing digital services. (interactive websites, web analytics).
 Social media services to reach consumers and businesses through a wide array of
social media techniques.
 Public relations firms provide experts to help companies and brands develop positive
public images, as well as damage control responses when negative publicity arises.
 CROWDSOURCING

 Crowdsourcing is the practice of obtaining information or input into a task or project by

enlisting the services of a large number of people, either paid or unpaid, via the Internet.
 In the context of Advertising, it involves outsourcing the creative aspect of an advertisement or
campaign to the public.
 It offers an alternative to creating commercials in-house or hiring an external advertising agency.
 Crowdsourcing can create a viral buzz as users view advertisements online, recommend or send
favourites to friends, and post links.
Is crowdsourcing really a cheaper method?