PR truyền thông - Chapter 15: Advertising

Advertising Chapter 15© 2009, The McGraw-Hill Companies, Inc. All rights reserved.1CHAPTER OUTLINEDefining AdvertisingA Brief History of AdvertisingAdvertising in the Digital AgeOrganization of the Consumer Advertising IndustryProducing AdvertisingEconomicsBusiness-to-Business Advertising 2DEFINING ADVERTISINGSimple definition of advertisingNonpersonal presentation/promotion of ideas, goods, or servicesPaid for by identified sponsorThis definition has become blurryMany practitioners believe differentiating advertising from other forms of marketing is no longer useful3Functions of AdvertisingMarketingEducationEconomicReduces cost of personal selling and distributionSocial4Types of AdvertisingAdvertising can be classified in several waysTarget audience (consumer or business)Geographic focus (international, national, or local/retail)Purpose (sell a specific product/service or improve company’s image/influence public opinion)Primary or selective demandDirect or indirect action5A BRIEF HISTORY OF ADVERTISING (1 of 3)Examples date back thousands of yearsPrinting press allowed creation of new ad mediaPosters, handbills, newspaper ads (like today’s classified ads)1800s – Consumer evolutionRailroad across USUS population doubledNew communication mediaMore disposable income6A BRIEF HISTORY OF ADVERTISING (2 of 3)Magazines enabled truly national advertisingAdvertising agencies appeared1920s – radio advertising; sponsors supplied programsDepression curtailed growth in advertisingAdvertising fortunes parallel social mood of the times7A BRIEF HISTORY OF ADVERTISING (3 of 3)Contemporary advertisingCoping with technological and social changeConsumer taking more control over media choicesTraditional advertising model harder to justifyGuerilla marketing: non-traditional marketing techniquesOnline advertisingNot as effective as initially hopedBecoming more targeted, more interactive, more engagingAs Internet advertising becomes more effective, more ad dollars will be spent online8ADVERTISING IN THE DIGITAL AGEBirth of online advertising1994, HotWired web site, banner ads9Audience ControlAudience continues to take control over media choicesAvoid advertisingAdvertisers reach audiences in other waysProduct placementViral advertisingTarget search marketingBuzz marketing10New ChannelsDigital revolution opens up new advertising avenuesBlogsPodcastsCell phonesWeb sites use ads more creatively11User-Generated ContentUser-generated content popular with advertisersConsumers submit home-made commercialsNo cost to companyConsumers engage with productCan create buzz12ORGANIZATION OF THE CONSUMER ADVERTISING INDUSTRYThree main components of advertising industry13AdvertisersTwo main types of advertisersNationalRetail (local)Basic advertising activitiesPlan adsBudget fundsCoordinate across the organizationSupervise outside agencies, if usedFollow up14AgenciesIndependent business organization to develop, prepare, place advertisingAgencies can be classified by the range of services they offerFull-service agenciesMedia buying servicesCreative boutiquesThe top 5 mega-agencies are Omnicom, WPP Group, Interpublic, Publicis, Dentsu15MediaFour important dimensions vary by mediumReachFrequencySelectivityEfficiencyMust consider the inherent characteristics of each medium16PRODUCING ADVERTISINGA variety of people work to produce advertising17Departments and StaffCreative servicesAccount servicesAccount executive (AE)Marketing servicesAdministration 18The Advertising Campaign (1 of 2)Chose market strategyPositioning Select main appeal or themeTranslate theme into various media19The Advertising Campaign (2 of 2)Produce adsPrint: rough layout; comprehensive layoutTV: StoryboardWeb: splash pages, skyscraper ads, floating ads, wallpaper ads; short versions of TV adsBuy space/timeExecute/evaluate campaign20Advertising ResearchFormative researchAudience definitionAudience profilingMessage researchTracking studies21ECONOMICSWe will examine the economics of the overall industry, then look at how an ad agency makes money22Advertising Volume in Various MediaAbout $280 billion spent in US on advertising in 2006TV & newspapers account for about half the total amount spent23Agency CompensationMedia commissionsAgency chargesFees24BUSINESS-TO-BUSINESS ADVERTISINGMulti-billion dollar industry, with advertising directed at business rather than general consumersFour categoriesTradeIndustrialProfessionalAgricultural 25Consumer Versus Business-to-Business AdvertisingTarget audience much smallerProducts are technical, complex, expensiveBuyers are professional purchasing agentsBase decisions on reason and researchPersonal selling plays greater role26MediaPersonalized media are bestBusiness/trade publications account for about 60% of advertising dollarsHorizontal trade magazinesVertical trade magazinesOther selective channels also effectiveDirect mail & e-mail; trade catalogs, web sites, mass media (well-placed ads)27Appeals Business ad copy is long, fact-filled, detailed, technical, accurate, completeLittle, if any, emotional appealTestimonials, case histories, new-product news, demonstrationsSome ads use humor, warmth, creativity28