Module 2 Flashcards
The ‘mad men’ era of advertising
This era in the 50’s and 60s centred around full-service agencies: one-stop shops that could fulfil all clients’ needs. They created the brands, made the ads and distributed them through the limited commercial channels available at that time.
4 key agency types
Media - They specialise in the placement of ads, such as TV, outdoor and digital
Advertising - They create adverts and often define the brand strategy
Digital - They focus solely on the digital elements of marketing, for example SEO and social media
PR - They oversee a brand’s reputation and narrative
3 Ownership types
Independent agencies: These tend to be owned by their founders or private investors. The advantage of independence is that owners can run the agency without external influence.
Agency group: This is a collection of agencies owned by a single company. These agencies might compete in the same specialism or be from various disciplines.
Global network: There are six major holding companies. They are all owned by a central holding company. WPP is the world’s largest advertising network and owns agencies from all disciplines, from PR, advertising and media to digital and data.
Mobile phones & social media
In 2022, 98% of the UK uses the internet, which has become essential to life in the modern world.
Social media was the go-to destination for news, short-form entertainment and opinions, with 57.6 million of the UK population interacting online.
Time online stats
18-24 year olds spend up to 5 hours 6 minutes a day online (Ofcom, 2022)
Women spend the most time online at 4 hours 11 minutes, compared to men who spent 3 hours 45 minutes (Ofcom, 2022)
The average Brit spends 3 hours 59 minutes daily on a computer, tablet or mobile (Ofcom, 2022)
People over 555 spend the least time online at 2 hours 58 minutes (Ofcom, 2022)
Storytelling - How do agencies help tell stories?
Create stories: This could be a great piece of branded content, a compelling brand narrative delivered through PR or an amazingly executed TV advert
Distribute stories: This could be through a perfectly targeted media plan, influencer outreach or a relevant search campaign driving a final sale
Analyse stories: This could be through insightful social listening, robust econometric modelling or a quantitative survey diving into the consumer mindset
How different agency types tell brand stories
Media agency:
Create stories: Media partnership
Distribute stories: Paid media space (e.g. OOH ad)
Analyse stories: Brand trackers, econometric modelling
Ad agency:
Create stories: Advertising creative
Analyse stories: Audience insight
Social agency:
Create stories: Social posts and content, influencer content
Distribute stories: Organic social, paid social, influencer audiences
Analyse stories: Social analytics.
PR agency:
Create stories: Brand narrative
Distribute stories: Through organic media (press, journalists, TV coverage, influencers)
Retainer fees, Project fees, and Variable fees
Retainer fees: A retainer fee is often required when an arrangement is in place, to pay for services based on a scope of work and resource plan over an agreed period. Fees are staff costs, overhead allowance, and an appropriate allocation for profit.
Project fees: These are determined on an individual project basis, often for supplementary services.
Variable fees: These fees are based on actual time spent performing a task using hourly charge-out rates for individual staff.
Covid and media channel stats
- TV Video 35%
- Out-of-house (OOH) 19% : Lockdown impacted OOH in a major way. Post-Covid, we are still not quite back to normal levels of exposure as some people’s working patterns have drastically changed.
- Radio and audio 18% : Radio use soared, with listeners now tuning in for an average of 26 hours per week versus 12 hours pre-lockdown. 90% of consumers felt that it kept them in touch with the outside world while distancing.
- Social media messaging 17%
- Internet (life admin) 7%
The remaining percentage is make up of several smaller categories of media.
With people spending more time at home, digital consumption skyrocketed. We saw a huge increase in news consumption as people were desperate to allay the uncertainty around the situation and be on top of the news.
Additionally, we were seeking to connect with our friends and families virtually; social media use was up 40%, and we saw new platforms like HouseParty emerge to help people keep in touch.
38% of consumers did more online shopping during the lockdown, which was expected to stay after the pandemic as they adopted these new habits long term.
Sustainability
As Europe’s largest advertising industry, the UK can and should lead the way in transforming our industry’s impact. Ad Net Zero was launched in late 2020 to ensure that, as an industry, we achieve real net-zero carbon emissions by 2030.
Some of Ad Net Zero’s key action points:
- Agencies committing to curtailing their operational carbon emissions to achieve net zero by 2030. This can be done by reducing travel and making greener choices with your buildings/offices.
- Reducing carbon emissions in advertising production
- The Campaign Ad Net Zero Awards to recognise work from across the industry promoting more sustainable living and building a net-zero economy
IPA Media Futures Group’s Climate Charter
A chart which aims to help members make better media buying and planning decisions. They developed a climate calculator for this, and many agencies now offer this reporting plus off-setting as part of their offering.
Greenwashing
Greenwashing is a deceptive marketing tactic that companies use to make it seem like they are more environmentally friendly than they actually are.
e.g. Ryanair came under fire from the Advertising Standards Authority (ASA) for misleading consumers, as air travel is an inherently high emissions industry.
The Advertising Standards Authority (ASA)
They have been looking to make sure that advertising resonates with people, reflecting our culture. They commissioned research that has looked at the extent to which portrayal of race or ethnicity in UK ads might reinforce adverse stereotypes and cause serious offence. In their research, they uncovered…
Reinforcement of existing stereotypes e.g. shoeing black, asian and minority ethnic groups in stereotypical roles or possessing stereotypical characteristics
Creating new stereotypes through one-dimensional depictions of BAME
Reinforcing racist attitudes and behaviours, which potentially evoke past trauma.
