Advertising

Outdoor Advertising

2011-04-18T00:52:00.000-07:00

Out-of-Home Media

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Outdoor advertising

Transit advertising

Aerial advertising

Airplanes pulling banners, skywriting, and blimps

Low absolute cost and useful for reaching specific target markets

In-store media

Signs/Banners/Displays; Video displays; Kiosks

Approximately 2/3 of consumers’ purchase decisions are made in the store.

Some impulse categories demonstrate an 80 percent rate.

Outdoor Advertising

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Outdoor (electronic) billboards and signs

Account for about 2.3% of all advertising expenditure.

Advantages of Outdoor Advertising

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Wilde coverage of local markets.—

Frequency - The purchase cycles are typically for 30-day periods.

Geographic flexibility - Along high ways, near stores, or on mobile billboards.

Local, regional, or even national markets may be covered.

Creativity - Outdoor advertising goes beyond two dimensions.

Ability to create awareness —

Efficiency - the average CPM of outdoor is approximately ½ of radio and far less than that of TV, magazines, and newspapers.

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Effectiveness

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Outdoor advertising can have a significant effect on sales, particularly when combined with a promotion.

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35%of consumers surveyed said they had called a phone number they saw on an out-of-home ad.

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Ex. Figure 13-3.

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Production capabilities

Disadvantages of Outdoor Advertising

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Waste coverage

Limited message capabilities - Messages are limited to a few words and/or illustration.

Wearout - —People are likely to get tired of seeing the same ad every day.

Cost

Measurement problems

Image problems

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Interactive Marketing

2011-04-06T23:18:00.000-07:00

Although, very difficult to categorise, within the 4 P's of Marketing, advertising fits into the Promotional activities. Advertising share the promotional space with personal selling, sales promotional activities and public relations. The following image gives a fair idea about the position of the advertising and related concepts.

Advertising Agency

2011-04-02T04:53:00.000-07:00

What does an Advertising Agency provide ?

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Strategic planning

Creation

Production

Placement

Evaluation

A typical Ad Agency

Media houses (AORs)

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Media organisations – media buyers and planners.

They buy media space, slots on behalf of the advertisers.

They plan the media programme and the media mix

The Media Buying companies

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Group M

Mindshare

Mediacom

Media edge

Carat

Starcom

Madison media etc

Types of ad agencies

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Full service agencies – offering full range of advertising (planning, creating and producing) and other marketing communications

Creative boutiques

Brand communications consultants

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The work flow in an advertising agency

Briefing stage – from the client, internal briefing to creative and media

Creation stage – ad campaign and media plan, internal review and finalisation, presentation to client and approval, pre testing if needed

Production stage – budget and estimate approvals, production of film, press ads, collaterals etc

Media scheduling and booking, all releases approvals for creative and media

Release stage – material dispatch, media release monitoring, post testing, bill and collections

Types of Advertising

2011-03-28T08:42:00.000-07:00

Advertisements can be classified broadly in two categories:

1. For Business (B2B)

2. Consumers (B2C)

Consumer Advertising

Advertising that is aimed at individuals and families for personal use or consumption. Eg. Maruti cars, Clinic shampoo, Tropicana juice, Kingfisher airlines, ICICI bank etc.

B2C – Image Building

Builds image for the brand
Positions the brand
Sometimes repositions the brand

Retail advertising

The message is direct, hard hitting packed with facts and information to drive footfalls
The results are for short term
In most cases the advertisement messages have sales promotions, events etc
There is no brand image building

Ingredient advertising

Advertising the ingredient of a product helps push demand for the end product. Eg. Intel, Teflon, Tetrapak, Lycra etc.
The ingredient are rarely purchased by the consumer, instead they are bought as an ingredient in other products
The advertising investment is heavy and will build demand for the end product gradually
The ingredient is a new technology, new product and in many cases helps to expand the market for the category – eg Tetrapak

Direct response advertising

Directed at select target group
Advantages – flexibility, cost effective, generation of leads, solicit direct orders
Press advertisements, direct mailers, radio, tv telemarketing, web
Response mechanism – coupons, vouchers
Toll numbers

Business advertising or B2B

Aimed at businesses who buy or use products for business, for resale by business houses, companies, governments, NGOs. It could also have a non profit motive

B2B Advertising

B2B advertising is factually oriented, cut and dry and hardly has any emotional appeal.
The buying system differs from that of the consumer
Purchase decisions are made by a number of people. The purchase / buying cycle take long time with formal procedures

B2B - Industrial Advertising

Industrial advertising in aimed at manufacturers
The advertising message will carry comparative benefits, technical data
Industrial products are never purchased on impulse. The purchase decision is ratified by a technical expert
The advertising is restricted to trade publications, technical journals
Direct mail, sales literature, catalogues, newsletters, corporate films, multimedia presentations, exhibitions and trade fairs are standard advertising vehicles

B2B - Trade advertising

Advertising directed at the wholesaler or retailer or sales agencies through whom the product is sold.
Manufacturers use trade advertising to promote their product to wholesalers and retailers emphasizing product profitability.

B2B - Professional advertising

Directed at those in the profession such as architecture, medicine – those who are in the position to recommend the use of the particular product or service to their clients

Recruitment advertising

Primary objective is to to create preference in the minds of their prospect.
It builds the image for the company by conveying the values, vision and mission of the company

Online Advertising

2011-03-06T00:37:00.000-08:00

As discussed in my previous post, the changing trend in advertising has given rise to the extensive use of online advertising. So let us understand first what is online advertising and its competitive advantage over the traditional form of advertising.

Online advertising is a form of promotion which uses Internet and World Wide Web to deliver the marketing messages to its customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

Online advertising compared to that of the traditional form of advertising is considered to be an effective form of advertising as it provides the ability to target specific markets while they are surfing the Internet. Online advertising provides the benefit of customization of advertisements including content and posted websites. For example,Google AdWords , Yahoo! Search Marketing and Google AdSense enable ads to be shown on relevant web pages or alongside search results of related keywords.

Another benefit of online advertising is the efficiency of advertiser's investment along with the immediate publishing of information and content that is not limited by geography or time.

The era of internet and World Wide Web has made the emerging area of interactive advertising present fresh challenges for the advertisers.

Advertising

2011-03-05T04:28:00.000-08:00

Advertising goes way back to around 400 BC where the tradition of wall painting traced back to Indian rock art paintings was considered as a form of advertising. The history tells us that Out-of-home advertising and billboards are the oldest forms of advertising.

What is advertising?

Advertising is said to be a paid persuasive communication i.e. Advertising is the promotion of goods, services, companies and ideas, most often through paid messages. It is part of an overall marketing and promotional strategy. Promotional marketing strategies may include strategy may include publicity, public relations, personal selling, and sales promotion.

However history tells us that it was the advent of newspaper that saw the rise of advertising. French newspaper La Presse in June 1836 was the first to include paid advertising in its pages which allowed it to lower its price, extend its readership and increase its profitability. This formula was soon copied by all titles across the globe.

Changing trends in advertising

Advertising industry has seen a drastic change in the advertising trends over the past few years due to a major cultural shift occurring in how people use media for entertainment, news and information. The emergence of new media outlets has eroded the customer base for many traditional media outlets, such as newspapers and major commercial television networks.

The internet has become a major driver of this change and has given rise to online advertising.