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Advertisers: Local to Global
3-2
Explain how advertisers organize
Describe the various groups in advertising
Discuss differences between local, national and global advertisers
Today’s Objectives
3-3
Advertisers (Clients)
Agencies
Media
Suppliers
The Advertising Industry: Organizations
3-4
SalesTechnology
Research
Accounting
Marketing
Management
Law
Most are employed by advertisers, not agencies.
The Advertising Industry: People
3-5
Directed to customers in the same geographic area as the advertiser.
Independent businesses
Govt. & nonprofits
Franchisees and dealers
Chain retailers
Local Advertisers
3-6
Designated Market Area (DMA)
3-7
Charlotte DMA includes Rock Hill
3-8
Franchise/Dealer: Hendrick BMW
3-9
Chain retailers: Macy’s
3-10
Independent businesses: Morris Jenkins
Morris Jenkins
TV commercial: http://www.youtube.com/watch?v=K-rT8mP3-CA
3-11
Government /non-profit: United Way
3-12
Department structure for small advertisers with high volumes of work
Insert ex. 4-1, p. 100
Department structure for small advertisers
Position = 2.9” horiz., 1.5” vertical
Size = 4.6” TALL
Resolution = 300 dpi
Local Advertisers
3-13
Department structure for small advertisers with high volumes of work… in this economy.
Insert ex. 4-1, p. 100
Department structure for small advertisers
Position = 2.9” horiz., 1.5” vertical
Size = 4.6” TALL
Resolution = 300 dpi
Local Advertisers
3-14
Types of local advertising
Recruit employees, offer services, sell
merchandise
Classified
Regular price-line, sale or clearance
Product
Create favorable image, increase
awareness, foster goodwill
Institutional
Local Advertisers
3-15
Product
3-16
Product
3-17
Institutional
3-18
Institutional
3-19
Classified
3-20
Two key purposes
Build manufacturer’s brand image
Help distributors, dealers or retailers make more sales
Cooperative (Co-op) Advertising
3-21
Co-Op Ad
Oreck, the manufacturer, provides funds for local stores to advertise
3-22
Regional: one or several states
National: several regionsor entire country
Regional & National Advertisers
3-23
Centralized department structure
Regional & National Advertisers
The whole company or corporation shares a single marketing department
3-24
Decentralized department structure
Each major division, brand or region has its own marketing department, responsible for its own advertising
Regional & National Advertisers
3-25
Regional Advertising
Cheerwine ad: http://adsoftheworld.com/media/tv/cheerwine_bear_dance_off
Newspaper ad for Allen Tate Realtors, real estate brokerage in NC, SC
3-26
Regional Advertising
A weekly sales flyer for Giant Foods, a grocery store chain in
Maryland, Virginia and the District of Columbia
3-27
Top 10 National Advertisers, U.S. 2008
Rank CompanyAd Spending
($Billions)
1 Procter & Gamble 4.838
2 Verizon Communications 3.700
3 AT&T 3.073
4 General Motors 2.901
5 Johnson & Johnson 2.529
6 Unilever 2.423
7 Walt Disney Co. 2.218
8 Time Warner 2.207
9 General Electric 2.019
10 Sears 1.865 Source: Ad Age, adage.com
3-28
Comparison of national and local advertising
National Advertisers
3-29
National Advertisers
Mike & Mike radio commercial for SkoreIt
http://www.youtube.com/watch?v=i1I9GqnO2wI
AT&T newspaper ad
3-30
National Advertisers
Online ad (sliding billboard) for US Airways Vacations
3-31
Global Advertisers
3-32
Standardized approach in all countries
Extensive research to ensure ad is basic & universal
Centralized global structure
Global Advertisers
3-33
Decentralized international structure
Divisions have ad agencies to handle product lines
Brands within a line handled by own managers
Category managers for brand in each market
Global Advertisers
3-34
Top 10 Global Advertisers, 2009
Source: Ad Age, adage.com
Rank CompanyAd Spending
($Billions)1 Procter & Gamble 9.72
2 Unilever 5.72
3 L'Oreal 4.04
4 General Motors 3.67
5 Toyota Motor Company 3.20
6 The Coca Cola Company 2.67
7 Johnson & Johnson 2.60
8 Ford Motor Company 2.45
9 Reckitt Benckiser 2.37
10 Nestle 2.31
3-35
Source: costmetic-makeovers.com
Global Advertisers
3-36
Global Advertisers
iPad, France: http://www.youtube.com/watch?v=kJBmXTV6J20
Coca Cola, China: http://www.youtube.com/watch?v=ANfFwFqTS9o
McDonald’s, Egypt: http://www.youtube.com/watch?v=fxNacguMeWI
Pepsi, India: http://www.youtube.com/watch?v=sRcPKxlpmow
Look familiar?
3-37
Heinz ketchup ad from the Leo Burnett Group, Copenhagen
“The only American you can hit without being sued”
Global Advertisers
3-38
Source: adverbox.com
Global Advertisers
3-39
Source: adverbox.com
Global Advertisers
3-40
Global AdvertisersAriel = Tide
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