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Advertising
Tom Chapmanwww.marketing101.co.ukTwitter @idlehans
Marketing Communications and Media Management
+What is Advertising ?
“Any paid form of non-personal presentation and promotion of ideas, goods or services” Kotler (1999, pg 793)
“Advertising is paid non-personal communication from an identified sponsor using mass media to persuade of influence an audience” Wells et al (1992, pg 10)
“communication via a recognisable advertisement placed in a definable advertising medium, guaranteeing delivery of an unmodified message to a specified audience in return for an agreed rate for the space or time used” Crossier (1999, pg 266)
Definitions cited by Picton & Broderick (2005, pg 594)
+ Truong & Simmons (2010, p.240)
“Harker (2008, p. 296) defines online or Internet advertising as, ‘any form of commercial content available on the internet, delivered by any channel, in any form, designed to inform customers about a product or service at any degree of depth’.
Jensen (2008) states that internet advertising consists of three primary constituents: display advertising – which includes banners, pop-ups and interstitials; search engine optimization (SEO) and search engine marketing (SEM) – including paid and unpaid SEO and SEM (e.g. Google Adwords); and, affiliate programs, where a marketer’s link (e.g. Amazon) is provided on a host’s website. A further constituent is email, paid for advertising in that most firms utilize email marketing hardware/software, and customer lists that are bought in (Merisavo & Raulas, 2004).”
2011Tom Chapman
3
+Definitions of Advertising
What about the Media?
What is Mass Media?
Define “non-personal”
Can delivery be guaranteed?
How do you define, specify and target an audience through mass messaging and communication?
Points to consider
+Benefits and Role of Advertising
Mass audience / Large coverage
Targeting
Low unit / Marginal Costs
Useful for Brand maintenance
Useful for raising awareness
Balance of adverting spend can be related to maturity of product of market
+Advertising - Purpose
“It has generally been accepted for a long time that consumers are rarely loyal to a single brand. They tend to have a ‘portfolio’ of brands (also know as a repertoire or consideration set) to which they are loyal, switching between them as they desire. This applies even to brand leaders. Under these circumstances, the task of advertising becomes more one of maintaining a brand’s position within consumers’ consideration sets.” Pickton & Broderick (2005, pg 602)
+How Advertising Works
“For most products, and especially the frequently purchased packaged goods in which much research is interested, the consumer’s mind is not a blank sheet awaiting advertising but rather already contains conscious and unconscious memories of product purchasing and usage.” Vakratsas and Ambler (1999, pg 27)
Does advertising persuade people to buy? Strong Theory A process of: cognition – affect – behaviour
Product Trial or Experience – Weak Thoery Advertising raises awareness
Vakratsas and Ambler (1999)
+Advertising Models
Market Response Models Typically relate advertising, price, and promotion measures
directly to purchasing behaviour measures such as sales and market share.
Cognitive Information Models assumes that consumer preferences are not changed by
advertising and that consumer decisions are only rational.
Pure Affect Models focus on affective responses, the familiarity and feelings
advertisements may evoke
Vakratsas and Ambler (1999)
+Advertising Models
Persuasive Hierarchy Models introduced the concept of a hierarchy of effects, that is, an
order in which things happen, with the implication that the earlier effects, being necessary preconditions, are more important
Low Involvement Hierarchy Models The main alternative to the persuasive approach is cognition ~
experience ~ affect (CEA), though "cognition" may mean no more than passing awareness in categories in which the consumer has low involvement.
Integrative Models different hierarchies of C, A, and E are assumed, depending on
the context in which advertising operates.
Hierarchy Free Models generally presents a more person-centered view of advertising,
which can be thought of as an extension of a basic reinforcement model
Vakratsas and Ambler (1999)
+Media Types
The identification of media is probably only
as limited as our imaginations allow.
“A marketing communications medium is anything that is capable of transmitting a marketing communications message to one or more people.” Pickton & Broderick (2005, pg 104)
+Media Selection
Goals Developer Goals User Goals
Audience
Scope
Physical Context
User / Sender / Receiver Context
GAS
+Goals
These are the “why” of the whole project
Developers have to define these goals so that the system developed meets these needs – for example a training system has a totally different set of goals from a system which is advertising a product or an interactive game
+Developer Goals
Branding
Increasing traffic to a site
Real advertising
Accompanying service
Entertainment
Mixing it up
+User Goals
Getting entertainment
Physically getting something
Getting information
Communicating
+Audience
Who is your audience – works in the same way as segmentation.. A very different approach is needed depending upon the characteristics of the audience e/g young versus senior citizens
Define user group needs
What is the technological experience of the target audience?
+Scope
What is the subject?
Setting boundaries smaller
Setting boundaries larger
Choosing a topic
Communicating the topic to the user
+The physical context
Public areas
Other information sources
Environment
Audio content
+The users context
Cultural context
The user group context
Different levels of experience
Different user groups
Users with accessibility problems
Existing users
+Types of AdvertisementList Some?
+
Aggregate number of user clicks on a banner ad.Ad ClicksAd Clicks
Number of times a banner ad is downloaded to a user’s browser and presumably looked at.
Ad Views Ad Views (Impressions)(Impressions)
Percentage of ad views that are clicked upon; also called “Ad Click Rate.”Click-ThroughClick-Through
Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs that a banner generates.
CPCCPC(Cost-per-click)(Cost-per-click)
Cost per thousand impressions of a banner ad. A publisher that charges £10,000 per banner and guarantees 500,000 impressions has a CPM of £20 (£10,000 divided by 500).
CPMCPM
Measurement recorded in server log files that represents each file downloaded to a browser. Since page design can include multiple files, hits are not a good guide for measuring traffic at a website.
HitHit
Number of individuals who visit a website in a specified period of time. Requires the use of registration or cookies to verify and identify unique users.
Unique UsersUnique Users
A series of requests made by an individual at one site. If no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit. A 30 minute time-out is now standard.
VisitsVisits
Internet Ad Terms
+
Step 1
Step 3
Step 2
Step 4
Step 5
Six Steps of the Communication Process
Step 6
Identify Target Audience
DetermineCommunication Objective
Develop Media Plan
Create the Message
Execute the Campaign
Evaluate the Effectiveness of the Campaign
+ Segmentation and Prioritization
E-Music Segmentation Example
Segment C
Segment I
Segment A Segment E
SegmentSegmentDD
Seg-Seg-mentmentGG
SegmentSegmentBB
Seg-Seg-ment ment FF
Seg-Seg-mentmentHH
Segment L
SegmentK
SegmentJ
18–29 30–44 45 and Older
MaleMale Female Female <50K 50K+
Meaningful Meaningful VariablesVariables
Actionable VariablesActionable Variables
Does not exist
High Priority
Medium Priority
Low Priority
Top 40 Listener
ClassicRockListener
RapListener
+
CommunicationCommunicationCriteriaCriteria
MediaMediaCriteriaCriteria
ChooseChoose Media MixMedia Mix
Tie Back ToTie Back ToOverallOverallPlanPlan
AllocateAllocateSpendingSpending
Behavioral objectives
Available spending
Customer segments
Ability to further behavioral objectives
CPM
Ability to reach target segments
Direct mail, Internet, broadcast, print, point-of-sale, etc.
Come back 360 and tie media plan back to communications plan (e.g., will this media plan drive the trial or awareness required to deliver your bottom line)
Allocation of spending across media mix elements and time periods based on relative priority
A Process for Defining Media Choice and Mix
+ Media Scheduling Patterns
Year
Constant
Periodic
Advertising period
Continuous, same intensity
Continuous, varying intensity
Intermittent, same intensity
Intermittent, varying intensity
Ads may run through-out the year or at selected times:
Within an ad period, different media schedules may be used:
+ Exploring the Levers Across the Relationship Stages
Television, iTV Magazines and
newspapers Radio Yellow pages Billboards / outdoor
AwarenessAwareness
Television, iTV Magazines and
newspapers Radio
Exploratory /Exploratory /ExpansionExpansion CommitmentCommitment
Terminate marketing
DissolutionDissolution
Banner ads Search engines Listings Classifieds
Direct mail Telemarketing
Permission e-mail
Website Personalized pages
Customer service Customer service
Sales force Sales force Sales force
Rich media ads and dynamic ad placement
Website
Permission direct mail Direct mail Telemarketing
Public relations
+UK Digital Media Mix (IAB)
2011Tom Chapman
26
+Advertising UK (IAB)
2011Tom Chapman
27
Adspend by country forecast at current prices, 2011
Media forecasts
Notes: Local currency, current prices Source: WarcExtracted from International Ad Forecast 2011/12 (July).To click through to article, use Slide Show view
year-on-year % change
Adspend Forecast by Main Media: 2010 vs 2009
Media forecastsExtracted from Adstats: Adspend in 2010.To click through to article, use Slide Show view
Source: Warc
Year-on-year change (%), top 5 markets
Consensus Forecast: Internet Advertising Expenditure
Media forecastsExtracted from Consensus Adspend Forecast – May 2010.To click through to article, use Slide Show view
Source: Warc
Current prices, y/y % change
2010 2011
Australia 13.3 12.0
Brazil 23.4 20.2
Canada 18.3 17.7
China 28.6 39.9
France 9.7 9.9
Germany 9.3 10.0
India 28.6 18.1
Italy 12.7 15.9
Japan 6.5 8.1
Russia 22.1 23.4
Spain 11.5 13.4
UK 6.6 5.6
US 10.2 13.5
Predicted US online ad spend by format, 2015
Media forecasts
Source: eMarketer, April 2011Extracted from Adstats: Online video.To click through to article, use Slide Show view
% share