advertising Flashcards
what is advertising
explicitly paying for media space or time in order to direct favourable attention to certain goods or services
transaction: time and space are sold
explicit: not hidden; product or brand is clearly stated (in contrast to PR)
involves persuasion: advances a point of view or a course of action through communication
history of advertising
present since ancient times: documented in AD 79 in Pompeii
- developed as a business model: invention of the printing press (1440) → newspapers contain advertisements (1600s) – beginning of independent press → penny press with high circulation (1800s)
overview of advertising industry
advertising agencies
- companies that specialise in the creation of ads for placement media that accept payment for exhibiting those ads
- companies that hire them and pay for their work are called advertisers
- agency takes over advertiser’s business = take on an account
advertising/marketing agency holding companies
- firms that own full service advertising agencies, marketing consulting agencies, direct-marketing firms, research companies, PR agencies, etc.
- umbrella firms that own 2 or more ad agencies, plus research firms, PR consultancies or other organisations that contribute to the business of selling products, services or ideas
- traditionally, companies would not think of giving business to an agency that has such client conflicts for fear that confidential information might be shared among employees and get to competitors; however, in this case, a totally different agency network is involved although both agencies can be controlled by one firm
different types of advertising agencies: b2b vs consumer
b2b
- work for companies that are interested in persuading personnel in other companies to buy from them instead of from their competitors
consumer
- work for advertisers that want to persuade individuals in their non-work roles to buy products
different types of advertising agencies: general vs specialty
general
- invites business from all types of advertisers
specialty
- do specialised work or tackle only certain types of clients (and accounts)
works in both b2b and consumer areas
- internet agency
healthcare advertising:
- direct-to-consumer pharmaceutical advertising: pharmaceutical firms’ desire to get consumers to nudge their doctors to order new prescription drugs for them
different types of advertising agencies: traditional vs direct-marketing
traditional
- creates and distributes persuasive messages that creates favorable impression of the product so that it will lead to buying in stores
direct-marketing
- create favourable impression and focus on mailers, telephone marketing, TV commercials etc to elicit purchase then and there
different types of advertising agencies: agency networks vs stand-alone firms
agency networks
- agencies with branch offices in number of different cities worldwide; part of an integrated network
- typically work for large national advertisers like Sears, Ford, McDonald’s → national advertisers tend to sell many products, hence they often appoint a number of ad agencies to work for them, each working on a different product or a different set of products
stand-alone firms
- single location
basic functions of ad-work
creative persuasion
- the set of imaginative activities involved in producing and creating advertisements
market research
- research whose end goal is gathering information that will help an organisation sell more products or services
media planning and buying
- a function of advertising involving purchasing media space and/or time on strategically selected outlets that are deemed best-suited to carry a client’s ad message
production in the ad industry
production of persuasive messages
personnel
- account executive: communicates information between advertiser and the agency, makes sure that all production, distribution and exhibition activities take place as planned
- creative personnel: works on creating the media content, include copywriters (write the words for the ads), art directors (guide the creation of the “artwork”), print production personnel (supervise the final production of magazine and newspaper ads), TV-radio production personnel (supervise the final production of TV and radio commercials)
key processes
- market segmentation: the activity of dividing society into different categories of consumers according to demographics or psychology
- sales pitch: a presentation to a client, portraying the world of the client’s intended audience and actions, to show how the client’s product is valuable in that world. portrays the world of the intended audience, a problem in that world, and actions that show how the product can solve that problem
- branding: creating a specific image of a product that makes it stand out in the marketplace
distribution in ad industry
decisions on where and how to distribute ads
where to place ads, how effective will it b in reaching target audience, how efficient is it in reaching target audience (CPM)
personnel
- media planners: agency personnel making decisions about where to place advertisements (difficult due to media fragmentation –> increased number of ad vehicles, track computerised data, consult psychographic data)
goal: make media plans
which outlets for which audience?
- examine syndicated and custom demographic, psychographic and lifestyle research to decide whether the audience segment they are aiming at can be found at that outlet
what percentage of the entire target audience will the outlet reach?
outdoor? in-store?
- outdoor media: stationary billboards, signs, moving media like buses and trains
- in-store media: a raft of print and audio-visual ads that people see when they walk into retail spaces
how efficient is the outlet in reaching the target audience compared with other products? consider the cost per thousand (CPM)
- the basic measurement of advertising efficiency in all media; used by advertisers to evaluate how much space they will buy in a given medium and what price they will pay
exhibition in the ad industry
goal: put together an ad campaign
- set of advertisements that go towards a particular theme to promote a product for a certain period of time
- media plan, branding strategy
media-buying
- ad-placement strategy and actual buying (often outsourced)
- location-based advertising (companies send customers ads, including discount coupons, based on their geographic location, with the customers’ consent) may also be possible
tutorial: target consumers
Information Seekers (26.6%): strong information orientation, considerable effort into researching fashion with no immediate intention of making a purchase. want information in order to keep up with cutting-edge fashion. women who enjoy spending time learning about fashions and trying new things
Sensation Seekers (29.5%): values aesthetic elements in clothing, interested in colour coordination
Utilitarian Consumers (25.2%): highly concerned about utilitarian issues such as comfort and functionality of the clothing, not prone to making purchases on a whim
Conspicuous consumers (18.5%): strong belief in the value of prestige or high-priced brands and products. they value clothing that iso high quality and is associate with high social status
determining an advertisement’s success
direct marketing campaign: campaign led to purchase of a certain number of products or a certain dollar amount -> success
web ad: depends on the nature of the response and the expectation of marketers
click-through ad: can be evaluated through direct purchase
but difficult to track as one can see the ad and not click on it, buy the product later
visibility of the campaign: survey the target audience to see how many people recall the ads
however, people can avoid ads as well:
- Americans using DVRs to rush through broadcast, cable and satellite TV
- using email filters and popup blockers online
- solve by making ads more relevant to target group so they will not skip, or make deleting or skipping impossible
